Iraqi Prime Minister Ali Al Zaidi has cancelled a US$764 million redevelopment project for Baghdad International Airport after allegations of corruption emerged over the contract. The decision marks one of the new government's most significant actions since taking office, underscoring its pledge to scrutinize major infrastructure deals signed under the previous administration. 

The airport redevelopment contract was awarded in October 2025 to a consortium led by Corporación América Airports, in partnership with Iraqi firm Amwaj International. The project was designed to modernize Baghdad International Airport, expand passenger capacity, improve cargo and ground-handling facilities, and enhance the country's aviation infrastructure under a long-term public-private partnership.

According to Iraqi officials, the cancellation followed concerns over possible irregularities in the tendering process and the terms of the contract. Government sources said suspicions of corruption prompted Prime Minister Al Zaidi to halt the project while authorities review how the agreement was awarded. Officials stressed that the move reflects the administration's commitment to ensuring transparency and accountability in public spending. 

The decision is part of a broader anti-corruption campaign launched by the new Iraqi government. Since assuming office, Al Zaidi has vowed to investigate questionable public contracts, recover state funds lost through corruption, and strengthen oversight of major government projects. The airport redevelopment is among the first high-profile infrastructure projects to be cancelled under this policy. 

Despite the cancellation, the Iraqi government maintains that it remains committed to improving the country's transport infrastructure and attracting foreign investment. Analysts say the airport expansion could eventually be revived through a revised procurement process if investigations clear the way for a more transparent agreement. For now, however, the cancellation signals that the government is prioritizing governance reforms alongside economic development.