Hanwha Engineering & Construction Receives 240 Billion Won Pre-Payment From Iraqi Government For New-Town Building Project

Hanwha Engineering & Construction on Sunday reveals that the Iraqi government has given them 240 billion won as advance payment for the ongoing new-town project in Iraq.

The Korean company won the deal in 2012, after which Hanwha and the Iraqi government entered into a contract in April. The terms of the agreement stipulates that the Iraqi government promises to give Hanwha an advance payment of 10 percent of the total cost of the deal which amounts to 2.4 trillion won. 

Hanwha said that the Iraqi government's issuance of the prepayment shows the "strong willingness" of the latter to pursue the project despite setbacks caused by Iraq's current financial situation.

Iraqi Prime Minister Haider al-Abadi says the government is willing to shell out $4.4 billion to improve the agricultural and housing sectors to more provide job opportunities for the people in the country.

"The government will inject 5 trillion dinar [$4.4 billion or 5.22 trillion won] into boosting the agricultural and construction sectors, as well as creating new jobs," says the Prime Minister.

Korea Joongang Daily reports on Monday that the project is considered as "the biggest overseas construction order ever won by a Korean company." The building of schools, hospitals, gas stations, bus terminal and police stations will be covered by the project.

The new-town building project, which is expected to be finished in 2019, is located in a new satellite city called Bismayah - 6 miles southeast of Baghdad.

According to Business Korea's report on Friday, Hanwha expects that the construction of basic infrastructure would be sped up because of the prepayment.

Hanwha is currently working on the new city's first "A Town" which will accommodate 4,320 households. The Korean company also posits that the project is expected to open 30,000 jobs annually.