Shafaq News- Baghdad

Iraq's National Investment Commission (NIC) completed procedures to release a $111 million payment to South Korea's Hanwha for completed housing units at the Bismayah residential project near Baghdad, NIC Chairman Adel Dakhel al-Yasiri announced on Thursday.

Al-Yasiri said the commission had signed the official authorization to transfer the funds from its account to Hanwha's account at Rafidain Bank through the Central Bank of Iraq, per cabinet decisions on payments for completed work.

In a statement, the NIC said it had completed and submitted the legal documentation for 8,280 finished apartments to Rafidain Bank, fulfilling the contractual requirements for the payment.

According to the commission, the payment would help facilitate the handover of apartments to buyers, with Rafidain Bank processing housing loan agreements in successive batches according to the order of existing contracts.

Meanwhile, the NIC will coordinate apartment handovers and the issuance of ownership deeds.

Settling Hanwha's dues would also help the company maintain operations and essential services at Bismayah, including electricity, water, sewage and related infrastructure, the commission said.

Work is also underway with Rafidain Bank and other financing institutions to arrange a second $111 million installment and complete the legal and financial arrangements for the project's remaining 70,000 planned housing units.

According to the NIC, coordination with the government, Finance Ministry and Rafidain Bank has helped address financial, administrative and legal obstacles, including requirements related to renewing the contract and signing its addendum.

On October 18, Iraq's parliamentary Investment and Development Committee announced the release of the first installment of Hanwha's overdue payments. At the time, however, it did not confirm that the company had received the funds.

Hanwha had announced plans to withdraw from Bismayah in September, accusing the NIC of failing to meet its financial obligations. The company said it was owed approximately $270 million for completed work.

In July, residents and prospective homeowners protested outside Rafidain Bank's headquarters in central Baghdad over delays in processing their housing transactions.

Located about 10 kilometers southeast of Baghdad's city limits along the Baghdad–Kut road, Bismayah was designed to accommodate around 600,000 residents in 100,000 apartments.

Registration for the development opened in September 2011, following the NIC's agreement with Hanwha to build the residential city. Fewer than half of the planned units have been completed.