The project aims to modernize key highways linking Iraq and the Kurdistan Region with Turkey, Jordan, and Syria
The World Bank has approved a $900 million funding package to support the development of Iraq’s major transit and trade corridors, including strategic routes in the Kurdistan Region. The initiative is designed to strengthen regional connectivity and facilitate the movement of goods between Iraq, the Kurdistan Region, Turkey, Jordan, and Syria.
The investment comes as Iraq seeks to modernize an aging road network that carries the vast majority of the country’s trade. More than 90 percent of domestic transportation depends on road infrastructure, yet many major highways have suffered from decades of underinvestment and deterioration.
According to Iraqi authorities, the project will focus on two strategic routes. Highway E2 will connect southern Iraq to Baghdad and continue north toward Turkey, while Highway E1 will link eastern and western Iraq, connecting Baghdad with Syria and Jordan.
Officials believe the project will improve transportation efficiency, reduce travel times, enhance road safety, and encourage investment along the highways. An estimated eight million people living near the routes in Iraq and the Kurdistan Region are expected to benefit from the initiative.
The first phase includes the rehabilitation and construction of sections of the E1 highway, while funding will also be directed toward developing key roads in the Kurdistan Region and advancing the initial stage of the E2 corridor.
Jean-Christophe Carret, the World Bank’s Regional Director, described the project as a significant step toward addressing infrastructure challenges and connecting Iraqi cities with regional and international markets.
Implementation will be overseen by Iraq’s Roads and Bridges Department, with monitoring from a joint committee representing federal institutions and the Kurdistan Region.
The project is expected to complement ongoing infrastructure development in the Kurdistan Region, where major investments have already improved transportation networks. Among the most notable projects is the Hamilton Road corridor connecting Erbil and Haji Omeran, which has significantly enhanced access to the border region and remains a key component of future trade connectivity plans.