Chairman Kim Seung-youn of Hanwha Business Group shakes hands with a foreign crew during his recent tour to the construction site of the Bismayah New City in Iraq. (Photo:Hanwha)

Chairman Kim Seung-youn of Hanwha Business Group made another feat in Iraq. Chairman Kim won an additional $2.12 billion (some 2.34 trillion won) social infrastructure project in Bismayah New City, now under construction, after securing an initial project to construct the city with 100,000 apartments three years ago.  

Chairman Kim’s dedicated efforts—including touring the war-torn Iraq on three occasions since 2012—have paid off. The latest deal will likely give Hanwha higher chances to be awarded a 3rd project similar to the Bismayah New City development. As the Iraqi government plans to build 1 million housing units as part of its postwar reconstruction efforts, Hanwha is expected to have more business opportunities.  

Hanwha E&C signed the additional agreement on social infrastructure in Bismayah at the annex building of Iraq’s National Investment Commission (NIC) at a ceremony in Bagdad on April 5. Among those on hand at the event were Hanwha E&C President Lee Geun-po, Hanwha Group Vice Chairman Kim Hyun-jung, Hanwha E&C Senior Executive Vice President Choi Kwang-ho, Hanwha E&C Executive Vice President Ko Kang, NIC Chairman Sami R. Al Araji, Iraqi Deputy Prime Minister Bahaa Al Araji, and former Iraqi Interior Minister Jawad Al Bulami. 

The latest deal brings to 11 trillion won ($10.12 billion) the aggregate value of the projects related to Bismayah New City, including the previous $8 billion deal. Hanwha E&C’s surpassing $10 billion in total value of winning projects promises to solidify the Korean contractor’s position as a leader of Iraq’s postwar reconstruction.

Hanwha E&C will receive $212 million, 10 percent of the $2.12 billion of the latest deal, as an advance payment 60 days after the signing of the contract, as well as payments of completion according to the progress of the work, a move to ease worry about the receipt of the project settlement. 

The latest agreement involves the construction of social infrastructure, in addition to the construction of Bismayah New City’s 100,000 households, which is similar to Bundang, south of Seoul, in size. It will involve the construction of such social infrastructure as 300 schools, hospitals, police stations, fire stations, roads and water and sewage systems that are necessary for the construction of a new city. 

The additional project is designed to enhance self-sufficiency of Bismayah, a new city of some 600,000 residents. When the new city project is completed in 2019, Bismayah New City will emerge as an exemplary modernized city to showcase the development of postwar Iraq.

Hanwha Chairman Kim did not spare any efforts in winning the additional project. He toured war-torn Iraq three times to give words of encouragement and special care to Hanwha E&C executives and staff. In particular, touring the site last Dec. 7, Chairman Kim brought 600 servings of raw flatfish with him, the site crew’s favorite food, boosting their morale. Kim met with Iraqi government officials and convinced them that Hanwha will make good on its promise to complete the project, even in the worst case. 

During his meeting with NIC Chairman Al Araji last December, Hanwha Chairman Kim said, “Our executives and staff members devote themselves to implementing the work, as if we build Iraqi people’s dreams, and we’ll ensure any hardships to make Bismayah New City a global humanized city.”

The NIC Chairman is confident in Hanwha. In return, Chairman Al Araji said he was extending whole-hearted thanks to Hanwha E&C’s executives and staff members’ dedication by keeping watch on the site and demonstrating their capability to carry out work, despite the withdrawal of executives and staff members from other countries. In reality, Hanwha E&C officials’ executing the project without a hitch, despite the Iraqi civil war, has moved Iraqi people.

Chairman Kim’s full support and Hanwha E&C’s dedication and capability to execute the project have already moved Iraqi people. Favorable market currents toward Korean contractors, boosted by President Park Geun-hye’s recent trip to the Middle East, served as a milestone to help Hanwha outbid not only Turkey and China’s low prices, but also contractors of advanced countries with technology power.