American contractors leaving Iraq
Washington | January 23, 2006 8:36:09 PM IST
American private contractors are preparing to leave Iraq as US money runs out and government ministries take charge of the reconstruction effort, according to the Washington Times.
Fluor Corp, the engineering and construction giant and one of the biggest private-sector employers in Iraq, at one time had 250 to 300 people from the United States in Iraq, and employed roughly 20,000 Iraqis. But now, as the US-funded part of the reconstruction effort comes to a close, Fluor has, perhaps, 100 Americans left in the country and is phasing out the Iraqi jobs.
The Times said most US-funded projects are scheduled to be completed by the end of this year, and it is unlikely that any significant new US funds will be forthcoming. Iraqi government ministries, which will be taking over responsibility for the reconstruction effort, tend to issue much smaller contracts that do not interest large US companies.
It quoted retired Col Paul Hughes of the United States Institute of Peace saying that the US Congress has made it clear that it will not provide any more money.
The World Bank had estimated in 2003 that it would take 56 billion dollar to rebuild Iraq's infrastructure and the United States appropriated 18.7 billion dollar toward the effort, much of which went to build specific projects.
The non-US donor community pledged 13.5 billion dollar to help restore Iraq, but few countries are willing to fulfill their pledges amid a raging insurgency and perceived political instability. About 1 billion dollar of that money has been disbursed.
The Times report said Fluor's experience is typical of the large US contractors in the country.
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