Iraq: Hanwha Paid $511 Million Advance Payment
|April 5, 2014||Filled under Iraq Business News|
Iraq Business News -
Hanwha Engineering and Construction Corp., one of South Korea’s leading builders, said Thursday that it has received an additional 540 billion won (US$510.6 million) in advance payment for its Iraq city project that will kick off next month.
This brings the amount of money the builder has received so far for the $8 billion Bismayah New City Project (BNCP) to around $1.6 billion, or 20 percent of the total. The company won the contract in May 2012.
Hanwha E&C said Iraq will send another 410 billion won in the second half.
BNCP is considered the biggest urban development project in the history of Iraq. The new city, located 10 kilometers southeast of Baghdad, covers 1,830 hectares of land and is being built to accommodate around 600,000 occupants in a total of 100,000 residential units.
“The payments were made in accordance with the original contract and comes from the Iraqi government budget,” a company official said.
Once construction starts, work should be completed by 2019, according to the company.
About 100 South Korean companies are also engaged in the project as partners and have some 1,500 workers stationed at the site. The cooperative effort between Hanwha and its partners should be seen as a model for similar tieups between big companies and smaller firms, the builder said.
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