Baghdad activates financing for Iraq-Turkiye water projects

Shafaq News- Baghdad

Iraq's Council of Ministers on Saturday approved the activation of the Iraq-Turkiye Framework Agreement on Water, authorizing the financing mechanism for projects under the accord to take effect from September 1, 2026.

The decision was approved during the cabinet's regular session chaired by Prime Minister Ali Al-Zaidi, according to a statement from the prime minister's media office.

Late last year, Baghdad and Ankara finalized an accord pledging substantial investment in the water sector. It established a financial mechanism linking Iraq’s oil exports to Turkiye with funding for water infrastructure projects in Iraq. Under the arrangement, revenues were to be deposited into a dedicated account to finance projects implemented by Turkish companies.

Read more: Iraq bets on new Turkiye deal to ease drought crisis

Iraq’s water crisis remains a strategic threat despite a relative rise in water levels after recent rainfall, with southern provinces still facing drought-driven displacement and agricultural decline. Iraq is among the five countries most vulnerable to climate change, according to UN assessments. Official data also shows the country loses about 10,000 hectares to desertification each year, while water shortages have cut farmland by 50%.

Read more: Did rain solve Iraq’s water problem? ...