Iraq scraps Baghdad Airport upgrade amid corruption concerns

Iraq has cancelled a US$764 million redevelopment project for Baghdad International Airport following concerns over corruption and irregularities in the tendering and contracting process, according to state media reports. 
 
The decision was issued by Prime Minister Ali Al Zaidi and affects a contract awarded in October 2025 to a consortium led by Luxembourg-based Corporacion America Airports in partnership with Iraqi company Amwaj International. The project, structured under a public–private partnership model with support from the World Bank’s International Finance Corporation (IFC), was designed to expand capacity and modernise terminal infrastructure at the country’s main international gateway. 
 
Some officials and oversight bodies raised concerns, and government agencies have reportedly been more closely scrutinizing aspects of the procurement process and the structure of the contract. A government source cited by Iraqi media indicated that the agreement had previously been subject to corruption-related allegations, although no further details were disclosed. 
 
The cancellation is part of a broader anti-corruption campaign led by Prime Minister Al Zaidi, which has intensified oversight of large-scale infrastructure agreements signed under the previous administration of Mohammed Shia Al Sudani. Authorities have stated that contracts linked to earlier governments will be reviewed where concerns about governance, procurement or financial management arise. 
 
In parallel, Iraqi authorities have also moved to cancel a separate railway infrastructure project, although details of that decision have not yet been released. The previous government had signed multiple rail development agreements aimed at upgrading national transport and logistics networks. 
 
The wider anti-corruption drive has gained momentum in recent months with the creation of a dedicated oversight body tasked with monitoring high-value public spending and referring suspected cases of misconduct to judicial authorities. Investigations have also extended to alleged financial irregularities across banking and energy-related contracts. 
 
Governance continues to be a major challenge for Iraq – it ranks 136 out of 181 countries in Transparency International’s 2025 Corruption Perceptions Index and infrastructure and oil-related projects are often riddled with questions of transparency and accountability.