Coalition Provisional Authority - Reconstruction

Reconstruction

Although the CPA awarded contracts for essential reconstruction to American firms, some critics claim those firms did relatively little work. Bechtel, for instance, was awarded the contract to repair the Iraqi sewage and drinking water plants. Yet today many Iraqis remain without safe drinking water or adequate supplies of electricity. Coalition military forces were too heavily tasked to provide requisite security for all contractors in Iraq. Contract funds therefore had to be partially shifted from reconstruction activities to meet security requirements that had not been envisioned when the contracts were initially let. Moreover, progress in reconstruction frequently faced setbacks due to insurgency activities designed to disrupt rebuilding of the infrastructure. This insurgent activity significantly slowed reconstruction and required adjustment of project goals due to funds consumed by providing necessary security in excess of that originally planned.

According to USAID, as of October 2003, peak electrical generation had reached pre-war levels of 4,500 MW, and they were then collaborating with Bechtel as well as the Iraqi Interior Ministry and others on some 2,000 MW of projected capacity. The CPA set a goal of 6,000 MW generation capacity for the summer of 2004, which has never been reached. Peak generation capacity of 5,365 MW was achieved in August 2004, six weeks after the transfer of sovereignty. Current generation stands at approximately 5,000 MW. Contracting work involving Bechtel projects is ongoing Weekly updates and financial summaries are provided by USAID's Iraq homepage as currently as is possible.