Iraq, Turkey Sign Deal Linking Water Projects to Oil Revenue Payments

Iraq and Turkey have signed a new agreement that ties water infrastructure development to oil revenue payments, marking a significant step in strengthening bilateral cooperation on both energy and resource management.

According to a Turkish official, the deal signed on Sunday will see Turkish firms undertake major water infrastructure projects in Iraq, which will be financed through revenue generated from Iraqi oil exports to Turkey.

A statement from the Iraqi prime minister’s office confirmed that the two countries have formalized an implementation mechanism for a water cooperation accord initially signed last year. However, specific details about the new mechanism were not disclosed.

Under the arrangement, Iraq’s government will establish a committee to oversee the execution of water infrastructure projects and invite bids from Turkish companies. Payments for these projects will be made using proceeds from Iraqi oil sales to Turkey, ensuring a mutually beneficial exchange between the two sectors.

An Iraqi water resources official revealed that the first phase of the initiative will focus on constructing three water-harvesting dams and developing three land reclamation projects aimed at improving agricultural productivity and water management.

The agreement highlights Iraq’s growing focus on sustainable water solutions amid recurring shortages and underscores Turkey’s increasing involvement in regional infrastructure and development projects.