Hanwha E&C receives $775 million from Iraq

By Park Si-soo

Hanwha Engineering and Construction (E&C) has received an advance of $775 million from the Iraqi government for the construction of a massive complex near Baghdad. The payment signals that the project, the groundbreaking of which was delayed due to the imprisonment of Hanwha Group Chairman Kim Seung-youn is back on track.

The company said Friday it received the money ㅡ 10 percent of $7.75 billion to be paid for the project ㅡ from the Middle East nation’s central bank on Thursday.

With the payment, the builder will soon start building the new city that will be built on 1,830 hectares and take seven years to complete.

“We have had many difficulties in proceeding with the project. But the Iraqi government’s strong trust in Chairman Kim and Hanwha has sealed the deal,” said Hanwha E&C Vice Chairman Kim Hyun-chung. “This should be good news for some 100 companies that will be involved in the project.”

Kim pledged that his company will cooperate fully with its subcontractors so the project will progress smoothly.

This project is the single largest construction contract ever won by a Korean builder. Building the new city is part of Iraq’s reconstruction efforts following the invasion in 2003 led by the United States and the subsequent civil war that lasted there for nearly a decade.