KRG announces $420mn in infrastructure spending

ERBIL, Kurdistan Region — The Kurdistan Regional Government (KRG) is planning a massive, region-wide infrastructure investment to improve basic transportation and services, Prime Minister Masrour Barzani announced on Twitter Thursday.

The government will spend 500 billion dinars ($420m) “creating the foundations for a stronger, more prosperous Kurdistan,” he tweeted. The funds are to be primarily directed towards “roads, silos, electricity lines and water pipelines across the nation,” he added.

After laying the foundation stone for a new underpass on Duhok’s Barzan Street, Barzani told reporters: “Roads and bridges are among those things that can help the development of Kurdistan Region’s infrastructure.” 

The KRG will do its best to finish these projects “as soon as possible” and to expand such “strategic projects” to all parts of the Kurdistan Region, he said.

“We plan to mostly implement projects that are in the service of our people. It is true that these projects are significant in prospering Kurdistan’s infrastructure and enhancing the economy, but they will also create job opportunities for thousands of people in Kurdistan.”

He urged the private sector to support the government’s work.

Developing infrastructure is a focus for the Region’s provincial governors. Speaking to Rudaw in January, Duhok Governor Farhad Atroushi said he planned to improve roads between his province and the rest of the Kurdistan Region, an issue that was echoed by Halabja Governor Azad Tofiq, who described the local roads as being in a “miserable state.”

Poor infrastructure has compounded natural disasters in the region, with northern villages completely isolated in a spate of floods last autumn.

Hundreds of infrastructure projects were put on hold for years because of the financial crisis caused by the war against Islamic State (ISIS), a refugee crisis, falling oil prices, and a budget dispute with Baghdad. More than 2,000 initiatives were halted due to the budget and financial constraints, according to Erbil governor Nawzad Hadi.

The loss of Kirkuk to Iraqi forces in 2017 dealt a further blow to the region, leading to a 40% loss in oil revenue overnight, stalling the salaries of public service workers across the KRI.

Improved relations between Erbil and Baghdad have contributed to getting construction crews back to work over the past year, with Erbil’s 120 meter ring road to open to traffic in December alongside the start of construction on the 150 meter road, a project costing $131 million.