ERBIL, Kurdistan Region - Iraq on Tuesday announced it has awarded a $764 million contract to an international consortium, comprising a firm from Luxembourg and Iraq, to develop and operate the country’s largest airport, including the construction of a new terminal designed to handle up to 15 million passengers annually.
“The Council of Ministers has approved the project for the rehabilitation, development, and operation of Baghdad International Airport [BIAP] through a partnership with a global private-sector operator,” read a statement from Prime Minister Mohammed Shia’ al-Sudani’s office.
The project has been awarded to the CAAP Consortium, comprising Corporacion America Airports and Amwaj International, following the evaluation of financial offers in October. The consortium’s proposal was deemed “the best offer, which allocates 43.05 percent of the airport’s total annual revenue to the central treasury throughout the concession period.”
“This project aims to elevate the airport’s performance to levels that reflect Iraq’s reputation and growing global connectivity,” the statement added.
The selected investor is required to construct a new modern passenger terminal with an initial capacity of nine million passengers per year, expandable to 15 million in later phases.
The agreement also includes rehabilitating existing facilities, upgrading fire and water systems, improving waste management, training staff, and paying airport employees’ salaries.
The project is expected to create about 1,000 direct jobs for every additional one million passengers and involve an investment of around $764 million, without any financial burden on the government.
Corporacion America Airports operates 52 airports across Argentina, Armenia, Brazil, Ecuador, Italy, and Uruguay, serving 79 million passengers in 2024, according to its website. Its Iraqi partner, Amwaj International, is a real-estate developer established in 2008 that manages $4 billion in assets.
In September 2023, the Iraqi transport ministry had signed a consultancy agreement with the International Finance Corporation (IFC) - a member of the World Bank Group - to support the public-private partnership model for the airport’s development. Earlier that year, the ministry had invited tenders from 14 consortiums, later narrowing them down to ten based on IFC’s criteria before selecting CAAP.
BIAP, Iraq’s largest airport, was inaugurated in 1982, but has long suffered from poor infrastructure and service quality.
In April 2023, the airport’s director, Hussein Qasim Khafi, resigned following a meeting with Prime Minister Sudani, who had harshly criticized the airport’s performance, citing issues with air conditioning, baggage delays, and poor organization. The premier also ordered a comprehensive legal review of existing service contracts.
Iraq currently operates eight airports, including Erbil and Sulaimani International Airports in the Kurdistan Region.
“The Council of Ministers has approved the project for the rehabilitation, development, and operation of Baghdad International Airport [BIAP] through a partnership with a global private-sector operator,” read a statement from Prime Minister Mohammed Shia’ al-Sudani’s office.
The project has been awarded to the CAAP Consortium, comprising Corporacion America Airports and Amwaj International, following the evaluation of financial offers in October. The consortium’s proposal was deemed “the best offer, which allocates 43.05 percent of the airport’s total annual revenue to the central treasury throughout the concession period.”
“This project aims to elevate the airport’s performance to levels that reflect Iraq’s reputation and growing global connectivity,” the statement added.
The selected investor is required to construct a new modern passenger terminal with an initial capacity of nine million passengers per year, expandable to 15 million in later phases.
The agreement also includes rehabilitating existing facilities, upgrading fire and water systems, improving waste management, training staff, and paying airport employees’ salaries.
The project is expected to create about 1,000 direct jobs for every additional one million passengers and involve an investment of around $764 million, without any financial burden on the government.
Corporacion America Airports operates 52 airports across Argentina, Armenia, Brazil, Ecuador, Italy, and Uruguay, serving 79 million passengers in 2024, according to its website. Its Iraqi partner, Amwaj International, is a real-estate developer established in 2008 that manages $4 billion in assets.
In September 2023, the Iraqi transport ministry had signed a consultancy agreement with the International Finance Corporation (IFC) - a member of the World Bank Group - to support the public-private partnership model for the airport’s development. Earlier that year, the ministry had invited tenders from 14 consortiums, later narrowing them down to ten based on IFC’s criteria before selecting CAAP.
BIAP, Iraq’s largest airport, was inaugurated in 1982, but has long suffered from poor infrastructure and service quality.
In April 2023, the airport’s director, Hussein Qasim Khafi, resigned following a meeting with Prime Minister Sudani, who had harshly criticized the airport’s performance, citing issues with air conditioning, baggage delays, and poor organization. The premier also ordered a comprehensive legal review of existing service contracts.
Iraq currently operates eight airports, including Erbil and Sulaimani International Airports in the Kurdistan Region.
Comments
Rudaw moderates all comments submitted on our website. We welcome comments which are relevant to the article and encourage further discussion about the issues that matter to you. We also welcome constructive criticism about Rudaw.
To be approved for publication, however, your comments must meet our community guidelines.
We will not tolerate the following: profanity, threats, personal attacks, vulgarity, abuse (such as sexism, racism, homophobia or xenophobia), or commercial or personal promotion.
Comments that do not meet our guidelines will be rejected. Comments are not edited – they are either approved or rejected.
Post a comment