Iraq and Hanwha on Monday signed a memorandum of understanding allowing the South Korean company to resume work on Bismaya residential city project after a one-year freeze due to financial rifts, the official news agency INA said.

The National Investment Commission (NIC) inked the agreement with Hanwha to restart the $7 billion project in the capital Baghdad.

Hanwha said in early 2023 it was suspending work on Iraq’s largest residential project of 100,000 houses on the grounds the government failed to pay its outstanding dues.