Iraq-Turkey Water Deal Taps Into Oil for Infrastructure

Iraq signed an agreement with Turkey on Sunday to use revenue from oil sales to finance water infrastructure projects undertaken by Turkish firms, according to a Turkish official. The agreement builds on a water cooperation accord signed last year and outlines an implementation mechanism for the projects, although details of the mechanism remain undisclosed.

The Iraqi government plans to establish a committee to oversee these water infrastructure projects, inviting Turkish companies to bid on them. The projects will include three water harvesting dams and three land reclamation initiatives. Payments will be managed using money from Iraqi oil sales to Turkey, the Turkish official said.

The original water agreement was signed during Turkish President Tayyip Erdogan's visit to Baghdad in April 2024, signaling a new chapter of cooperation between the two nations after years of strained relations. Iraq has long grappled with water scarcity issues, with about 70% of its water resources originating from neighboring countries, particularly Turkey, through the Tigris and Euphrates rivers.