Investment in Post-invasion Iraq - Administration of Iraq Reconstruction

Administration of Iraq Reconstruction

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 foreign and Iraqi contractors.

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. 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.

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 manage 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. 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. Other U.S. Government agencies, including the U.S. Agency for International Development (USAID) and the State Department, have also issued contracts funded by the Iraq Relief and Reconstruction Fund.

Funds from the US-operated IRRF are largely disbursed through contracts to private firms. Several US companies have been particularly prominent in receiving Iraq reconstruction funds. Bechtel of San Francisco, USA has been awarded over $2.4 billion for infrastructure rehabilitation through USAID contracts. Flour AMEC, LLC, Greenville, South Carolina, USA has been awarded nearly $1 billion for water, sewer of solid waste management systems. Parsons Corporation of Pasadena, California has been awarded $1.3 billion for construction services. Washington Group International of Boise, Idaho, USA has received awards of $580 million for water resource reconstruction projects. Kellogg, Brown and Root (KBR), a subsidiary of Halliburton of Houston, Texas has received awards of $580 million. Another $1.2 billion has been distributed to Iraqi contractors. In 2005/2006 Symbion Power of the US were awarded $250 million of competitively bid new fixed price electrical infrastructure work throughout the country. Symbion Power is a privately owned engineering firm with an ownership structure that involves a security company Hart Security.The dollar figures provided here are as of July 2006.