South Korean company withdraws from Bismayah project
Bismayah New City Project southeast of Baghdad. Photo: Hanwha E&C
Baghdad (IraqiNews.com) – The South Korean company, Hanwha Engineering & Construction Corporation, announced it informed the National Investment Commission it is terminating the contract to build the new city of Bismayah, as the Iraqi side failed to pay dues on time.
The termination of the contract will take effect after October 21.
Hanwha Engineering & Construction Corporation received around 4.3 billion USD from the Iraqi side from 2012 until 2021. This amount represents 43 percent of the value of the huge project which is 12.12 billion USD.
An official mentioned that Hanwha informed the National Investment Commission that the contract was voided because of the expected losses while the project continues, but added that there is a possibility to resume the project through consultations in the future as Iraq is strongly determined to continue the project.
Bismayah New City Project (BNCP) was planned to construct a new city 10 kilometers southeast of Baghdad, and it includes 108 thousand housing units planned to be completed by 2017 on an area of 18.3 square kilometers.
The project implementation rate reached 40 percent so far as more than 100 thousand people are currently living in the completed housing units that are 30 thousand units.