Home > Business > Industry

Hanwha's E&C Division inks new $10B contract for Iraqi city project

Published: 06 Dec. 2024, 12:51

CHO YONG-JUN
[email protected]

Bismayah New City, located 6.2 miles southeast of the Iraqi capital city of Baghdad [HANWHA CORPORATION]

Hanwha Corporation's E&C Division signed an amended contract to resume a $10 billion construction project to build a city in Iraq, known as Bismayah New City.

The Korean builder announced Friday that the revised contract, signed with Iraq’s National Investment Commission (NIC) on Thursday, increased the contract from $10.12 billion to $10.4 billion. The contract will take effect when Iraq’s Council of Ministers approves the deal, which may ask to alter or cancel it.

Hanwha Engineering & Construction withdraws from Iraq project

The Hanwha affiliate originally won the contract in 2012 to build Bismayah New City, located 6.2 miles southeast of the Iraqi capital of Baghdad. The project involves the construction of 100,080 houses and various auxiliary projects, such as those related to transportation, water systems and electricity.

Around 30,000 houses have been constructed so far, with 21,480 houses already in use.

The 18.3-square-kilometer site (7.06-square-mile) is set to accommodate 600,000 residents once completed.

Hanwha Corporation's E&C Division terminated its contract in October 2022 citing an NIC contract violation and a failure to make payments, but subsequently signed a memorandum of understanding in January 2023 to renegotiate the agreement. Hanwha received $ 300 million in 2023 to partially continue the construction.