Key facts
- Prime Minister Ali al-Zaidi canceled the $764 million Baghdad International Airport development project.
- The project was awarded last year to a consortium led by Corporacion America Airports and Amwaj International.
- Concerns about irregularities in the tendering process and contract terms led to the cancellation.
- The cancellation is part of an anti-corruption drive within the Iraqi government.
- The airport has suffered from decades of underinvestment.
Iraqi Prime Minister Ali al-Zaidi has officially canceled the $764 million Baghdad International Airport development project, citing significant corruption suspicions. The decision, reported on Sunday by Iraqi state media, stems from internal concerns regarding irregularities in both the contract terms and the tendering process.
The project, awarded last year, involved a 25-year public-private partnership contract. A consortium led by Luxembourg-based Corporación América Airports (CAAP) and the Iraqi firm Amwaj International was tasked with modernizing the capital’s primary aviation hub. The ambitious plan included the construction of a new passenger terminal designed to handle between 9 and 15 million travelers annually, the installation of 15 new boarding bridges, and the rehabilitation of runways.
The cancellation follows an aggressive anti-corruption campaign spearheaded by the Prime Minister. Officials reportedly identified red flags during a review of the bidding procedures, despite the International Finance Corporation, a branch of the World Bank, having previously served as an adviser to help structure the investment prospectus and screen the initial 14 global applicants. The winning consortium had secured the contract by pledging 43.05% of the airport’s annual revenue to the central treasury, outbidding a rival group that offered 38.05%.
The airport, which has relied on terminal buildings constructed in the 1970s and 1980s, has seen almost no major upgrades for nearly 40 years due to conflicts. The Ministry of Transport is currently drafting an internal proposal to restructure and merge its airport and air navigation directorates to manage the facility independently.