meed-logo

line1 line2 line3
SIGN IN / REGISTER

Iraq steps up post-war revival

13 May 2024

Latest news from Iraq’s construction and transport sectors:

> Iraq taps international consultant for Europe road
> Iraq to award metro projects by May
> Countries sign Iraq to Europe road agreement
> AD Ports signs agreement with Iraqi ports operator
> Iraq remains tough to sell
> Iraq approves new airport and steel plant projects
> Iraq confirms consultants for metro schemes

 

Recent signs of infrastructure project progress in Iraq have generated a renewed sense of optimism that certain major schemes may finally move ahead under the country’s post-war building initiatives.

Contract awards in Iraq’s construction and transport projects market reached $5bn in 2023, the highest value in the sector since 2012 and well above the average of $2.9bn over the past decade. The 2023 awards value was also a much-needed rebound from the disappointing value of just $1.4bn-worth of awards in the sector in 2022.

The sector has more generally been headed on a clear upward path, with awards averaging $3.4bn a year in the past five years (2019-23) compared to $2.4bn a year in the five years prior to that (2014-18).

Benefitting from higher oil prices and a period of relatively stable governance, Baghdad has shifted its focus to reconstructing and modernising Iraq’s deteriorating infrastructure.

The positive sentiment in the sector has been particularly buoyed by the robust 2023 budget, which outlined plans for substantial investments into transport, social infrastructure and housing initiatives.

Key infrastructure priorities for the country include advancing transport plans to capitalise on the expanding Al-Faw Port, including through the delivery of a north-to-south high-speed rail system—a proposal that has been under discussion for more than two decades.

Transport

As part of its 2023 budget, Baghdad approved 16 new projects, with an estimated value of nearly $17bn, for the development and construction of roads, bridges and overpasses in the capital. 

The schemes are part of the first package of the master plan revealed in December that included 150 projects intended to modernise and expand infrastructure, address congestion, and improve access and security in central Baghdad and inside the Green Zone.

One of the first contracts to be awarded was the $55m contract to build the Al Zafaraniyah Bridge project, which the Ministry of Construction & Housing awarded to Lebanese contractor Setraco in August 2023.

In a strong positive sign for market activity, Iraq floated tender notices in February 2024 for a combined $4bn-worth of contracts to develop the Baghdad and Najaf-Karbala metro projects on a design, build, operate, maintain, finance and transfer basis.

In April 2024, the country further advanced its infrastructure plans by signing a memorandum of understanding (MoU) with Turkiye, Qatar and the UAE to establish a framework for implementing a 1,200km-long Development Road project from Al-Faw Port to Turkiye.

While previous false starts on ambitious transport schemes such as these have eroded investor confidence in the country, there appears to be some hope that Iraq may have reached a tipping point leading to the most recent revival of projects.

One smaller, but still strategically important, transport scheme in the works is the $200m project to rehabilitate and expand Baghdad International airport, which is due to be awarded in 2025. In February, Baghdad also approved the construction of the $800m Diwaniyah International airport.

As the $5.8bn Al-Faw Grand Port masterplan – one of Iraq’s most significant ongoing projects – nears completion in 2025 after a decade of delays, it is also especially critical that new projects proceed to market.

Housing initiatives

Despite past efforts to boost supply, the housing shortfall in Iraq remains critical, with three million homes needed urgently and presenting a supply gap that is increasingly problematic for the government.

Between 2016 and 2020, Iraq reported 971 reconstruction projects, of which 718 were completed. 

Most recently, Iraq broke ground on the estimated $2bn Al-Jawahiri residential city project in Abu Ghraib, west of Baghdad. It selected East China Engineering Science & Technology Company and China National Chemical Engineering Company, in collaboration with the local Shams Al Binaa, as the main contractors for the project.

The Jawahiri project is part of a programme to construct five cities across Iraq, including Babil, Karbala, Nineveh and Anbar, to fill the country's housing shortages. 

