15 years, 27% done: Iraq cancels Australian hospital contract

Shafaq News/ Iraq has terminated the contract with an Australian company responsible for building a 400-bed hospital in Diyala Province after more than a decade of delays, an informed source revealed on Thursday.

“Prime Minister Mohammed Shia Al-Sudani ordered the contract withdrawal following a special meeting,” the source told Shafaq News, adding that the government will seek to reassign the stalled project to other companies to ensure its completion.

The hospital, located in the city of Baquba, has been under construction since 2008 but has achieved only 27% completion. It was intended to feature five floors, an outpatient clinic, specialized medical departments, a 40-bed emergency ward, and other service units.

The decision follows growing frustration over project delays in Diyala. MP Salem Al-Anbaki told Shafaq News last year that “Al-Sudani, during a visit to the province, criticized poor services and warned the company over its slow progress.”

At that time, the PM’s office stressed that companies working on service and strategic projects must adhere to deadlines, warning that delays would not be tolerated.