Korean firm Hanwha Engineering and Construction received about $560 million in construction fees last week from the Iraqi government for its ongoing new city project, the company said on Monday.
The company has been building the 1,830-hectare new city Bismayah, 10 kilometers southeast of Baghdad, an $8-billion contract signed in 2012. The two parties agreed an additional deal to build social infrastructure for $2.1 billion in April 2015, bringing the total accumulated contract to $10.1 billion.
According to a report from the Korea Herald, the latest payment enables the company to cover all accounts receivable, "alleviating its liquidity status and improving the financial health of the company".
The Iraqi government made the payment through loans from the state-run bank after taking over the completed houses of the new city.
Korea’s Export-Import Bank and Korea Trade Insurance Corporation also provided support for the payment process, the company said.
With construction about 30 percent completed, the company aims to build 100,000 houses and about 300 institutions, including schools, hospitals and public facilities.
The new city will consist of eight towns. So far, about 5,000 households have moved into the first town.
(Source: Korea Herald)