CAAP Consortium to Transform Baghdad Airport with $764M Investment

Iraq has officially awarded the contract for the redevelopment and expansion of Baghdad International Airport to the CAAP Consortium, led by Corporación América Airports, in what officials describe as one of the country’s most transparent and financially beneficial airport deals since 2006.

The signing ceremony, overseen by Prime Minister Mohammed S. Al-Sudani, formalised a public-private partnership with a total investment of approximately USD 764 million. The project requires no government expenditure during the concession period.

Under the agreement, CAAP will oversee construction, operations, and management, implementing international standards while creating substantial fiscal and employment benefits.

The project’s scope includes the construction of a modern passenger terminal with an initial capacity of nine million passengers per year, expandable to 15 million, as well as the rehabilitation of runways, taxiways, and aircraft parking areas. 15 passenger boarding bridges will be installed, alongside a new VIP terminal, headquarters for the Civil Aviation Authority, and upgraded car parking facilities.

The project also involves modernising the cargo terminal, firefighting systems to ICAO Level 9 standards, and potable water and waste management systems. CAAP will manage operations, pay staff salaries, provide professional training, and create approximately 1,000 direct jobs for every one million additional passengers served.

The International Finance Corporation (IFC), part of the World Bank Group, acted as the government’s specialised advisor, guiding the bid process, evaluating proposals, and drafting the public-private partnership agreement over two years.

Source: Iraqi Prime Minster Office