Washington — June 5, 2026 — The World Bank Board of Executive Directors has approved a US$900 million financing package for the Iraq Transport Economic Corridors (ITREC) Project, designed to modernize Iraq’s road infrastructure, improve safety, and boost economic opportunities nationwide.
Road transport accounts for more than 90% of Iraq’s transportation activity, yet much of the network remains in poor condition, limiting trade, access to services, and economic growth. The ITREC project will invest in two strategic corridors: Expressway 2 (E2), linking Baghdad to Türkiye, and Expressway 1 (E1), connecting Baghdad with Syria and Jordan. The first phase will rehabilitate key segments of E1, upgrade roads in the Kurdistan Region, and construct an initial section of E2.
The program is expected to benefit 7.9 million people, including 3 million women and 1.5 million youth, by reducing travel times, lowering transport costs, and easing congestion. It will also strengthen road safety, improve maintenance practices, and support economic diversification in sectors such as tourism, agriculture, health, and manufacturing.
World Bank Middle East Division Director Jean-Christophe Carret emphasized the project’s importance: “Roads are the backbone of Iraq’s transport system and key to broader connectivity and job creation. By investing in strategic economic corridors, the project will connect people to markets and services, strengthen regional integration, and contribute to more inclusive and sustainable growth.”
Beyond physical investments, ITREC will support institutional reforms, climate-resilient asset management, and performance-based road maintenance contracts. It will also create an enabling environment for public-private partnerships and explore revenue-generating opportunities to ensure long-term sustainability.
The project will be implemented by the Roads and Bridges Directorate under the Ministry of Construction, Housing, and Public Municipalities, with oversight from a high-level steering committee that includes national institutions and representatives from the Kurdistan Region of Iraq.