Continuing the Iraq Housing Programme, which aims to build 3 million residential units in the form of low-rise buildings and townhouses nationwide, also remains pivotal for driving future construction activity.

Projects pipeline

Iraq has a total of around $86bn-worth of project work in planning and pre-execution across its construction and transport sectors. This is split roughly evenly between the sectors, at $43bn each.

It is hard to estimate how much of this value consists of work that will likely go ahead soon. Much of the value is still at an early stage, though $30bn-worth of construction projects and $41bn-worth of projects in the transport sector have on paper proceeded past study.

The immediate outlook for transport projects seems optimistic as the government continues to focus on economic revitalisation through expansive infrastructure initiatives.

These projects hold the potential to attract investors, stimulate local employment opportunities and generate significant revenues. The specific allocation of funds for vital metro and airport projects will also likely boost investor confidence.

There nevertheless remains a pressing need for major investments across other project sectors, including energy, utilities, construction and transport, to fully address infrastructural requirements and spur economic growth.

MEED's June 2024 market focus on Iraq also includes:

> Al Sudani struggles to maintain Iraq’s political stability
> Iraq economic revival faces headwinds
> Iraq electricity sector makes slow progress

https://image.digitalinsightresearch.in/uploads/NewsArticle/11764791/main.gif
Yasir Iqbal

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Kuwait refinery project on track for year-end completion

    23 September 2026

     

    A $65m project to replace a substation at the Mina Al-Ahmadi (MAA) refinery is on schedule to be mechanically complete before the end of the year, according to industry sources.

    The project is being executed by India’s Larsen & Toubro (L&T), which was awarded the contract in October 2024.

    One source said: “This project is approaching completion and is currently on schedule to be completed before the end of the year, although it could still see delays related to the ongoing regional conflict.”

    The client is state-owned downstream operator Kuwait National Petroleum Company (KNPC).

    Kuwait’s Ministry of Electricity, Water & Renewable Energy (MEW) is also involved in the project and will provide final approvals and sign-off.

    The scope of the project includes:

    • Construction of a substation
    • Installation of transformers
    • Installation of medium-voltage switchgear
    • Installation of low-voltage auxiliary systems
    • Installation of network protection systems
    • Installation of disconnecting switches
    • Installation of surge arrestors
    • Installation of feeder breakers and cubicles
    • Installation of low-voltage A/C and D/C equipment
    • Installation of battery banks and battery chargers
    • Installation of related relay and control panel boards
    • Installation of fire alarm and fire protection equipment
    • Installation of a SCADA system
    • Installation of cables
    • Civil works
    • Associated facilities

    The current project to replace a substation at the MAA refinery closely resembles another project tendered by KNPC more than a decade ago, which L&T also won.

    On 18 May 2015, KNPC signed a contract with L&T to build a new 240MW substation at the MAA refinery, valued at KD21.866m.

    The new substation, known as M20, was designed to replace an existing substation that was considered old and obsolete.

    Mohammed Al-Mutairi, who was KNPC’s chief executive at the time, said the substation building would be explosion-proof and use state-of-the-art control systems.

    He said the station’s capacity would increase from 180MW to 240MW, supplying most of the refinery’s electricity needs.

    Given the similarities between the two projects, L&T has been able to reuse some designs, creating efficiencies, according to industry sources.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19911319/main.jpg
    Wil Crisp
  • UAE to develop integrated waste-to-resource pilot

    23 September 2026

    Emirates Biotech and United Arab Emirates University (UAEU) have launched a pilot project in Al-Ain that could provide a model for larger waste-to-resource facilities.

    The project involves developing the UAE’s first integrated organic-waste valorisation pilot plant, which will test whether food waste and compostable packaging can be processed together to recover resources and reduce waste sent to landfill.

    Located near the UAEU campus, the 40kg-a-day facility will process organic waste to produce renewable biogas and nutrient-rich compost. The project is intended to generate technical and operating data that could support the development of larger-scale facilities.

