Iraq’s Prime Minister Ali Al-Zaidi has decided to cancel the Development Road rail and the Baghdad International Airport development projects, both dating back to the government of Mohammed al-Sudani.

The official Iraqi News Agency cited a "government source" as saying that "Al-Zaidi has decided to cancel the railway project, which the previous government had approved."

"He also decided to abolish the Baghdad Airport development project, which has been the subject of corruption allegations recently," the source added.

Minister of Communications Mustafa Sanad confirmed the report, saying that Al-Zaidi has takem several courageous and bold decisions in just two weeks, including the Baghdad airport and the rail network projects.

It was not clear whether the 1,200-km motorway which runs parallel to the rail line in the Development Road was also abolished.

In October, Iraq's government awarded the $764 million project to expand Baghdad's international airport to a consortium of Luxembourg-based Corporacion America Airports and Iraqi real estate firm Amwaj International.

Amwaj CEO Namir El Akabi said the project would be a 25-year build, operate and transfer model, beginning with an expansion of the airport's capacity to 8.5 million passengers in the first phase via the construction of a new terminal.

Baghdad's international airport was built in the 1970s and 1980s, with little development done since during decades of turmoil, including a nearly decade-long war with Iran in the '80s, the first Gulf War in the '90s and the U.S.-led invasion of 2003.

In recent years, Iraq has witnessed relative stability and major cities are experiencing a building boom driven by the country's massive oil revenues.

(Writing by N Saeed; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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