Negotiations are under way with developers for the construction and funding of the marine works package at Iraq’s $8bn Grand Faw port scheme, according to a Transport Ministry spokesperson.

“We expect to make a major progress on the negotiation in two to three weeks’ time,” the source tells MEED.

Companies that are involved in the negotiations are from China, Europe and Southeast Asia.

The scope of the contract includes dredging work as well as the construction of container terminals and other buildings.

The required budget for this stage of the project is estimated at $5.4bn.

It is understood that the eastern breakwater of the port, awarded to the Netherlands’ Archirodon, has been completed. Work on the western breakwater, awarded to South Korea’s Daewoo Engineering & Construction in 2013, is also nearing completion.

Both contracts were funded by the government.

The next phase of the project, however, will require private sector participation in terms of funding.

Ultimate expectations for the much-delayed scheme are to have 12 berths and to handle 99 million tonnes of cargo a year when complete.