Iraq will build a $3bn metro rail through the capital Baghdad.
The underground project will see the construction of the first metro line from al-Mesbah to central Baghdad.
The line will be 21km-long and service 21 stations before dividing into a minor line.
The second line, expected to be around 18km long with 20 stations, will start from north-eastern Baghdad and pass through central Baghdad, according to Reuters.
Iraq has shortlisted UK-based WS Atkins, US-based Versar and six other foreign firms for the deal.
The project is expected to help ease traffic jams in the region.