Baghdad:The Ministry of Transport is working to finalize an agreement with Turkey to establish a funding mechanism for the Development Road project, based on an “oil-for-financing” model. The initial phase of the project is currently supported by a World Bank loan.

According to Iraqi News Agency, Fadhil Abbas, Director of the Projects Department at the Iraqi Republic Railways Company, stated that the Development Road project is in the design preparation stage. The initiative aims to enhance Iraq’s railway network, connecting various governorates and facilitating both passenger and freight transport. Its primary goal is to enable the transport of goods from Al-Faw Port to Turkey and further into Europe.

The agreement with Turkey will involve the creation of a fund to finance the project’s implementation by Turkish companies in exchange for oil. Abbas detailed that the first phase of the Development Road involves upgrading the railway line from Baghdad to Basra and Umm Qasr in the south, and from Baghdad to Mosul in the north. This line will connect to Al-Faw Port and the Turkish border at Fishkhabur.

Additionally, Abbas mentioned efforts to reactivate the Baghdad-Akashat railway line, which includes rehabilitation of most sections and rebuilding bridges destroyed by ISIS. The only remaining task is the awarding and signing of a contract for a small bridge, Wadi Fatm. Meanwhile, the Baghdad Metro project has been transferred to the Baghdad Municipality, which has opened it for investment opportunities. There are currently no railway sector plans for trams or the metro.