Iraq contracting foreign auditor for Development Road

ERBIL, Kurdistan Region - Iraq’s Ministry of Transport is signing a contract with an international auditor as it draws on foreign expertise for its landmark multi-billion dollar Development Road project, the minister confirmed on Friday.

 

"The ministry has worked to overcome the challenges in the Development Road project by utilizing foreign expertise," Minister Razzaq Muhaibis al-Saadawi told state media. "This project is strategic and large-scale, and is being implemented for the first time in Iraq, therefore, there is a need for foreign expertise."

 

Italian PTP company serves as the technical consultant for Iraq's major Development Road project. The ministry is now signing a contract with an auditor to review PTP’s work, according to Saadawi.

 

"This road is an integrated economic project targeting eight sectors, and there are countries interested in participating in the project," he said, adding that "there is a higher committee and an authority that will be formed to manage the Development Road project."

 

Spanning 1,200 kilometers, the $17 billion Development Road 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) because 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.

 

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.