South Korea's Daewoo Engineering & Construction Company (Daewoo E&C) has threatened to quit its contract in Iraq's Al Faw Grand Port project after the Arab country rejected its demands for higher payment, the local press reported on Sunday.

Daewoo demanded an increase in the contract value to $2.8 billion after the Iraqi Transport Ministry asked for additional work, the Ministry said in a statement carried by Aliqtisad News and other local publications.

"The Ministry rejected Daewoo's demands, but the company insisted on its position and threatened to quit work...negotiations are still under way to resolve the dispute."

Faw Port in South Iraq is expected to cost nearly $5 billion and would be able to handle 99 million tonnes annually, making it one of the world's 10 largest container terminals.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2020