Seven year contract will see construction firm lay infrastructrue such as roads, water supply and sewer systems
The Iraqi government is set to sign an agreement with South Korean conglomerate Hanwha Group to construct a new city of 100,000 homes in the country.
Hanwha and Iraq’s investment commission will sign the $7.75bn contract this week after the Iraqi Cabinet approvedbuilding a 1,830-hectare city in Besmaya, 10km southeast of the capital city, Baghdad.
As part of the seven-year contract, the construction firm will also lay infrastructure such as roads, water supply and sewer systems. Hanwah will build mainly Islamic traditional houses and modern houses of 100, 120 and 140m2.
Salah Abdul Razzaq, Baghdad’s governor, told Business Week that more than 30,000 people had registered for the units so far. He added that the project would provide more than 100,000 jobs to the Iraqi economy.
The Iraqi government will finance the construction through three state-run lenders. The project is part of Iraq’s plan to build one million new homes across the country in the coming years.