Hanwha Corp.’s construction unit will restart work on Baghdad’s Bismaya New City after receiving delayed payments from Iraqi authorities. The amended contract, worth 14.7 trillion won ($10.4 billion), extends the completion deadline to 2032.
The project had stalled in October 2022 when the Korean builder halted construction over unpaid bills. Two payments of $300 million each in 2023 helped clear the path for resumption, with Iraq’s National Investment Commission agreeing to a $277 million increase from the original contract value.
The development, one of the largest undertaken by a Korean firm in the Middle East, calls for building 100,080 housing units along with schools, hospitals and commercial facilities near Baghdad. About 30,000 units have been completed so far, with 21,480 transferred to Iraqi authorities.
The project’s revival hinges on final approval from Iraq’s Council of Ministers. Despite the previous payment delays that led to work stoppage, Hanwha is betting on Iraq’s commitment to address its housing shortage, particularly for displaced citizens.
For Hanwha, securing the amended terms marks a crucial win after the year-long suspension threatened one of its flagship overseas developments. The resumed construction work could strengthen the company’s position in Middle East infrastructure projects.
