ERBIL, Kurdistan Region - Iraq on Tuesday announced it has awarded a $764 million contract to an international consortium, comprising a firm from Luxembourg and Iraq, to develop and operate the country’s largest airport, including the construction of a new terminal designed to handle up to 15 million passengers annually.
“The Council of Ministers has approved the project for the rehabilitation, development, and operation of Baghdad International Airport [BIAP] through a partnership with a global private-sector operator,” read a statement from Prime Minister Mohammed Shia’ al-Sudani’s office.
The project has been awarded to the CAAP Consortium, comprising Corporacion America Airports and Amwaj International, following the evaluation of financial offers in October. The consortium’s proposal was deemed “the best offer, which allocates 43.05 percent of the airport’s total annual revenue to the central treasury throughout the concession period.”
“This project aims to elevate the airport’s performance to levels that reflect Iraq’s reputation and growing global connectivity,” the statement added.
The selected investor is required to construct a new modern passenger terminal with an initial capacity of nine million passengers per year, expandable to 15 million in later phases.
The agreement also includes rehabilitating existing facilities, upgrading fire and water systems, improving waste management, training staff, and paying airport employees’ salaries.