By John Lee.
South Korea’s Hanwha Engineering and Construction (E&C) has said it haws received an additional payment of $230 million from the Iraqi government for work carried out in the first half of this year on the Bismayah New City project in Baghdad.
According to the report from Business Korea, the total contract is valued at $10.1 billion, of which Hanwha has so far received a total of $3.47 billion.
The project will see around 100,000 homes built near the capital.
(Source: Business Korea)
By John Lee.
Prime Minister Haider Al-Abadi has received a delegation from Korean company Hanwha, headed by its President and CEO, Choi Kwang-ho.
During the meeting, they discussed the progress at the Basmaya housing complex near Baghdad, with the Prime Minister stressing the importance of securing the road link between the residential complex and the center of Baghdad.
He heard a detailed explanation by company representatives about the completion plan for the coming years, emphasizing the quality of housing units and the necessary services, including maintaining the cleanliness of the environment and spaces within the complex.
He also has called for a meeting between the company and Iraqi banks to reach suitable formulas to secure the marketing of the units under appropriate lending conditions.
Hanwha is currently building 100,000 homes at the project, which are due for completion by 2019.
(Source: Office of the Prime Minister)
By Adnan Abu Zeed for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News.
On July 21, farmers complained about a gas pipeline dredging their farmlands. The pipeline carries gas from Iran to Baghdad through Bismayah, which is located in southeast Baghdad.
Meanwhile, reports on May 22 revealed that the pipeline caused damage to an archaeological site under which it passes.
On March 17, 2016, Iran announced the completion of a 100-kilometer (62-mile) Iranian gas pipeline. It starts at the South Pars gas field and continues to Baghdad to provide fuel for the electricity stations. As part of the project, the Oil and Energy Committee of the Iraq Council of Ministers decided to extend the pipeline through Bismayah to provide gas for electricity stations there.
Many residents in Bismayah were happy at first. However, their happiness did not last as they were forced to vacate parts of their land for the project. According to testimonies documented in a video report broadcast by an Iraqi channel on May 22, a farmer said that a military force stormed onto his land and forced him to accept the extension of the pipeline into his land without providing any documents, which he considered a violation of his rights and of applicable laws.
On July 12, Al-Monitor contacted the Nahrawan police directorate, which said, “The security force securing the site has orders to protect the project of extending the Bismayah gas pipeline and remove any constraints that may hinder its accomplishment.”
By John Lee.
GE and Mass Group Holding (MGH) have successfully commenced simple cycle commercial operations of four advanced GE 9F gas turbines under phase I of the Ministry of Electricity’s (MOE) Baghdad Power Plant in Besmaya [Bismaya].
Located about 40 kilometers from Baghdad, the facility is the first one in the country outside the Kurdistan region to be developed by an independent power producer on a build-own-operate (BOO) basis for the Iraqi MOE.
The new project is being constructed by and will also be operated by MGH and will add 3,000 MW of power to the grid when fully operational. The second phase of the project is expected to start commercial operations in 2018.
Musab al Mudarres, an Electricity Ministry spokesman, said:
“The commercial operations of Baghdad Power Plant by Mass Group Holding using GE’s advanced equipment comes at a significant time, as we focus on strengthening Iraq’s electricity infrastructure to meet the growing needs of residents and various industries. We have set a new model in power generation with the Baghdad project. By accelerating public private partnerships, we aim to ensure the seamless supply of electricity to our people.”
Once complete, the Baghdad Power Plant will take the total power produced by MGH in Iraq to 7,000 MW. GE has already delivered advanced equipment for MGH’s power plants in Erbil, Sulaymaniyah and Dohuk, which together have an installed capacity of 4,000 MW.
“With a successful track-record of commissioning three power projects equipped with GE technologies already, we are committed to partnering with the government in building a strong efficient power infrastructure,” said Ahmad Ismail, Chairman of MGH. “The Baghdad Power Plant in Besmaya is truly path-breaking as it is the first of its kind by the private sector in central and south Iraq. By adding power to the national grid, we are contributing to the growth of the economy, and meeting the aspirations of the people.”
Korean firm Hanwha Engineering and Construction received about $560 million in construction fees last week from the Iraqi government for its ongoing new city project, the company said on Monday.
The company has been building the 1,830-hectare new city Bismayah, 10 kilometers southeast of Baghdad, an $8-billion contract signed in 2012. The two parties agreed an additional deal to build social infrastructure for $2.1 billion in April 2015, bringing the total accumulated contract to $10.1 billion.
According to a report from the Korea Herald, the latest payment enables the company to cover all accounts receivable, “alleviating its liquidity status and improving the financial health of the company“.
The Iraqi government made the payment through loans from the state-run bank after taking over the completed houses of the new city.
Korea’s Export-Import Bank and Korea Trade Insurance Corporation also provided support for the payment process, the company said.
With construction about 30 percent completed, the company aims to build 100,000 houses and about 300 institutions, including schools, hospitals and public facilities.
The new city will consist of eight towns. So far, about 5,000 households have moved into the first town.
