Iraq and Turkey Sign Deal to Fund Water Projects Through Oil Revenues

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Iraq and Turkey have signed a new agreement under which Turkish companies will carry out major water infrastructure projects in Iraq — financed through revenues from Iraqi oil sales, a Turkish official confirmed on Sunday.

According to the Iraqi Prime Minister’s Office, the deal establishes an implementation mechanism for last year’s water cooperation framework, though further details were not disclosed.

Under the agreement, Iraq will set up a special committee to oversee water-related infrastructure projects and invite Turkish firms to submit bids. Payments for the projects will be made directly from Iraqi oil revenues sold to Turkey, the official added.

The first batch of projects includes the construction of three water dams and three land reclamation initiatives, according to an Iraqi source cited by Reuters.

The framework agreement was initially signed in April 2024 during Turkish President Recep Tayyip Erdoğan’s visit to Baghdad, marking a new phase in relations between the two neighbors after years of strained ties.

Water resources have long been a sensitive issue for Iraq, as around 70% of its water supply originates from neighboring countries — primarily through the Tigris and Euphrates rivers flowing from Turkey.