Iraq cancels $764 million Baghdad airport project over corruption concerns

Corporacion America Airports SA

14/06/2026 11:16

    BAGHDAD, June 14 - Iraqi Prime Minister Ali al‑Zaidi has decided to cancel the Baghdad International Airport development project after corruption suspicions were raised, Iraqi state media reported on Sunday, citing a government source.
The project involves a $764 million contract awarded last year to a consortium of Luxembourg-based Corporacion America Airports (CAAP) and Iraqi real estate firm Amwaj International, aimed at upgrading and expanding the capital’s main airport.
Two government sources speaking on condition of anonymity due to the sensitivity of the matter told Reuters that officials raised concerns about potential irregularities over the tendering process and contract terms.
The move follows a drive against corruption which has meant growing scrutiny within government institutions.
The airport upgrade had been presented as a key infrastructure project to modernise Iraq’s aviation sector and increase capacity at Baghdad International Airport, which has suffered from years of underinvestment.

 (Reporting by Ahmed Rasheed;Editing by Elaine Hardcastle)
 ((ahmed.rasheed@thomsonreuters.com))