30 Sep 2008

Iraq signs $US1b water deal

8:35 am on 30 September 2008

Iraq has signed a deal worth more than $US1 billion with an unidentified French-Iraqi group to repair eastern Baghdad's water supply system.

The Iraqi government said on Monday the tender for the Rusafa water project exceeds $US1 billion. Capacity will exceed 910,000 cubic metres per day.

Baghdad's water infrastructure desperately needs modernising: some parts of the city, especially newer areas in the eastern Rusafa district, have only a trickle of water for a few hours a day.

Iraq last week signed its first deal with a major Western oil firm since the fall of Saddam Hussein, a multi-billion dollar deal to pipe natural gas from Iraqi oilfields signed with Shell.