By John Lee.
Iraq's Minister of Finance, Taif Sami Mohammed, signed an agreement with the Austrian ambassador to Baghdad to secure a €262.16 million [$291 million] loan from Austria's Erste Group Bank. The loan will fund the development of pivot irrigation systems for the Ministry of Agriculture, with Austrian company Bauer leading the project's execution.
The agreement, aligned with Iraq's national strategy to enhance infrastructure and public services, aims to revitalize the agricultural sector, mitigate water shortages, stimulate economic growth, and create job opportunities. The loan is part of Iraq's broader approach to secure external financing for investment projects with economic benefits, as outlined in the 2023-2025 budget and Cabinet Decision No. 24630 of 2024.
Minister Sami emphasized the importance of this agreement in strengthening economic cooperation between Iraq and Austria, with expectations for more joint projects in the future. Bauer will provide technical and consultancy support to Iraq's Ministry of Agriculture throughout the project's lifecycle, covering design, implementation, operation, and maintenance.
This project is seen as a vital step toward modernizing Iraq's agricultural sector, especially in light of water scarcity and climate change challenges. It is expected to yield significant long-term economic benefits by increasing agricultural output and reducing reliance on imports.
(Source: Ministry of Finance)
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