Reconstruction of Iraq
Reconstruction of Iraq is the term used for attempts to make repairs to infrastructure damage in the aftermath of the
invasion of Iraq in March
2003. The term is used by the
multinational forces who invaded Iraq as well as various
western media outlets.
After the government collapsed, the
United States and the
United Kingdom, with the assistance of several other nations (including
Poland, the
Czech Republic,
Italy,
Mongolia,
Australia,
South Korea and
Japan) and
United Nations authorization, established a provisional authority whose publicly stated goal is to provide for Iraqis' basic needs and help in the creation of a new democratically elected government following the end of the Ba'ath government.
The multinational forces set up the
Coalition Provisional Authority. This was followed by the Coalition Provisional Authority's transferring power, on
June 28 2004, to the
new Iraqi government. The "reconstruction and democratization of Iraq" has been a major stated goal of the
Bush administration since declaring the "end of major combat operations" in the 2003 Iraq war. On
January 30,
2005. the
transitional parliamentary elections took place.
See: Iraqi legislative election, 2005.Some countries have expressed some of the same concerns that the Iraqis themselves have about the country post Saddam: about Iraqi self-determination and ethnic and religious freedoms. Foreign nations have largely focused on the issue of possible
American influence, whether sought or unsought, in the future Iraqi governmental process and economy.
Funding of reconstruction efforts began with the creation of the
Iraq Relief and Reconstruction Fund (IRRF) in April 2003. The IRRF is administered and funded by the United States. An initial allocation of $2.5 billion was made for immediate food, medicine and water relief.
The "Madrid Conference on Reconstruction" held in Spain October 23-24, 2003 was organized by the United States to solicit donor pledges from the international community. About $33 billion in grants and loans were pledged. Of this, $18.4 billion was from the U.S. with another $5 billion from Japan, $812 million from the EU, $500 million from Kuwait and offers of loans from World Bank and the IMF amounting from $5.5 to $9.25 billion. Some countries pledged to reduce the debt that Iraq owed to them and to provide direct donations in forms such as food and fuel. The pledge by the United States was fulfilled in November 2003 by adding $18.4 billion to the IRRF.
Much of the non-U.S. pledged money is managed through two additional funds that have been created under the facilitation of the International Reconstruction Fund Facility for Iraq [
1]. The funds are managed by the United Nations Development Group (UNDG) and by the World Bank. Twenty-six donor nations participate in this effort with total pledges, as of June, 30 2006, of $1.4 billion. The United States donates a small amount to these funds but does not control their disbursement.
As of December 30, 2005 the UNDG and World Bank Funds had expended about $0.51 billion and $0.39 billion, respectively. The United States managed IRRF had expended about $11.4 billion as of March 2006.
In preparation for the October 2003 Madrid Donor Conference, the joint United Nations/World Bank team conducted an assessment of funding needs for reconstruction in Iraq during the period 2004-2007. The resulting report
[ UN/World Bank Joint Iraq Needs Assessment October 2003] identified 14 sectors and associated funding needs as shown in the Table below.
| Sector | Needs (US$billion) | | Government Institutions | 0.39 |
| Education | 4.81 |
| Health | 1.60 |
| Employment Creation | 0.79 |
| Transport and Telecommunications | 3.41 |
| Water, Sanitation, Solid Waste | 6.84 |
| Electricity | 12.12 |
| Urban Management | 0.41 |
| Housing and Land Management | 1.42 |
| Agriculture and Water Resources | 3.03 |
| State-Owned Enterprises | 0.36 |
| Financial Sector | 0.081 |
| Investment Climate | 0.34 |
| Mine Action | 0.23 |
|
Funds for Iraq reconstruction are disbursed to Iraqi ministries, non-Iraqi government agencies and various non-governmental groups. These entities then supervise the acquisition of materials and reconstruction work which is conducted by both Iraqi and non-Iraqi construction companies.
Funds held by the United Nations Development Group are disbursed through United Nations agencies such as the World Health Organization, UNICEF and the UN Development Program. These UN agencies directly contract with equipment suppliers and construction companies. Disbursement of funds by the UN began in June 2004.
[ UN Development Group Progress Report, Part 1, 11 May 2006] [UN Development Group Progress Report, Part 2, 11 May 2006] Funds held by the World Bank are disbursed directly to Iraqi government agencies including the Municipality of Baghdad and national ministries. Granting of funds to Iraqi agencies began in December 2004.
[ World Bank Progress Report, 31 December 2005]Funds held by the US-operated Iraq Relief and Reconstruction Fund have been managed by a series of US agencies. Beginning in May 2003, the Coalition Provisional Authority (CPA) began oversight of reconstruction efforts in Iraq. Within the CPA the Project Management Office (PMO) was created to management reconstruction projects. Both the CPA and PMO were divisions of the US Department of Defense. On June 28, 2004, the CPA was dissolved and the Iraqi interim government took power. At this time, the management of reconstruction projects was transferred to the Iraq Reconstruction and Management Office (IRMO), a division of the US Department of State, and the Project and Contracting Office (PCO), a division of the Department of Defense, both under the oversight of the US State Department Mission to Baghdad.
