Iraq has awarded phase 1 of the 60,000-house Sadr city project in the capital Baghdad to Chinese companies as part of a landmark oil-for-projects pact signed by the two countries five years ago, according to an official statement.

Phase 1 of the 3-stage project includes the construction of 2,000 houses and the infrastructure for 11,000 units, which will be funded through that pact, the statement by the Iraqi Prime Minister’s office said on Wednesday.

Prime Minister Mohammed Al-Sudani said after heading a meeting to discuss the project that a number of companies would be pre-qualified shortly for a consultancy contract to oversee the execution of Iraq’s second largest residential project.

The statement quoted Sudani as saying the Sadr city project also includes the construction of a power and water treatment station and that the Planning Ministry would seek funding for this project.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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