    Emirates Biotech and UAEU will design, build and operate the pilot plant as part of a two-year research project running from August 2026 to August 2028. Installation and commissioning are expected to be completed by August 2027.

    The plant will combine anaerobic digestion and composting. Anaerobic digestion will convert the organic waste into renewable biogas, while the resulting digestate will be composted to produce nutrient-rich compost.

    A laboratory-scale assessment will also examine the potential to convert the biogas into renewable hydrogen.

    Food waste accounts for nearly 40% of daily municipal solid waste in the UAE, according to Emirates Biotech, and much of it is currently disposed of in landfills.

    The pilot will therefore assess the technical and operational feasibility of recovering value from two waste streams through a single integrated process.

    If successfully scaled, Emirates Biotech says an integrated organic-waste valorisation plant could reduce CO₂ emissions by 89% compared with landfilling.

    The project is expected to provide a scalable and modular model for converting food waste and compostable packaging into renewable biogas and compost, with the findings intended to inform the development of larger waste-to-resource facilities.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19908972/main.jpg
    Mark Dowdall
  • Contractors prepare Oxagon Highway 55 bids

    23 September 2026

     

    Contractors are preparing to submit bids on 28 September for a design-and-build contract for permanent upgrade works on Highway 55 in the kingdom’s Oxagon region.

    The first phase of the project includes constructing 14 kilometres of road, with two lanes in each direction. It also includes one bridge and three interchanges.

    The project duration is 22 months.

    Highway 55 connects the Red Sea coast with the mainland in northwestern Saudi Arabia. It is currently the only road providing north-south connectivity between Duba and the Neom region.

    MEED reported exclusively in August 2025 that contractors had submitted responses to an expression of interest notice that Neom had issued earlier that month.

    The project is expected to support cargo movement from Duba Port to other parts of the kingdom and the wider region.

    Last year, Neom tested a pilot initiative by handling a shipment that travelled from Cairo via the Port of Safaga, across the Red Sea to the Port of Neom, and then inland to Erbil, Iraq.

    In a statement, Neom said: “The shipment travelled through an intermodal corridor spanning over 900 kilometres, marking a significant milestone in the kingdom’s transformation into a regional and global logistics hub.”

    The Port of Neom is located on the Red Sea near the Arar border, a key entry point into Iraq.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19907876/main.jpg
    Yasir Iqbal
  • Lebanon sets October deadline for power generation projects

    23 September 2026

     

    Lebanon’s Electricity Regulatory Authority (ERA) has extended the deadline for private sector companies to submit expressions of interest (EoIs) for several upcoming power generation projects.

    The new deadline is 15 October. The original deadline was 30 September.

    The regulator said the extension follows “requests received from interested applicants for additional time to finalise and submit the required documentation”.

    The EoI covers up to five grid-connected solar photovoltaic projects with a combined installed capacity of 350 megawatts-peak. The projects are also expected to include battery energy storage systems with a combined capacity of 1,000 megawatt-hours. 

    The regulator is also seeking proposals for distributed dual-fired thermal power plants with net capacities ranging from 20MW to 100MW. The plants are expected to run on natural gas as the primary fuel and heavy fuel oil as a backup. 

    The ERA invited companies to submit EoIs at the beginning of August.

    On 11 August, the ERA issued its first set of clarifications following queries regarding the EoI. The clarifications confirmed that “proposed dual-fired plants should be gas-ready”, with natural-gas infrastructure planned but no implementation timeline yet available.

    The ERA also said key power purchase agreement (PPA) terms, including duration, tariff structure and indexation mechanisms, will be determined “during a future procurement process”.

    Electricity reforms

    The EoI comes as the government advances wider reforms to Lebanon’s electricity sector. On 4 September, the Higher Council for Privatisation and Partnership discussed steps to transform the state utility Electricite du Liban (EDL) into a company, including creating a new entity, transferring its assets, and taking measures to protect employees’ rights during the transition.

