Baghdad: The World Bank has approved a USD 930 million fund to help improve Iraq's railway performance, in addition to boosting domestic trade, creating jobs, and diversifying the economy, it said on Wednesday. Known as the Iraq Development Road, the project aims to transform Iraq into a pivotal transport hub by connecting the Gulf Arab region through Iraq to the Turkish border, which will be instrumental in reducing travel time and increasing freight volumes, according to a World Bank statement.
According to Kuwait News Agency, the project also aims to develop railway infrastructure and services between Umm Qasr Port in southern Iraq and Mosul in the north, at a time when Iraq's rail sector suffers from limited connectivity, disrepair, and underfunding. More investment in this area is seen as an essential first step toward enhancing both national and regional connectivity, added the statement.
As Iraq shifts from reconstruction to development, enhanced trade and connectivity can "stimulate growth, create jobs, and reduce oil dependency," said Jean-Christophe Carret, World Bank Middle East Division Director. He underlined the project's goal of transforming Iraq into a regional transport hub, improving connectivity, and fostering economic diversification.
On the intricacies of the railway project, Carret mentioned that it will also include technical assistance to improve the institutional and corporate performance of the Iraqi Republic Railways. This includes developing a railway sector reform action plan and identifying opportunities for private sector involvement, while also focusing on staff training and encouraging women's participation in the rail sector.
Looking ahead to when the project comes to fruition by the year 2037, Carret expects the revived railway line to carry 6.3 million tons of domestic freight, 1.1 million tons of exports/imports, and 2.85 million passengers, benefiting some 17 million people, as added by the World Bank official.