Hanwha E&C receives $210 million from Iraq

Hanwha E&C workers cover a road with asphalt in Bismayah, Iraq. The company recently received 10 percent of a $2.12 billion Iraqi government contract to build social infrastructure. / Courtesy of Hanwha E&C

By Park Si-soo

Hanwha Engineering and Construction (E&C) said Sunday that it has received 10 percent of $2.12 billion contract money from the Iraqi government to start infrastructure construction needed for a new city in the Middle Eastern country.

The remittance came five months after the builder signed a deal regarding the infrastructure ― including schools, hospitals, police stations and firehouses ― in Bismayah in southeast Baghdad. The rest will be paid in installments depending on construction progress, said Hanwha officials.

The firm’s financial transactions with Iraq are assisted by the Export-Import Bank of Korea and the Korea Trade Insurance Corporation, they said.

Hanwha E&C is building apartments in Bismayah under a separate $8 billion deal it clinched in 2012 with the Iraqi government, with 25 percent of the money paid to the Seoul-based builder.

“The latest remittance reaffirmed Iraq’s strong commitment to the project,” Hanwha said in a press release. “We will step up efforts to proceed with the project successfully.”

The Bismayah construction project is expected to be completed in 2019, according the company.

“Hanwha has won over $10 billion worth of orders from the Iraqi project alone, taking the lead in rebuilding the war-torn nation,” the firm said in the release.

Many say signing the two massive deals was largely attributable to Hanwha Group Chairman Kim Seung-yeon. They said Kim had spared no effort to make the project a success. Since construction started, despite the fighting in Iraq, the chairman has visited three times.

In April, Dr. Sami R. Al Araji, chairman of Iraq’s National Investment Commission, expressed gratitude to Hanwha workers, who risked their personal safety for the construction project.

Hanwha E&C is expected to pursue further business opportunities in Iraq. The government there plans to build more new cities like Bismayah.