After expecting a loss of $ 581 million, the Korean Hanwha Company abandons the Basmaya residential

[size=46]After expecting a loss of $ 581 million, the Korean Hanwha Company abandons the Basmaya residential project[/size]

Economie

[size=30]South Korea's Hanwha Engineering and Construction has halted a $10 billion project to build a new city at the Basmaya site in Iraq after failing to get its payments for years from the Iraqi government.[/size]
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And the (Korea Economic Daily) published an article in which it revealed the reasons for the Korean Hanwha Company to abandon the Basmaya housing project, which indicated that the  South Korean Hanwha Engineering and Construction Company expected losses of 828 billion won, or approximately (581 million dollars) from the Bismayah housing project. If you fail to get back any money you spent on it.[/size]
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Last Friday (October 7, 2022), the Korean company Hanwha notified the Iraqi National Investment Commission (NIC), which awarded the project to Hanwha 10 years ago, of the decision to finish construction work in the city of Bismayah, which is located on the outskirts of the capital, Baghdad.[/size]
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The Korean Hanwha Company believes that the Iraqi National Investment Commission (NIC) has violated the contract after delaying payments several times, according to an official at Hanwha E & C, who confirmed: "We are now in the process of ending the project."[/size]
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The plan for the new city of Bismayah, described as "the largest city development project in the history of Iraq", was first drawn up in 2010 and awarded to Hanwha in 2012.[/size]
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The project plan was to build 100,000 housing units on an area of ​​1,830 hectares (18.3 square kilometers) with all the necessary means of transportation, water, education, health and energy infrastructure.
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However, the Korean Hanwha stopped work on the project in September of the year 2020 after completing 30,000 housing units, as Iraq, a member of the Organization of the Petroleum Exporting Countries (OPEC) failed to pay its dues for two years, according to the description of (Korea Economic Daily).[/size]
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The project was scheduled to be completed in 2020 but was postponed to 2027 due to the unstable political situation in the Middle East and delayed payments from the Iraqi government.[/size]
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As of the end of June, the progress rates for building homes and other infrastructure facilities were 44.83% and 28.87%, respectively, according to Hanwha.[/size]
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Industry watchers in Korea said; Hanwha is abandoning the Basmaya Residential Compound project, to prevent any negative financial impact and further losses from spreading across the entire Hanwha group.[/size]
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