Hanwha Engineering and Construction said Sunday it had received a 240-billion won ($203 million) advance payment for its ongoing new-town building project in Iraq.

In April 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 fuel 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.

With the fresh funding, Hanwha also pledged to step up efforts for the successful completion of the Bismayah project.

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.

By 2019, a total of 834 apartment buildings are expected to be built to accommodate some 100,000 households.

Since winning a 9-trillion won deal in 2012, Hanwha is responsible for the whole construction project. It was South Korea’s largest-ever export case in the construction field.

In April this year, the company also secured an additional deal for creating social infrastructure around the new towns.

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.

The company added that the Export-Import Bank of Korea and Korea Trade Insurance Corporation also helped for the advance payment. 

By Lee Ji-yoon (jylee@heraldcorp.com)