The Iraqi government has approved a project worth approximately $764 million to rehabilitate, develop, and operate Baghdad International Airport, to be carried out by a consortium of two private companies.
Prime Minister Mohammed Shia’ Al Sudani’s office said in a statement on Tuesday evening that “due to the urgent need to improve services at Baghdad International Airport and to align with international aviation safety and security standards, the Council of Ministers has approved the project for the rehabilitation, development, and operation of the airport through a partnership with a global private-sector operator.”
The statement added that the commitments of the winning consortium — comprising Corporación América Airports S.A. of Argentina and Amwaj International, based in Iraq — include an investment of around $764 million, “without the government spending a single dollar during the entire concession period.”
According to the proposal, the Iraqi state treasury will receive 43.05% of the airport’s total annual revenue throughout the concession period.
The commitments also include constructing a new modern passenger terminal with a capacity of up to 15 million passengers per year, in addition to rehabilitating runways and airport infrastructure — a move expected to create thousands of new jobs during and after the redevelopment phase.
Amwaj International said in a separate statement that 14 consortia from various countries competed for the project, describing its consortium’s win as “a shared national success.”
The International Finance Corporation (IFC) acted as the lead advisory institution for the long-term public-private partnership for the operation and maintenance of Baghdad International Airport. The IFC, active in Iraq since 2005, has invested over $2.5 billion in the country.
Despite its vast oil wealth, Iraq continues to struggle with the legacy of decades of wars and instability, poor infrastructure, inadequate public services, and widespread corruption.
The country of over 46 million people is now enjoying relative stability, with authorities hoping to attract investments across all sectors.
In mid-July, Prime Minister Al Sudani inaugurated Mosul International Airport, rebuilt eight years after Iraqi forces declared victory over the Islamic State group, which had destroyed the facility completely.
© Agence France-Presse
