Bangladesh, June 18 -- The World Bank's private-sector financing arm has reaffirmed its commitment to Iraq despite the abrupt cancellation of a $764 million project to modernize Baghdad International Airport, a decision that has reignited concerns over corruption, governance, and transparency in one of the country's most ambitious infrastructure initiatives.

The project, intended to transform Iraq's main international gateway through a public-private partnership, was terminated by Prime Minister Ali al-Zaidi's government amid allegations of corruption and irregularities in the bidding process. The cancellation represents a major setback for efforts to attract international investment into Iraq's infrastructure sector and raises question...