Hanwha Engineering and Construction announced it has been awarded a US$203 million (240-billion won) advance payment for its ongoing new-town building project in Iraq.
Earlier this year, the construction unit of Hanwha Group won a 2.4-trillion won contract to build social infrastructure, including water management systems and roads, in Bismayah, a new satellite city of Baghdad.
The company said the advance payment shows the Iraqi government’s strong commitment to its postwar reconstruction despite recent economic uncertainties, such as falling oil prices.
In August, the Iraqi government announced it would inject $4.4 billion into boosting agricultural and construction sectors as well as creating new jobs.
As part of Iraq’s rebuilding efforts, the government aims to create eight new towns on an 18-square-kilometer construction site in Bismayah, some 10 kilometers from Baghdad.
Currently, the first “A Town” is under construction to encompass 4,320 households. Construction works for other towns and related infrastructure are also expected to start in phases.
“The new towns in Bismayah would represent Iraq’s modern landscape,” said a company official.