[ GAO Report to Congress: Rebuilding Iraq, July 2005] On December 4, 2005 the PCO was merged with the US Army Corps of Engineers, Gulf Region Division. Since October 2004, contracting support for Iraq reconstruction has also been provided by the U.S. Army's Joint Contracting Command-Iraq/Afghanistan.
[ Congressional Testimony of Asst. Sec. of the Army, Bolton, February 2006].
Electricity
After overthrowing the previous Iraqi government, the coalition forces have sent aid to restore electric service knocked out during combat. The
Associated Press says that electrical power generation and distribution, curtailed due to combat operations and sabotage, has been restored to above prewar levels. German firm Elbe Maschinenbau has signed an agreement to build three new power plants in Iraq, and three new ones have already been completed in the Anbar region. Despite this reported improvements there are frequent disruptions to the electric grid in the country including incidents like the one on
September 13,
2004 where nearly all power in the country was lost after an attack by insurgents.
Food
The
World Food Program says that almost all Iraqis have been receiving enough food since June
2003, since the Coalition took over the
oil for food program from the
United Nations. The coalition is slated to reduce support in June
2004.
Water
Although the water supply has reached prewar levels in some provinces, aging and poorly maintained equipment combined with looting and vandalism leaves the drinking water system substandard. 157 wells are being constructed in Arbeel, Kirkuk, Al-Sulaymaniyah and Dhouk governorates, and several dams are being constructed across the country, including in Al-Sulaymaniyah governorate and the Western Desert. According to a U.N. survey taken in 2004, about 54% of Iraq has access to drinking water.[
2]
However, conditions look to be improved. A new water canal has been constructed to supply clean water to
Basrah and
Thi Qar in April of 2006. [
3]
Sewage
Untreated waste is polluting the
Euphrates River, and many treatment plants require repair. More than 45 pipelines have exploded.
Garbage
The first modern landfill in Iraqi history is currently being developed in southwest Baghdad, with the capacity to handle 2,230 cubic meters of waste per day. USAID is helping to build a second landfill north of Baghdad, which will handle 3,000 cubic yards (2,300 m³) of waste per day. Both landfills will be built to international environmental standards.
Schools
Almost all schools have reopened, including all 22 universities.
Media
Iraqis now enjoy freedom of speech, with the one stipulation that there be no direct attempt to incite insurrection against the new government. This freedom is currently being exercised by the several hundred new newspapers that have sprung up since the fall of Saddam in
April 2003. Television stations, both satellite (Al Fayhaa, etc.) and terrestrial (
Al Sharqiya,
Alhurra, etc.), and radio stations (Radio Dijla, etc.) broadcast freely, and no longer have their content dictated by the government. On April 3, 2003,
Al Jazeera withdrew its journalists from the country, citing unreasonable interference by the Iraqi government (
Al Jazeera).
Jobs
Many Iraqis were left jobless by the collapse of the old government and by the war. An estimated 500,000 Iraqis were laid off by the
CPA.[
4] An American public works program was created to provide new jobs, and there are projects to attract foreign investment and to encourage local business development. According to the Gulf Daily News, the Iraq Project and Contracting Office employed 80,000 Iraqis each day in the early weeks of August 2004. 100 job sites have opened across Iraq, and 900 more are expected to open in late 2004.
Oil
Oil production still lags behind prewar levels, due in large part to continuing warfare and political instability. The US has started to rebuild
oil refineries that had been destroyed by
Saddam Hussein's regime before its downfall.
Repair contracts have been awarded to a
Halliburton subsidiary, Kellogg, Brown and Root, a global engineering, technology, and services company. The US "is counting on oil revenues to help pay for reconstruction of the country." (AP) Some in the international community have expressed frustration of the
Pentagon's refusal to award contracts to nations that opposed the war.[
5]
In mid-2004, the Iraqi Oil Ministry announced plans to dig 2,000 new oil wells in 2005, and to build four new oil refineries in central and southern Iraq. Average oil exports from Iraq in July, 2004 were estimated at 1.5 million barrels per day, a number which was expected to rise sharply by the end of 2004.
In mid-2006, it was announced that oil production in Iraq had risen to 2.5 million barrels per day, with an estimated production of 2.7 million by the end of 2006.
