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Several Iraqi officials working within the interim government have
resigned in protest of the US-led assault on Najaf and Kut

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The Nation
30 August 2004

Fables of the Reconstruction
    by CHRISTIAN PARENTI

As we speed down the Tigris River under a brilliant sun in a fiberglass
skiff, Iraq almost seems like Vacationland--but only for a moment. Soon
we're dodging the half-submerged barges and ferries sunk in last year's
bombing. Then two Black Hawk helicopters dash low overhead, their menacing
door gunners fully visible.

Farther on, there are more bad signs. A strange column of dark smoke rises
from a lush palm grove. And suddenly, huge nauseating plumes of raw sewage
spill from pipes at Baghdad's southern edge.

Not far from these fetid torrents are several major water-intake stations
and a handful of fishermen setting long gill nets from wooden boats.
Several of the fishermen, their vessels tucked in the shade of reed
patches waiting for the nets to fill, say the catch is in decline.
"Sometimes the fish tastes and smells like sewage," explains one.
Downriver, millions of people in cities like Basra draw their water from
the Tigris.

The sorry state of this river is just one piece of Iraq's failed
reconstruction. Throughout the country, vital systems, from water and
power to healthcare and education, are in woeful disrepair. The World Bank
estimates that bringing Iraq back to its 1991 level of development will
cost $55 billion and take at least four years.

In the past seventeen months, US taxpayers have set aside a total of $24
billion to rebuild Iraq. Most of that sum has not been spent, though
billions of dollars of poorly accounted for Iraqi oil revenues have been
expended, or at least allocated to foreign (mostly American) contractors.

Humanitarians see reconstruction as a moral obligation: a form of
reparations for two US-led wars and thirteen years of brutal sanctions.
>From a military standpoint, reconstruction is central to the US
counterinsurgency effort. The occupation's star officers, like Maj. Gen.
David Petraeus, readily acknowledge that a broken economy means more
violence. But seen up close, reconstruction in Iraq looks less like a
mission of mercy or a sophisticated pacification program and more like a
criminal racket.

At the Rustimiyah South sewage-treatment plant, all is quiet except for a
few mourning doves in the eucalyptus trees and a handful of Iraqi
construction workers building a brick shed to house a new generator. This
plant and its sister facility, Rustimiyah North, have been sitting
dry--waiting for Bechtel, the largest US construction company and one of
the lead contractors in occupied Iraq.

As soon as Baghdad fell, Bechtel was in Iraq making deals with USAID, the
government agency tasked with overseeing reconstruction. In total, the
firm now has more than $2.8 billion in Iraq reconstruction jobs. As the
"primary" contractor on much of Iraq's water system, as well as key parts
of its power grid and some of the healthcare infrastructure, Bechtel's
responsibilities are quite broad. Its initial April 2003 contract stated:

The contractor will commence repairs of water infrastructure in 10 urban
areas within the first month. Within the first 6 months the contractor
will repair or rehabilitate critical water treatment, pumping and
distribution systems in 15 urban areas. Within 12 months potable water
supply will be restored in all urban centers, by the end of the program
approximately 45 urban water systems will be repaired and put in good
operational condition, and environmentally sound solid waste disposal will
be established.

None of those deadlines have been met--but luckily Bechtel's contracts are
indemnified with loophole phrases like "depending on the availability of
equipment."

The Rustimiyah sewage plants are among the few facilities given explicit
mention as priority projects in Bechtel's contract-related documents.
Together the two plants should handle all the sewage from Baghdad's
populous east side, known as Rusafa; before the war the plants were fully
functional but working beyond capacity. During the invasion they were
knocked out by fighting and were then further damaged by looting. The
sister plants haven't processed any sewage since April 2003.

Now their daily flow of 780,000 cubic yards of human and industrial
waste--a nasty cocktail of organic solids, heavy metals and poisonous
chemicals from a battery factory, a soap factory, an electronics plant and
other light industry--goes directly into the Diyala River, which joins the
Tigris seven miles southwest of the plants. A third plant, farther north,
has just started up again, but it is working at only about 20 percent
capacity.

