OPEC member Iraq has asked the International Finance Corporation (IFC), a member of the World Bank Group, to help secure funding for the long-delayed Baghdad Metro project after previous investment proposals did not materialise given its high costs.

The metro, Iraq’s first, has been on the cards for many years despite the completion of a $50 million feasibility study by France’s transport giant Alstom.

Iraq’s cabinet had rejected several investment proposals presented by the finance and transport ministries and is now opting for public-private partnership model (PPP).

IFC was the lead transaction advisor to the Iraqi government for the Baghdad Airport PPP project, which was awarded to the CAAP–Amwaj consortium in October 2025.

Baghdad municipality officials briefed caretaker Prime Minister Mohamed Al-Sudani on recent talks with the IFC on the metro project, Sudani’s information office said on its website.

Al-Sudani said during a meeting with Baghdad officials last week that there is a need to develop a comprehensive vision for the Baghdad metro system, encompassing technical and engineering aspects.

“This vision will enable the IFC to provide a comprehensive, long-term plan for metro routes, implementation, and subsequent development, addressing the transportation needs of a major city like Baghdad,” the statement said.

"Al-Sudani directed the continuation of studies and a thorough examination of all aspects and requirements of this massive service project,” it added.

In January 2025, Zawya Projects had reported that Iraq is moving to redesign the Baghdad Metro project as an integrated public transport network that combines ground-level, elevated and underground routes. 

The government plans to procure the project under a PPP framework, supported by a 30-year concession agreement to ease pressure on public finances, Al-Sudani’s adviser for investment Mohammed Al-Najjar had said.

In July last year, Iraq said it was reassessing the financial framework for the project after previous proposals were rejected.

In February 2024, Iraq's National Investment Commission (NIC) had initiated the tendering process for the Baghdad Metro and Phase 1 of Najaf-Karbala railway under the PPP model.

(Writing by N Saeed; Editing by Anoop Menon) 

(anoop.menon@lseg.com)

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