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Iraqi News
07-07-2025
- Business
- Iraqi News
Iraq's Integrity Commission calls for high-level committee to monitor delayed Baghdad mega-projects
Baghdad ( – Iraq's Federal Commission of Integrity has called for the formation of a high-level committee to monitor and set timelines for three strategic mega-projects in Baghdad, citing significant delays in their implementation. In a report submitted to the Prime Minister's Office and several ministries, the anti-corruption body stated on Monday that its teams found no actual implementation work has begun on the Baghdad Metro or the city's new digital master plan. It also noted that the New Sadr City project has not been completed due to unfinished procedures. The report highlighted that the Baghdad Metro project remains under study and has not been awarded to an investor, despite funds being allocated for studies and design in previous budgets. Regarding the New Sadr City project, which aims to provide 11,000 housing units and has been awarded to a state-owned Chinese company, the commission urged its swift completion. The Integrity Commission stressed that a lack of effective coordination between ministries is hindering progress. It recommended forming a high-level committee to oversee these projects, establish clear timelines, and address obstacles to ensure their successful and timely execution.
Zawya
02-07-2025
- Business
- Zawya
Iraq revisits Baghdad metro project
The Iraqi government is reassessing the financial framework for a planned multi-billion-dollar project to build its first metro network in the capital Baghdad. Baghdad Metro's financial and technical standards are being re-evaluated after previous proposals were rejected, Nasser Al-Assadi, Prime Minister Mohammed Sudani's adviser for transport confirmed in an interview with the official Iraqi News Agency (INA). "Technical documents showed the presence of excellent and competent bidding companies, but from a financial standpoint, most of the bids were not up to the required standard and did not give us sufficient confidence to proceed with the contract,' Al-Assadi said. "The recent meeting with the Prime Minister included a re-evaluation of criteria and the introduction of new mechanisms for implementing the project to ensure the best practical and financial formula,' he added. On Sunday, the Iraqi Prime Minister's Office had said in statement that the new vision for the project involves using global best practices, relying on public-private partnerships (PPP) with Iraqi and foreign investors, handling of construction and operation by international companies, and conducting detailed studies. It said the Prime Minister has directed the completion of procedures and studies for the Metro according to the new vision and presenting the same at the next meeting. In mid-2024, Iraq said it had awarded the metro project to a European-Turkish consortium comprising France's Systra, SNCF and Alstom, Spain's Talgo and SENER and Turkish contractors, backed by Germany's Deutsche Bank. In February 2024, Iraq's National Investment Commission (NIC) had initiated the tendering process for the Baghdad Metro and Phase 1 of Najaf-Karbala railway under the PPP model. (Writing by Nadim Kawach; Editing by Anoop Menon) (
Iraq Business
01-07-2025
- Business
- Iraq Business
New Vision Approved for Baghdad Metro Project Execution
By John Lee. Prime Minister Mohammed Shiaa Al-Sudani has directed the completion of all procedural requirements for the Baghdad Metro project under a revised implementation framework. During a high-level meeting on Sunday with the Head of the Iraq Development Fund, the Mayor of Baghdad, and the Prime Minister's Advisor, the PM reviewed a new strategic approach for delivering the capital's long-awaited metro system. According to a press release from the Prime Minister's Office, previous company bids were rejected, prompting a shift in strategy toward a global best-practice model. It added that the revised plan entails forming partnerships between the Iraqi government and both local and international investors, with execution to be carried out by world-class firms. The approach includes integrated development across infrastructure, consultancy, transit systems, and environmental, social, and economic assessments. Al-Sudani emphasised the importance of the metro as a critical infrastructure project and instructed stakeholders to finalise related consultancy studies in preparation for further decisions at the next meeting. (Source: PMO)
Iraqi News
30-06-2025
- Business
- Iraqi News
Iraq adopts new vision to complete Baghdad Metro project
Baghdad ( – The Iraqi Prime Minister, Mohammed Shia Al-Sudani, directed on Sunday that the processes for the Baghdad Metro project be finalized according to a new vision. Al-Sudani's remarks took place during a meeting he chaired to discuss the arrangements required to start implementing the Baghdad Metro project, according to a statement released by the Prime Minister's Office (PMO). The meeting discussed new ideas and processes for implementing this vital project after previous bids were rejected. Best practices for this sort of project were taken from across the world, as evidenced by the formation of an alliance between the government, local and foreign investors, and execution by multinational firms. Iraqi Prime Minister's advisor Mohammed Al-Najjar revealed in May that Iraq plans to start the first phase of the Baghdad Metro project, which involves years of development, before the end of 2025, according to the Iraqi News Agency (INA). In November 2024, Naser Al-Asadi, the advisor to the Iraqi Prime Minister, announced that the design for the Baghdad Metro pathway has been finalized. Al-Asadi said that the government consulting agency has begun drafting the project's specifications for the tracks, trains, and stations, which will contain subterranean, surface, and elevated parts. With seven lines that range in length from nine to 37 kilometers, the project will cover the majority of the Iraqi capital and could be upgraded to reach other areas, according to Al-Asadi. The Iraqi cabinet announced in late July that the businesses selected to design, build, and run the Baghdad Metro project include France-based Systra and SNCV, the Spanish Alstom, Talgo, and Sener enterprises, Turkish construction companies, and Germany's Deutsche Bank. Al-Asadi told Reuters earlier that Baghdad Metro would span 148 kilometers (92 miles) with seven lines and 64 metro stops. The $18 billion-worth project should be finished after four years, according to Al-Asadi. The Baghdad Metro is a substantial endeavor aimed at reducing traffic congestion and providing a modern and efficient transportation system in the Iraqi capital, which is home to around eight million people.
