[Salon] Iraq unveils $17bn infrastructure project linking West Asia to Europe



https://thecradle.co/article-view/25321/iraq-unveils-17bn-infrastructure-project-linking-west-asia-to-europe

May 27, 2023

Iraq unveils $17bn infrastructure project linking West Asia to Europe

Iraqi Prime Minister Mohamed Shia al-Sudani on 27 May unveiled a $17 billion infrastructure project to link West Asia and Europe and make Iraq a regional transportation hub.

Once finished, the “Route of Development” project would run the length of the nation, reaching 1,200 kilometers from Turkiye’s northern border to the Gulf in the south.

The project was announced by Sudani during a meeting with transport ministry representatives from Iran, Jordan, Kuwait, Oman, Qatar, Saudi Arabia, Syria, Turkiye, and the UAE.

“We see this project as a pillar of a sustainable non-oil economy, a link that serves Iraq’s neighbors and the region, and a contribution to economic integration efforts,” he said.

While more negotiations are needed, the Iraqi parliament’s transport committee stated that any country that desires “will be able to carry out part of the project,” adding that the project may be finished in “three to five years.”

“The Route of Development will boost interdependence between the countries of the region,” Turkiye’s ambassador to Baghdad, Ali Riza Guney, said, without specifying what role his country will play in the initiative.

Sudani has prioritized the repair of the country’s road network as well as the upgrade of its aging energy infrastructure.

On 25 May, Iraq’s Oil Minister Hayan Abdel-Ghani announced that Saudi Aramco is seeking to invest in Iraq’s Crutch gas field and expand its capacity to 400 million cubic feet.

Additionally, in February, the Iraqi government signed an agreement with the UAE firm Crescent Petroleum to develop two gas fields in northeastern Diyala governorate to supply local power plants.

The UAE’s private upstream oil and gas company disclosed that the Gilabat-Qumar and Khashim gas fields are expected to produce seven million cubic meters within an 18-month span.

In recent months, Baghdad has bolstered its efforts to increase its relations with Gulf states. On 19 February, Iraq and Saudi Arabia signed a Memorandum of Understanding (MoU) to share sensitive intelligence and deepen security cooperation, marking the first time the two nations have signed a security pact since 1983.



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