War profiteers: corporate beneficiaries
of the US war on Iraq

- Bill Rosenberg

The US now occupies Iraq. Its viceroy, State Department official, Paul Bremer, is the head of as undemocratic a government as any in the world. A powerless, 25-member "Iraqi Governing Council", all hand-picked by the US, has been appointed to act as a fig-leaf. An earlier US-selected "Iraqi Reconstruction and Development Council" of 140 members is already falling to pieces as a result of its impotence. A member, Isam al-Khafaji, an expatriate Iraqi who is professor of political economy at the University of Amsterdam, resigned in July 2003 saying:

"I did this with great sadness but, in doing so, I was able to leave Iraq with a clear conscience. If I stayed any longer, I might not be able to say that. I feared my role with the reconstruction council was sliding from what I had originally envisioned – working with allies in a democratic fashion – to collaborating with occupying forces…

"I accepted the fact that we were a defeated country, and I had no problem working with the United States to pull my country out of a quagmire. But there seemed to be no interest on the part of the coalition in involving Iraqis as advisers on the future of their country. Our role was very limited. Even reporters who visited us took note, writing that although the Reconstruction Council has an office within the Presidential Palace, there seems to be little done there apart from members reading their e-mail – certainly a luxury in post-war Baghdad" (Globe and Mail, "Broken promise: Why I quit Iraq", 18/7/03).

Al-Khafaji is no al-Qaeda or Baath Party supporter, and no Leftwinger. In the same article he expresses his admiration for US Deputy Secretary of Defense Paul Wolfowitz, one of the most rabid hawks in an Administration that is addicted to war – the man who planned the invasion of Iraq whatever the excuse, happily admitting that weapons of mass destruction were just a "bureaucratic" excuse for the war (Guardian, "Wolfowitz: Iraq war WAS about oil", by George Wright, 4/6/03, http://www.guardian.co.uk/Iraq/Story/0,2763,970331,00.html). Al-Khafaji’s statement does not come from someone hoping for US failure.

So who is advising Bremer and the colonial administration? Who is reconstructing the services – hospitals, electricity, schools, universities, government – destroyed so efficiently by this invading superpower?

Part of the answer is: no-one. Isam al-Khafaji again:

"Bitter disputes between the Defense Department and the State Department, which were evident even before the war began and duly reported in the US press, continue to affect the situation. Even though Mr Bremer has the formal authority within Iraq, it seems like each and every decision must go back to Washington, and we are the victims of indecision.

"Iraq is now in almost total chaos. No one knows what is going on. We’re not talking here about trying to achieve an ideal political system. People cannot understand why a Superpower that can amass all that military might can’t get the electricity turned back on. Iraqis are now contrasting Saddam’s ability to bring back power after the war in 1991 to the apparent inability of the US to do so now. There are all kinds of conspiracy theories. Many wonder if the US has a reason for not wanting the electricity back on".

Part of the answer is that US priorities have been dealt with extremely efficiently:

"The Americans are secretly building two giant intelligence facilities in Iraq at a cost of some half a billion dollars, according to an exclusive report received from DEBKA-Net-Weekly’s intelligence sources. US engineering and construction units are setting up what amounts to an "intelligence city" on a site north of the oil city of Mosul in Kurdistan and a second facility in Baghdad’s Saadun district on the east bank of the Tigris. Our military experts infer from the vast dimensions of the two projects and their colossal expense that it is Washington’s intention to retain a large US military presence in Iraq in the long term, for a decade at least.

"The new installations will greatly enhance America’s military, intelligence and electronic command and control over Iraq and its neighbors, notably Iran and Syria. The Mosul facility will guard northern Iraq’s oilfields and the pipelines carrying Iraqi gas and oil to Mediterranean terminals. Its instruments will reach into every corner of Iran and Syria, replacing America’s electronic eyes and ears in southern Turkey. This facility will be activated a section at a time according to need. Upon completion at the end of 2005, it will employ an operating staff of around 4,000 American intelligence personnel and electronic engineers" (DEBKA-Net-Weekly, "Two Huge US Intelligence Centers Go up in Iraq", 25/6/03, http://www.debka.com/article.php?aid=512).

