Iraqi Prime Minister Orders New Payment Tranche for Contractors’ Dues

Iraqi Prime Minister Mohammed Shia’ Al-Sudani has ordered the release of a new tranche of payments for completed works as part of ongoing installments to settle Iraqi contractors’ dues, according to an official statement.

Meeting on Contractual Obligations

The Iraqi government said in a statement that the Prime Minister chaired a meeting focused on contractual obligations, attended by the Undersecretary of the Ministry of Planning and the Head of the Iraqi Contractors Union.

Large stacks and bundles of various international currencies, including Iraqi Dinars and US Dollars, spread out on a flat surface. — A collection of different global currencies organized into thick bundles and rubber-banded stacks.

During the meeting, officials reviewed the details and value of contractual commitments, as well as the outstanding amounts owed to contractors implementing projects for ministries and governorates, aiming to safeguard contractors’ rights and support the stability of the construction sector, a key driver of the national economy, according to the Iraqi News Agency (INA).

Government Commitment to Project Continuity

Al-Sudani instructed the release of a new payment installment, reaffirming the government’s commitment to monitoring project implementation and ensuring the settlement of financial dues, in order to advance infrastructure and service projects.

A perspective view of a tall, continuous wall made of vertical concrete slabs stretching across a desert landscape under a clear blue sky. — A reinforced concrete security barrier winding through an arid, hilly terrain.

Outstanding Dues and Central Bank Coordination

Earlier, Minister of Construction and Housing Bengin Rekani said the government is coordinating with the Central Bank of Iraq to develop a mechanism to pay part of the contractors’ outstanding dues.

Rekani noted that the liabilities owed by the Ministry of Construction and Housing amount to less than 3 trillion Iraqi dinars, attributing the arrears to lower oil prices and reduced public revenues.

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✦ ArchUp Editorial Insight

The Iraqi government’s decision to release new payments to contractors positions infrastructure delivery within a framework of Contemporary state-led development, where large-scale public works, utilitarian construction systems, and standardized Material Expression dominate the built environment. Roads, housing, and service projects remain central to reinforcing the national Urban Fabric and stabilizing the construction economy. However, this financial intervention also invites critical reflection on Functional Resilience, as delayed payments have previously disrupted project continuity and weakened trust between public institutions and private builders. Conversely, the renewed coordination with the Central Bank suggests an attempt to institutionalize fiscal discipline rather than rely on ad hoc settlements, raising questions about long-term feasibility amid oil-dependent revenues. Ultimately, the initiative reflects an Architectural Ambition to sustain momentum in nation-building, contingent on aligning financial governance with durable urban outcomes.