"The government has ordered an allocation of $100 million to reconstruct and develop Sadr City," government spokesman Tahseen al-Sheikhli said at a news conference.

The area is the stronghold of the radical Shiite cleric Moqtada Sadr. The city witnessed an outbreak of violence in April following Iraqi operations meant to clear Shiite militias from their strongholds in southern and central Iraq.

Sheikhli did not provide detailed information regarding the timing of the distribution from Baghdad, but said a portion of the funds would go to employment programs in the district.

Other reconstruction targets include educational facilities, markets and healthcare centers. The Baghdad slum of Shula also will receive a separate $50 million in reconstruction aid from Baghdad, Gulf News reported.