Iraq infrastructure report Q2 2011 says that reconstruction in Iraq is providing considerable contract opportunities and creating substantial added value for the construction sector. Infrastructure continues to be a priority investment area for the government, especially as protests against the poor provision of services have become more widespread over recent months, stimulated in part by the wave of protests across the Middle East and North Africa, says the report.
Addressing core concerns including electricity shortages, scarcity of housing and insufficient transport links is a priority, according to Research & Markets. “Indeed, in order for the economy to return to some semblance of normality, core infrastructure needs to be in place. As a result, a number of contracts have been awarded in these sectors over the past 12 months,” it says.
Key sectors to watch are transport, electricity and housing. “Transport is slowly emerging as the sector which is receiving the greatest attention, even though electricity has taken priority in recent years,” says the report. In January, Alstom signed an outline agreement for the construction of a 25km elevated metro line in Baghdad. The contract for construction of the Al Faw port is due to be released by the end of 2011 and a tender for a new international airport is due to be released in October 2011.
A shortage of electricity continues to be a major cause of unrest and a substantial barrier to growth. Investment is now filtering through to the sector. Huge housing projects have been announced over recent months and about two million units are to be built over the next four years, according to Research & Markets.
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