An American effort
Reconstruction efforts are already underway in Iraq with US companies grabbing the lion's share
of the contracts. Sherine Nasr reports
A multi-million dollar contract for the reconstruction of Iraq's infrastructure has been awarded to the San Francisco-based company, Bechtel. The announcement, on 17 April, was made by Toni Christansen-Wagner, a mission director at the United States Agency for International Development (USAID), Egypt, during a meeting with the Egyptian media last week.
"The agency has already allocated $2.4 billion to reconstruct Iraq," Wagner said. "Restoration of the country's key infrastructure is a priority in the US government's effort to strengthen Iraq's economy and ensure delivery of essential public services to the Iraqi population," she added.
Bechtel, however, was not the only US company to be awarded large reconstruction contracts in Iraq. It has been revealed that the past few weeks have witnessed a "behind closed doors" competition between 21 major US companies.
"$585 million worth of contracts have already been awarded to a number of US companies," Wagner stated.
No public announcements have been made to invite international companies to submit their bids. The criteria for the selection of some companies and not others is still not clear. Indeed, contracts were awarded so discreetly that the international business community regards the whole process with much scepticism.
"There has been a lot of controversy about the manner [in which] the contracts were handed out," said Carlton Bennett, director of procurement at USAID Egypt. "While there was no open competition between companies, there was some limited competition," said Bennett. He went on to claim that when bids are openly competitive it takes up to nine months for requests to be granted. Iraq's needs, however, required immediate action. "This was one reason why competition was not open."
But, was competition deliberately limited to only American companies?
Commenting on the criteria for the selection of companies, Bennett stressed that only those with long experience in the field of reconstruction, qualified personnel and security clearance would be allowed to operate in Iraq.
However, much of the work that needs to be done in Iraq will be subcontracted. "The US government is not interested in the micro-management of the reconstruction process," said Bennett. He added that Bechtel, for example, has been given sole authority to hire whichever companies it needs, using its own best practices to get the job done. "This can be an excellent opportunity for Egyptian companies that seek to take part in the reconstruction effort," said Bennett.
For the Bechtel contract the initial funding for capital construction is $34.6 million, though it provides for funding of up to $680 million over the next 18 months.
According to Wagner, this contract will cover virtually all major projects in Iraq. The contract calls for the repair, rehabilitation and reconstruction of vital elements of Iraq's infrastructure. This includes the repair of power generation facilities and electrical grids, the repair of municipal drinking water and sewage systems and the reconstruction of two international and three domestic airports. The contract also includes terms for the repair and upgrade of the Umm Qasr seaport and possibly even responsibility for the reconstruction of hospitals, schools, selected ministry buildings, major irrigation projects and essential transport links.
In the area of primary and secondary education, a contract which covers the upgrade of the schooling system has been awarded to Creative Associates International at an initial value of $2 million. "This work will be accomplished through a USAID education assistance programme with the aim of increasing enrollment and improving the quality of primary and secondary education," said Wagner.
Another $7.9 million contract was awarded to provide technical assistance to strengthen local administration, civic institutions and civil society as part of an initiative to build strong local government. The contract will also cover the authorisation of grants to Iraqi and foreign non-governmental organisations to improve municipal infrastructure. "All activities under this contract will target "at-risk" groups -- including those that promote women's rights and help youth and minority groups -- to participate in the political process," said Wagner.
A $4.8 million contract was granted to keep Iraq's ports in good working order, allowing food, humanitarian aid and reconstruction materials to be delivered efficiently.
"All the projects have been given a one-year deadline to complete their tasks. They are wholly funded by US tax money and they will be [eventually] paid for using Iraqi oil," said Wagner. He added that USAID is planning and managing all reconstruction projects in Iraq.
Contracts covering the management of humanitarian operations by air, the management of warehouses and customs and the upgrade of public health services have yet to be awarded.
Meanwhile, a number of grants have been awarded to UN organisations. The United Nations Children's Fund (UNICEF) has been awarded a $1 million, one-year grant to promote a "Back-to-school" campaign. This is aimed at the more than 25 per cent of children who are not currently attending a primary school -- most of whom are female. UNICEF has also been awarded an $8 million grant to provide basic health services, water supplies and sanitation services to the most vulnerable segments of Iraq's population. The focus will be on women and children.
USAID will also provide funds for essential medicines, vaccines and micro-nutrients as well as improve the water supply and sanitation in Iraq by repairing and rehabilitating existing systems.
Meanwhile, the World Health Organisation (WHO) has been provided a $10 million, one-year grant to identify and address the most immediate health needs of the population and restructure policies related to healthcare.
