Iraqi New City Project
The Iraqi government has passed a bill to assist the Bismayah New City Project led by Hanwha Engineering & Construction.
According to the company, the enforcement ordinance on the improvement of the tax exemption procedure in national restoration projects passed the state council on August 27. The bill is characterized by simplifying the customs clearance procedure for the imported construction materials that are to be used in such projects. The enforcement ordinance was suggested by Hanwha E&C and the National Investment Commission (NIC) of Iraq.
“In July last year, Chairman Kim Seung-yeon met with Iraqi Prime Minister Nouri al-Maliki and asked him to simplify the formalities for manpower dispatch, customs clearance, and so forth,” said Hanwha E&C’s Vice Chairman Kim Hyeon-joong, adding, “The Prime Minister ordered the NIC to prepare necessary measures, which resulted in the passage of the bill at this time.”
The construction company is anticipating that the bill would lead to more transparent customs clearance as the efficacy of related online documents can be recognized, and the cost and period for the formalities reduced, which, in turn, is expected to smooth the progress of the new city project. At the same time, it is expected to be a boon to other Korean companies’ future projects in Iraq.
The Bismayah Project is to build a new city on the outskirts of Baghdad to accommodate 100,000 households. The total project cost is approximately US$8 billion, which is the largest in the history of overseas projects undertaken by Korean builders.