Erdal Eren, President of the Turkish Contractors Association (TMB), stated that Turkey and Iraq are collaborating on the Development Road Project, expressing their intention for Turkish contractors to undertake the entire project. Speaking to an Anadolu Agency (AA) correspondent ahead of President Recep Tayyip Erdoğan’s planned visit to Iraq on April 22, Eren evaluated the sector’s goals in this country.
Eren pointed out that Iraq, along with Saudi Arabia, is an important target country for Turkish contractors. He emphasized the significance of President Erdoğan’s visit to Iraq in this regard, mentioning their participation in the delegation. Eren explained that due to political issues in previous years, Iraq had been unable to form a government, resulting in a lack of new investments in the country. However, following the formation of the government, they, as a contracting delegation led by Trade Minister Ömer Bolat, went to Baghdad and held meetings with relevant authorities.
Highlighting significant investments awaiting realization in Iraq, with the Development Road Project being a major one, Eren mentioned that this project involves the construction of a 1200-kilometer highway and a 1200-kilometer railway network from the newly built port in the Basra Gulf to the new Ovacık Border Gate at the Turkey border. He also noted the recent issues in the Suez Canal, which allowed ships engaged in international trade to reach Europe by circumnavigating the African continent.
Eren emphasized that upon the realization of the Development Road Project, trade would be facilitated via rail and road between the Basra Gulf, Iraq, and Turkey, bringing significant economic and strategic benefits to both countries. He mentioned collaboration between the Turkish Ministry of Transport and Infrastructure and the Iraqi authorities to transfer Turkey’s experiences to Iraq for this project. Eren expressed the Turkish contractors’ readiness to undertake the entire project, citing Turkey’s successful construction of highways, bridges, and railways as evidence.
Regarding other benefits of the Development Road Project, Eren highlighted its potential to open doors to other projects in Iraq, including the construction of new cities and residential areas along its route, thus creating a vast market for the housing sector. He also anticipated the need for approximately 100 new hospitals and thousands of schools, indicating substantial opportunities for the Turkish construction sector.
Eren stated that the Development Road Project requires an estimated $5 billion in financing, mentioning discussions with the United Arab Emirates, Qatar, Saudi Arabia, and other countries to secure financing. He noted that Iraq is considering spending on infrastructure needs such as hospitals and schools, emphasizing Iraq’s significance as a major market for Turkey.
Considering recent visits by Turkish ministers to Iraq, Eren expressed optimism about Iraq’s orientation toward Turkey in both commercial and contracting aspects. He acknowledged the contraction of the Russian market, traditionally the largest market for the contracting sector, due to the Russia-Ukraine War, and expressed hope that this gap could be filled with new projects in Saudi Arabia and Iraq.
Eren mentioned that he encourages his colleagues to target Iraq and Saudi Arabia as priority countries, aiming to provide employment opportunities for Turkish engineers and workers and open new export doors for Turkish construction materials. He highlighted the need for support from the government and banks to address issues such as guarantees and credit, expressing confidence that with such support, they can advance their goals further.
source: aa.com.tr/ prepared by Melisa Beğiç