The Central Euphrates Airport will be located some 35 kilometres (20 miles) south of Karbala, Ahmed Tobal, an engineer with the Khayrat al-Sibtein company supervising the project, told AFP.
"The first phase will include the construction of a runway, a passenger terminal, a car park and a maintenance facility," he said at Monday's ceremony.
"The airport will receive its inaugural flight in 18 months."
British company Copperchase, whose managing director Anthony Myers also attended the ceremony, will carry out the USD 500-million (467-million-euro) project, Tobal said.
"This airport will contribute to reviving tourism in the central Euphrates region," said Sheikh Abdel Mahdi al-Karbalai, a representative of Grand Ayatollah Ali al-Sistani, the country's most revered cleric.
He said that at least five Iraqi provinces would benefit from the new airport, which will be around half way between Karbala and the other holy Shiite city of Najaf.
"Karbala receives millions of pilgrims and building the airport is a necessity," Karbala Governor Aqeel al-Turaihi said during the ceremony.
"Establishing it does not only serve the people of Karbala and neighbouring provinces but all the Muslims of the world who come during the religious holidays," Turaihi said.
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