Tag Archive | "Bismayah"

Hanwha Gets $511m Advance Payment


By John Lee.

South Korea’s Hanwha Engineering and Construction has said that it has received an additional $511 million in advance payment for its Bismayah New City Project (BNCP), located 10 kilometers southeast of Baghdad.

According to a report from Yonhap News, this brings the amount of money the builder has received so far for the $8 billion Bismayah New City Project (BNCP) to around $1.6 billion, or 20 percent of the total.

The company said Iraq will send another $388 billion in the second half.

The 1,830-hectare Bismaya development is intended to accommodate around 600,000 residents in a total of 100,000 residential units. Construction is due to be completed by 2019.

About 100 South Korean companies are also engaged in the project as partners and have some 1,500 workers stationed at the site.

(Source: Yonhap News)

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NIC Reduces Downpayments at Bismayah


Iraq’s National Investment Commission (NIC) decided to reduce the down payment required to buy housing units at the new Bismayah development.

NIC Chairman Dr. Sami al-Araji said that following requests from the public, the down payment would be reduced from 25 percent to 10 percent.

He added that work at Bismaya, the biggest housing project in the Middle East, was proceeding according to schedule.

(Source: National Investment Commission)

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AS&E Wins Cargo Inspection Contract


By John Lee.

American Science and Engineering, Inc. (AS&E) has announced a $3.5-million order for its cargo inspection systems from Restrata, an Olive Group company, of a major housing project in Baghdad.

Restrata is acting as the security partner for the giant Bismaya development, 10 kilometers south of Baghdad. AS&E’s cargo X-ray inspection systems will be used to help ensure the security of the critical infrastructure project to build 100,000 housing units that will accommodate a half million Iraqi citizens.

Chuck Dougherty, AS&E’s President and CEO, said:

We are proud that AS&E was selected to support this important project and participate in the economic development in the region … Providing comprehensive screening for all vehicles and cargo entering the city, AS&E’s inspection solutions will reduce the level of vulnerability at this massive site and safeguard personnel, citizens, and the critical assets of the new development project in Bismaya.

(Source: AS&E)

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Iraqi Housing Initiative “Fails to Deliver”


By Omar al-Shaher for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

The Iraqi National Investment Commission (NIC) is facing major problems in marketing units in the largest residential project in the country, despite the growing housing crisis in the capital of Baghdad. This raises questions about the benefit of the government’s investment in such projects.

Although the advertising campaign for the Besmaya [Bismayah] residential project (pictured) southeast of Baghdad was launched a year and a half ago, thousands of residential units are still available at the complex. This project represents the first step in the Iraqi government’s plan to build one million residential units over the coming few years.

The NIC, which is the official body concerned with the project, said, “The Besmaya project is spread over an area of 18 million square meters, and includes 100,000 residential units that can accommodate 600,000 people.” It explains that the contract for this project was awarded to Hanwha, one of the largest global construction companies of South Korea.

At the end of September 2011, the NIC offered through its website the project’s residential units directly to Iraqi citizens, and announced that work on the residential units will begin in early 2013. This came after it had previously promised that the project’s infrastructure would be established in 2012. However, 2012 has passed and the project’s infrastructure and residential units have yet to be completed.

It seems that the reason for this delay is that Iraqis are reluctant to join the project, which led to financing delays in the first installment, which participants were to provide, according to sources within the NIC.

The sources said that the financing plan requires participants to pay a quarter of the project’s costs before starting construction. However, weak demand has driven the commission to look for other sources of financing, primarily by borrowing from the government.

Controversy has surrounded the project site, particularly after Iraqi MPs said that it is radioactively contaminated and located close to an Iraqi army camp. However, the NIC said that it has thoroughly examined the site and confirmed that the project is habitable.

The NIC said that the project’s infrastructure includes schools as well as commercial, health and entertainment centers. Moreover, a modern road network is being built specifically for the project, linking it to the highway and thus connecting it to the Iraqi capital.

The project’s residential units consist of ten-floor apartment buildings and does not include homes or residential villas, which, according to real-estate experts, is sufficient reason for Iraqis to not join the project.

Abdul Wahab al-Bayati, manager of MENA Real Estate, located in the university district in western Baghdad, said, “Iraqis prefer stand-alone homes over apartments.” He added, “The people here view apartments as inferior property,” and “they want to own the land on which a house is built, not an apartment hanging in the air.”

Bayati added, “I asked several of my clients, those who do not have enough money to buy homes in Baghdad, why they wouldn’t consider Besmaya. The answer would be, ‘We want homes on the ground, not apartments in the sky.’”

