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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 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.

(Reporting by Timour Azhari; Editing by David Goodman and Andrea Ricci)

((Muhammad.AlGebaly@thomsonreuters.com;))