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Iraq intends to ask Chinese companies to build Al-Sadr City which is located near the capital Baghdad and comprises more than 90,000 houses within an oil-for-projects deal signed by the two countries in 2019, an official was quoted on Thursday as saying.
The government has included the project in the 2021 state budget, but it would be funded through that deal, said Sabah Mashtat, an advisor to the Prime Minister for Construction and Investment.
“Al-Sadr City project involves the construction of nearly 92,000 houses and apartments.....it has been included in the 2021 budget, but it would be funded through the agreement with China because its cost is high, ranging between $7-8 billion,” Mashtat told the official Iraqi News Agency.
He said the deal with Beijing is still standing and that several projects would be undertaken by Chinese firms in the coming period, including thousands of schools.
In Sept 2019, Baghdad and Beijing signed an agreement allowing Chinese companies to fund and execute projects in the OPEC member in exchange for crude oil.
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