Bayati expressed doubt over the feasibility of building these residential complexes. He said, “The government must help the people build homes, not large, unwanted complexes.”

However, the NIC asserts that this project may currently be the only means to ease the housing crisis in Baghdad, which has led to a significant rise in real-estate prices.

The Besmaya project offers three types of apartments: ​​100 square meters for $60,000, ​​120 square meters for $72,000, and ​​140 square meters for $84,000.

The commission proposed three payment options: payment of the full amount upon signing the contract, payment of half the amount upon signing with monthly installments over three years and payment through installments, whereby the buyer pays 25% of the apartment’s value upon signing the contract and the remaining amount through installments over 15 years.

In a recent attempt by the NIC to convince Iraqis to invest in this project, the value of the first installment in the third payment method was reduced to 10% instead of 25%.

Still, the move was not sufficient, and the authority is still trying to attract buyers for thousands of vacant units in the project. It seems that the project will not succeed until the people here start accepting the idea of vertical housing.

Omar al-Shaher is a contributor to Al-Monitor’s Iraq Pulse. His writing has appeared in a wide range of publications including France’s LeMonde, the Iraqi Alesbuyia magazine, Egypt’s Al-Ahaly and the Elaph website.

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Iraq Signs Memorandum of Cooperation with S. Korea


By John Lee.

The Chairman of the National Investment Commission (NIC), Dr. Sami al-Araji, has signed a strategic memorandum of cooperation with the chairman of the Korea Trade-Investment Promotion Agency (KOTRA), O Young Hu [Young Ho Oh], to increase investment and trade between the countries.

During his speech, Dr al-Araji reviewed the investment opportunities available in Iraq, and encouraged South Korean companies to take part in the development of Iraq.

He also confirmed that work at the massive Basmaiya housing project is going ahead as planned.

(Source: NIC)

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MP Says Bismayah Housing Project has ”Failed “


By John Lee.

An MP and member of parliament’s the Economic Committee has described the giant Basmaya [Bismayah] City housing project as “failed”, and says “the National Investment Commission (NIC) will not be able to implement it.”

Azez al-Mayahi, of the Iraqiyya party, demanded that the NIC clarify that status of the project, according to AIN.

The Basmaya project is totally failed and there is no way that the Hanway [Hanwha] Korean Company could built 100 000 housing unit within seven years … Until now the Commission did not start establishing infrastructure of the project which has bad implementation plan“, he said.

(Source: AIN)

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NIC Opens Center for Bismayah Housing Project


The National Investment Commission (NIC) has opened a center for the Bismayah New City project at the Baghdad International Fair. It will receive citizens registered and wishing to register for housing units in the project for the three sizes of housing unit: 100 m², 120 m², and 140 m².

NIC Chairman, Dr. Sami Raouf al-Araji said that the NIC agreed with the State Company for Iraqi Fairs to open a special center to receive the registered and wishing to register Iraqis for Bismayah new City project starting on Sunday, and under the supervision of specialists from the NIC and experts from the Hanwha company to answer all inquiries directed by the visitors, as well as registering new appliers and signing the housing unit contract after the payment of (25%) of the value of the housing unit to the branches of the three banks (Rafidain, Rasheed, and TBI) previously announced through the NIC official website.

He added that the NIC provided an opportunity for those wishing to register for the housing units of Bismayah New City project through their visit of the registration centre in Baghdad International Fair providing the required documents and to review the models of the housing units that will be implemented for the three surface areas, mentioning that the official working hours at the center is from 9:00 am to 6:00 pm seven days a week.

NIC Chairman said that (65%) of the amount of the housing unit is to be paid in the form of premiums for a period of (15 years) of (3%) interest with grace periods that reach up to (4.5) years, while the remaining (10%) is to be paid in cash upon receipt of the housing unit. The priority in the receipt of the housing units is to those who pay the amount at once or pay the premium within the less grace period which is (6 months) Noting that the price per square meter is (630 dollars) that the price of the housing unit area (100 m 2) is ($ 63,000), (120 m 2) is (75,200 dollars), while (140 m 2) is (88,200 dollars).

Worth mentioning that the NIC and under the auspices of the Prime Minister, Mr. Nuri Kamal al-Maliki had laid down the foundation stone for Bismayah New City project for building (100) thousand residential units of integrated services last Wednesday 30/5/2012, which is considered as the largest housing project in Iraq and part of the Baghdad’s share of $ (224 thousand residential units) of the project to build one million housing units throughout Iraq adopted by the NIC.

(Source: NIC)

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