Laissez Faire Capitalism At Gunpoint

But the US has extensive plans for Iraq’s future. They are for a free-market, privatised, open economy – an economy just like the ones that led to mass unemployment, corruption on extraordinary scales, falling life expectancy, and economic disaster in the former Soviet Union, and the destruction of the social and industrial base of the former Yugoslavia. But this time it has another twist. In a graphic demonstration of the logic behind the free trade and investment agreements it is forcing on other countries, the design, and to a large extent the operation and ownership of this re-engineered society will be by private corporations, for profit. Not even the International Monetary Fund (IMF) and World Bank are being allowed to do the work. Service corporations will design and to a large degree run the government and public services.

The alien nature of this operation is emphasised by the lack of knowledge the US has of the country whose future it is planning. For example, in its plans for Iraq’s education system, it admits: "Because certain educational indicators and data for Iraq are scarce and of questionable reliability, this section also incorporates information from the broader Arab region". In other words it knows next to nothing about the situation that confronts Iraqi education. It then describes "Iraq’s" problems in terms of what it knows of "the broader Arab region". This is like designing an education system for the US on the basis of what is known about the rest of the Americas.

The corporations are almost all US ones, and most are already deeply involved in contracting for the US military, intelligence, aid and similar agencies. That is because the US government – mainly through its "aid" agency, USAID (US Agency for International Development) – let these contracts, and continues to do so, after very limited tendering processes, restricted to US companies. That is controversial both within the US and amongst US erstwhile allies in Europe who would like to share in the proceeds. In matters as important as this, the US forgets the obligations it expects others to comply with under the General Agreement on Trade in Services (GATS), to treat foreign service corporations at least as well as its own.

These corporations are war profiteers. They are making profits from what is with little doubt an illegal occupation, opposed, and increasingly resisted, by the majority of Iraqis – whether or not they approved of the Saddam Hussein regime. These private corporations will be designing and running structures which by international law and convention are the domain of sovereign governments. Even if the US leaves Iraq, even if it leaves behind a democratic government – and these are both doubtful – the structure it is designing and the private interests it is putting in place will preclude any alternative to free-market policies for years.

Who are these corporations, what are they doing in Iraq, and do they have a presence in New Zealand? What follows is a partial list, gathered from official US and other sources. The focus is on corporations which have taken up contracts after the US invasion. There are many others that were involved before the war, some of which were directly involved through their ties to the US government in encouraging invasion and war in order to profit from the opportunities it presented.

We present this list not just for information but in the hope that people in New Zealand and elsewhere will hold these corporations to account for profiting from violent, and illegal, activities; and for taking advantage of US power in the region to obtain contracts and change entire governmental systems in ways that the Iraqi people have no control over, and would probably strongly oppose had they the opportunity. Boycotts, public naming and shaming, letter writing and pickets are some of the ways that concerned citizens of the world can take action against these war profiteers. But those actions are just convenient ways to demonstrate opposition to a corrupt and oppressive economic, military and political system whose interrelationships these war profiteers encapsulate and motivate.

Sources: A primary source is the USAID website at http://www.usaid.gov/iraq/activities.html which lists contracts it has let or has available for Iraq. Another summary appears at http://www.export.gov/iraq/contracts/index.html which also lists further "commercial opportunities". Amongst non-official sources, the "War Profiteers Card Deck" web site at http://warprofiteers.com lists wider "links among corporations, institutions, and government officials that profit from endless war". Further material is available at http://www.uslaboragainstwar.org, www.boycottwar.net, http://www.adbusters.org/campaigns/boycott_america, www.motherearth.org/USboycott/index.php, www.boycottbush.net, www.spendforpeace.co.nz and http://www.southernstudies.org, which is the Website of the Stop The War Profiteers Campaign. Other sources are noted where they are used.

Criteria: The criterion for inclusion in the list below is that the corporation has been awarded a contract in occupied Iraq. On top of this, thousands of contractors took some form of role in the war. Corporations listed on the above websites include ones with close links to the Bush Administration, donors to the Republicans in the US, ones which supported the previous Gulf War, and just notorious US owned corporations. Readers wanting a wider list should consult those sites.

COMPANY: Bearingpoint Inc (formerly KPMG Consulting Inc), with further contracts to be let.

CONTRACT/ACTIVITY: "Economic Recovery, Reform and Sustained Growth in Iraq".

