Iraq’s Transport Ministry has suspended the execution of a project to develop Imam Hussein International airport in Karbala in central Iraq.

According to a source with knowledge of the project, a dispute between the main investor, the finance arm of Iraq’s Imam Hussein Shrine Foundation, and the Iraqi government’s land registry division concerning the land allocated for the project triggered the suspension of the project.

MEED understands that Copperchase, the UK-firm that was appointed to project manage the scheme, has pulled out of the project.

MEED reported in July last year that UAE-based Am-Tech is expected to win the main contract for the construction of the passenger terminal building at the airport.

Am-Tech is understood to have started piling works for the air traffic control (ATC) tower through a sub-contractor, Middle East Foundations Group, also of the UAE, in May last year.

In June last year, it was understood that negotiations were under way between Copperchase and at least four contractors for several packages including the supply of air traffic control (ATC) equipment and air navigation system.

Other packages that were under negotiation in June are related to airside works, which include aprons, taxiways and a runway.

Construction work on the initial phase of the airport redevelopment project was expected to take between 18 to 24 months.

The passenger terminal building along with the ATC and airfield work packages comprise the initial phase of the project. It was expected to cost between $250m and $500m.