Iraq, Turkey sign deal linking water projects to oil revenue payments

On Sunday, Iraq and Turkey signed a new agreement under which Turkish companies will carry out water infrastructure projects in Iraq, financed through revenue generated from Iraqi oil exports to Turkey, according to a Turkish official.

The Iraqi prime minister’s office said the two countries formalized an implementation mechanism for a water cooperation agreement that was initially signed last year, though specific details of the mechanism were not released.

Under the deal, Iraq will establish a committee to supervise the water projects and invite Turkish companies to submit bids. Payments for the projects will be made from the proceeds of Iraqi oil sales to Turkey, the official added.

The first phase of the program is expected to include the construction of three water-harvesting dams and three land reclamation projects, according to an Iraqi water resources official.

Meanwhile, Iran is facing a critical water shortage in its capital. Tehran’s main drinking water source could run dry within two weeks amid a severe drought. The Amir Kabir Dam, one of five supplying water to Tehran, currently holds just 14 million cubic meters of water only eight percent of its total capacity state media reported, quoting Behzad Parsa, director of the capital’s water company.

The original framework agreement between Iraq and Turkey was signed in April 2024 during Turkish President Recep Tayyip Erdoğan’s visit to Baghdad, signaling a renewed phase of cooperation after years of tense relations between the two neighbors.