Support for Iraq's New Prime Minister... Hanwha's 'Bisiyama New City Project' Gains Momentum

Newly Elected Al Kadimi, Iraqi Prime Minister, Orders Funding and Road Construction

[Asia Economy Reporter Lim On-yu] The Iraqi government has declared active support for Hanwha Engineering & Construction's Bismayah New City project in Iraq.

According to Hanwha Engineering & Construction on the 22nd, Mustafa Al-Kadhimi, the newly elected Prime Minister of Iraq, discussed issues related to completing major roads connected to housing construction in Bismayah New City at a cabinet meeting held on the 19th (local time). It is understood that Prime Minister Al-Kadhimi specifically instructed the financing of the new city and the construction of major roads during this meeting. Accordingly, it is expected that the project progress of Bismayah New City, which had slowed down, will accelerate.

The Bismayah New City project had been stalled due to various political and economic issues within Iraq. Since early this year, the Iraqi government has faced difficulties in managing national finances due to the global spread of the novel coronavirus (COVID-19) and the decline in international oil prices. As the economic downturn prolonged, the Iraqi government had no choice but to slow down the progress of national projects it had commissioned. Consequently, the project progress of Hanwha Engineering & Construction, which has been carrying out the Bismayah New City construction since 2012, also slowed down.

Aerial view of Bismayah New City, Iraq

However, the situation improved after the election of the new Prime Minister Al-Kadhimi on the 7th and the formation of a new cabinet. A Hanwha Engineering & Construction official said, "Iraq is politically stabilizing with the election of the new Prime Minister," adding, "We plan to improve project conditions through close consultations with the new government."

The Bismayah New City project in Iraq involves constructing approximately 100,000 housing units and social infrastructure near the capital, Baghdad. This project is a symbol of Iraq's national reconstruction efforts and has been prioritized by the government due to its significant contribution to economic revitalization and job creation. The total contract amount is approximately 12.4 trillion KRW. Hanwha Engineering & Construction has completed about 30,000 housing units and handed them over to the Iraqi government, with total cumulative collections amounting to about 5.2 trillion KRW, which is about 42% of the total construction cost.