CHICAGO (Reuters) Heavy equipment manufacturer Caterpillar Inc. may be close to landing a big order from the U.S. government for power-generation equipment in Iraq, according to an analyst’s report issued recently.

Credit Suisse First Boston analyst John McGinty wrote that Caterpillar has shipped equipment capable of generating more than 470 mW of power to Egypt. He cited Caterpillar dealers contacted as part of a quarterly survey.

"We do not know if any contract has been signed – but if the modules have been collected and are on the water, the potential is strong that it is near," McGinty wrote.

Caterpillar, based in Peoria, IL, declined to comment on any potential contracts for the rebuilding of Iraq.

"While there may be opportunities in the region, it is too early to speculate on the specific size or impact of any potential contracts for Caterpillar or our dealers," the company said in a statement.

It added, however, that the company is "well positioned" to take advantage of any opportunities that do materialize, given its diverse product line and dealer network in the region.

In his report, McGinty said the U.S. government may have requested bids for equipment capable of generating 1,400 mW of power for Iraq.

He said his Middle East contacts indicated Caterpillar may be able to provide equipment capable of generating 650 to 700 mW of power, once modules from overseas are included.

The order may be a sign that a glut of power modules, which has depressed rental prices and limited new production, is over, McGinty said.

"It ... now appears that the drag from power generation may become an accelerant instead," he wrote.

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