Hussain al-Shahristani, the Iraqi oil minister, said that
"he expected output to rise to approximately 4m barrels per day by 2010, increasing to 6m bpd by 2012."[
6]
The arms embargo against Iraq was lifted with the fall of Saddam's government. One newly formed Iraqi battalion is on duty, with 27 scheduled for activation by summer 2004. Eligibility is denied to men over 40 or who served as colonels or generals under Saddam. According to DefenseLink, "As of
July 28,
2004,
Iraqi army, coastal defense, air, and National Guard forces had received more than 2,500 vehicles, 600 radios, 55,000 weapons and 25,000 pieces of body armor. Interior ministry forces, including
police, border enforcement and facilities protection services, had received more than 6,800 vehicles, 14,000 radios, 101,000 weapons, and nearly 46,000 pieces of body armor. Equipment totals for all forces eventually reach nearly 290,000 weapons, 24,000 vehicles, 75,000 radios, and more than 190,000 pieces of body armor, officials said."
The Iraqi people are becoming to increasingly trust the new Iraqi army and Police force [
7], and the Iraqi army is beginning to take control of more battlespace. [
8] The
Iraqi Air Force has begun to grow. [
9] [
10]
In July 2006,
Britain handed over responsibility for the security of
Al Muthanna Governorate to local Iraqi forces, making it the first of the
governorates of Iraq to be controlled by the new Iraqi military. [
11]
Iraq's bond market opened in mid-June, 2004. Interest rates are being set by the free market, as opposed to government control, for the first time. The Iraq Stock Exchange also opened in June, and 500 million shares were traded on the first day, which is more shares than the previous stock exchange, the Baghdad Stock Market, had ever traded. As of August, 2004, it has 27 listed companies, with about 100 more due to go public through September and October.
It has been alleged that large amounts of American tax dollars and seized Iraqi revenues were lost by the
CPA. One audit put the total number as high as $8.8 billion.[
12] Fradulent contractors such as
Philip Bloom often bribed CPA officials in exhange for contracts that were never performed. An article in the
NY Times describes "irregularities including millions of reconstruction dollars stuffed casually into footlockers and filing cabinets, an American soldier in the Philippines who gambled away cash belonging to Iraq, and three Iraqis who plunged to their deaths in a rebuilt hospital elevator that had been improperly certified as safe."[
13] While the US government has begun the process of prosecuting contractors that stole American tax dollars, the Iraqi government currently has no means of reacquiring Iraqi assets that were stolen by US contractors. This is partially due to a decree passed by the CPA that gives civilian contractors in Iraq immunity from all Iraqi jurisdiction.[
14]
There was also much controversy surrounding the granting of no-bid contracts to large American corporations like
Halliburton and
Bechtel, both of which have made generous donations to
President Bush and the
Republican Party.[
15] Halliburton in particular has been singled out for receiving what is perceived to be government favoritism for doing a shoddy job of rebuilding Iraq's oil infrastructure.[
16] When the Pentagon's own auditors determined that about $263 million of a Halliburton subsidiary's costs were potentially excessive, the Army still paid the company all but $10.1 million of the disputed costs.[
17]
Some say that the reconstruction would have been both much more efficient and inexpensive if more contracts were granted to local Iraqi firms, many of whom were shut out of the process due to that fact that they were state-owned.[
18] Congressman
Henry Waxman was once told by members of the Iraqi governing council that paying Iraqi companies to rebuild Iraq instead of American ones would save American tax payers 90 percent of the costs.[
19]
According to a recent report released by
CSIS in April
2003, Iraq's infrastructure is producing much less water, electricity, and oil than it was while Saddam was in power. The report lays much of the blame for this on corruption in the American occupation rather than insurgent sabotage.[
20][
21]
*
History of Iraqi insurgency*
2003 occupation of Iraq*
2003 Iraq war timeline*
Development Fund for Iraq*
Defend America: U.S. Department of Defense News About the War on Terrorism*
Fact Sheet on Provincial Reconstruction Teams (PRTs)* Roger Mac Ginty
"The pre-war reconstruction of post-war Iraq".
* * Kenneth M. Pollack,
"After Saddam: Assessing the Reconstruction of Iraq". From foreignaffairs.org - author update, January 12, 2004.
*
Iraq Analysis Economic Development Page Comprehensive information source listings on reconstruction of Iraq
*
USAID Assistance to Iraq Homepage Updates and Financial Summaries on USAID managed reconstruction projects in Iraq
*
Iraq Investment and Reconstruction Task Force*
Washington Times - Reconstructing Iraq*
The Wall Street Journal - Taking the Field*
The Wall Street Journal - Taking Power*
The Wall Street Journal - Finish the Job*
article by Naomi Klein*
Good News from Iraq - Article 14 in series on Iraq Reconstruction by Arthur Chrenkoff*
Dahar Jamail, "Iraq: The Devastation", AlterNet*
Iraq reconstruction funds missing*
Video Seminar on Iraq Coalition Politics:
April 20 2005, sponsored by the Program in Arms Control, Disarmament, and International Security at the University of Illinois.
*
Bush vows no retreat in Iraq*
Iraq Investment and Reconstruction Task Force Updates on Iraq Reconstruction from a Private Sector Standpoint