Rustimiyah South's director is Riyidh Numan, a hospitable and reflective
engineer in his early 30s working for the Baghdad Sewage Authority. Since
Bechtel took over a year ago, his job has mostly consisted of sitting
around and waiting for the foreign contractors to execute the repairs.
Numan says the first thing Bechtel did when it showed up was to start
painting buildings. He demanded that they stop and switch to repairing the
plant's primary functions. Since then work has been slow, and all Numan
can do is complain to the Baghdad Sewage Authority, which in turn
dispatches impotent letters to Bechtel.

On a tour of the wrecked plant, we stroll past the empty desiccation beds
and the empty settlement and de-greasing tanks and then descend three
stories below ground into the plant's guts. In a dimly lit, cavernous pit
lined with massive pipes and VW-bug-sized German pumps, Numan speaks more
freely.

"Bechtel got angry at me when I talked to Azzaman," he says, referring to
a major Iraqi newspaper. "We were supposed to be back on line in June,
then September. Now it's January. Every day we send untreated sewage into
the river, thousands of people downstream become sick." He pauses. "This
work is more important than schools. It's more important than hospitals.
This is about preventing problems."

Will Rustimiyah South be on line by New Year's? For a moment it seems like
Numan won't answer the question, then, looking in the pit below, he says,
"No, this will not get done. The parts aren't even here yet." Asked about
these problems, Bechtel spokesman Francis Canavan acknowledged the
regrettable delays in the sewage rehab work but attributed them to the
complicated nature of the task: Many old machines have to be custom
rebuilt in Europe. And then there is the abysmal security. Looting and
ambushes on all the main highways have held up the arrival of crucial
parts.

But Iraqi engineers and engineering professors I interviewed at
water-treatment plants and power stations and at Baghdad University all
claim that the work could be going much faster if the "accumulated
knowledge" of Iraqi engineers were put to better use.

"These systems, their repairs, they are not all on some blueprint
somewhere," says Gazwan Muktar, a rather intense, highly intellectual
retired electrical engineer. "You need to have the people who spent twenty
years running these irrigation canals or power plants to be there. They
know the tricks; they know the quirks. But the foreign contracts ignore
Iraqis, and as a result they get nowhere!"

Conditions at the other end of the pipe--that is, at Baghdad's seven
drinking-water-treatment plants--are also bad. At the Mishrul Magi Al
Wahady plant, a crew of about a dozen engineers and technicians wage a
quiet struggle to supply 15-20 percent of the city's potable water. Al
Wahady first went on line in the early 1950s. Its capacity is now
stretched to the limit, and a few miles upstream two sewage-discharge
stations contaminate the river, making the plant's job even harder.

The plant needs lots of help. It lacks a forklift to move the huge metal
canisters of chlorine gas (which comes from UNICEF, not Bechtel). It lacks
emergency medical gear, basic tools and a lab to test its water for
biological contamination or excess chlorine. Most treatment plants test
their water three times a day, but here a mobile technician takes samples
to a lab only three times a week.

The manager, Jabbar Sattar, needs a car--his was shot up by US troops a
year ago and now sits on the plant's lawn as a totem to close calls and
longevity. To get to the local government offices downtown or check on the
plants' riverfront intake pumps, Sattar has to take cabs and use his own
money. The plant even needs mundane things like lighting, a bathroom and
desks.

"We had big promises from Bechtel, but I only met with them twice," says
Sattar. There is one bit of good news: At the beginning of June, the US
Army Corps of Engineers started supplying emergency spare parts and tools
and helping to refurbish some of the plant's intake pumps down by the
river.

The situation is almost identical at several other water-treatment plants
I visited. Bechtel and its subcontractors are rarely around; the local
managers are kept in the dark about what work is planned; the emergency
support (such as supplies of chlorine gas and spare parts) comes from
UNICEF, the Red Cross, the Swiss Embassy or various European NGOs and more
recently from the US Army Corps of Engineers. Bechtel is never mentioned
as providing help.

