Iraq’s Ministry of Transport has unveiled plans for the redevelopment of Baghdad International Airport (BIAP) through a public-private partnership (PPP), supported by the International Finance Corporation (IFC) of the World Bank Group.
Faced with fiscal pressures and a national drive to diversify funding, Iraq signed a consultancy agreement with the IFC in September 2023. Under the agreement, the IFC is providing technical and legal advisory services for the tender, including feasibility studies, investment briefs, and a transparent international bidding process. The project will involve no public funding, loans, or guarantees, with Iraq retaining full sovereign authority.
The selected investor will be awarded based on the highest proposed annual revenue share to the Iraqi treasury and is expected to finance the entire project — valued between $400 million and $600 million. The scope includes managing and developing the airport, constructing new terminals (initial capacity: 9 million passengers, expandable to 15 million), upgrading airfield systems, and enhancing employee salaries and training.
From 14 applicants, 10 international consortia have been prequalified, with bids due by September 2025.
Sovereign operations — such as customs, immigration, air traffic control, security, and VIP services — will remain under government control, while the investor will oversee terminal operations, ground handling, logistics, and the commercial development of adjacent land.
The IFC’s consultancy fee is capped at $500,000, with no disbursements made yet. The project is anticipated to create over 12,000 direct jobs and boost the airport’s economic performance.
(Source: Iraqi Ministry of Transport)
