Nov 5 (Reuters) - Iraq's government has awarded a $764

million project to expand Baghdad's international airport to a

consortium of Luxembourg-based Corporacion America Airports ( CAAP ) and

Iraqi real estate firm Amwaj International, the companies said

in a statement on Wednesday.

Amwaj CEO Namir El Akabi told Reuters 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.

The project's phase 1 is expected to be completed within

three years.

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.

The Iraqi prime minister's office did not immediately

respond to a request for comment.