New Straits Times
19-06-2025
- Business
- New Straits Times
HSS Engineers: Stacked with jobs, starved of returns
KUALA LUMPUR: At first glance, HSS Engineers Bhd appears to be a gem among Bursa Malaysia's small-cap infrastructure players. With major projects under its belt including Malaysia's MRT3 and the ambitious Baghdad Metro in Iraq, the company seems to stand at the crossroads of growth and regional expansion. But take a closer look, and the shine begins to fade, market observers said. Despite a solid order book and some impressive contract wins, HSS Engineers' shares have quietly lost over one-third of their value in 2025. The observers said the reasons are more structural than cyclical, prompting serious doubts about the investment-worthiness of HSS in its current configuration. Strong Projects, Weak Profits HSS Engineers has never had a problem winning jobs. The challenge has always been turning those jobs into meaningful and sustainable profits. In the first quarter of its financial year 2025, the company reported a 64 per cent drop in net profit despite higher revenue. Margins were squeezed to just about three per cent, down from some 7.0-9.0 per cent in previous years. Cost inflation, new hires and teething issues from overseas projects all contributed, but the bigger issue is clear: growth is not translating into shareholder returns. The Baghdad Mirage When HSS Engineers announced its RM1.5 billion contract to oversee Iraq's Baghdad Metro, investors cheered. The share price rallied. It looked like the company had finally broken into big-league regional infrastructure. But nearly a year later, reality has hit. Only a fraction of that revenue has been recognised, and progress is slower than expected. As investors wait for billings to ramp up, HSS Engineers is bleeding cash on early-stage project costs. Worse, Iraq brings serious geopolitical and payment risks - risks that small Malaysian engineering firms may not be fully equipped to navigate. Overdependence on Government Projects HSS Engineers' bread and butter lies in public-sector infrastructure - railways, highways and water projects. The observers said while this provides a steady pipeline, it also leaves the company exposed to the whims of politics. MRT3, for instance, has seen delays and policy back-and-forth. "A change in government priorities or funding cutbacks could mean stalled payments or suspended jobs. That's not a great setup for consistent earnings," they said. Low Dividend, Thin Liquidity The observers said for retail investors seeking passive income, HSS Engineers offers little: its dividend yield is just 1.4 per cent, and it pays once a year. For institutional investors, the stock lacks liquidity. Daily trading volumes are modest, and even moderate selling can move the price. It's a classic case of small-cap vulnerability - long on ambition, short on financial resilience. Communicaton Gap In a volatile market, the observers said, clarity of direction matters more than ever. Investors are not just buying current performance - they're buying the promise of what's to come. Unfortunately, this is where HSS Engineers has fallen short. While the company has outlined its "HSS 2.0" roadmap to diversify into renewable energy, data centres and other future-facing sectors, the messaging around this strategy has been vague. On June 11, at a press conference, HSS Engineers made a notable announcement: it's bidding for four data centre projects, highlighting its ambition to expand in the high-growth digital infrastructure space. The company also reaffirned that its robust RM2.1 billion order book will ensure earnings visibility for the next eight years. This would reinforce the momentum gained from its record-high net profit of RM25.2 million in the financial year ended Dec 31 2024, it added. Still, the data centre bids in particular show intent more than substance, the observerd said. "The market has yet to see concrete follow-through - no specific projects have been awarded, timelines are vague and there's no clarity on expected margins or revenue recognition." Until these data centre wins turn into billable, profitable work, they remain another line item in a long list of aspirational projects, much like the Baghdad Metro before it. Strategy without execution means margins stay under pressure. Press conferences are a start, but the company needs specific, data-backed updates, the observers said. "For instance, 'Data Centre A awarded by Q3, with expected XXX profit by year end' to reassure investors and inspire confidence," they added. The observers said the lack of clarity might have been mitigated by strong shareholder communication, a proactive effort to engage investors, explain strategy and build trust. HSS Engineers' communication with the investment community has been sporadic and reactive, rather than strategic and forward-looking. Without consistent engagement, even good stories get lost and undervalued.
