Security Costs Slow Iraq Reconstruction
Contract Excesses Also Hamper Progress
By Renae Merle and Griff Witte
Washington Post Staff Writer
Friday, July 29, 2005; Page A01
Efforts to rebuild water, electricity and health networks in Iraq are being shortchanged by higher-than-expected costs to provide security and by generous financial awards to contractors, according to a series of reports by government investigators released yesterday.
Taken together, the reports seem to run contrary to the Bush administration's upbeat assessment that reconstruction efforts are moving vigorously ahead and that the insurgency is dying down.
The United States, Iraq and international donors have committed more than $60 billion to run Iraq and revive its damaged infrastructure. But security costs are eating away a substantial share of that total, up to 36 percent on some projects, the Government Accountability Office reported yesterday. The higher security costs are causing reconstruction authorities to scale back efforts in some areas and abandon projects in others.
For instance, in March, the U.S. Agency for International Development canceled two electric power generation programs in order to provide $15 million in additional security elsewhere. On another project to rehabilitate electric substations, the Army Corps of Engineers decided that securing 14 of the 23 facilities would be too expensive and limited the entire project to nine stations. And in February, USAID added $33 million to cover higher security costs on one project, which left it short of money to pay for construction oversight, quality assurance and administrative costs.
http://www.washingtonpost.com/wp-dyn/content/article/2005/07/28/AR2005072802269.html