Construction is under way for the 400 kilometre road project linking Baghdad, Iraq’s capital, to Jordan.

According to sources familiar with the project, the negotiated public-private partnership (PPP) contract was awarded to a contractor in 2017. MEED understands large multinational financial organisations are providing funding for the project.

Construction work is expected to be completed by 2020.

It is estimated that road construction projects in Iraq cost $1m per kilometre for the upgrade of an existing road network and $3m per kilometre for new roads.

MEED estimates the base budget for the 400km Baghdad-Jordan crossing at $1bn, although actual cost is likely to be considerably higher, given the additional security required for the construction work.

It is understood the route is one of several major road projects planned by the Iraqi government. The others include a land crossing linking Baghdad with neighbours Iran and Turkey, through Kurdistan, as well as to the south of the country.

Iraq’s National Investment Commission (NIC) included several road projects in the list of large- and medium-sized projects available for private sector investment.

The primary road projects being offered as PPPs include:

Other smaller-scale projects include the rehabilitation of the 25km Bismaya-Baghdad-Mohamed al-Qasim highway.