ERBIL, Kurdistan Region - The Iraqi government, partnered with US-based consulting firm Oliver Wyman, has developed a plan to manage and finance the Development Road Project, including both public funding and foreign investment, a senior Iraqi official said on Friday.
The roadmap they developed, “analyzes investment opportunities and presents them in a way that draws the attention of global investors,” Nasser al-Asadi, advisor to the Iraqi prime minister for transport affairs, told the Iraqi News Agency.
He explained that the project will use a dual financing system, combining direct government funding with foreign investment. The two funding sources will separately finance underground infrastructure and above-ground elements.
Asadi said the state owns the infrastructure, which will be entirely financed by the government with a dedicated five-year budget. Investment in above-ground elements - such as trains, roads, industrial and economic zones along the route, plus operational and support services - will be the primary focus for attracting external funding.
Spanning 1,200 kilometers, the $17 billion Development Road Project will run from Basra’s Faw Port on the Persian Gulf to Iraq’s northern border with Turkey. It will include railways and highways designed to transport both goods and passengers, aiming to position Iraq as a regional trade hub.
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 has sparked concerns from the Kurdistan Regional Government (KRG), which noted that the current route does not include major highway or railway connections 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.
A delegation from the KRG Ministry of Transport and Communications met with Iraqi ministers in Baghdad in late August to discuss possible modifications to involve the Region more directly in the project.
Oliver Wyman, the American consulting firm, specializes in strategy and operations, assisting clients in managing complex infrastructure and investment initiatives worldwide.
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