Electricity from Mehran and Dehloran, two border cities in the western Ilam province will be sold into the eastern Iraqi provinces of Wasset and Meysan after negotiations with Iraq's interim Governing Council.
The council announced that negotiations for the purchase of electricity were being made with several neighbours including Iran, Syria and Turkey in an effort to stem growing power shortages since the fall of Saddam Hussein.
The talks with Turkey are reportedly in an advanced stage, those with Syria were moving ahead and Iran will supply power to Iraq's predominately Shiite Muslim southern provinces.
Iran and Iraq were locked in a bloody military conflict for much of the 1980's which was highlighted by Saddam Hussein's use of chemical weapons on thousands of Iranian troops.
However, since the U.S. led invasion of Iraq, basic staples such as water and power have been in short supply due to a combination of the country's depleted infrastructure and continuing sabotage.
In late July the U.S. led coalition imposed a power rationing program which supplies electricity every three hours followed by a similar period of cuts.
Iraq's current power production capacity is 3,200 megawatts compared with 4,000 megawatts before the start of the war in March, according to one coalition official.
Iraq's power sector needs a five-billion-dollar investment over five years to meet the country's needs, Iraq's US-appointed overseer Paul Bremer said at the start of July.
