Increased security and other overhead costs of Western contractors are siphoning off much of the billions of dollars set aside for about 90 planned water projects, causing future potable water production estimates to be cut in half, Iraqi officials recently told James Glanz of The New York Times.
"Scaling back the projects by that much would vastly reduce the benefits for the citizens of a country that already meets no more than 60 to 80 percent of the demand for water on a given day, depending on the region," Glanz reports in today's edition. "The Iraqi government estimates may also have wider repercussions, because they provide the first concrete measure of how the continuing violence in Iraq could affect the $18.4 billion reconstruction program approved by Congress last fall."
"That program covers numerous infrastructure areas, including transportation, oil, electricity, sewage — and of course water, the sector covered by the Iraqi estimates," Glanz explains. "Over all, about $4.3 billion was set aside for water and public works, of which about $2.8 billion has been released so far."
Glanz obtained these estimates from officials in Iraq's Ministry of Municipalities and Public Works. Officials based their estimates on detailed calculations for four major projects totaling over $200 million. The projects in these cities — Halabja, Erbil, Baquba and Nasiriya — are among the furthest along in their design. Another 86 projects have not made it past the planning stage.
Many of the water projects have been contracted to Fluor-Amec — a joint venture of major American and British contractors. Other companies receiving major contracts related to water resources are Washington International Group and Black and Veatch.
Source: The New York Times
