OPEC member Iraq will sign a new contract with the South Korean Daewoo Company on Sunday after six months of negotiations to end a financial rift, the Arab country's Transport Minister was quoted on Wednesday as saying.

Nasir Al-Shibli said the contract involves the construction of 85 quays in Faw Port in South Iraq and that Daewoo would complete the project in 2021.

"We will sign the contract with the South Korean firm on Sunday...the company still has its equipment at the project site and is expected to finish work in 2021," Shibli said, quoted by Aliqtisad News and other Iraqi publications.

Shibli confirmed reports that the Ministry had contacted China Machinery Engineering Corp (CMEC) for a possible Faw contract "in order to put pressure on Daewoo", adding that the $multi-billion Grand Faw Port project would be completed within 3.5 years.

Faw Port, slated to be one of the world's largest container terminals, will be able to handle 99 million tonnes annually.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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