Iraq is considering funding for the Baghdad Elevated Train project from loans arranged by France’s Alstom transport giant and Hyundai of South Korea, the country’s Transport Minister was reported on Sunday as saying. 

Nassir Al-Shibli said the Ministry’s decision to seek funds from the two firms was prompted by low budget allocations for the project of around $35 million in 2021. 

“We are holding talks with Alstom and Hyundai to get loans to fund the project...the two companies said they willing to provide these loans,” Shibli said in statements carried by Aliqtisad News and other Iraqi publications. 

Shibli described the project as a “great investment opportunity” for those two firms, adding that the Transport Ministry is considering reaching an agreement on funding before it signs the Metro contract with the two companies. 

In 2013, Alstom signed a $40-million agreement with Iraq for design studies for project , which is intended to ease traffic congestion in the capital. Officials have said the project, which involves building a 22-km rail network and 14 train substations, would cost around $2.5 billion. 

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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