BAGHDAD , Iraq ( CNN ) -- Just days after the U.S. military formally handed authority of Baghdad 's `` Green Zone '' over to the Iraqis , the new American Embassy opened in Baghdad . The American flag is raised at Monday 's dedication ceremony for the new U.S. Embassy in Baghdad . Situated on the banks of the Tigris river , one mile south of Saddam Hussein 's Republican Palace -- U.S. headquarters in Baghdad since 2003 -- the new embassy opened early Monday afternoon in a closely controlled ceremony that included Iraqi President Jalal Talabani , U.S . Ambassador Ryan Crocker , and Deputy Secretary of State John Negroponte . `` The return of the Republican Palace to the government of Iraq last Thursday and the raising of the flag over a new embassy four days later are potent symbols of this record of achievement , '' Negroponte said during his opening ceremony speech Monday . The new U.S. Embassy covers 104 acres and is the largest in the world , housing 1,200 U.S. diplomats , soldiers , and government staff from 14 federal agencies , according to a U.S. State Department news release . `` As our military presence ramps down , many other aspects of our relationship are going to ramp up , '' Crocker told CNN on Monday . The original price tag on the 27-building complex was $ 592 million , but a congressional report from 2007 -- citing State Department documents -- indicated the cost could end up $ 144 million higher . Meanwhile , two Iraqis were killed and at least 31 injured in a series of bombings across Baghdad on Monday , an Interior Ministry official told CNN . There were at least five separate attacks in the Iraqi capital , with one , the roadside bombing of an Iraqi police patrol , resulting in the death of two people . Three police officers and three civilians were also wounded in the attack , which took place near Shaab stadium in eastern Baghdad at about 1:15 p.m. local time . In other incidents , 12 people were wounded in two improvised explosive device blasts in the Karrada district of central Baghdad ; five people were injured when a bomb in a parked car exploded in the Abu Dcheer neighborhood of southern Baghdad ; four people were injured when an IED exploded in Nidhal Street , central Baghdad ; and four people were injured when an IED exploded on Palestine Street , eastern Baghdad . CNN 's Jill Dougherty contributed to this report .
The U.S. Embassy in Baghdad opens days after ` ` Green Zone '' control given to Iraqis . New Embassy covers 104 acres and is the largest in the world . As the military presence ramps down , other aspects will ramp up , he says . Price tag for the complex is at least $ 592 million .