Despite the economic crisis in Iraq and the authorities’ inability to fulfill their financial obligations, especially with regard to paying the salaries of civil servants, the government insists on building al-Faw Grand Port in the southern province of Basra. The port is considered the country’s most important outlet to the Gulf and Iraqis have been looking forward to establishing it for many years, given its promising economic potential for the country, according to experts in finance, ports and trade. During his visit to Basra last week, Prime Minister Mustafa al-Kadhimi said that al-Faw port is one of the governments priorities, despite the great challenges that the country is facing. Kadhimi stressed that the government will work hard to sign with foreign companies to launch operations in the port. However, the Iraqi cabinet’s desire to proceed with the construction works may face challenges which could delay the expected opening in 2024. Over the past two days, another issue emerged as the Korean company, Daewoo, announced it wanted to change the terms relating to the duration and the payments of the contract. The Iraqi Ministry of Transport issued a statement Sunday, addressing the issues with Daewoo, which is implementing the port project. The Ministry indicated that the company has successfully implemented the port’s western breakwater, adding that the negotiations were held for three months, leading to a preliminary agreement. The agreement stipulated that the company will implement five projects, with a navigation canal at a depth of 19.8 meters, at a total cost of $2.37 billion, in three years. The statement noted that after the appointment of the new director of al-Faw port, Daewoo demanded increasing the cost to $2.8 billion if the ministry wanted to reach depths of 19.8 meters. The former director of Daewoo in Iraq, Park Il-ho, was found dead last month in an apparent suicide at the company’s headquarters in Basra. Transport Minister Nasser al-Shibli rejected the companys request and granted it three days to abide by the initial agreement. The Iraqi News Agency (INA) quoted Shibli as saying that the ministry will continue to negotiate with Daewoo regarding al-Faw port, noting that the company has two contracts for the port that end in 2021. He pointed out that Daewoo has an exception from the General Secretariat of the government to refer to it directly, noting that the work done so far has been excellent. Shibli hinted at the possibility of turning to Chinese companies in the event that no agreement is reached with the Korean company. On Sunday, the reconstruction and services parliamentary committee met with the Minister of Transportation to discuss the issues that have recently arisen with the Korean company. Committee member Burhan al-Mamouri announced that they addressed the controversial points, including the manipulation of the technical specifications set by the Italian consultant. He added that the new management executing the project requested a gradual reduction of the depths, an extension of the period of the contract, and an increase in the agreed payments. The Iraqi officials stressed the importance of adhering to the technical specifications, especially with regard to the depths.