Iraq seeks funds to complete Bismayah City project
Bismayah New City Project, located southeast of Baghdad. Photo: Hanwha E&C
Baghdad (IraqiNews.com) – After settling a financial issue with South Korean contractor Hanwha, Iraq is now looking for financing to fund the remaining part of Bismayah City.
The Chairman of Iraq’s National Investment Commission (NIC), Haidar Makiya, said that Hanwha has completed 30,000 apartments and that the remaining 70,000 will be built at a rate of 10,000 each year, the Iraqi News Agency (INA) reported.
Makiya elaborated that communications are ongoing to fund the construction of the remaining units with either foreign or local loans.
According to officials, Hanwha has decided to start construction on Iraq’s biggest housing project again in early 2024 after striking a settlement that put an end to a dispute brought on by the government’s failure to pay its dues.
Hanwha Engineering & Construction Corporation announced in October 2022 that it informed the NIC about the termination of the Bismayah City contract as the Iraqi side failed to pay dues on time.
The termination of the contract took effect on October 21, 2022.
Hanwha Engineering & Construction Corporation received around 4.3 billion USD from the Iraqi side from 2012 until 2021. This amount represents 43 percent of the value of the huge project, which is 12.12 billion USD.
An official mentioned that Hanwha informed the NIC that the contract was voided because of the expected losses while the project continues, but added that there is a possibility to resume the project through consultations in the future as Iraq is strongly determined to continue the project.
The Bismayah New City Project (BNCP) was planned to construct a new city 10 kilometers southeast of Baghdad, and it includes 108,000 housing units planned on an area of 18.3 square kilometers.