"Water is very important to life," says Layla Mijbil, deputy manger of the
Al Wathba water-treatment plant in north central Baghdad. "And when there
is no care for water there is no care for Iraqi life." Bizarrely, Bechtel
waves off these complaints with reference to the limits placed on it by
USAID's job orders.

"We only do work that we have a job order for," explains Bechtel's
Canavan. Who generates these job orders? USAID. And how does USAID make
these decisions? "We submit the job orders to them for approval," says
Canavan. It still seems that Bechtel simply gets to decide on its own how
much work it will, or will not, do for $2.8 billion of US taxpayers'
money. Canavan doesn't like this suggestion and says I am visiting the
wrong places. I should go to the Sharkh Dijlah treatment plant, formally
known as the Saba Nissan plant, or Seventh of April (named for an old
Baathist holiday).

"We are doing a major expansion on that facility, says Canavan. All the
equipment is brand-new. It's a major investment which will really help
Baghdad."

As at most job sites, getting in requires five signatures from various
Iraqi bureaucracies. When I finally get to the Sharkh Dijlah, just north
of Baghdad, there is indeed construction under way, but no workers around.
Bechtel has just sent out a warning about guerrilla attacks, and the night
before some mortars landed in a village just outside the plant.

The Sharkh Dijlah expansion will increase the plant's potable outflow from
120 million gallons a day to 170 million. But on closer examination, the
work is not as impressive as it seems. First of all, Bechtel's initial
completion date was this summer, but by early July the work was far from
done. And a second expansion has been canceled.

This project is not solely the work of Bechtel. The extension was started
several years ago by the Iraqi government and a Greek construction firm.
When Bechtel arrived, the designs were complete, 75 percent of the
extension's parts were already delivered and paid for, and about 20
percent of the civil engineering was done.

Bechtel spent four months studying the plans, then announced they were
adequate, kicked out the Greek firm, took over the project and allowed
some of the original Iraqi subcontractors to continue their work. Bechtel
was, according to its own paperwork, also supposed to assist in
refurbishing and supplying the already existing parts of Sharkh Dijlah.
The Iraqi engineers here say they instead rely on the local water
department and some aid from the UN.

Progress in rehabilitating the electrical grid is also in limbo. At the Al
Daura power plant, Baghdad's main source of electricity, Bechtel's main
subcontractors, Siemens and General Electric, fled after four Russian
contractors were assassinated, according to sources at the plant.
Nationally, output was to have reached 6,500 megawatts per day by now but
is stalled at 4,500 megawatts. Schools listed as fully rebuilt are in fact
flooded with sewage and lack desks, but are often freshly painted. Health
clinics listed as fixed are dilapidated, low on supplies and short on
water and electricity. When I interviewed the Deputy Minister of Health,
Dr. Amer Al-Khuzaie, he claimed not to even know the name of the US firm
that has the contract to supply his ministry with medicine. Everywhere one
looks, the reconstruction effort is marked by chaos, corruption and
incompetence.

One problem is that most of the promised American financial help hasn't
materialized. Of the $24 billion in US tax money set aside to rebuild
Iraq, only $5.3 billion had been allocated to specific reconstruction
contracts as of late June 2004. According to a report from the White House
Office of Management and Budget, of the $18.4 billion reconstruction
honey-pot approved last fall only $366 million had been spent by late
June--that is, invested in Iraq. Instead of creating 250,000 jobs for
Iraqis, as was the original goal, at most 24,000 local workers have been
hired.

Most amazing of all, the OMB report showed that not a single cent of US
tax money had been spent on Iraqi healthcare, water treatment or
sanitation projects--though $9 million was dithered away on administrative
costs of the now defunct Coalition Provisional Authority. Most of the
little that has been invested in healthcare, water treatment and
sanitation has come from Iraqi oil revenues, managed for most of last year
by the Development Fund for Iraq, a US controlled successor to the UN-run
Oil for Food program. In all, the CPA spent roughly $19 billion of Iraqi
oil money--on what exactly is not quite clear.

