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Iraq is preparing tenders to invite international companies to oversee a sweeping plan to move large industries out of capital Baghdad with the aim of improving the quality of life in the city, an official of Baghdad Municipality said.
The municipality’s official spokesperson Udai Al-Jundail said a “comprehensive plan” has been devised to move key industrial and commercial facilities out of the capital, including one of oldest oil refineries in the country. This was originally built on Baghdad’s outskirts but is now surrounded by dense residential areas following decades of urban expansion.
“The plan will address the issue of industrial facilities within the capital, including factories and oil refineries besides power plants, and any other major industrial or commercial activity,” Al-Jundail was quoted as saying by the local press.
“These facilities and factories were previously located on the outskirts of Baghdad, but urban expansion has now placed them within the capital's urban area, necessitating fundamental planning and environmental solutions,” he added.
The plan is to be ratified by both the cabinet and parliament, Al-Jundail said, adding that it would be binding for all companies and ministries.
“Tenders for the project will be issued to international companies with relevant experience to oversee the process,” he said without mentioning when tenders would be issued.
Iraqi experts said they believe the move would foster diversification, reduce pressure on Baghdad and boost sectors like farming, food processing and pharmaceuticals.
“This plan has been on the cards for a long time. I think it has become necessary as part of economic reforms which involve attracting investment and diversification to reduce reliance on oil,” said Nabil Al-Marsoumi, a well-known Iraq writer and university professor.
Iraq in 2025 revealed plans to dismantle Daura refinery and moving it outside the capital Baghdad for environmental reasons.
“This is a very old refinery despite continuous updating and development projects,” said Baha Al-Nouri, a member of parliament.
“The proposal submitted to the government to move the refinery to a location outside Baghdad poses a big challenge because it could cost $3 billion to $4 billion and the equipment could sustain damage during the process,” he said.
(Writing by N Saeed; Editing by Anoop Menon)
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