Iraq scraps $764m Baghdad airport project

Iraqi Prime Minister Ali al-Zaidi has cancelled the Baghdad International Airport development project, ending a large-scale plan to upgrade the country’s main aviation hub. The decision affects a contract worth $764 million that had been presented as a key infrastructure initiative for the capital.

The project aimed to upgrade and expand Baghdad International Airport, with the goal of modernising Iraq’s aviation sector and increasing passenger and traffic capacity at the main gateway to the country. It was considered a flagship effort to improve airport facilities and services.

The airport development contract was awarded last year to a consortium made up of Luxembourg-based Corporacion America Airports (CAAP) and Iraqi real estate firm Amwaj International. The consortium was selected to carry out the expansion and modernisation works under the $764 million agreement.

The partnership combined an international airport operator with a domestic real estate company, reflecting an approach that involved both foreign expertise and local participation in the redevelopment effort at Baghdad International Airport.

The cancellation followed concerns raised within the government about potential corruption linked to the project. Two government sources said officials had questioned possible irregularities in the tendering process, as well as in the terms of the contract itself.

These suspected irregularities prompted a review of how the contract was awarded and structured, ultimately leading to the decision to halt the project. The move forms part of broader scrutiny directed at government institutions in relation to corruption.

The airport upgrade had been promoted as a central infrastructure project to modernise Iraq’s aviation sector and support higher traffic through Baghdad International Airport. Its cancellation leaves a gap in immediate plans to expand capacity at the capital’s main airport.

While the project has been stopped over corruption concerns, the underlying need to improve and expand the airport remains. The decision underscores the tension between pursuing large infrastructure investments and enforcing tighter oversight of public contracts.