Azernews.Az

By News Centre

Minister of Transport and Infrastructure Abdulkadir Uraloğlu made statements to Yeni Şafak regarding the memorandums of understanding signed last week between Turkiye and Iraq concerning the Development Road Project. Stating that the agreement reached on the Fishabur–Ovaköy connection marks a major hurdle cleared for the project, Uraloğlu said, "The memorandum forms the legal and technical foundation of the transport link between Turkiye and Iraq. Therefore, we regard the agreement we signed as one of the most critical milestones of the project."

Emphasizing that their current objective is to bring the memorandum of understanding to the field, Uraloğlu noted, "While we say, 'Let's break ground and strike the pickaxe,' the Iraqi side says, 'Let's lay the first stone.' In essence, both sides are expressing the same goal. We aim to complete the technical preparations and take the first concrete step within this year. With the border connection finalized, there is no longer any uncertainty clouding the infrastructure investments. The period ahead will focus on financing and implementation."

Highlighting that the two memorandum texts signed in Ankara constitute mutually complementary foundational steps, Uraloğlu stated: "One of these is the memorandum providing for the establishment of the link between Turkiye and Iraq via Fishabur–Ovaköy; the other is a framework memorandum on developing transport infrastructure in exchange for natural resources. One strengthens the physical link of the project, while the other reinforces its financial infrastructure. Moving forward, technical and administrative work will be conducted to put these memorandums into practice. Details regarding implementation guidelines, investment phases, technical blueprints, and financing models on a project basis will be finalized by our relevant institutions in coordination with our Iraqi counterparts."

Uraloğlu explained Turkiye's proposed model of "transport infrastructure in exchange for oil" with the following words: "Actually, this topic is not new. We were previously working on international financing models. Various financing options involving the United Arab Emirates, Qatar, Turkiye, and Iraq were evaluated. However, due to both the government change in Iraq and developments in the region, progress could not be achieved at the desired pace. During this process, we recognized that Iraq's greatest strength lies in its natural resources, and we brought back to the agenda our proposal to utilize these resources for financing transport investments. In our talks in Baghdad, we saw that the Iraqi side approached this perspective more favorably. With this model, our goal is to ensure that the project can proceed without being solely dependent on seasonal budget limitations."

Pointing out that the Fishabur–Ovaköy connection will serve as an alternative and complementary line to Habur, Uraloğlu said, "The corridor stretching from the Grand Faw Port through Mosul to Turkiye will become uninterrupted, strengthening a new logistics route extending from the Persian Gulf to Europe." Addressing the need to manage transport infrastructure holistically alongside customs processes, Uraloğlu added, "We do not view the corridor merely as a highway or a railway; we evaluate it as a unified logistics corridor encompassing customs procedures, digital systems, and border-crossing processes. This approach will shorten transit times, reduce costs, and enhance the corridor's competitiveness."

Describing the Development Road as a multimodal project that also encompasses energy and communication lines, Uraloğlu concluded his remarks by saying: "It is projected to contribute approximately $55 billion to the Turkish economy over a 10-year projection and create an average of 70,000 jobs annually. Supporting a project with such immense economic potential through a robust financial structure is of paramount importance for the future of regional trade