Hanwha Engineering & Construction (E&C) announced that it has received a 240 billion won (US$202.36 million) advance payment for its ongoing new town building project from the Iraqi government on Sept. 13. In April this year, the construction unit of Hanwha Group won a 2.4 trillion won (US$2.02 billion) contract to build social infrastructure for the new town in Bismayah.
The company expects that the advance payment will accelerate the construction of social infrastructure, including schools, roads and gardening, for the new town.
Also, it shows the Iraqi government’s strong commitment to national housing construction as the national project despite recent economic uncertainties such as falling fuel prices. In August, Iraqi Prime Minister Haider al-Abadi announced, “The government will inject 5 trillion dinar [US$4.4 billion or 5.22 trillion won] into boosting the agricultural and construction sectors, as well as creating new jobs.”
As part of Iraq’s rebuilding efforts, the government aims to create eight new towns in Bismayah. Currently, the first “A Town” is under construction to encompass 4,320 households. The apartment will be supplied to accommodate 20,000 households annually. Once the whole construction project is completed, a total of 834 apartment buildings in 59 blocks in eight towns will be created.
The company added that the Export-Import Bank of Korea and Korea Trade Insurance Corporation also helped for the advance payment and performance bond.