DINAR REVALUATION REPORT: Al-Sudani Affirms Technical and Economic Requirements for Iraq's Development Road Project, 2 SEPT

Al-Sudani Affirms Technical and Economic Requirements for Iraq's Development Road Project

Iraq's Prime Minister, Mohammed S. Al-Sudani, has confirmed the necessity of meeting the technical and economic needs of the ambitious Development Road project. 1 This project aims to create a critical link between the Persian Gulf and Europe, enhancing regional economic integration and boosting non-oil sustainable economies. 2

Strategic Collaboration and Project Progress

The Development Road project, originally estimated at $17 billion, has been rebranded from the "Dry Canal" and is now envisioned as a 1,200-kilometer (745 miles) corridor connecting Al Faw in Basra province to the Turkish border in the north. 3 This corridor will traverse key Iraqi cities, including Basra, Diwaniyah, Najaf, Karbala, Baghdad, and Mosul, establishing a strategic link between Iraq and Turkey. 2

During a recent meeting, Al-Sudani emphasized to representatives of the Oliver Wyman consulting company the critical importance of addressing the technical and economic aspects of the project. 1 This underlines the government's commitment to ensuring that the project not only meets its infrastructure objectives but also delivers on its economic promise.

Stakeholder Engagement and Milestones

The project has garnered interest from various stakeholders. In April, Iraq, Turkey, Qatar, and the United Arab Emirates signed a preliminary agreement to collaborate on the project. 2 This collaboration is expected to facilitate the project's completion, which could potentially be as early as 2028. 4

Al-Sudani's meeting with Dai Houliang, chairman of China National Petroleum Corporation (CNPC), in June also hinted at the possibility of linking China's Belt and Road Initiative with Iraq's Development Road project.  5 This strategic alignment could have significant implications for regional connectivity and trade.

Overcoming Challenges

While the project holds great promise, its successful implementation requires overcoming various challenges. 3 These include securing funding, addressing legal and regulatory frameworks, and ensuring efficient execution. Al-Sudani has ordered the finalization of land expropriations necessary for the project, emphasizing the need for a coordinated approach to resolve conflicts with other ministries and provinces. 6

Conclusion

Iraq's Development Road project represents a monumental effort to integrate the region's economies and enhance its geopolitical significance. Al-Sudani's proactive stance on addressing technical and economic needs signals a commitment to realizing this vision. As the project progresses, it will be crucial to monitor how it navigates challenges and leverages strategic partnerships to achieve its ambitious goals.