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Iraq, Turkey, Qatar, UAE sign preliminary deal for $17bn Development Road project

The project will establish a vital connection between Iraq’s Grand Faw Port in the south, renowned for its oil resources, and Turkey in the north

by Reuters

April 23, 2024

Image credit: Qatar News Agency

Iraq’s prime minister and Turkey’s president on Monday witnessed the signing of preliminary agreement between Iraq, Turkey, Qatar and UAE to cooperate on the Development Road project, a statement from the prime minister’s office said.

Iraq launched the $17bn project last year to link a major commodities port on its southern coast by rail and road to the border with Turkey.

The signing took place during Turkish President Recep Tayyip Erdogan’s highly anticipated visit to Baghdad to meet with Iraqi Prime Minister Mohammed S Al Sudani, marking the first such visit by a Turkish leader since 2011.

The Turkey-Iraq-Qatar-UAE Development Project

The Development Road project, spanning 1,200 kilometers, encompasses both road and rail infrastructure. Its primary objective is to transform Iraq into a pivotal transit hub, linking Asia and Europe.

The project will establish a vital connection between Iraq’s Grand Faw Port in the south, renowned for its oil resources, and Turkey in the north.

During Erdoğan’s brief visit, Iraqi and Turkish officials inked a total of 24 memorandums of understanding.

Addressing a joint news conference alongside Prime Minister Al Sudani, Erdoğan emphasised the significance of the agreements, framing them as integral components of a comprehensive cooperation roadmap.

Notably, Erdogan underscored the pivotal role played by the Development Road agreement.

Irak Başbakanı Muhammed Şiya es-Sudani ile Ortak Basın Toplantısıhttps://t.co/bTjVEFDOZb

— Recep Tayyip Erdoğan (@RTErdogan) April 22, 2024

Following discussions in Baghdad, Erdogan’s itinerary included a visit to Irbil, the capital of the Kurdistan Regional Government (KRG). This semi-autonomous entity governs the northern region of Iraq.

Additionally, the visit was anticipated to address the ongoing dispute surrounding oil exports from the KRG, a contentious issue that has persisted.

The Iraq-Turkey oil pipeline, previously instrumental in transporting approximately 0.5 per cent of global oil supply, has remained inactive since March 2023.

Ankara suspended oil flows following an arbitration ruling by the International Chamber of Commerce (ICC).

The cessation of oil flow through Iraq’s northern route via Turkey has resulted in substantial economic losses. The Association of the Petroleum Industry of Kurdistan (APIKUR), representing international oil companies active in the region, estimates losses exceeding $14bn for Iraq.

Presently, KRG exports traverse a pipeline to Fish-Khabur on the northern Iraqi border, entering Turkey before reaching the port of Ceyhan on the Mediterranean coast.

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