Busan Port Authority and two South Korean companies are close to winning a deal to build and operate a container terminal in Iraq in what would be the biggest investment in the Middle East.

According to construction industry sources on Wednesday, the Iraq government has reportedly conveyed its intention to sign an agreement with the consortium - Daewoo Engineering & Construction Co., Busan Port Authority and SM Line Corp. - to expand and operate the terminal in the Grand Faw Port project near Iraq’s Basra as soon as the first five berths are completed.

Iraq’s Grand Faw Port project is the largest development project undergoing in the Middle East, and is estimated to cost around 53 trillion won ($40.6 billion) in total by 2041. The deal is expected to be made as early as in the first half of the year or as late as within this year.

“We’ve been pretty much carrying out the entire project, with no other contractors,” said Daewoo Engineering. “Though orders have not been made, we expect contracts will be signed as soon as discussions are completed. Prior contracts were signed as private contracts, without involving any open bidding process.”

The Iraqi government hopes to rely on the Korean consortium later for port operations, too, as soon as the superstructure is complete, the company said.

The Iraqi clients reportedly have great trust in the construction capabilities of Daewoo Engineering and Korean subcontractors. The Korean builder has been working on the project since its earliest phases, starting with the construction of basic infrastructure, such as land reclamation, quay construction and dredging work, as well as on the construction of roads that connect the port and a 2.8-kilometer immersed pipeline.

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]