Tag Archive | "Bismayah"

Hanwha Wins $2bn Iraq Order

By John Lee.

South Korea’s Hanwha Group has reportedly won a $2.12-billion (2.5-trillion-Iraqi-dinar) order to build the social infrastructure for Bismayah New City.

According to Yonhap News Agency, the agreement was signed with Iraq’s National Investment Commission (NIC) on Monday.

The Group is currently building 100,000 homes at the project, which are due for completion by 2019.

(Source: Yonhap, Reuters)

Posted in Construction & EngineeringComments (8)

$3bn Power Plant for Bismaya

By John Lee.

Reuters reports that Mass Global will partly finance a $3-billion power plant in Bismaya.

The gas-fired, 3,000-megawatt plant is being built by Turkey’s Enka Insaat, whose chairman Sinan Tara said it would be financed partly from Mass Global’s equity and partly from Iraqi lenders.

The project will be built in two phases of 1,500 MW each.

The companies have already worked together on power plants in Erbil and Sulaymaniyah.

(Source: Reuters)

(Picture: new housing project at Bismaya).

Posted in Construction & Engineering, Public WorksComments (3)

Hanwha Receives Further Payment for Bismaya

By John Lee.

Hanwha E&C has announced that the company received the fourth deposit of US$387.5 million (452 billion Iraqi dinars) for the construction of the Bismayah New City (pictured) outside Baghdad.

This sum brings Hanwha receipts from the project to $1.9375 billion, 25 percent of the total construction cost.

The $8-billion project is the largest overseas construction project ever for a Korean company, according to a report from BusinessKorea.

CEO Lee Geun-po of Hanwha E&C said:

Successful receipt of deposit this time proves the strong confidence of the Iraqi government in Chairman Kim Seung-yeon and the great capabilities of Hanwha E&C in construction performances.

“Even during the civil war in Iraq, Hanwha E&C employees and subcontractors are very devoted to proceed with the construction.

(Source: BusinessKorea)

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Hanwha Opens Precast Concrete Plant at Bismayah

Prime Minister Nouri Kamil al-Maliki has opened the new Hanwha Precast Concrete Plant at the Bismayah New City development near Baghdad.

Speaking at the event, he said that “this project is our dream that has come true because it reflects our hope to provide housing units for all Iraqi people who were deprived of their right to live in decent housing units due to the wars, wrong policies and foolishness of the former regime”, stressing that the government intends to deliver housing units of this project for those affected by the terrorist attacks.

He added that “the … suspicion of this project [has] come to an end. Now, the project is real, and we have to start to provide residential units. Our ambition is to proceed from the Bismayah Project by developing a plan to provide one million housing units and beyond, to three million housing units, either by convenient installments or distribution and building of residential land plots for those who do not have income”, stating that there are other similar housing projects in Basra and Karbala are being built.

The Prime Minister has appreciated Hanwha efforts, praising its seriousness and commitment to work and agreement. Also he extended congratulations to the people registered on the housing units.

Hanwha Precasts Concrete plant complex is built on the area of 660,000 m2. Including this plant, HANWHA E&C invested in 14 sub-plants of construction material production inside its base camp.

(Source: Hanwha)

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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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