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Bidding for $17 billion Iraq-Turkey road project

Bidding will commence in late 2025 for the $17 billion Iraq-Turkey road project.
By MJ Woof August 5, 2025 Read time: 2 mins
Work is progressing for the $17 billion mega project to connect South Iraq with North Turkey by road and rail – image courtesy of © Mohammed Abbas| Dreamstime.com


The bidding process for the first contract packages for the new road and rail link between Iraq and Turkey will commence in late 2025. The $17 billion Development Road project will provide a new transport connection between Basra and the nearby port of Faw on the Persian Gulf with Mesrin in North Turkey.

This key transport link will provide a connection between the Persian Gulf and Europe, via Turkey, rivalling the Suez Canal in importance. Development work at the Port of Faw, located immediately to the south of Basra, will also be carried out to boost its capacity. Stretching some 1,200km, the route will pass through 11 governates in Iraq and will include the development of 15 industrial zones. The project is being managed jointly by the Turkish Government and Iraqi Government, with the UAE Government and Qatar Government also as partners.

The work is being split into three main sections, with numerous contracts and sub-contracts envisaged. Work on the first section could be complete as early as 2029, while a preliminary schedule for the second section puts its completion date in 2029. The third and final section may not be completed until 2050 however.

The rail lines will run parallel with the new highway. The preliminary design has been completed, with the final design work underway at present. Design work for the project is being carried out by BTP Infrastrutture in Italy while Oliver Wyman in the US is the economic adviser. 

A report into the project was carried out by the Arab Gulf States Institute. The Iraqi Government has said that the project would deliver a massive and much-needed economic boost to the nation. Turkey's president Recep Tayyip Erdogan has estimated that the project could deliver an economic benefit of $50 billion to the nation.

 

 

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