Iraq intends to hold more negotiations with the South Korean Daewoo Company on resumption of work at the Grand Faw Port project following a financial rift, the official Iraq news agency reported on Tuesday.

Transport Minister Nasir Al-Shibli has submitted a request to the cabinet for final approval of the project to ensure funds within the 2021 budget, it said.

"I have sent a letter to the cabinet for final approval...once we get approval, we will resume negotiations with Daewoo," the minister said.

He said Iraq is determined to complete this project despite what he described as "obstacles by local and foreign parties."

Press reports said in November Iraq is considering awarding the multi-billion dollar Faw contract to the China Machinery Engineering Corp (CMEC) if talks with Daewoo fail.

The Transport Ministry has said it is negotiations with Daewoo after it threatened to quit the Faw breakwater contract which it won three years ago due to a financial dispute.

Phase 1 of Faw Port in South Iraq is expected to cost nearly $5 billion and will 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)

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