Iraq plans to modernize Baghdad Airport with IFC support
Baghdad (IraqiNews.com) – Baghdad International Airport, the main airport serving Iraq’s capital, will be developed according to a landmark deal reached between Iraq and the International Finance Corporation (IFC).
This would facilitate the emergence of a competitive framework for further crucial infrastructure projects around the nation as well as increase private sector participation.
According to the agreement, IFC will serve as the main deal counselor for a public-private partnership (PPP) to upgrade Baghdad International Airport, Iraq’s largest international airport, and bring its amenities and security up to par with global norms.
“The Baghdad International Airport serves as a cultural symbol representing Iraq and its people. This initiative is an integral component of our comprehensive vision, which will encompass all airports to enhance transportation diversity and improve global connectivity,” said Iraq’s Prime Minister Mohammed Shia’ Al-Sudani.
This will be the first airport PPP project in Iraq and the IFC’s first PPP mandate in the country, according to the IFC. IFC will conduct thorough research and provide an appropriate transaction arrangement for the project. The project will enter the bidding stage to entice private investors and operators after receiving government permission.
The project also aligns with Iraq’s 2030 Vision for Sustainable Development, which aims to involve the private sector, diversify the economy, and lessen the reliance on oil revenues.
“This agreement marks the start of a series of partnerships with the private sector for critical infrastructure development across the country, as part of our 2030 economic vision for sustainable growth,” said Al-Sudani.
“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,” said Khawaja Aftab Ahmed, IFC’s Regional Director for the Middle East, Pakistan, and Afghanistan. “PPPs help governments harness the private sector’s expertise and efficiency, raise capital to build modern, sustainable infrastructure, and spur development. Attracting private sector participation will help manifest the government’s vision and assist in meeting Iraq’s huge developmental and financing needs.”
The innovative Queen Alia Airport, the Tafila wind farm, the Madinah Airport, and healthcare PPPs are just a few of IFC’s PPPs in the Middle East.