Iraq's $17 billion Development Road to reach design milestone in December: Official

ERBIL, Kurdistan Region - A “basic version” of the multi-billion-dollar Development Road Project will be completed by the end of December, a senior Iraqi transport ministry official told Rudaw on Monday, adding that its completion will pave the way for companies interested in participating to engage in tendering.

“The basic version of the Development Road Project will be completed by the end of this month,” ministry spokesperson Maysam al-Safi told Rudaw, adding that this will mark the final stage before “the door is opened for companies to participate in its implementation.”

The project will consist of seven phases, each to be assigned to a different company.

Spanning 1,200 kilometers, the $17 billion Development Road Project will run from Faw Port in Iraq’s southern Basra province on the Gulf to the country’s northern border with Turkey. The project includes railways and highways designed to transport goods and passengers, with the aim of positioning Iraq as a regional trade hub. It is expected to generate annual revenues of $4 billion.

Iraqi officials say the project will strengthen Iraq’s geopolitical standing, boost the national economy, and create thousands of jobs by linking the country to European markets via Turkey.

The first phase is expected to be completed by 2028, with full completion slated for 2050.

The plan, however, has raised concerns from the Kurdistan Regional Government (KRG) as the proposed route excludes major highway or railway links to the Kurdistan Region. Erbil has warned that centralizing trade routes through federal territories could weaken the Region’s control over cross-border trade and customs revenues.

In late August, a delegation from the KRG’s transport and communications ministry met with Iraqi ministers in Baghdad, formally proposing an alternative route that would incorporate more territory. Although Kurdish officials described the meeting as “positive,” it did not produce a final agreement.

KRG Transport Minister Ano Jawhar then asserted the necessity of including the Region, stating, “The Development Road Project cannot be implemented without the Kurdistan Region, because if it does not pass through the Region, it will have no other way to reach Turkiye."

However, the federal government maintained a firm stance, with Iraqi Planning Minister Mohammed Tamim insisting in late August that the project was “federal” and would remain under Baghdad’s control.

The Iraqi transport ministry subsequently signed contracts with international auditors to move forward with the existing federal plan. In late October, the Iraqi government, in partnership with the US-based consulting firm Oliver Wyman, announced a strategy to manage and finance the project through a combination of public funding and foreign investment.