- ARLINGTON, Va. (Reuters)
-- Rigid U.S. contracting rules are adding to delays in Iraq's rebuilding
program and project prices are escalating rapidly due to a hike in the
cost of materials, senior Iraqi officials said on Tuesday.
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- Speaking to U.S. business leaders about opportunities
in the Iraq construction sector, several Iraqi officials voiced disappointment
it was taking so long to get projects off the ground and blamed some delays
on U.S. procurement rules and problems understanding the U.S. way of doing
business.
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- Moreover, prices for building materials such as concrete,
gravel and sand were rising fast and the longer it took to get reconstruction
moving the more expensive it would be.
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- "Everything is costing twice or triple what it cost
before the war as most cement factories were looted. We need new factories,
equipment and new training for our people to support us," said an
Iraqi building official, who was identified publicly but asked not to be
named in the media because of security fears at home.
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- For example, before the U.S.-led invasion, a ton of cement
cost about $8 but this had shot up to $110 a ton, according to figures
released at the briefing, which was organized by the U.S. Trade and Development
Agency.
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- The Iraqi official said U.S. procurement rules were tough
for many Iraqis to follow and it had taken too long for many projects to
get off the ground because so many U.S. regulations had to be followed.
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- WORK BEFORE SECURITY
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- Another Iraqi official, who also asked not to be named
because he feared for his life, said delays in getting Iraq's reconstruction
program rolling were making security worse.
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- "Some people say security will come first and then
we will work. But this is wrong. We should work and this will bring security,"
he told about 350 company representatives attending the briefing at a hotel
near the Pentagon.
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- The Iraqi delegation is in the United States to try to
encourage more U.S. companies to become involved in Iraq via work advertised
by the ministries and elsewhere.
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- Most U.S. firms doing business there have deals with
U.S. government agencies which are usually cost-plus arrangements, meaning
all their security and other costs are reimbursed.
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- The head of an Iraqi state-run enterprise said he was
surprised U.S. firms were not applying for construction contracts being
offered by his company.
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- "Why do American companies not submit offers with
others? We are here for you," said the business leader.
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- However, a U.S. lawyer doing business in Iraq told Reuters
most U.S. companies were reluctant to take such risks if their security
and other costs were not reimbursed.
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- "What benefit would they have by doing that? It's
far too risky," he said.
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- Iraq's Minister of Construction and Housing Omar Al-Farouk
Al-Damluji, who was the only Iraqi official prepared to be named, said
he hoped more U.S. funds would soon be released for reconstruction.
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- Of the more than $18.4 billion appropriated by the U.S.
Congress, just over $1.5 billion has been spent so far and more than $7
billion has been obligated in future work.
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- "We need foreign investments, especially those from
the United States, so that the Iraqi economy can stand again," he
said.
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- He anticipated rebuilding would speed up after the U.S.
presidential election on Nov. 2 as well as the elections in Iraq which
are expected in January.
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- "We want to see that when both elections are finished
then there will be governments that can take action." he said.
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- http://news.reuters.com/newsArticle.jhtml?type=worldNews&storyID=6546770
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