A recent audit by the accounting firm KPMG on behalf of the International
Advisory and Monitoring Board (IAMB)--a UN project to monitor the use of
Iraqi oil money--found that four major CPA-awarded contracts were granted
(in violation of CPA rules) without competitive bidding. For seven other
contracts, which the CPA insisted were awarded via competitive bidding,
there is no evidence to back up this claim.

Six other projects were improperly approved by a skeleton crew of the
CPA's Program Review Board. Contract approval required the presence of at
least 70 percent of that board's voting members, but decisions were
frequently made without a quorum. The only Iraqi with voting power on the
PRB attended a mere two of the board's forty-three meetings.

In the face of this damning KPMG audit, a CPA spokesperson told the
Financial Times that "extraordinary steps" had been taken to make sure
"the funds were expended in the interests of the Iraqi people." But a new
report by the CPA's inspector general reinforced KPMG's conclusions,
documenting extensive corruption and waste in the handling of Iraqi oil
money by US officials and private contractors, twenty-seven of whom face
criminal investigations.

What does the failure of reconstruction mean for the average Iraqi? The
answer is evident in places like the village of Amar Bin Yasser, not far
from where the Rustimiyah's untreated sewage hits the Diyala River.

In a palm-frond-and-plywood kiosk by a road, Khalid Salman and his three
young nephews sell lamb and mutton. The meat hangs in the shade, greasy
and dotted with flies. Beside Salman and the boys are two peaceful sheep,
oblivious to the fate awaiting them. Across the road is the river: a thick
soup of sewage. Salman explains that since the war, he has been unable to
use the river water even for his animals. Instead he has to buy water at
ten dinars a liter (less than a penny) from tanker trucks that come down
from Baghdad. The price is not high, but neither is Salman's income.

"The farmers here suffer from rashes and disease," says Salman. "To
irrigate their fields they sometimes have to stand in this water up to
their chests. Many children are sick with some kind of poisoning, and we
all have stomach pains." He says the pollution contaminates the local
wells and has brought swarms of insects, and because there is so little
electricity it is hard to keep the bugs away from the children at night
with electric fans. Medical care is meager at the local clinics; there are
doctors but no medicine.

His tirade is cut short as a convoy of US tanks rolls by, towed on
heavy-duty flatbed trucks. From the turrets, grim-looking soldiers behind
.50-caliber machine guns watch the mud huts pass below them. Salman glares
at the convoy with hate in his eyes. This is resistance country, and the
local base gets mortared regularly. Each tank has a nickname stenciled on
its cannon barrel: Fat Bastard, Controlled Rage, Crotch Rocket, Another
Tank and Chubby Cowboy.

Farther downriver the situation is the same. In the village of Azhira a
woman in a black abaya with blue tattoos on her chin explains how the
village is dependent on the tanker trucks and cash for its water. Her
husband says all the fish are dead and that the fishermen have no work.
They get only three hours of electricity and then are cut off for up to
five hours at a time. It is hard to keep food fresh, and the heat only
makes it worse.

Outside the village I stop and talk with a squad of GIs whose armored
Humvee is tucked beneath a stand of trees along a raised dirty road. Their
mission is to guard a bridge over the Diyala and keep tabs on Azhira.

"Everything's pretty mellow," says one of the soldiers. His comrades read
magazines in the Humvee or watch the surrounding trees and houses.
"Sometimes they take potshots at us from over there." He points to the
village. "But when you meet the people, they're not all bad." None of the
GIs are aware of the water situation or the sewage problem or the real
extent of the economic crisis around them. But they are not unsympathetic.
"Living near a river of shit--that would definitely suck," says one of
them. "No wonder these people are pissed."

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