Iraq and Turkey Formalize Water Infrastructure Deal, Linking Projects to Oil Revenue

Historic Agreement Signed in Baghdad

Baghdad, Iraq – On Sunday, November 2, 2025, Iraq and Turkey formalized a crucial agreement aimed at bolstering Iraq's water infrastructure. The deal, signed in Baghdad, establishes a mechanism for financing water projects in Iraq through revenue generated from Iraqi oil sales to Turkey. The signing ceremony was attended by Iraqi Prime Minister Mohammed Shia Al-Sudani, with the document being inked by Iraqi Foreign Minister Fuad Hussein and Turkish Foreign Minister Hakan Fidan.

Prime Minister Al-Sudani hailed the agreement as 'one of the sustainable solutions to Iraq's water crisis,' emphasizing that it would launch 'major joint projects in the water sector to address and manage water scarcity.' This development follows a broader framework water agreement initially signed in April 2024 during Turkish President Tayyip Erdogan's visit to Baghdad, signaling a new phase of improved relations between the two neighboring countries.

Addressing Iraq's Water Scarcity

Iraq has long grappled with severe water scarcity, with approximately 70% of its water resources originating from neighboring countries, primarily via the Tigris and Euphrates rivers, both of which flow through Turkey. The agreement is designed to mitigate the devastating effects of drought and ensure a more sustainable water supply for Iraq.

Under the terms of the deal, Turkey has committed to overseeing water releases and related infrastructure, including dams and distribution systems, for a period of five years, after which control will revert to Iraq. Additionally, Ankara has pledged to release one billion cubic meters of water to Iraq in the coming days, without affecting its national water reserves.

Project Scope and Economic Implications

The initial phase of projects under this agreement is expected to include:

  • Three water harvesting dam projects
  • Three land reclamation initiatives

An Iraqi official confirmed that a committee will be established by the Iraqi government to oversee these water infrastructure projects and invite bids from Turkish companies. The financing mechanism, directly linking project payments to Iraqi oil exports to Turkey, is a key component of this cooperation.

Beyond water management, the agreement is also anticipated to strengthen economic ties, with plans to increase bilateral trade to no less than $30 billion annually and the cancellation of certain Turkish debts. Turkish Foreign Minister Hakan Fidan described the agreement as 'important and historic and the first of its kind,' underscoring the renewed cooperation between the two nations on water issues after many years.

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5 Comments

Avatar of Muchacha

Muchacha

Improved relations and economic ties are certainly a welcome outcome for regional stability and trade. Still, the reliance on a neighboring country for such a vital resource, especially with infrastructure control, demands careful oversight to prevent future leverage issues.

Avatar of Bella Ciao

Bella Ciao

Turkey stepping up to help with water is huge. A positive step for both nations' futures.

Avatar of Comandante

Comandante

While Iraq's water crisis desperately needs solutions, giving Turkey control for five years raises serious sovereignty concerns. We need water, but the terms of this agreement should be scrutinized for long-term implications.

Avatar of Habibi

Habibi

The promise of new dams and land reclamation is vital for Iraq's agricultural future and food security. However, the cancellation of Turkish debts as part of this package makes one wonder if Iraq truly got the most equitable terms possible for its valuable oil and water resources.

Avatar of Muchacho

Muchacho

Much-needed development! Water security is paramount for Iraq, and this deal delivers.

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