OPEC producer Iraq intends to sign a new agreement with Hanwha Company of South Korea to revive the stalled Bismaya City, the country’s largest housing project, an official was reported on Friday as saying. 

Hanwha halted work on the 100,000-house city near the capital Baghdad more than two years ago after Iraq failed to pay outstanding dues to the firm. 

The company, which has built nearly 30,000 houses, agreed to resume work on the project after negotiations with the National Investment Commission (NIC) this month produced an agreement on payment. 

“We have prepared a roadmap for the resumption of the Bismaya project to that it will be completed as soon as possible,” NIC Chairman Haidar Makkia said. 

“NIC has prepared an appendix to the main contract to be signed with the South Korean company with two or three months,” Makkia told Shafaq news agency. 

He did not provide details on the new deal but said NIC would sponsor a series of meetings between Hanwha and local banks to reach a formula on funding. 

Bismaya, with an estimated cost of more than $7 billion, is one of several residential cities planned by Iraq to resolve a post-war housing crisis.