World Bank Approves $900 Million Iraq Roads Package Linking Baghdad to Türkiye Border

By Bosphorus News Geopolitics Desk

The World Bank has approved a $900 million financing package to improve Iraq's road connectivity, including a strategic north-south corridor linking Baghdad to the Türkiye border.

The financing was approved by the World Bank Board of Executive Directors on June 4, 2026, under the Iraq Transport Economic Corridors Project, known as ITREC. The World Bank said the project will address infrastructure gaps in Iraq's road sector, support job creation and strengthen regional economic integration.

The project will focus on two major expressway corridors. Expressway 2, or E2, connects Baghdad to the Türkiye border on a north-south axis. Expressway 1, or E1, links Baghdad to Syria and Jordan on an east-west axis. The first phase will finance selected sections of E1, selected roads in the Kurdistan Region of Iraq and the first section of E2.

According to the World Bank, more than 90 percent of Iraq's transport activity depends on roads, while large parts of the network face deterioration, climate pressure and road safety risks. The project is expected to benefit 7.9 million people, including about 3 million women and 1.5 million young people.

The Türkiye link gives the project wider regional importance. Türkiye's Ministry of Transport and Infrastructure defines the Development Road as a corridor running from Iraq's Faw Port to Ovaköy and onward to Europe, with planned road and rail links across Iraq and Türkiye. The ministry has also said Türkiye plans a Şanlıurfa-Ovaköy highway connection as part of the route.

The World Bank announcement does not describe ITREC as direct financing for the Development Road. But by upgrading the Baghdad-Türkiye border axis, the project adds institutional and financial weight to Iraq's broader transport corridor agenda.