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Iraq rebuilding under threat as US runs out of money
(Rory Carroll and Julian Borger, The Guardian, September 9, 2005)
Key rebuilding projects in Iraq are grinding to a halt because American money is running out and security has diverted funds intended for electricity, water and sanitation, according to US officials. . . . Plans to overhaul the country's infrastructure have been downsized, postponed or abandoned because the $24bn (£13bn) budget approved by Congress has been dwarfed by the scale of the task. . . . "We have scaled back our projects in many areas," James Jeffrey, a senior state department adviser on Iraq, told a congressional committee in Washington, in remarks quoted by the Los Angeles Times. "We do not have the money." . . . Water and sanitation have been particularly badly hit. According to a report published this week by Government Accountability Office, the investigative branch of Congress, $2.6bn has been spent on water projects, half the original budget, after the rest was diverted to security and other uses. . . . The report said "attacks, threats and intimidation against project contractors and subcontractors" were to blame. A quarter of the $200m-worth of completed US-funded water projects handed over to the Iraqi authorities no longer worked properly because of "looting, unreliable electricity or inadequate Iraqi staff and supplies", the report found. . . . Both Democrats and Republicans in Congress also said administrative bungling had played a part. . . . It is in this context that many of the estimated 20,000 foreign security contractors now in Iraq - some paid more than $1,000 a day - are employed. Mr Bowen said $5bn had been diverted to security. . . . Some areas now get less than four hours of electricity a day, and there has been a surge in cases of dehydration and diarrhoea among children and the elderly. The cost of providing enough electricity for the country by 2010 is put at $20bn. . . . Fuel shortages have produced mile-long queues at petrol stations. Crude oil production is around 2.2m barrels a day, still below its pre-war peaks, according to the Brookings Institution in Washington.


posted by LoZo 6:36 AM


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