Shafaq News- Baghdad

Iraq’s parliamentary Investment and Development Committee on Wednesday warned that South Korea’s Hanwha could halt key services at Baghdad’s Bismayah residential complex and pursue international arbitration over unpaid dues, potentially exposing Iraq to about $4 billion in losses.

Hanwha, the company behind the residential project, announced last week that it would withdraw from the development and lay off its Iraqi employees, blaming the National Investment Commission (NIC) for failing to meet its financial obligations.

Speaking at a news conference in parliament, committee member Suzan Al-Saad said the NIC had received an urgent notice from Hanwha stating that it could stop operating water and sewage facilities at the complex from Oct. 1 unless authorities set a date for settling its dues.

Al-Saad called on Prime Minister Ali Al-Zaidi to expedite $272 million in outstanding payments, along with $300 million in compensation for delays that had lasted about six years.

The company, the lawmaker warned, could take the dispute to the Dubai International Arbitration Centre in mid-October if the issue remains unresolved.