(Source: Korea Herald)
GE has signed a multiyear agreement in Iraq with Mass Energy Group Holding.
The $520-million contract includes operation and maintenance services as well as GE’s advanced digital industrial solutions for the 3-gigawatt gas-fired Basmaya [Bismaya] Power Plant, only 40 kilometers east of Baghdad.
This contract represents a continuing effort between Mass Energy Group Holding, the Iraqi Ministry of Electricity (MOE) and GE to bring much-needed power to the people of Iraq.
Ahmad Ismail, Chairman of Mass Energy Group Holding, said:
“The Basmaya Power Plant is a milestone project that marks the first-of-its-kind independent power producer agreement between Mass Energy Group Holding and Iraq’s Ministry of Electricity.
“In addition to meeting the surging demand for power from the Iraqi people, the plant will support the country’s focus on building its infrastructure and strengthening local industries.
“The power plant will feed the national grid, benefiting all sections of the community. GE has been our long-term partner, and by operating the plant, GE is bringing its advanced technology solutions to help us to deliver the highest levels of efficiency, reliability and productivity.”
The multiyear service agreement builds on GE’s long-term relationship with Mass Energy Group Holding, which includes prior contracts to provide Basmaya with eight units of its advanced 9FA gas turbines and four units of its C7 steam turbines.
The project is being developed in two phases, with each phase delivering 1,500 megawatts (MW) of power, which together is enough power to meet the needs of over 600,000 households.
Prime Minister Dr. Haider Al-Abadi received in his office on Sunday a delegation from the Korean company Hanwha which is implementing the Bismaya residential project.
The delegation gave a presentation on progress reached on the ground for the project, where the first three thousand residential units to best standards have been completed in full, with the accompanying infrastructure in order to ensure the provision of services and housing for citizens who purchased those units, in addition to providing a clarification on the cost of the project and the payments due on the current progress.
The Prime Minister expressed his appreciation for the progress of the project and the company’s commitment to its implementation, stressing the need to develop ways of marketing the housing units and the creation of a company to ensure a successful administration to serve the housing units and the provision of requirements of maintenance and follow-up, and working to secure the financial dues to the company.
(Source: Prime Minister’s Media Office)
Further building on its partnerships to support Iraq’s power sector, GE (NYSE: GE) has received an order from Mass Global Investment Company to provide advanced gas turbines for a new 3-gigawatt (GW) power plant in Bismayah, only 30 kilometers away from Baghdad within a massive housing development project.
The Bismayah plant will support Baghdad and Bismayah and be able to generate the equivalent power needed to supply more than 5 million Iraqi households.
A landmark project that will add to the power generation capabilities of the country, Bismayah marks the first-of-its-kind independent power producer (IPP) deal between Iraq’s Ministry of Electricity and Mass Global Investment Company. It also is the first IPP project by Mass Global Investment Company outside Kurdistan, underlining the close collaborations among power sector stakeholders in Iraq to help meet the country’s growing needs for power.
According to the Iraq Energy Outlook by International Energy Agency, Iraq needs to boost its power generation capacity by nearly 70 percent to meet its needs, while over 70 GW of additional installed capacity is needed by 2035, with a focus on moving away from the traditional oil-fired power mix to more efficient gas-fired generation.
The gas-fired Bismayah plant helps meets the larger development goals of the country with GE to supply eight units of its advanced 9F.03 gas turbines. The project will be developed in two phases, each consisting of two blocks of 1,500 megawatts each. Mass Global Investment Company has signed the EPC contract for the project with ENKA and is currently finalizing the plans for the second phase.
Adel Hamid, Minister’s Deputy for Projects Department, Iraqi Ministry of Electricity, said:
“The Bismayah plant marks our continued focus to strengthen the power infrastructure through IPP partnerships that will help meet the needs of the people.
“Through our partnership with Mass Global Investment Company, which has proven expertise in power generation, we are also bringing advanced technologies in power generation through global companies such as GE for greater operational efficiency. We are committed to developing the power project that will support Bismayah, the largest city development in the country which will energize the economy.”
By John Lee.
South Korea’s LSIS said on Tuesday that it has signed a deal to supply electrical equipment for the Bismayah New-City Project (BNCP) (pictured).
The deal, worth about 160 billion won ($146 million, 170 billion Iraqi dinars), will see the company supply equipment for gas insulated switchgear at 32 substations over the next four years.
According to a report from Korea Times, LSIS is a newcomer in the substation market in Iraq, which has long been dominated by global companies such as Siemens and ABB, but the company has previously won other business in Iraq.
(Source: Korea Times)
By John Lee.
South Korea’s Hanwha Group has reportedly won a $2.12-billion (2.5-trillion-Iraqi-dinar) order to build the social infrastructure for Bismayah New City.
According to Yonhap News Agency, the agreement was signed with Iraq’s National Investment Commission (NIC) on Monday.
The Group is currently building 100,000 homes at the project, which are due for completion by 2019.
(Source: Yonhap, Reuters)