The Iraqi Cabinet has approved a landmark project to rehabilitate, develop, and operate Baghdad International Airport through a long-term partnership with a global private-sector operator, marking one of Iraq’s most significant aviation investments in nearly two decades.
The plan aims to modernize Iraq’s main airport, meet international safety and security standards, and attract major global airlines, restoring Baghdad’s status as a regional aviation hub.
The International Finance Corporation (IFC), appointed as the government’s adviser in 2023, helped structure the deal to ensure transparency and attract credible global bidders. Out of 14 international consortia, three made it to the final bidding stage:
- CAAP Consortium (Corporación América Airports & Amwaj International)
- ASYAD Consortium (YDA İnşaat, Lamar Holding, Dublin Airport Authority & Top Engineering Corporation)
- ERG International UK Consortium (Terminal Yapi & ERG İnşaat)
After technical and financial evaluations, the CAAP Consortium was awarded the contract, offering a 43.05% revenue share for Iraq’s treasury — higher than ASYAD’s 38.05% offer.
Under the agreement, CAAP will invest $764 million to upgrade the airport without any government funding. Key commitments include:
- Building a new passenger terminal for 9 million travelers annually, expandable to 15 million.
- Rehabilitating runways, taxiways, and aircraft parking areas.
- Installing 15 new passenger boarding bridges.
- Constructing a new Civil Aviation Authority headquarters.
- Developing a VIP terminal and modern car park.
- Upgrading cargo terminals and firefighting systems to ICAO Level 9 standards.
- Implementing modern water and waste management systems.
- Managing and operating the airport in compliance with global aviation standards.
- Providing training and capacity building for Iraqi staff and creating 1,000 new jobs per additional million passengers handled.
Government officials say the deal represents one of Iraq’s most transparent and financially beneficial airport partnerships since 2006. Unlike previous contracts in Najaf, Karbala, and Kirkuk, which provided little return to the state, this venture is expected to generate substantial revenue and employment for Iraq’s economy.
