IRAQ. Iraq has awarded a major investment contract to a consortium led by Argentina’s Corporación América Airports (CAAP) to rehabilitate, develop and operate Baghdad International Airport, marking a milestone in the country’s aviation and investment reform.
The CAAP-led consortium, which also involves Amwaj International, won the contract after submitting the most lucrative bid, pledging to allocate 43.05% of the airport’s annual revenue to Iraq’s central treasury – outperforming rival bidder ASYAD Consortium’s 38.05%.
The deal requires no financial outlay from the government during the concession period.
“This project will modernise Baghdad International Airport, elevate service levels and align operations with global safety and security standards,” Iraqi Prime Minister Mohammed Shia’ al-Sudani’s office said.
The agreement encompasses construction of a state-of-the-art passenger terminal initially accommodating 9 million travellers annually, expanding to 15 million; rehabilitation of runways, taxiways and aircraft aprons; installation of 15 boarding bridges; a VIP terminal; a multi-storey car park; and a new headquarters for the Civil Aviation Authority. {Main story continues after the panel below.}
Upbeat Iraq Duty Free welcomes airport modernisationIraq Duty Free is the anchor retailer at Baghdad International Airport. It is working in close coordination with the Ministry of Transport and the newly appointed airport development company to support the modernisation of Baghdad International Airport. The retailer emphasised its excitement that the plan includes terminal expansion and structural upgrades aimed at bringing the airport in line with world-class standards.  “The International Finance Corporation, a member of the World Bank Group, is leading the development as transaction advisor – a significant step that signals investor confidence in Iraq’s aviation future,” Iraq Duty Free said in a feature set to be published in the next issue of The Moodie Davitt Report Magazine.* “Iraq Duty Free confirms its participation in the transformation process, with plans to operate its shops within the reimagined terminal space,” the company said. *Timed to coincide with the forthcoming Middle East & Duty Free Association (MEADFA) Conference (9-11 November in Dubai). |
The estimated US$764 million contract is expected to create thousands of jobs, with roughly 1,000 direct positions for every 1 million additional passengers, according to the Prime Minister’s office.
The government highlighted that, unlike previous airport ventures in Najaf, Karbala and Kirkuk, this deal delivers tangible financial returns while boosting Iraq’s global connectivity.
The Prime Minister’s office noted the bidding process, overseen by the International Finance Corporation and the Ministry of Transportation, attracted 14 international consortiums.
Luxembourg-headquartered CAAP currently operates more than 50 airports in six countries across Latin America and Europe (Argentina, Brazil, Uruguay, Ecuador, Armenia and Italy). ✈
