Officials from the National Investment Commission of Iraq today said the commission has signed a memorandum of understanding (MOU) to construct a $5.5 billion planned urban development on the outskirts of Baghdad. The consortium of Michigan companies leading this effort, MICH Development, is organized by the Prima Civitas Foundation (PCF), an organization founded by Michigan State University to leverage the university’s diverse resources to assist the state.

The MOU with MICH Development will pave the way for a major investment that will improve the lives of Iraqi families while also creating opportunities for American businesses, particularly those in Michigan. Dr. Sami Al-Araji, Chair of the Investment Commission and a Michigan State University alumnus, introduced this opportunity to MICH Development.

PCF CEO Steven Webster said the MOU is the result of a long and complex set of discussions with officials in Iraq and Michigan businesses and paves the way for a second phase in the project’s development- finding key construction management and financing firms to take on the challenges of this major project.

Pat McRae, Director of International Programs for PCF, recently returned from Iraq where he has been engaged in discussions with officials. He said preliminary estimates suggest that the Michigan firms could win about $1.5 billion in business from the project in planning, construction, engineering, project management and green-energy development and procurement.

McRae said the fully developed project is planned to cover 15-20 square miles at a site approximately 10 miles from the center of Baghdad. The project will include housing, schools, commercial, recreational and civic components as well as other amenities for Iraqi families.

Fay Beydoun, Executive Director of the American Arab Chamber of Commerce, said the MICH Development project will help show the people of Iraq that American companies are ready to invest in their nation. She says American Iraqis are eager to assist in the project.