Baghdad Airport to Be Modernised in $600 Million Plan

Iraq’s Ministry of Transport has officially launched a major project to redevelop Baghdad International Airport, with an estimated investment ranging between $400 – $600 million. The project is being carried out through a public-private partnership (PPP), in cooperation with the International Finance Corporation (IFC), a member of the World Bank Group.

This marks Iraq’s first ever airport PPP and reflects the government’s broader strategy to modernise key infrastructure without relying on public funds or state-backed loans. The entire cost will be funded by the winning private investor, with no financial burden on the state. The IFC is acting as legal and technical advisor, helping to structure the process and ensure international standards and transparency. Their consultancy fee is capped at $500,000, with no funds disbursed so far.

The investor will be selected based on the highest annual revenue share offered to the Iraqi treasury. Ten international consortia have already been prequalified, and proposals are due by September 2025. The selected partner will then take responsibility for fully developing and managing the airport under a long-term agreement.

Plans for the upgraded airport include the construction of a new terminal with a capacity of 9 million passengers annually, expandable to 15 million. The development will also modernise airfield systems and infrastructure, enhance ground handling and logistics, and create commercial zones surrounding the airport. The investor will also be responsible for raising staff salaries and providing training to improve service quality.

While operations and commercial development will be privately managed, the government will retain full control over sovereign functions such as customs, immigration, air traffic control, security, and VIP services.

According to the Ministry of Transport, the project is expected to generate at least 12,000 direct jobs and significantly increase the airport’s economic input.

In a statement, IFC Regional Director Khawaja Aftab Ahmed said, “This agreement marks a new era in Iraqi history, allowing the country to leverage its unique geographical position, supporting trade, creating jobs, and fostering diversification.”

IFC full press release statement here

For Iraqi travellers, this redevelopment promises a more modern and efficient  airport offering better experiences and improved infrastructure at the heart of the country’s capital.

Source: Iraqi Ministry of Transport , Iraqi Prime Minister Office , IFC