    The government said the restructuring aims to improve the financial sustainability of the electricity sector, recover costs and improve electricity supply. 

    On 18 September, the council discussed a draft decree to establish the new EDL company, evaluate its assets and separate its activities. However, it deferred a decision for further study.

    The ERA was established earlier this year, more than two decades after it was envisaged under Law No. 462/2002 but not implemented due to political delays. The Energy & Water Ministry and EDL previously oversaw the electricity sector.

    Lebanon’s electricity sector continues to face insufficient generation capacity, fuel supply constraints, ageing generation assets and limited grid flexibility. These challenges have led to prolonged electricity shortages and increased reliance on private diesel generation and distributed solar systems, prompting the government to seek additional private investment in new generation capacity. 

    According to the EoI document, the projects are expected to be structured as independent power producer (IPP) schemes. The competent public authority will determine any future contractual arrangements, including PPAs, under the applicable legal framework. 

    The ERA said the EoI is open to private investors, IPP operators, engineering, procurement and construction contractors, equipment suppliers and consortiums. It aims to assess market interest, identify potential generation projects, and evaluate the technical and financial capabilities of prospective developers. 

    Respondents must provide information on their technical and financial capabilities, proposed project locations, grid connection plans and relevant project experience. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19906210/main.jpg
    Mark Dowdall
  • Jedco maps next phase of Jeddah airport expansion

    22 September 2026

     

    Register for MEED’s 14-day trial access 

    Jeddah Airports Company (Jedco) has outlined plans for the next phase of expansion at King Abdulaziz International airport (KAIA) in Jeddah.

    The programme comprises six upcoming contractor packages spanning airside works, terminal upgrades and utilities as Jedco advances its long-term expansion plans.

    The opportunities include airfield rehabilitation; a five-year construction framework covering multiple workstreams and facility types; a Terminal 3A (T3A) package; Terminal 1 (T1) optimisation; a fuel farm; and Concourse C works.

    The packages cover terminal buildings and ancillary facilities, runways, taxiways and aprons, hangars, fuel systems, airside facilities, supporting infrastructure and utility networks.

    Tendering and award activity will be staggered over the next two years. Airfield rehabilitation is targeted for Q3 2026. The construction framework is scheduled for Q4 2026 and will run for five years.

    The T3A package is planned for Q1 2027 and will be delivered under an early contractor involvement contract. Local contractors are encouraged to bid as part of a joint venture with an experienced international partner.

    T1 optimisation is planned for Q4 2027, the fuel farm for Q2 2027, and Concourse C – currently the latest of the six milestones – for Q2 2028.

    The new packages add detail to Jedco’s wider expansion plans disclosed in 2023, when it was reported that the company would invest SR115bn ($31bn) to increase KAIA’s capacity to 114 million passengers a year, with an overall completion target of 2031.

    Jedco has recently awarded several significant contracts linked to the airport’s upgrade programme.

    In November 2024, a joint venture of local Algihaz Contracting and Turkey’s TAV was awarded a contract to rehabilitate the South Terminal to serve Umrah and Hajj pilgrims, with Singapore’s Surbana Jurong acting as consultant.

    Earlier that year, Jedco also awarded France’s Alstom a contract to increase the capacity of the Innovia automated people mover at Terminal 1, including new cars and upgrades to signalling, communications and controls.

    Surbana Jurong is expected to play a leading role in future KAIA expansion plans and is currently providing technical advisory and project management consultancy for more than 100 capital projects for Jedco, valued at over SR6bn ($1.6bn).

    These upgrades are expected to boost KAIA’s annual capacity in line with Saudi Arabia’s Vision 2030 and National Aviation Strategy, enhancing the experience for domestic travellers and millions of Hajj and Umrah pilgrims.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19877992/main.jpg
    Yasir Iqbal