Iraq awards $18 Billion Baghdad Metro Project to European consortium to ease traffic woes

Iraq's Prime Minister Mohammed Shia al-Sudani announced the accreditation of the winning consortium for the Baghdad Metro project, a major step towards modernising the city's transportation system. This development is seen as crucial for improving urban mobility and spurring economic growth.

Decades of war and corruption have made Iraq face serious infrastructure problems, including bad roads and outdated public transportation means.  The plans for the Baghdad Metro project were first introduced in the 1980s but were postponed due to years of war and international sanctions. If implemented, this project will be the first of its kind in Iraq, marking a significant milestone in the nation's infrastructure development.

In a meeting chaired by al-Sudani, the Prime Minister's press office confirmed that the Vaskhod and Wonter Capital consortium has been awarded the contract to design, build, operate, maintain, finance, and eventually transfer ownership of the Baghdad Metro. This international consortium includes companies from France, Spain, and Turkey, supported by a German bank.

"This project is the largest strategic initiative of its kind in the region," said al-Sudani. "It is essential for a major city like Baghdad to provide world-class transportation services and keep pace with future developments."

The consortium features major players such as French groups Systra and SNCF, Spanish companies Alstom, Talgo, and SENER, and specialized Turkish construction firms, in collaboration with Deutsche Bank. The metro project will span 148 kilometers with seven lines, significantly enhancing transportation for Baghdad's population of over 8 million.

Negotiations between the Baghdad Municipality, the Investment Authority, and the consortium will begin soon to finalize the technical, financial, and execution details of the contract, following the investment opportunity outlined in the Council of Ministers' Decision No. 23374 of 2023.

The Baghdad Metro project, spanning 148 kilometers with seven lines, aims to significantly improve transportation for the capital's population, which exceeds 8 million. The project will cover most areas of Baghdad and establish connections with newly developed cities such as Al-Jawahir, Ali Al-Wardi, and New Sadr City.

Nasser Al-Asadi, the Prime Minister's transport advisor, last year told Reuters that the Baghdad Metro project would cover 85% of the capital's areas, with a total cost exceeding $18 billion. 

Al-Asadi mentioned that the metro would serve all religious sites, universities, ministries, football stadiums, and major markets. The metro will feature seven intersecting lines, with river crossings in three locations, and include 64 stations and four parking lots, each with a capacity of 10,000 cars, to alleviate inner-city congestion.

In December 2023, the Iraqi Cabinet approved the inclusion of the Baghdad Metro project in the investment budget for Baghdad's municipality, with an initial cost of 913 billion dinars (approximately $698 million). The government directed the completion of delayed projects, including the metro, and approved the preparation of designs and supervision within the investment budget.

Plans for Baghdad's metro date back to the 1980s but were postponed due to years of war and international sanctions. If executed, the metro will be the first of its kind in Iraq, marking a significant milestone in the nation's infrastructure development.