Iraq took a major step to transform its aviation sector by signing a contract to redevelop Baghdad International Airport. Prime Minister Mohammed Shia Al-Sudani oversaw the signing ceremony with the CAAP consortium, led by Corporación América Airports (CAAP).
The agreement, structured as a public-private partnership (PPP), is one of Iraq’s most significant infrastructure deals. The International Finance Corporation (IFC), part of the World Bank Group, served as the government advisor. It spent two years preparing bid requirements, evaluating global offers, and finalizing the contract.
The redevelopment plan includes constructing a new passenger terminal with an initial capacity of 9 million passengers annually, expandable to 15 million in later phases. The project also covers runway rehabilitation, installation of modern passenger boarding bridges, a new Civil Aviation Authority headquarters, a VIP terminal, and multi-story parking facilities.
As Iraq took a major step all airport service systems will be modernized to meet international standards. Iraqi staff will receive specialized training to operate and manage the upgraded facilities. Officials estimate that the expansion will create 1,000 new jobs for every additional one million passengers handled.
Prime Minister Al-Sudani emphasized that the project will strengthen Iraq’s position as a regional aviation hub. The initiative will enhance connectivity with global destinations, stimulate tourism, and boost economic growth.
The redevelopment aligns with Iraq’s broader economic strategy. It aims to revitalize national infrastructure, attract foreign investment, and expand air transport capacity. Experts noted that the project will support Iraq’s economic diversification goals and improve long-term competitiveness in the region.
The PPP structure allows private partners to bring international expertise while ensuring local workforce development. The project demonstrates Iraq’s commitment to modernizing critical infrastructure and fostering business-friendly environments.