Iraq is considering financing the Grand Basra Seawater Desalination Project through the Iraq–China Framework Agreement, reports Zwaya. The large-scale facility is planned near Al-Faw in Basra province and aims to address long-standing water supply challenges in southern Iraq.
Basra Governor Asaad Al-Eidani stated that the project will not move forward under a previously discussed Japanese loan arrangement. Instead, funding would come from provincial petrodollar allocations, shares of federal oil revenues distributed to oil-producing regions, with a proposal currently under review to channel funding through the Iraqi–Chinese Fund over a four-year period.
Al-Eidani described the initiative as the largest desalination project of its kind worldwide. The planned plant would have a production capacity of approximately 1.1 million cubic metres of water per day, an output intended to meet the needs of the entire Basra province.
Construction works were officially launched in July 2025 by Prime Minister Mohammed Shia’ Al-Sudani during a visit to the region. Located close to the Al-Faw Grand Port, the project is designed to mitigate severe water shortages linked to declining rainfall and reduced flows in the Tigris and Euphrates rivers. The facility is expected to serve more than four million people in Basra.
The desalination complex will feature three reverse-osmosis treatment lines, each capable of producing about 335,000 m³/day. Additional infrastructure will include 12 storage tanks with a combined capacity of one million cubic metres, a main pumping station, nine distribution receiving stations across Basra, and a 240-kilometre pipeline network. The project will also incorporate a dedicated 300-MW power plant to supply electricity to the facility. Temporary desalination units are planned during construction to provide drinking water to residents.
The project is being implemented by a consortium formed by Iraq’s Al-Ridha Group and China’s Power China International. In January 2026, Power Construction Corporation of China announced it had signed an engineering, procurement and construction contract valued at 17.193 billion yuan (about $2.4 billion) with Basra province authorities. The timeline includes a six-month mobilisation phase, 1,350 days of construction and a 24-month defect liability period. ILF Consulting Engineers is providing project development, engineering and site supervision services.
