On June 5, 2026, the World Bank’s Board of Executive Directors greenlighted a significant financing package of $900 million aimed at bolstering Iraq’s road infrastructure. This initiative, known as the Iraq Transport Economic Corridors (ITREC) project, is designed to enhance travel safety and reliability while creating a myriad of opportunities for individuals and businesses across the nation.
Transforming Iraq’s Road Network
In Iraq, road transport constitutes over 90 percent of all transportation activities. However, much of the road network remains underdeveloped and susceptible to deterioration due to climate impacts and safety risks. While many roads are paved, a significant portion is estimated to be in moderate to poor condition, which hampers trade, access to essential services, and economic development. Additionally, the road sector plays a crucial role in generating employment, as road construction and rehabilitation projects create jobs and stimulate the broader economy.
The ITREC initiative will prioritize critical investments along two primary corridors: a north-south route connecting Baghdad to the Turkish border via Expressway 2 (E2) and an east-west corridor along Expressway 1 (E1) which links Baghdad with Syria and Jordan. The initial phase of this program will focus on rehabilitating vital sections of E1, upgrading selected roads in the Kurdistan Region, and constructing an initial segment of E2. These targeted investments aim to enhance the functionality and climate resilience of Iraq’s national road network, laying a solid foundation for future phases that can attract private capital and broaden the transport corridor agenda.
Benefits for Millions
An estimated 7.9 million people residing along the newly improved roadways are set to benefit from the ITREC project, with around 3 million being women and 1.5 million youths. The advantages will extend across various regions of Iraq, including Baghdad, the Kurdistan Region, and along cross-border transport routes with Jordan, Syria, and Türkiye. By improving connectivity between major population hubs, industrial areas, agricultural sectors, and religious tourism sites, the project is expected to lower travel times and transport expenses, enhance freight efficiency, and alleviate traffic congestion on secondary and urban roads. In addition, it aims to boost road safety, improve maintenance practices, and foster economic diversification in areas such as tourism, agriculture, health, and manufacturing.
“The roads are fundamental to Iraq’s transport framework and pivotal for enhancing connectivity and job creation,” stated Jean-Christophe Carret, Director of the World Bank Middle East Division. “The ITREC project will facilitate vital infrastructure improvements. By focusing on strategic economic corridors, it will link people to markets and services, bolster regional and economic integration, and contribute to inclusive, sustainable growth.”
A Long-Term Vision for Iraq’s Road Sector
The ITREC Project is designed to be the first in a sequence of initiatives focused on addressing challenges in Iraq’s road sector through a gradual and comprehensive reform and investment strategy. Pilot activities undertaken in the initial project phase will be assessed and refined to inform subsequent investments.
Beyond the physical infrastructure investments, the project will also facilitate institutional strengthening and prepare for future endeavors to modernize Iraq’s road sector. This includes developing improved road safety practices, climate-resilient asset management, and reforms in the transport sector aimed at refining planning, financing, and sustainability. Additionally, the initiative will promote performance-based road maintenance contracts and create favorable conditions for sustainable partnerships with the private sector while exploring revenue-generating opportunities. The Roads and Bridges Directorate, under the Ministry of Construction, Housing, and Public Municipalities, will oversee project implementation with strategic guidance from a high-level steering committee comprising key national institutions and representatives from the Kurdistan Region.