World Bank Approves $900 Million Project to Upgrade Iraq’s Road Network

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The World Bank announced on Friday that it has approved a $900 million project aimed at improving road infrastructure across Iraq and strengthening key transport corridors vital to the country’s economic development.

According to a World Bank statement, the project will support Iraq’s economic transport corridors through strategic investments in major road routes that are essential for domestic transportation, regional integration, and long-term growth. It is also expected to improve road safety and reliability while creating new opportunities for businesses and communities nationwide.

The Bank noted that road transport accounts for more than 90 per cent of Iraq’s total transport activity. However, much of the country’s road network faces challenges including ageing infrastructure, climate-related deterioration, and road safety concerns. Although the majority of roads are paved, many remain in poor condition, limiting trade, access to services, and economic opportunities.

The project, known as the Economic Transport Corridors Project, focuses on two strategic routes: a north-south corridor linking Baghdad with the Turkish border via the E2 motorway, and an east-west corridor along the E1 motorway connecting Baghdad with both Syria and Jordan.

During its first phase, the programme will finance the rehabilitation of key sections of the E1 motorway, improve selected roads within the Kurdistan Region, and support construction of the initial section of the E2 motorway. These investments are intended to enhance the efficiency of Iraq’s transport network, increase resilience to climate change, and provide a foundation for future phases aimed at attracting private-sector investment.

The World Bank estimates that approximately 7.9 million people will benefit from the project, including around 3 million women and 1.5 million young people. Beneficiaries are expected to include communities in Baghdad, the Kurdistan Region, and areas surrounding the country’s border crossings with Jordan, Syria, and Türkiye.

By improving connections between major population centres, industrial and agricultural areas, and religious tourism destinations, the project is expected to reduce travel times and transport costs, improve freight movement, and ease congestion on secondary and urban roads. It is also expected to enhance road safety, strengthen maintenance systems, support economic diversification, and improve access to sectors including tourism, agriculture, healthcare, and manufacturing.

Jean-Christophe Carré, the World Bank’s Country Director for the Middle East, said that roads form the backbone of Iraq’s transport network and are essential for expanding connectivity and creating employment opportunities. He stated that the project would help address critical infrastructure gaps while strengthening regional and economic integration and supporting more inclusive and sustainable growth.

The World Bank said the initiative is the first in a series of projects designed to address challenges facing Iraq’s road sector through a phased programme of reform and investment. Alongside infrastructure works, the project will support institutional development, modernisation efforts, performance-based road maintenance contracts, and measures aimed at encouraging sustainable private-sector participation.

Implementation of the project will be led by the Roads and Bridges Directorate within Iraq’s Ministry of Construction, Housing, Municipalities and Public Works, under the strategic supervision of a high-level steering committee that includes representatives from key national institutions and the Kurdistan Region.


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