Iraqi Prime Minister Ali Al Zaidi has ordered the cancellation of a major project to develop Baghdad International Airport over corruption allegations, the Iraq News Agency reported on Sunday.
The project was approved by the previous government, with the $764 million contract to expand and modernise the airport awarded in October 2025 to a consortium led by Corporation America Airports. It included Iraqi company Amwaj International.
The deal, finalised with co-operation from the World Bank’s International Finance Corporation (IFC), was intended to increase passenger capacity and upgrade terminals. But politicians and watchdog groups have raised questions over the tender process and pricing.
The previous government worked with the IFC on public-private partnership models for managing and developing the airport, an approach Iraq will probably pursue for other airports. Quoting a government official, the Iraq News Agency said the deal “had been the subject of corruption allegations in the past”, but did not elaborate.
There was no immediate comment from the developing consortium or the IFC.
Mr Al Zaidi has also ordered the cancellation of a railway project, but did not give details. The previous government signed several railway agreements.
The decision marks one of the most direct steps yet in Mr Al Zaidi’s push to curb graft and reassert state control over large contracts signed under the government of his predecessor, Mohammed Shia Al Sudani.
By scrapping the projects, Mr Al Zaidi has signalled that infrastructure deals tied to the previous government will be reviewed if they are linked to alleged mismanagement or graft.
Since taking office, Mr Al Zaidi has framed his government around economic reform, tackling corruption and attracting private investment. He has repeatedly told business leaders that his office is open to cases of obstruction and extortion within state institutions.
Mr Al Zaidi ordered the creation of the Supreme Sovereign Council for Integrity, Oversight and Recovery of Public Funds to monitor high-impact spending and refer findings to the judiciary.
Iraq’s anti-corruption drive drew renewed attention after an announcement in late May one of large-scale attempted embezzlement. The Integrity Commission announced it had thwarted a scheme to embezzle nearly 1.5 trillion Iraqi dinars ($1.1 billion) from two state banks in Baghdad.
This month security officials detained deputy oil minister Adnan Al Jumaili over allegations of corruption. Authorities have been investigating billions of dollars worth of kickbacks and embezzlement in mainly refinery contracts.
Iraq ranks 136th out of 181 countries on Transparency International’s 2025 Corruption Perceptions Index, with oil sector contracts a frequent target of graft investigations.
