International
Iraq transportation project receives $900 million from World Bank
Seetao 2026-08-12 15:11
  • The World Bank approves $900 million to support the Iraq Transport Economic Corridor project
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The construction of transportation infrastructure in Iraq has brought significant benefits. The World Bank Group has officially approved a $900 million financing plan for the Iraq Transportation Economic Corridor project. In Baghdad, the two expressways on the planning drawings are about to become reality from the blueprint - one is going north to the border of Türkiye, and the other is going west to connect Syria and Jordan. Road transportation accounts for over 90% of Iraq's transportation activities, but the majority of the road network is in poor condition, which hinders trade circulation and economic development. This funding will connect the economic lifeline of this war-torn country.

Two major corridors connect the Three Kingdoms

The project is composed of two parts. One is to build a north-south corridor connecting Baghdad to the border of Türkiye using Highway 2, and the other is to build an east-west corridor connecting Baghdad to Syria and Jordan along Highway 1. The first phase of funding will be used to repair some sections of Highway 1, upgrade some roads in the Kurdistan region of Iraq, and construct the initial section of Highway 2. The project aims to improve the operational performance and climate resilience of the national highway network, and lay the foundation for attracting private capital in the later stages. The project will be implemented by the Road and Bridge Management Bureau under the Ministry of Construction, Housing and Public Works of Iraq.

79% of residents benefit

According to the World Bank, road transportation accounts for over 90% of Iraq's transportation activities, but although most of the road network has been paved with asphalt, its condition is mostly moderate to poor, which restricts trade circulation, service access, and economic activities. It is expected that the project will benefit approximately 7.9 million residents along the route. In addition to physical engineering, the project also includes institutional strengthening components, covering road safety practices, climate resilience asset management, and industry reforms related to planning, financing, and long-term sustainability. The project will also support the promotion of performance-based highway maintenance contracts and create conditions for private sector cooperation and revenue generation. Keywords: infrastructure news and information, transportation

The first launch of a series of projects

The Iraq Transportation Economic Corridor is designed as the first project in a series of road projects planned for Iraq. The World Bank stated that the project will lay the foundation for the later stages of attracting private capital. By improving the operational performance and climate resilience of the national road network, Iraq will gradually build a modern road network that connects its major cities and radiates to surrounding countries. This project is not only a one-time road repair, but also the starting point of systematic reform in Iraq's transportation sector, covering comprehensive institutional capacity building from planning, financing to long-term sustainability. With the gradual connection of the two major corridors, Iraq is expected to become a land transportation hub connecting the east and west again.Editor/Gao Xue

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