Shafaq News/ The Iraqi government's consultancy contract with Italy’s BTP for the operation of its old railway network has sparked criticism, with lawmakers alleging it masks broader financial dealings and a bid to revive a terminated $22.5 billion agreement.
Deputy Chair of the Parliamentary Economic Committee, Yasser Al-Husseini, revealed to Shafaq News that the old network does not require such a contract for its operation.
Al-Husseini explained, "The investment contract was signed for millions of dollars to provide consultancy for the re-operation of the railway," adding that "the Ministry of Transport labeled the contract as the first phase of the Development Road to cover up this and other contracts."
"The purpose of signing this investment contract is to pave the way for another contract and to revive the previous agreement that was terminated, valued at $22.5 billion," he continued.
Earlier today, the Ministry of Transport announced the signing of a consultancy contract with BTP to provide advisory services regarding the first phase of the Development Road project (related to the current railway system).
A statement from the ministry's media office said that the project's first phase includes preparing technical and economic feasibility studies, as well as designs for rehabilitating, modernizing, and upgrading the existing national railway network.
The statement emphasized that “this vital project is funded through the 2024 investment plan, following the directives of the Cabinet. It aims to establish a strategic and secure rail line for transporting cargo arriving via railways from the Al-Faw Grand Port, which the ministry intends to begin operating in its first phase next year.”
The Development Road project features a 1,275-kilometer (792-mile) rail and road network designed to streamline the movement of goods between Europe and the Gulf region. It is anticipated to significantly reduce trade costs between China and Europe, with energy playing a crucial role due to Iraq's substantial oil reserves.
Al-Faw Grand is one of the most significant projects within the Development Road initiative. It is projected to have a capacity of 99 million tons annually, positioning it as one of the largest ports in the Gulf and the tenth-largest worldwide.