Kurdistan Region Secures $80 Million for Two Major Road Projects in 2027 Budget Draft
The projects will upgrade key routes linking Duhok with Zakho and Sulaimani with Kirkuk, following two years of negotiations over international bank financing
ERBIL (Kurdistan24) — The Kurdistan Regional Government (KRG) has secured $80 million in international bank financing for two major road infrastructure projects, with the funding included in the draft of Iraq’s 2027 federal budget, a senior KRG official told Kurdistan24 on Wednesday.
Dr. Agrin Abdullah, Deputy Minister of Construction and Housing, said the allocation followed two years of negotiations with the Iraqi government and international banking representatives over financing for public service projects, particularly road infrastructure.
The funding will support the expansion and rehabilitation of two key highways connecting major areas of the Kurdistan Region and neighboring parts of Iraq, with the projects expected to improve transportation, road safety and regional connectivity.
The first project involves expanding and upgrading the 22-kilometer Girdashin–Suhaila road on the Duhok–Zakho route, alongside the construction of the Girdashin overpass. The project has an estimated cost of $34 million.
The second project will cover a 50-kilometer section of the Sulaimani–Kirkuk road, extending from Tasluja to Bani Maqan. It will receive $46 million in funding.
Abdullah said proposals for both projects have been prepared and that contracts with the implementing companies will follow the OPBRC model, under which contractors remain responsible for road maintenance and rehabilitation for five years after construction is completed.
As part of the preparations, representatives from the KRG and Iraqi federal Ministry of Construction and Housing met with international bank representatives and local and foreign contractors in Erbil on November 8, 9 and 10.
The meetings included discussions and seminars on international bank financing and the procedures and requirements for implementing road infrastructure projects.
The inclusion of the two projects in the draft 2027 federal budget marks a step toward securing financing for long-awaited infrastructure improvements in the Kurdistan Region.
Their implementation would upgrade two important transport corridors, facilitating the movement of passengers and goods while strengthening connections between Duhok and Zakho, and Sulaimani and Kirkuk.
Road infrastructure has remained a key development priority for the Kurdistan Region, given its importance to trade, investment, public services and links between the Region's cities and surrounding areas.
The five-year maintenance requirement under the proposed contracts is also intended to ensure that the roads remain in serviceable condition beyond the initial construction period.