Iraq cancels major railway and Baghdad airport projects

Iraqi Prime Minister Ali Al-Zaidi has ordered the cancellation of a major railway and airport project as part of his government’s anti-corruption campaign, which launched last month.

The Baghdad International Airport project was subject to corruption allegations, the state-run Iraq News Agency reported, quoting an unidentified government source.

The previous government approved the railway project and was to serve as the backbone of the $17 billion Development Road project, launched in May 2023, Asharq Business reported.

The 1,200 km railway and parallel motorway were planned to link Iraq’s Grand Faw Port in the oil-rich south to the Turkish border, where it will connect to Europe via Turkey’s rail network.

In September 2025 Oman informed Iraq that it wants to be part of a multi-billion-dollar rail and road project alongside Turkey, Qatar and the UAE.

In October 205 Iraq awarded the Baghdad International Airport to a consortium led by Luxembourg-based Corporación América Airports, which beat two other consortia consisting of companies from Turkey, Saudi Arabia and the UK.

The project includes the construction of a new airport terminal with a capacity for up to 9 million passengers a year, with plans to expand to 15 million. It also includes rehabilitating runways, building offices for the civil aviation authority, a VIP hall and a car park, as well as developing the existing cargo building.

The contractor would invest around $764 million and would share revenues from a 25-year operation contract, the prime minister’s office had said.

In May Al-Zaidi ordered corruption inquiries into several major government contracts as part of the government’s anti-corruption campaign, Shafaq News Agency reported.

He instructed the oversight authorities and law enforcement agencies to review previously signed contracts by ministries and state institutions.

• Iraq presses ahead with oil pipeline to Jordan
• Gulf war repair bill threatens overseas energy investments
• Neom cancels rail link between Oxagon and The Line