$930 million approved by the World Bank for Railway Improvement in Iraq
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Neeta Mishra
- . June 26, 2025
- . Update: June 27, 2025 12:50 pm
The World Bank is providing a $930 million loan for the upgrade of Iraq’s railways, with the intention of significantly increasing trade, transport of goods and people, and adding an avenue for diversification in Iraq’s economy. The project represents an important investment to begin modernizing Iraq’s infrastructure and will allow for better connectivity within the country and to neighboring regions.
The project has earmarked efforts to rehabilitate critical railway lines, increase safety standards, and expand capacity for moving freight and passengers more efficiently. The upgrading of the railway system is forecasted to reduce transport costs, boost exports, and increase employment opportunities across the freight and logistics sectors.
A rail investment also meets Iraq’s plans for breadth in its economy, beyond oil, will reinforce trade links, and enhance connections through railways should greatly ease the movements of goods across borders and change Iraq into a central trading point in the region.
The World Bank is providing substantial funding to the project and sees an opportunity for growth and development in Iraq with their backing. The project demonstrates a commitment towards sustainable, environmentally friendly modes of transport that can underpin long term economic sustainability. The necessary planning for the railway upgrade project in Iraq has been authorized with the securing of the funding, and now stands to bring about solid change to transport in Iraq for both businesses and citizens.
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