$900 million project to develop Iraq's road network by the World Bank

INA - BAGHDAD

The World Bank (WB) announced on Friday its approval of a $900 million project to improve road infrastructure in Iraq.

“The project will support economic transport corridors in Iraq through strategic investments in key road corridors that form a fundamental pillar for domestic transport, regional integration, and long-term economic growth. It will also enhance the safety and reliability of transport and open new opportunities for individuals and businesses throughout the country," the World Bank said in a statement received by the Iraqi News Agency - INA.

The statement added, "Road transport accounts for more than 90% of the total transport volume in Iraq. However, most of the country's road networks suffer from poor infrastructure and deterioration caused by climatic pressures, in addition to road safety hazards."

"While most of the road network is paved, a significant percentage is in poor condition, which restricts trade and access to services, and undermines economic opportunities. This sector is a vital source of employment opportunities, as road construction and rehabilitation contribute to job creation and support broader economic activity,” WB indicated.

WB explained that "the Economic Transport Corridors project in Iraq is based on priority investments through two strategic axes: a north-south corridor linking Baghdad to the Turkish border via the E2 highway, and an east-west corridor along the E1 highway connecting Baghdad to both Syria and Jordan. The program, in its first phase, funds the rehabilitation of key sections of the E1 highway, helps improve the efficiency of specific roads in the Kurdistan Region of Iraq, and constructs the initial section of the E2 highway. These investments combine to enhance the operational efficiency of Iraq's national road network, strengthen its resilience to climate change, and lay a solid foundation for future phases that will attract private sector capital and expand the scope of the transport corridor program. Approximately 7.9 million citizens are expected to benefit from the project, the majority of whom live along newly constructed or upgraded roads, including about 3 million women and 1.5 million young people." It further noted that "the project will benefit various regions of Iraq, from Baghdad to the Kurdistan Region and along the border crossings with Jordan, Syria, and Turkey."

The statement added that "by improving connectivity between major population centers, industrial and agricultural areas, and religious tourism destinations, the project is expected to reduce travel times and transportation costs, increase freight efficiency, and alleviate congestion on secondary and urban roads. These investments are also expected to enhance road safety, improve maintenance procedures, support economic diversification, and facilitate access to vital sectors such as tourism, agriculture, health, and manufacturing."

The World Bank's Middle East Director, Jean-Christophe Carré, emphasized that "roads are the backbone of Iraq's transportation network and key to expanding connectivity and creating employment opportunities. The Economic Transport Corridors project will help Iraq address critical infrastructure gaps," noting that "by investing in strategic economic corridors, the project will connect citizens to markets and services, enhance regional and economic integration, and contribute to more inclusive and sustainable growth."

“The project is designed as the first in a series of projects aimed at addressing the challenges facing Iraq's road sector through a phased approach to support a long-term reform and investment program. The results of the pilot activities achieved by the first project will be evaluated, and its design adjusted to guide future investments. In addition to physical investments, the project will support efforts to strengthen institutions and prepare for future activities to modernize Iraq's road sector," the statement noted.

WB underscored that, "the project will also support performance-based road maintenance contracts, create an enabling environment for sustainable partnerships with the private sector, and explore opportunities to generate income and revenue. The Roads and Bridges Department of the Ministry of Construction, Housing, Municipalities,s and Public Works will implement the project with strategic supervision from a high-level steering committee that includes key national institutions and representatives from the Kurdistan Region of Iraq.”