[Sponsored Report] Hanwha E&C cashes in on Iraq deal

Hanwha Engineering & Construction is building houses and facilities in the New Bismayah City construction project in cooperation with the Iraqi government. [Hanwha E&C]

Hanwha Engineering & Construction (Hanwha E&C) has received about $230 million in construction fees from the Iraqi government for its ongoing new city project, the company announced.

Funds secured as part of the ongoing contract for the New Bismayah City construction project now amount to an accumulated $3.47 billion.

The most recent payment was made in three lump sums, paid during the Iraqi presidential election period. The final payment was made on May 23, shortly after the election. The timing of the three payments is evidence of the Iraqi government’s strong commitment to the new city project, regardless of the internal political situation.

Hanwha E&C also received $180 million after Choi Kwang-ho, president & CEO of Hanwha E&C, met with the Iraqi prime minister last year.

The additional $230 million paid this month has settled the Iraqi government’s bill for 2017 and contributed toward this year’s costs.

The New Bismayah City construction project is moving forward quickly thanks to a positive working environment including timely payment, the end of hostilities in the region and rising oil prices. Work is expected to continue as planned this year as political conditions in the country have stabilized.

Hanwha E&C is constructing about 100,000 houses and social facilities near Baghdad, the capital city of Iraq. The total amount of contract is priced at $10.1 billion.

BY KIM MIN-JI [kim.minji4@joongang.co.kr]