22 January, 2020

Iraq to award more Faw port contracts

Infrastructure deal was awarded to South Korea's Daewoo

Workers are seen at the Faw port project site in Faw, southern province of Basra, August 28, 2017. Image used for illustrative purpose.

Workers are seen at the Faw port project site in Faw, southern province of Basra, August 28, 2017. Image used for illustrative purpose.

REUTERS/Essam Al-Sudani

22 January 2020

OPEC member Iraq intends to award more contracts for the construction of the Southern Faw Port, which is estimated to cost nearly $5.1 billion, the official Arabic language daily Alsabah said on Tuesday.

The General Company for Ports of Iraq, an affiliate of the Transport Ministry, has already awarded an infrastructure contract at the Port to Daewoo of South Korea and is planning to issue more tenders for the project, the paper said, quoting the Company's Director General Safaa Abdul Hussein.

It said Hussein visited the project site on Monday and discussed fresh contracts with the Faw project director and Daewoo executives.

"Hussein said he discussed progress of work, mainly the tunnel to be executed by Daewoo, and new contracts which are being prepared," the report said.

The new contracts cover more infrastructure work for the final stage of the project, it said, adding that the government estimates its cost at 4.6 billion euros ($5.1 billion).

The Grand Faw Port will have a capacity to handle 99 million tonnes annually when it is completed in the next two years. The project was launched in late 2010 but it was delayed by internal hostilities and cash shortages due to weak oil prices.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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