Menu
11/12/2003
US snubs non-Coalition nations over Iraqi contracts
'Old Europe' and nations that did not send troops to Iraq with the Coalition, have suffered a multi-billion dollar snub from the US after it declared that only nations "committed to Operation Iraqi Freedom" may bid on contracts to rebuild the shattered country.
Pentagon spokesman Lawrence Di Rita announced yesterday that nations not part of the Coalition "cannot serve" as prime contractors for any of the $18.6 billion in reconstruction funds provided by Congress.
Iraqi infrastructure has suffered indirectly through lack of investment during the 30 years of Baath party rule and the levelling of UN sanctions against the nation after the invasion of Kuwait, then directly through bombing during the first Gulf war, protracted air raids by the US and UK in 1998, and the second Gulf war which ended last May.
The US administration has estimated that it will cost approximately $55 billion to rebuild Iraq's ruined infrastructure.
The administration said that it had three choices – limit bids to US-only firms, open bids to all nations, or limit bids to friendly countries.
"There are countries that made a commitment to Iraq in a certain way," Mr Di Rita said.
"They said 'We're out publicly believing in Iraq; we're providing forces to Iraq'. We've said, 'Let's decide to allow them to compete as prime contractors'.
"These countries made a commitment [and] they've been with us since the beginning. It wasn't easy to be with us from the beginning and we know that. These countries want to be identified as part of the coalition."
The decision was brokered between Defense and State Department chiefs, led by Deputy Defense Secretary Paul Wolfowitz, in consultation with Coalition Administrator Paul Bremer.
The US has said that the door is still open for countries to join the Coalition allies and send troops to Iraq – and in doing so be considered for contract awards. Where diplomacy and political cajoling has failed to garner support, the billion-dollar carrot of Iraqi reconstruction could yet persuade recalcitrant nations to come on board. Widening the Coalition would also alleviate the pressure on the 140,000 US troops stationed in the country.
However, corporations in blacklisted countries may be able to make bids through subsidiary companies based in nations, such as Britain, favoured by the US.
(gmcg)
Pentagon spokesman Lawrence Di Rita announced yesterday that nations not part of the Coalition "cannot serve" as prime contractors for any of the $18.6 billion in reconstruction funds provided by Congress.
Iraqi infrastructure has suffered indirectly through lack of investment during the 30 years of Baath party rule and the levelling of UN sanctions against the nation after the invasion of Kuwait, then directly through bombing during the first Gulf war, protracted air raids by the US and UK in 1998, and the second Gulf war which ended last May.
The US administration has estimated that it will cost approximately $55 billion to rebuild Iraq's ruined infrastructure.
The administration said that it had three choices – limit bids to US-only firms, open bids to all nations, or limit bids to friendly countries.
"There are countries that made a commitment to Iraq in a certain way," Mr Di Rita said.
"They said 'We're out publicly believing in Iraq; we're providing forces to Iraq'. We've said, 'Let's decide to allow them to compete as prime contractors'.
"These countries made a commitment [and] they've been with us since the beginning. It wasn't easy to be with us from the beginning and we know that. These countries want to be identified as part of the coalition."
The decision was brokered between Defense and State Department chiefs, led by Deputy Defense Secretary Paul Wolfowitz, in consultation with Coalition Administrator Paul Bremer.
The US has said that the door is still open for countries to join the Coalition allies and send troops to Iraq – and in doing so be considered for contract awards. Where diplomacy and political cajoling has failed to garner support, the billion-dollar carrot of Iraqi reconstruction could yet persuade recalcitrant nations to come on board. Widening the Coalition would also alleviate the pressure on the 140,000 US troops stationed in the country.
However, corporations in blacklisted countries may be able to make bids through subsidiary companies based in nations, such as Britain, favoured by the US.
(gmcg)
Related Northern Ireland Business News Stories
Click here for the latest headlines.
05 December 2001
Minister congratulates firm on training commitment
Minister of Agriculture and Rural Development Bríd Rodgers has congratulated Mourne Country Meats on their commitment to training The Minister distributed Supervisory Management Certificates to eight members of staff at Mourne Country Meats at a ceremony held on December 5 at the firm’s premises in Greenbank Industrial Estate, Newry.
Minister congratulates firm on training commitment
Minister of Agriculture and Rural Development Bríd Rodgers has congratulated Mourne Country Meats on their commitment to training The Minister distributed Supervisory Management Certificates to eight members of staff at Mourne Country Meats at a ceremony held on December 5 at the firm’s premises in Greenbank Industrial Estate, Newry.
-
Northern Ireland WeatherThis Evening and Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
