Baghdad International Airport Seeks Private Sector Investment for Expansion and Modernization
Iraqi authorities have issued a call to international private sector companies to bid for the expansion and operation of Baghdad’s international airport. This move comes after years of neglect in the conflict-scarred country, with the aim of bringing the airport up to international standards.
The government of Iraq, in collaboration with the World Bank’s International Finance Corporation (IFC), has initiated a two-stage public tender process to select a private partner to rehabilitate, expand, finance, operate, and maintain Baghdad International Airport under a long-term Public-Private Partnership (PPP) contract. This marks the first time that Iraq has opened its airports to private international investment, signaling a significant step towards enhancing the aviation sector in the country.
The deadline for submitting bids is set for September 12, with the selected winner expected to modernize and rehabilitate the airport infrastructure, expand passenger and cargo terminal facilities, and operate and maintain the airport in accordance with international best practices. The IFC is playing a key role as the lead transaction adviser for this PPP project, providing oversight from the project’s inception and working on the economic model to attract world-class companies to participate in the bidding process.
Prime Minister Mohamed Shia Al-Sudani’s media office recently highlighted an IFC study showing a compound annual growth rate of 15.7 percent in air traffic in recent years, with over 3.4 million passengers arriving in Baghdad in 2023. To accommodate this growth, the IFC has proposed building a new terminal that could increase airport capacity to up to nine million passengers per year.
Baghdad International Airport has not undergone substantial renovations since it first opened in the early 1980s during Saddam Hussein’s rule. The airport was closed in the 1990s due to international sanctions, leading travelers to rely on land transportation to neighboring countries for flights. Currently, the airport struggles to cope with peak travel periods, as its three terminals lack modern amenities.
In addition to addressing infrastructure challenges, Baghdad airport also faces security concerns, with troops from an international anti-jihadist coalition stationed at the facility having been targeted in the past. The planned expansion and modernization efforts aim to not only improve passenger experience but also enhance security measures at the airport.
Iraq, despite being an oil-rich country, has grappled with deteriorating infrastructure and inadequate public services due to decades of conflict, mismanagement, and widespread corruption. By opening up Baghdad International Airport to private sector investment, the government hopes to attract much-needed capital and expertise to revitalize the aviation sector and contribute to the overall economic development of the country.
In conclusion, the initiative to invite private companies to upgrade and operate Baghdad International Airport represents a significant opportunity for international investors to participate in the development of Iraq’s aviation industry. With the support of the IFC and a clear vision for modernization, Baghdad airport is poised for a transformation that will benefit both travelers and the country’s economy.