Iraq’s government has launched a two-stage public tender to select a private sector partner to develop and operate Baghdad International Airport (BGW) under a public-private partnership (PPP) contract.
The move comes after authorities in September 2023 signed an agreement with the International Finance Corporation, a member of the World Bank, to act as lead advisor for the PPP. The partnership aims to bring the facilities, safety and services at Iraq’s largest international gateway in line with international standards.
BGW handled more than 3.4 million passengers in 2023, but the government believes traffic could increase to up to 9 million passengers annually by 2036. To achieve this goal, a new terminal will likely need to be constructed.
Iraq is in need of infrastructure rehabilitation and enhancement, and it is hoped the PPP will help to lay the foundations for future projects to tap into private financing and expertise. The scheme also aligns with Iraq's 2030 Vision for Sustainable Development, which aims to introduce private sector participation for key infrastructure assets and reduce the country's dependency on oil.
“The selected private partner is expected to modernize and rehabilitate the airport infrastructure, expand passenger and cargo terminal facilities to meet traffic demand and operate and maintain the airport in line with international best practice, including IATA and ICAO standards, to provide best-in-class services to the airport users,” the tender for the PPP says. The deadline for applications is Sept. 12.
BGW is served by 21 carriers at present, OAG Schedules Analyser data shows, led by Iraqi Airways with a 36.6% share of all departure seats. Fly Baghdad is the second largest with a 10% share, followed by UR Airlines with 6.8%.
Meanwhile, officials from the country's Transport Ministry and the Iraqi Civil Aviation Authority met earlier in July to discuss the next steps toward lifting Europe’s ban on Iraqi Airways. The national airline has been subject to an operating ban since late 2015 and has since used wet leases to serve European destinations.
Following the meeting, the government vowed to “enhance work and intensify efforts to contribute to enhancing the position of Iraqi aviation on the international scene.”
Additionally, on July 14, the Iraqi Civil Aviation Authority signed a new air services agreement with Austria. It is hoped the move will facilitate the launch of nonstop service between the countries after an absence of more than 10 years.
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