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Iraq is considering financing the Grand Basra Seawater Desalination Project via the Iraq-China Framework Agreement. The project, with a capacity of 1.1 million m³/day, aims to serve over four million residents in Basra, addressing water shortages from reduced rainfall and river flows.

It will be funded through petrodollar allocations over four years. Launched by Prime Minister Mohammed Shia' Al-Sudani in July 2025, it includes three desalination lines, a 240-kilometre pipeline, and a dedicated 300 MW power plant. The consortium of Al-Ridha Group and Power China International signed a $2.4 billion EPC contract for the project, which has a construction timeline of 1,350 days.