Iraq nears completion of Grand Faw Port, launches $600m Baghdad airport tender

Arab News

09-07-2025

RIYADH: Iraq's transport landscape is set for a major upgrade as it nears completion of its Grand Faw Port and launches a $600 million tender to redevelop Baghdad Airport through private investment.
The Ministry of Transport said in a statement that work on the flagship port project has reached key milestones, despite ongoing challenges.
The progress on these infrastructure projects aligns with Iraq Vision 2030, which aims to diversify the economy, reduce oil dependency, and boost non-oil sectors like logistics and tourism for long-term growth.
Farhan Al-Fartousi, director general of the General Co. for Ports of Iraq, said that dredging work on the port's navigation channel is 92 percent complete, while the container yard has reached 94 percent completion. The 63-km access road connecting the port to the national highway network is also finished.
'The submerged tunnel project is going according to what is planned, as the third piece has been successfully completed, and the engineering teams are preparing to start the process of bringing the fourth piece in the coming days, after completing all the necessary technical and logistical recalls,' the release said, citing Al-Fartousi.
The tunnel comprises 10 segments, stretching 2,444 meters in total, with 1,226 meters submerged underwater.
The ministry is finalizing operational procedures for the port, which will soon be submitted to the Cabinet for approval. Once approved, 11 leading global port operators will compete for the management contract.
The ministry said that Container Terminal No. 1 will meet high technical specifications and be operated by a world-class firm, ensuring the port's success as a strategic regional hub.
The transport ministry also unveiled plans for a public-private partnership to modernize Baghdad International Airport, in collaboration with the International Finance Corp., a World Bank affiliate.
The government has opted for a public-private partnership model to overcome budget constraints and alleviate fiscal pressures, according to a separate ministry statement.
The approach also aims to leverage private-sector expertise to accelerate infrastructure development, improve service quality, and create jobs while driving economic growth.
'This initiative aligns with a broader development strategy and does not entail relinquishing the state's sovereign role. Rather, it aims to enhance operational efficiency and ensure the delivery of safe, high-quality services to travelers,' the statement said.
The IFC, serving as a non-profit adviser, is supporting Iraq in conducting feasibility studies and organizing a transparent international tender for the project.
Under the agreement, the government will retain control over sovereign functions such as immigration, customs, air traffic control, and fuel storage. The private operator will be responsible for terminal operations, security screening, infrastructure upgrades, logistics systems, ground handling, and air cargo services.
The $400–600 million investment will be fully privately financed, with the airport initially accommodating 9 million passengers annually before expanding to 15 million. Bidding closes in September, and the selected operator will share annual gross revenue with the government. The project is expected to generate at least 12,000 new direct jobs, the statement said.
The progress on Iraq's Grand Faw Port and Baghdad Airport redevelopment aligns with the broader goals outlined in the country's Vision 2030, which emphasizes infrastructure development as a pillar of economic diversification and private-sector growth.
The vision, spearheaded by the Ministry of Planning, prioritizes modernizing transport networks, enhancing regional connectivity, and leveraging public-private partnerships to overcome fiscal constraints, mirroring the airport project's model.
The vision's 'Diversified Economy' pillar calls for advanced infrastructure to stimulate trade and job creation, while its governance reforms stress transparency in tenders, as seen in the IFC-backed airport bid.