Thursday, August 21st, 2014
SEOUL, KOREA - Despite setbacks due to the ongoing conflict in Iraq, the project led by Hanwha Engineering & Construction to build a new city near Baghdad is moving smoothly. The company said on August 20 that the second installment of US$87 million has been disbursed recently.
Beginning with the advance payment of $775 million in October 2012, Hanwha E&C has received two intermediate payments of $387.5 million each and the first installment payment of $107.2 million in October last year and April this year. In the second half of this year, the company expects two payments of $387.5 million and the third installment payment.
The construction site of Bismayah New City 12 kilometers southeast of the Iraqi capital Baghdad is about 400 kilometers away from the Iraqi northwest in which battles between the Islamic State fighters and the Iraqi government forces are ongoing, which is considered safe from skirmishes. In addition, the site is defended by the Iraqi government forces inside and out.
Earlier in April this year, the company completed the construction of a precast concrete plant in Bismayah and is set to build 20,000 units of apartment homes a year for the next five years. Lee Geun-po, Hanwha E&C president, said, "This is an outcome of the Iraqi government's commitment to the project despite the current civil war. We expect additional orders worth $2 billion in electric power grids and water supply and sewer infrastructures."
