The Iraqi government is looking for investors to modernize Baghdad International Airport under a USD 400-600 mn Public-Private Partnership (PPP), according to a statement. The selected investor will be responsible for the development and management of the airport without the state’s financial backing. The project is backed by the International Financial Corporation(IFC) as an advisor.

The tender specs: The deadline for bid submissions is slated for September, with 10 of 14 investment consortia having prequalified, the statement said. The successful bid is set to be the one that proposes the highest percentage of annual revenue shared with the public treasury.

Post-tender plans: The successful bidder will construct modernized terminals initially designed to handle 9 mn passengers annually — with a future expansion to 15 mn — as well as manage ground handling and air cargo services. The winner will also be expected to propose an investment plan to develop the lands surrounding the airport and oversee facility marketing and operations without burdening the state budget, the statement added.

A caveat: The Iraqi state will retain full authority over all sovereign functions, specifically passport and customs procedures, airport perimeter security, air navigation and airspace management, VIP lounges, and control of fuel depots.

ICYMI- The IFC partnered with the Iraqi government as a transaction advisor on the 2023 project to rehabilitate Baghdad International Airport. The IFC agreed to conduct due diligence and propose a transaction structure before a tender to attract private investors.

IFC-backed privatization goes far in region: The IFC has been advising the Egyptian government on a plan to privatize the management of 11 airports in the country. The pair signed an advisory agreement back in March, announcing the list of airports and plans to issue a management tender for the first offering — Hurghada International Airport.

OVER IN THE MALDIVES

The Maldives has inaugurated its Abu Dhabi Fund for Development (ADFD)-backed Maafaru International Airport, Wam reports. The ADFD financed the project with an AED 367 mn investment and was involved in the construction of the airport, which includes a 2.8 km runway facility that can accommodate wide-body aircraft — including Airbus A330s and Boeing 777s.

ADFD is big on Maldives investments: ADFD is also financing the development of another Maldives airport — Velana International Airport — pledging AED 147 mn last December, which brings ADFD financing of the project to AED 330.5 mn after an earlier funding round in 2017. To date, the ADFD has helped finance AED 1.1 bn worth of development projects in the Maldives.

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