Baghdad: Zahra Al-Bujari, the Head of the Parliamentary Transport and Communications Committee for the Sadiqoun bloc, has disclosed significant irregularities and potential financial mismanagement in the Baghdad International Airport rehabilitation project. The project, currently advised by the International Finance Corporation, reportedly involves questionable contract terms and fees that could lead to substantial financial losses for Iraq.

According to National Iraqi News Agency, Al-Bujari highlighted that the Council of Ministers exempted the project from the Government Contracts Law, which generally requires a competitive bidding process. This exemption allowed the contract to be awarded directly to the International Finance Corporation without a formal tender offer to other potential companies. This move has raised concerns about transparency and fairness in the allocation of government contracts.

Furthermore, Al-Bujari raised issues with the contractual arrangements with the International Finance Corp
oration. She noted that the consultation contract is valued at $500,000 for a year, a period during which the Civil Aviation Authority, typically responsible for the airport, appears to be sidelined. More critically, the International Finance Corporation does not maintain an office in Iraq, which means all payments for the project are transferred abroad, contravening local legislation that mandates project funds to be disbursed within the country.

Another contentious point mentioned by Al-Bujari is the inclusion of a “success fee” in the contract, which the International Finance Corporation has set between 1.5% of the project’s total value of $450 million. This arrangement could result in the company receiving approximately $7.25 million in addition to the initial $500,000 contract value, summing to a significant outflow of funds from Iraq for this project.