THE US Government has awarded a North-East power company a $43m contract to help restore Iraq's electricity supply.

The recent conflict left the country's power grid severely damaged and experts from PB Power (PBP), in Newcastle, have been called in to mastermind its reconstruction.

Working with US company Parsons E&C in a joint venture called the Iraq Power Alliance, PBP will provide programme management for the project.

It is estimated that the cost of rebuilding, expanding and modernising Iraq's electric power system will be $1.5bn in the first year.

Tim Matthews, managing director of PBP's parent group Parsons Brinckerhoff Ltd, said: "A reliable electrical power supply is the catalyst for all other infrastructure improvements in Iraq.

"By rapidly restoring and expanding the electricity generation and transmission systems, we can improve the fundamental quality of life of every Iraqi citizen."

The contract was one of seven awarded by the US Department of Defense under the Program Management Office (PMO).

The PMO is in charge of an $18.4bn budget established by the US Congress to support reconstruction work in the country.

It will involve PBP working with Iraqi government ministries

PBP, which employs 300 people in Newcastle, has carried out a number of contracts in the Middle East during the past 40 years.