Iraq on Wednesday signed an agreement with an Italian firm to prepare feasibility study and design of the rail portion of one of the Middle East’s largest multimodal projects.

The Transport Ministry said in a statement that the General Company for Iraqi Railways (GCIR) inked the deal with BTP Infrastrutture for the study which covers phase 1 of the multi-billion-dollar project dubbed The Development Road.

The firm will prepare “technical and economic feasibility” and design of phase1 of the rail part of the project, which also includes a parallel motorway.

Part of the project will be funded from the 2024 budget and the rail line covered by this study will start from Faw Port, which is under construction in South Iraq.

BTP Infrastrutture, formery known as PEG Infrastrutture, was created from the separation of PROGETTI EUROPA & GLOBAL's oil and gas engineering business from its infrastructure projects business.

In a study released in 2023, the Transport Ministry estimated the cost of The Development Road at more than $17 billion and said it involves building a 1,200-km rail stretching from South Iraq to the Northern border with Turkey.

The UAE, Qatar and Turkey have agreed to be part of the project while Baghdad expects other countries and companies to join in the project. Earlier this month, Zawya Projects reported that Turkey has formed a four-nation council to extend  Development Road into Europe. 

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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