Controversy surrounds Iraq's $22.5 billion consultancy contract with Italian BTP
Shafaq News/ The Iraqi government's consultancy contractwith Italy’s BTP for the operation of its old railway network has sparkedcriticism, with lawmakers alleging it masks broader financial dealings and abid to revive a terminated $22.5 billion agreement.
Deputy Chair of the Parliamentary Economic Committee, YasserAl-Husseini, revealed to Shafaq News that the old network does not require sucha contract for its operation.
Al-Husseini explained, "The investment contract wassigned for millions of dollars to provide consultancy for the re-operation ofthe railway," adding that "the Ministry of Transport labeled thecontract as the first phase of the Development Road to cover up this and othercontracts."
"The purpose of signing this investment contract is topave the way for another contract and to revive the previous agreement that wasterminated, valued at $22.5 billion," he continued.
Earlier today, the Ministry of Transport announced thesigning of a consultancy contract with BTP to provide advisory servicesregarding the first phase of the Development Road project (related to thecurrent railway system).
A statement from the ministry's media office said that theproject's first phase includes preparing technical and economic feasibilitystudies, as well as designs for rehabilitating, modernizing, and upgrading theexisting national railway network.
The statement emphasized that “this vital project is fundedthrough the 2024 investment plan, following the directives of the Cabinet. Itaims to establish a strategic and secure rail line for transporting cargoarriving via railways from the Al-Faw Grand Port, which the ministry intends tobegin operating in its first phase next year.”
The Development Road project features a 1,275-kilometer(792-mile) rail and road network designed to streamline the movement of goodsbetween Europe and the Gulf region. It is anticipated to significantly reducetrade costs between China and Europe, with energy playing a crucial role due toIraq's substantial oil reserves.
Al-Faw Grand is one of the most significant projects withinthe Development Road initiative. It is projected to have a capacity of 99million tons annually, positioning it as one of the largest ports in the Gulfand the tenth-largest worldwide.
