Iraq Launches Tender for Baghdad Airport Development Under Public-Private Partnership

Iraq’s government has initiated a two-stage public tender to select a private sector partner for the development and operation of Baghdad International Airport (BGW) under a public-private partnership (PPP) contract. This move follows a September 2023 agreement with the International Finance Corporation, a World Bank member, to serve as lead advisor for the PPP initiative. The goal is to elevate the facilities, safety, and services at Iraq’s largest international airport to meet global standards.

In 2023, BGW handled over 3.4 million passengers, with projections suggesting potential growth to 9 million annually by 2036. To accommodate this increase, a new terminal construction is anticipated. The PPP aims to address Iraq’s pressing need for infrastructure upgrades and align with the country’s 2030 Vision for Sustainable Development, which seeks to reduce reliance on oil by enhancing private sector involvement in key infrastructure projects.

The selected private partner will be tasked with modernizing and rehabilitating airport infrastructure, expanding terminal facilities, and maintaining operations according to international standards set by IATA and ICAO. Applications for the tender are due by September 12.

Currently, BGW is serviced by 21 airlines, with Iraqi Airways leading with a 36.6% share of departure seats, followed by Fly Baghdad and UR Airlines. Additionally, the Iraqi government is working to lift the European operating ban on Iraqi Airways, imposed since late 2015. Recent efforts include a new air services agreement with Austria, aiming to restore direct flights after a decade-long hiatus.