29 July 2009 - Marafiq, the power and water utility for the Saudi Arabian industrial cities of Jubail and Yanbu, has signed a SR2.7 bn ($720m) contract with South Korea's Hanwha engineering and construction company for setting up two steam-turbine generator plants in Yanbu. The largest single overseas construction deal inked by a Korean company to date, the project is scheduled for completion in 2019. Araji says Iraq needs up to 3 million new homes over the next decade and his commission has plans for two other new cities - in south Baghdad and outside the oil city of Basra.
Two South Korean construction companies - Daewoo Engineering and Construction Co. (Daewoo E&C) and Hanwha Engineering and Construction Corp. Bismayah New City, which aims to house half a million people within four years, dwarfs any construction project Iraq has attempted in a generation.
It will venture out on the global stage to become a global general construction company by reinforcing domestic core business and diversifying overseas business. South Korean construction firms are outpacing Asian rivals as well as European competitors with their great diligence and advanced technology,” says a GS E&C company spokesperson.
The builder won the $8bn Bismayah scheme from the government of Iraq in 2014. The project was carried out as a design-build construction, with Hanwha E&C taking full responsibility for design and construction which was completed on May 30 after a 30-month construction period.
Hanwha Group, founded in 1952, is one of the Top-Ten business enterprises in South Korea and a FORTUNE Global 500” company. Is an affiliate of Hanwha Group which ranks 9th in Korean business circles, with 27 affiliates and 41 overseas branches and subsidiaries (including 8 overseas production subsidiaries) through diversified business expansion.
Hanwha Engineering & hanwha Construction (E&C) was finally paid a $560m construction fee by Iraq's government last week. We have worked with Hanwha E&C since April 2013 and continue to do so. We were contacted by the Project Director within Hanwha E&C with a specific requirement for two individuals.
The Iraqi government has shown its willingness to continue cooperating with Korea on the construction of new housing developments and has recently agreed to continue paying for the cost of the new buildings. The gold processing plant will be located at Ma'aden's Ad Duwayhi Gold Mine site currently under development in a remote area of the desert between Riyadh and Taif, the company said in a statement.
If realized, this project estimated at up to $20 billion would be the biggest construction deal won by Korean construction firms overseas. A Korean consortium including Daewoo Engineering and Construction and Hanwha Engineering Construction have won a $18-20 billion housing project in Saudi Arabia.
For example, the company signed in March last year a memorandum with the Saudi Arabian Ministry of Housing for the "Dahiyat Alfursan" new city project in a 38-square-kilometer site in partnership with Daewoo Engineering & Construction. Using the Bismayah project as a spring board, Hanwha plans to win more deals in the Middle East and the Southeast Asia.
Samsung C&T has an extensive global experience in power plant construction of more than 20 years,” said Eui Seung Park, Head of Samsung C&T's Plant Business Unit last year. Hanwha Engineering & Construction was finally paid a $560 million construction fee by Iraq's government last week, according to the company on Monday.
Hanwha won the project in an open bidding in competition with other Korean builders based on the recognition of its technological and construction capacities to complete the project on an EPC basis. We have reconfirmed the Iraqi government's trust in the Bismayah new city project through the payment made last week,” said CEO Choi of Hanwha E&C.
When the project is completed the oil refinery will be able to get the crude oil from a 320,000-ton class oil tanker through SPM, and refined oil products including gasoline will be loaded onto three 120,000-ton class oil tankers at the same time at the marine terminal and shipped overseas.