As an answer to frequent power outages in Baghdad, the Iraqi Electricity Ministry has granted a critical power plant contract to Iran. The infrastructure deal has caused concern in Washington that Iran will use the project to further penetrate Iraq with its intelligence and spy forces.

The Iranians will build a 160-megawatt plant in Sadr City, inside Baghdad, provide inexpensive electricity from the Iranian grid to southern Iraq, and build a power plant between Karbala and Najaf.

The Iraqi government has also awarded a contract for a $940 million, 1,300-megawatt plant to China.

One U.S. military official said that the military was concerned about any Iranian foray into Iraq.

“We are of course carefully watching Iran’s overall presence in Iraq. As you know, it’s not always what it appears. Their Quds force routinely uses the cover of a business to mask their real purpose as an intelligence operative,” the official said, referring to an elite unit used by Tehran to destabilize Iraq.

According to the New York Times, an international energy expert involved in Iraq’s electricity sector said he believed the Sadr City plant was originally Iran’s idea, and came to fruition despite initial disinterest from Iraq’s Electricity Ministry. Iraq’s Commission on Public Integrity, responsible for probing corruption, has already indicated it will look into the matter, according to the same source.

Iran’s influence in Iraq has burgeoned since America overthrew the dictatorship of Saddam Hussein; Iranian mullahs are mentors to many of Iraq’s Shiite leaders, some of whom lead Iraqi terrorist organizations. Iran has been a key facilitator of many of the weapons, intelligence and even militants themselves, flowing into Iraq.

The point is, Iran already wields massive influence over Iraqi politics, as well as national security.

Giving Iranian companies the opportunity to build key infrastructure will only serve to extend Iran’s presence inside Iraq and enhance its ability to counter efforts to construct a stable, pro-Western government in Baghdad. These latest developments will only strengthen Iran in its role as the king of the south.