Iraq to establish firm for Development Road Project
Shafaq News/ On Thursday, Iraqi Prime Minister Mohammed Shia Al-Sudani chaired a high-level meeting to discuss the establishment of a dedicated company for the Development Road project.
According to a statement by the PM’s media office, officials reviewed the latest progress on the Development Road project, addressing key operational details and the formation of a specialized company to oversee its execution. Discussions also covered obstacles affecting the railway and highway construction, both of which have completed design phases. Additional updates covered land acquisition, archaeological assessments, and demining efforts along the project's route.
The meeting also assessed the ongoing development of Al-Faw Grand Port, a cornerstone of the project, with a particular focus on critical components such as the submerged tunnel and container yard. Officials presented projections on the port’s expected revenues in the coming years, alongside deliberations on maritime service costs and insurance expenses.
Economic opportunities along the Development Road corridor were also a focal point, with officials working to identify and structure investment prospects within the project’s financial model. Additionally, discussions included plans to designate and promote investment zones along the route to attract private sector participation.
About Development Road Project
Iraq’s Development Road project is set to become a key driver of regional trade and economic growth. The project features a 1,275-kilometer (792-mile) rail and road network designed to streamline the movement of goods between Europe and the Gulf region. It will be completed in three phases, with the first set to conclude in 2028, the second in 2033, and the final phase in 2050.
The investment budget for the project is estimated at $17 billion, with $6.5 billion allocated for highways and $10.5 billion designated for an electrified railway.
The project is forecasted to create 100,000 jobs in its first phase and potentially up to one million jobs upon completion. The Development Road project envisioned as a transformative infrastructure initiative, aims to bolster Iraq’s economic connectivity by enhancing trade routes and logistics capabilities. It is anticipated to significantly reduce trade costs between China and Europe, with energy playing a crucial role due to Iraq's substantial oil reserves.
