Iraq Reconstruction News 28 March 2007

Iraq Reconstruction News
28 March 2007


1. Brookings Iraq Index 26 March 2007 http://www3.brookings.edu/fp/saban/iraq/index.pdf

2. Amid security risks, China may lead way for Iraqi oil -- AP -- DUBAI, United Arab Emirates — China has sat out the Iraq war, but it could be the first to take advantage when the Iraqi government finishes a law opening up its oil fields to international companies. The Iraqi oil legislation, expected to be approved by July, will open the door for the government to sign contracts for exploration and production of the country's vast untapped reserves, a top U.S. priority. But since few Western companies are prepared to send equipment or crews into the war zone, it could take five years or more before they begin extracting big shipments of Iraqi crude. http://www.chron.com/disp/story.mpl/business/4661852.html

3. Analysis: Unions could sway Iraq oil law -- WASHINGTON, March 28 (UPI) -- Iraqi parliamentarians are set to debate a law governing oil and natural gas resources, though backroom negotiations on the measure haven't concluded yet. Both the deliberation and the deal may be futile, however, if Iraq's oil unions don't give their consent.
And the blessing of the more than 26,000-strong workers is far from guaranteed. http://www.upi.com/Energy/analysis_unions_could_sway_iraq_oil_law/20070328-011829-3353r/

4. Iraq hopes to eliminate electricity shutoffs in 2010 -- Iraqi Minister of Electricity said that his country intends to put an end to electricity shortages by mid-2010, and talks are under way with investors, hoping to complete planned annual investments at the value of $ 2 billion. Electricity sector in Iraq needs to be rebuilt after years of war, sanctions and sabotage; electricity shuts off daily and only few areas in Baghdad gets a few hours of electricity a day. http://www.iraqdirectory.com/DisplayNews.aspx?id=3488

5. Some Democrats Oppose Forcing Iraq To Accept Foreign Investment in Oil -- The wartime spending measure passed by the House last week and a related bill being taken up in the Senate put pressure on the Iraqi government to open its oil resources to foreign investment -- just what critics contend was the real purpose of the U.S. invasion. The spending bill ties continued support for the war in Iraq to specific benchmarks that the Iraqi government must meet by certain dates. http://www.politico.com/news/stories/0307/3318.html

6. Iraq to supply Jordan with oil at preferential prices: Minister -- The Iraqi government has taken the necessary security precautions for supplying Jordan with crude oil at "preferential prices" in accordance with an agreement reached earlier between the two countries, a senior Iraqi official was quoted Tuesday as saying in Jordan. http://jurnalo.com/jurnalo/storyPage.do?story_id=25797

7. Iraq's Illiquid Assets -- Why is the Bush administration asking Congress for $4 billion in emergency economic assistance for Iraq? Simple. Because Baghdad doesn’t know how to spend its own money, according to a Bush administration official. http://blogs.wsj.com/washwire/2007/03/27/iraqs-illiquid-assets/

8. The New Iraqi Oil Law -- MEES -- Iraq today is an occupied country in a state of chaos with sectarian violence rife, hundreds of people killed and maimed daily, police and security forces infiltrated by militias and warlords’ henchmen. The infrastructure of society is destroyed; hospitals lack equipment and medicines and, indeed, doctors, as so many have fled from the everyday brutality that is Iraqi life today. In order to gain the participation of all groups in the political process it was agreed that the constitution should be amended. This has still not been done. Petrol in an oil rich country is in short supply. And in this maelstrom of unrest and violence the Iraqi government has passed a draft oil law which many Iraqis, experts in economics and the petroleum industry, look on with horror, considering it to be passing over the wealth of Iraq to foreign companies, and thus its ability for present and future generations to rebuild the country. Is it right that in such an atmosphere a law is being enacted which will affect the future livelihood of the Iraqi people for generations to come? http://www.mees.com/postedarticles/oped/v50n13-5OD01.htm

9. Sharing petroleum resources only path to Iraqi unity and stability -- London, UK (KRG.org) – At a seminar in London on Thursday, experts on Iraq and the oil industry discussed Iraq’s draft federal oil and revenue sharing laws. One of the speakers, Dr Ashti Hawrami, the Kurdistan Regional Government’s (KRG) natural resources minister, said, “sharing Iraq’s oil and gas revenues fairly and transparently is the only path to a united and stable Iraq”. http://www.krg.org/articles/article_detail.asp?ArticleNr=16912&LangNr=12&LNNr=28&RNNr=70

10. Iraq to build two refineries in the north -- BAGHDAD, March 26 (UPI) -- Two 10,000-barrel-per-day refineries will be built in northern Iraq in an attempt to ease bottlenecks and address the fuel shortage. The Iraqi newspaper Azzaman reports the Iraq Oil Ministry signed contracts with state and private Iraq firms to build the refineries. The projects, worth $60 million, will be located in Irbil and Sulaimaniya. http://www.upi.com/Energy/iraq_to_build_two_refineries_in_the_north/20070326-104158-2282r/

11. Dems want GAO in Iraq to monitor funds -- Twenty-two Democratic senators yesterday petitioned the State Department to allow Government Accountability Office (GAO) employees to spend several months in Iraq analyzing how reconstruction funds are being used. “GAO’s longer-term presence in Baghdad is essential to providing Congress with direct and continuing oversight over U.S. programs and activities,” the senators wrote to Secretary of State Condoleezza Rice.
http://thehill.com/leading-the-news/dems-want-gao-in-iraq-to-monitor-funds-2007-03-12.html

12. Saudi company to establish electricity station http://www.iraqupdates.com/p_articles.php/article/15701

13. Kuwaiti diplomat underscores committment to Iraq's re-construction process -- ISTANBUL -- (KUNA) -- Kuwait's Ambassador to Turkey Abdullah Thuwaikh on Tuesday underscored the significance of the 5th Iraq International Conference of Donor Countries which is currently held here. Thuwaikh, who leads Kuwait's delegation to the conference, told KUNA that Kuwait was always keen on participating in such events, noting that Kuwait has presented a USD 1.5 billion of cash in support of Iraq and that there is USD 500 million more for the reconstruction of Iraq to be executed in cooperation with the Iraqi government. http://www.kuna.net.kw:80/home/story.aspx?Language=en&DSNO=963552

14. Marking Up The Reconstruction: Part 1 -- One day, not so long ago, the US State Department handpicked Texas-based DynCorp for an $800-million contract to train over 100,000 Iraqi police officers, a top-priority project of the Bush administration’s effort to stabilize the war-torn country and strengthen the fragile civilian government there. But State Department wanted a contractor with strong ties in Iraq, so DynCorp obligingly teamed up in 2004 with a company known as Corporate Bank Financial Service, a Washington-based business better known as The Sandi Group. http://www.iraqslogger.com/index.php/post/2054/Marking_Up_The_Reconstruction_Part_1

15. Tax on materials for domestic industry slashed -- Azzaman -- The Tax Department has slashed the tax on materials for the domestic industry by 50%. The department’s head Saib Abdulsattar said the reduction covers raw materials whether produced locally or imported from abroad. He said it includes all kinds of materials for the country’s industry. http://www.azzaman.com/english/index.asp?fname=news\2007-03-16\kurd1.htm

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