Swiss engineering group ABB announced on Monday it had signed a contract worth $120 million (94.9 million euros) to build a power station in Iraqi Kurdistan.

Since 200,7 ABB has built three power stations in the region.

The latest deal, signed with KAR Construction and Engineering Company, involves building a central power station and two sub-stations, ABB said in a statement.

The main 640 megawatt plant will be run using natural gas from Khormala oil field, as well as light fuel oil as backup to generate power from gas turbines.

The installation is planned for completion by the end of 2013 with a view to increasing its capacity to 1,000 megawatts.

"These solutions will help build critical power infrastructure in the country to serve electricity needs and strengthen grid reliability in the region," said Brice Koch, head of the ABB Power Systems division.

ABB operates in around 100 countries and employs about 145,000 people.