Are there any articles or data on the distribution of contracts for reconstruction in Afghanistan that Penners would commend?
Cheers, Ken Hanly ----- Original Message ----- From: "Ian Murray" <[EMAIL PROTECTED]> To: "pen-l" <[EMAIL PROTECTED]> Sent: Friday, March 21, 2003 4:30 PM Subject: [PEN-L:35881] protection rents redux > U.S. Set to Award 7 Contracts for Rebuilding of Iraq > Initial Work Will Go to American Firms > > By Paul Blustein and Renae Merle > Washington Post Staff Writers > Friday, March 21, 2003; Page A30 > > > The U.S. Agency for International Development said yesterday that it will > shortly award seven contracts to American companies for the initial stages > of reconstruction in postwar Iraq -- two of them as early as today. > > Justifying the decision to restrict the contracts to U.S. firms, Andrew S. > Natsios, the USAID administrator, said one reason is the need for the > firms' personnel to have security clearances, because "there are > classified documents they have to see." > > Natsios and other officials emphasized, however, that they expect the > long-term reconstruction effort to go well beyond the USAID contracts and > include international organizations and aid agencies from other countries, > which would presumably award contracts to non-U.S. firms. > > "We expect U.N. agencies will be involved in a major way," Natsios said, > adding that he has also been talking "below the radar screen . . . for > three or four months now" to his counterparts at the aid agencies of other > wealthy countries in the expectation that they, too, would play > significant roles in rebuilding Iraq after U.S.-led forces unseat > President Saddam Hussein. > > Other U.S. officials said they envision important contributions from the > International Monetary Fund and World Bank as well. The IMF has > established a task force to study the Iraqi economy, although any > financial support from either it or the World Bank probably would take > considerable time because the two institutions last worked in Iraq in the > 1970s and early 1980s. > > The U.S. officials' comments may go at least part way toward defusing a > controversy that has arisen over USAID plans to limit its contracts to > U.S. firms. The agency almost always awards American companies a large > portion of its contracts, but international criticism erupted after recent > news reports that the USAID had limited the selection process for the > biggest contracts to a handful of huge U.S. multinational firms, some of > which are well connected to the Bush administration. Those firms include a > subsidiary of Halliburton Co., the company once headed by Vice President > Cheney. > > The agency's handling of the matter, and the implication that > international organizations and other aid agencies would be left out, was > denounced as "exceptionally maladroit" by Chris Patten, the European > commissioner for external relations. The amount of aid that is needed for > reconstruction, although still far from determined, is certain to dwarf > the sum that the USAID is planning to spend on the contracts in question, > and that is one major reason that U.S. officials say they would welcome > involvement by international agencies and other countries. Many experts > have cited estimates ranging from $25 billion to $100 billion for the full > reconstruction, while the largest contract the USAID is planning to award > at this stage is for about $600 million. > > That contract, to repair the country's infrastructure, including roads and > bridges, is to be awarded early next week. The field of competitors was > narrowed from seven to two or three, and the companies have been asked to > submit their "best and final offers," agency officials said. Two contracts > to administer Iraq's seaport and airports may be awarded as soon as today. > > The total cost of the USAID's plan is still unknown, Natsios said, and > will be allocated in a supplementary appropriation bill that President > Bush plans to submit to Congress soon. According to people who have seen > contract documents that have been distributed to some of the firms, the > USAID effort is intended "to provide tangible evidence to the people of > Iraq that the U.S. will support efforts to bring the country political > security and economic prosperity." > > Even if Washington does not intend to have U.S. firms dominate Iraq's > reconstruction, officials of many nongovernmental organizations (NGOs) > that have been actively involved in aid are upset about the USAID plan > because it apparently envisions a minor role for them. NGO officials > contend that they have far more expertise than giant companies in the > on-the-ground work in local communities that is required to build > successful health and education systems. > > "We've received verbal assurances from the U.S. government that NGOs will > be involved in reconstruction activities, but we'll believe it when we see > it," said Sid Balman Jr., a spokesman for InterAction, an umbrella group > of NGOs. "There's been a worrisome trend we've been seeing, based on what > we saw in Afghanistan, where the Bush administration seems to be turning > to a small pool of mainly large U.S. contractors for most reconstruction > activities." >
