Iraqi parliamentary committee: Hanwha payment released
Shafaq News- Baghdad
Iraq's parliamentary Investment and Development Committee on Sunday said the first installment of overdue payments to South Korea's Hanwha for the Bismayah housing project near Baghdad has been released.
The committee said the payment would allow Hanwha to resume work at full capacity after a dispute over unpaid dues. It did not confirm that the company had received the money or restarted construction.
The National Investment Commission (NIC) separately said it had secured final approval for the payment and submitted 8,280 financial instruments to state-owned Rafidain Bank.
In an October 6 statement, the parliamentary committee had put the first installment at $111 million and outlined financing arrangements covering 8,280 housing units, with a second installment scheduled six months after the first. Sunday's statement did not specify the amount released.
Hanwha announced in September that it would withdraw from the project and lay off its Iraqi employees, blaming the NIC for failing to pay approximately $270 million owed for completed work. Residents raised concerns about possible disruptions to essential services, including drinking water, while a parliamentary committee warned that the dispute could threaten water and sewage operations and lead to international arbitration.
The project has also faced financing problems affecting apartment buyers. In July, Bismayah housing beneficiaries protested outside Rafidain Bank's headquarters in central Baghdad over delayed transactions, saying the terms of their contracts with the NIC had not been implemented. In August, the NIC announced the release of housing loans for thousands of eligible buyers after Prime Minister Ali Al-Zaidi directed officials to address the delays.
Located about 10 kilometers from Baghdad's southeastern city limits along the road to Kut, Bismayah is designed to accommodate about 600,000 people in approximately 100,000 housing units. Hanwha estimated in 2016 that the project, including housing and infrastructure, would cost more than $10.1 billion.
