World Bank Should Handle Iraq Reconstruction Not US Companies Alone

12.00.00am GMT Wed 12th Mar 2003

Responding to reports that the US Government had drawn up a shortlist for contracts worth $900 million to rebuild Iraqi infrastructure comprising only US companies, Vince Cable MP, the Liberal Democrat Shadow DTI secretary, said:

"If rebuilding contracts are required, they ought to be handled through a multi-national body such as the UN or the World Bank. This exclusive approach to reconstruction highlights the unilateralism that colours the US administration's approach to Iraq."

"A tightly controlled selection process like this excludes non-US firms with real expertise from bidding, and is unlikely to get the best value for money. The impression that the US Government is determined to favour its own is not helped by the inclusion on the short list of Halliburton - the firm Vice President Cheney lead before he stood for office."

"After his staunch support for George Bush, the fact that no UK companies are included on the short list is a real slap in the face for Tony Blair".

ENDS

Notes for Editors

The five, US shortlisted firms are: Halliburton (via its subsidiary Kellogg Brown & Root), Parsons, Bechtel, Louis Berger and Fluor.

The Wall Street Journal has estimated the value of contracts to be signed by the US Agency for International Development ("USAID") for the reconstruction of infrastructure as worth up to $900mn.

WSJ suggests that other contracts (to run public services [including schools, power, water and healthcare] and transport [including ports and airports]) are to be signed in due course by USAID.