Hanwha "Abandons" $10bn Bismayah Project

By John Lee.

South Korea's Hanwha Engineering & Construction has reportedly abandoned construction at the giant Bismayah New City housing project near Baghdad.

According to Korea Economic Daily, the decision was made having failed to receive payments for years from the Iraqi government.

It says the company expects losses of up to $581 million if it fails to recover dues it hasn't received yet.

The project involved the building 100,000 residential units and associated infrastructure on a 1,830-hectare site, at an estimated cost of $10.1 billion.

Korea Herald reports that around 45 percent of residential units and 29 percent of social infrastructure has been completed.

In August, the Chairwoman of the National Investment Commission (NIC) said that the NIC has specified "a number of legal and financial conditions" to proceed with the development, adding that the NIC was waiting for a reply from the company.

(Source: Korea Economic Daily, Korea Herald)

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