Iraq details Baghdad Airport PPP project, seeks global operator to invest $400M+
The Ministry clarified that this strategic shift towards a PPP model aims to leverage private sector efficiency and expertise to accelerate the airport's modernization, improve service quality, and stimulate economic growth, all while relieving pressure on the public budget.
Under the proposed structure, the Iraqi state will retain full control over all sovereign functions. This includes all passport and customs procedures, the security of the airport's perimeter, the management of air navigation and airspace, VIP lounges, and the control of fuel depots.
The selected private investor will be responsible for the operational and commercial aspects, including:
Operating the terminals and managing internal inspection processes.
Investing in and improving infrastructure and logistics.
Providing ground handling and air cargo services.
Submitting an investment plan to develop the lands surrounding the airport.
To ensure global best practices, the Iraqi government signed a consultancy contract with the IFC, a member of the World Bank Group, in September 2023. The IFC, acting as a non-profit technical and legal advisor, helped prepare the investment opportunity and has overseen a transparent bidding process.
Out of 14 initial applicants, 10 international consortiums have been pre-qualified to compete for the project. The Request for Proposal (RFP) has been launched, and the deadline for bid submissions is set for September 2025. According to the Ministry, the winning bid will be selected based on which consortium offers the highest percentage of annual revenue to the state treasury, not on profits.
The winning investor will be responsible for a complete overhaul and expansion of the airport, funded entirely by their own investment of between $400 and $600 million. The development works will include:
Building modern terminals to increase the airport's capacity, initially to 9 million passengers per year, with a future goal of 15 million.
A comprehensive update of the airfield, along with HVAC, safety, transport, and surveillance systems.
Training all existing airport staff, whose jobs will be preserved with improved salaries.
The project is expected to create at least 12,000 direct jobs and significantly increase the airport's economic revenues. The Ministry stressed that this is a landmark national project aimed at providing Iraq's capital with an airport that reflects its status and serves as a bright new gateway to the world.
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