Kirkuk faces stalled development projects as funding dries up

KIRKUK —  The Contractors Union has warned of worsening economic conditions and rising unemployment with most investment and service projects in Kirkuk coming to a near standstill due to a lack of allocated funds, halting the city’s reconstruction efforts.

More than 450 projects remain suspended due to financial shortfalls, according to Qasim Ibrahim Al-Hafidh, deputy governor of Kirkuk for technical affairs.

“We, as the Contractors Union in Kirkuk, have initiated dialogue with the General Contractors Union to address the challenges contractors face due to delayed payments,” Nawzad Anwar, head of the Kirkuk Contractors Union, told 964media.

“This delay has caused service projects to come to a halt, significantly impacting citizens, the local administration, and contractors alike. Contractors are demanding the release of their dues, which amount to between 175 billion dinars (approximately $116.4 million) and 200 billion dinars (approximately $133.2 million),” Anwar added. “We urge the relevant authorities and the local government to urgently release contractors’ payments, as this situation is also increasing unemployment among workers in Kirkuk.”

While the union remains in constant communication with Kirkuk’s administration, Anwar noted, “Ultimately, the issue rests with Baghdad.”

Kirkuk Deputy Governor for Technical Affairs Qasim Ibrahim Al-Hafidh highlighted the severity of the situation, stating, “Kirkuk is suffering from a funding shortage this year.”

Speaking to 964media, Al-Hafidh made an urgent appeal: “Through your platform, we call on the prime minister, the Ministry of Finance, and the parliamentary finance committee to release the necessary payments to companies that have completed their work. More than 450 projects in Kirkuk are currently suspended due to insufficient financial liquidity.”

Al-Hafidh further explained that communications with relevant departments in the Ministry of Finance yielded the response that no funds are currently available.

In December 2023, Iraqi Prime Minister Mohammed Shia Al-Sudani reaffirmed his government’s commitment to completing stalled projects, declaring that 2024 would be “the year of achievements and the opening of various projects.”