Iraq Signs $147.4 Million Deal With French Agency To Improve Sanitation Systems
Iraq Signs $147.4 Million Deal With French Agency To Improve Sanitation Systems
Iraq’s Ministry of Finance has signed two funding deals with the French Development Agency (AFD) worth about $147.4 million (€130 million), according to the Iraq News Agency (INA). The money will be used to improve infrastructure by investing in important public services.
Agreement Details
Iraq has signed agreements under its international credit program to pay for two major sewer projects. These projects will help improve health and public services in areas that need them most.
The first agreement adds $34 million (€30 million) to the Khalidiya sewer project in Anbar Province, making the total funding for this project $124.7 million (€110 million). The second agreement gives $113.4 million (€100 million) for the Hamza sewer project in Diwaniya Province.
Iraq’s Finance Minister, Taif Sami, said the goal is to bring modern French technology and knowledge in wastewater treatment to Iraq. This will help improve services and protect the environment in the cities involved.
These agreements are part of a larger financial support plan from the French government to help Iraq improve its infrastructure.
The Finance Ministry said these deals show that the government is focused on borrowing money for useful and profitable projects, in line with its policy to reform and improve the economy.
Economic Growth
Iraq’s economy, excluding oil, grew by 5% in 2024 and is expected to grow by about 4% in 2025.
This growth is mainly due to strong farming activities and continued government spending, showing that parts of the economy beyond oil are becoming more important for the country’s progress.
In 2024, Iraq had a budget deficit of $3.82 billion (5 trillion dinars), which is 1.5% of its GDP—if we don’t count debt payments and overdue bills for investment and energy projects.
In November, Fitch Ratings kept Iraq’s credit rating at B- with a stable outlook. This rating shows a mix of positives and risks, such as Iraq’s reliance on oil income and ongoing political and economic problems.
Published: 7th May 2025
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