US has bombed, will be paid to rebuild
SIDDHARTH VARADARAJAN
TIMES NEWS NETWORK[ FRIDAY, MARCH 28, 2003 11:16:20 PM ]
NEW DELHI: In a clarification that will do little to allay fears of US firms monopolising the post-war reconstruction bonanza in an American-occupied Iraq, Washington said Friday that all prime contract awards would go to American firms which could, in turn then, sub-contract work to non-US firms.
As for the money to pay US companies lucky enough to win contracts, a ranking senator said on Thursday that Iraq's oil reserves would foot the bill.
In an official release, the US State Department confirmed that the US Agency for International Development (USAID) has issued eight proposals for reconstruction projects to be undertaken once Iraq is under American occupation. These include capital construction, seaport and airport administration, public health, education, local governance and personnel support projects. As a sop to other countries, however, the State Department says it "anticipates that 50 per cent or more of the sub-contracting will be available to non-American firms".
Already, two minor contracts have been awarded, including one worth $4.8 million to Stevedoring Services of America for rehabilitation of Umm Qasr port.
Ironically, the Umm Qasr contract has kicked off a row between the US and Britain — the principal members of the so-called 'coalition' attacking Iraq — with London upset that the British firm, P&O, was not given the job. According to the Independent, the British have now begun saying the port's management should remain in Iraqi hands.
While sub-contracting opens up the possibility of other countries sharing in post-war spoils worth several billion dollars, the State Department redundantly notes that the non-US firms will include "companies located in Iraq coalition partner countries".
The suggestion is that the latter would have an edge. Anticipating being shut out, the French government and Medef, France's largest business federation, have set up a working group to study how French companies can win a share of the contracts.
Whoever wins the contracts, however, the bill is likely to fall upon the Iraqi people themselves.
In a speech on Thursday, Senator Chuck Grassley, head of the US Senate Finance Committee, said that Iraq's oil resources would pay the costs of occupation and reconstruction.
"International law provides that the US is entitled to use the money from oil sales to pay for such obligations as food and water, health care, roads and bridges, schools and airports," he said.
According to Reuters, an aide to Grassley said the senator was "concerned about the war costs and asked his staff to research whether Iraqi oil can be used to pay for reconstruction rather than US taxpayers".
Comment: After having their country wrecked by US bombing and ten years of sanctions, the Iraqis will be now forced to pay US firms to rebuild everything. Who said 'Iraqi Freedom' was going to be free? |