A 163 page USAID document lays out explicitly "mass privatization" (their words), cutting food subsidies (all that currently prevents starvation) to create a "a viable agricultural production sector", a World Trade Oragnisation (WTO)-consistent trade and investment legal framework, "open markets, both internally and externally", with their only development vision (other than oil presumably) "possible exports include natural resources, agricultural products such as horticulture, and textiles, to name a few", Central Banks no longer to finance fiscal deficits, ... in short a programme that surpasses anything the IMF has imposed. The most apt comparison is to that under which Russia suffered an almost 50% fall in Gross Domestic Product (GDP), mass unemployment and non-payment for those employed, poverty increased from 2% to over 40% of the population, corruption on an immense scale, power in the hands of a corrupt oligarchic minority, falling life expectancy and destruction of its productive capacity. All that prevents it being implemented is that it is ludicrously impractical for Iraq, but huge damage will be done in the mean time, as it was in Russia.

However in this case, not only is the country’s economy being privatised but the agency overseeing it is also private – Bearingpoint (which had a similar contract in Afghanistan) is effectively a private sector IMF, the equivalent of a mercenary army.

Amount: US$9 million initial award.

New Zealand Connection: Bearingpoint has offices in Victoria Street, Wellington, and Princes Street, Auckland.

COMPANY: International Resources Group (IRG) of Washington DC, USA.

CONTRACT/ACTIVITY: Personnel Support.

"IRG will support USAID in the overall planning, monitoring, coordination, management, and reporting on reconstruction and rehabilitation activities across a variety of sectors including education, health, agriculture, civil society strengthening, and infrastructure….

"Since its founding in 1978, IRG has completed over 600 contracts with the United States government, foreign governments, and international development agencies in more than 120 countries".

Amount: Initially US$7.1 million "with two additional one-year option periods".

New Zealand Connection: None known.

COMPANY: Stevedoring Services of America (SSA) of Seattle, Washington.

CONTRACT/ACTIVITY: Seaport Administration.

"Contract calls for: provision of initial assessment of [Iraq’s main port] Umm Qasr port in order to facilitate timely delivery of humanitarian supplies and other needed materials for reconstruction; development of improvement plans to overcome port-imposed constraints; hiring of port pilots to guide ships up the channel; facilitation of cargo-handling services such as warehousing, shipment tracking, refrigerated and other cargo storage; and coordination of onward transport of shipments from the seaport at Umm Qasr".

In other words, this is the privatisation of the operation of Iraq’s principal port.

Amount: US$4.8 million initially.

New Zealand Connection: SSA is the parent company of New Zealand Stevedoring, a company which confronted waterside workers and competitors throughout New Zealand and was put into receivership in 1998, but refused to pay its workforce over $14 million in redundancy payments and other entitlements. Its sacked workers won $1.8 million plus substantial interest payments for the holiday entitlement portion in 2002 after taking the matter to court.The case was particularly controversial because it appeared that SSA had put the New Zealand subsidiary into receivership in order to avoid redundancy payments under negotiation at the time. It then started up a new company as Southern Cross Stevedoring, based in Eden Crescent, Auckland where it continues to operate.

While the company is now largely unionised, SSA (the largest marine terminal operator in the USA.) has a militant anti-union record internationally. In 2002, the company was hired by the US government to break the strike called by watersiders on its West Coast, whose leaders described SSA as "ideologically anti-union". In February 2003, SSA was one of four companies cited by Washington State for requiring longshore workers to remain on the job as much as 17 hours straight without adequate rest time.

"SSA has also been at the center of controversy in Bangladesh, where it has proposed to build a $US500 million containerized terminal in the city of Chittagong. The project has faced intense opposition from local trade unions and their members, who fear that the new terminal would result in large job losses. Workers have staged hunger strikes, work stoppages and other actions to dramatize their cause.

"SSA has used the US government to press its case. Last year (2002), the US Ambassador to Bangladesh, Mary Ann Peters, spoke out publicly in support of SSA, implying that the country would pay a price if the project did not go forward. She told Agence France Presse: "Future investments in Bangladesh by American companies might be threatened if the plan for the SSA port is not approved by the Bangladesh government". In November 2002, the High Court of Bangladesh ruled that the project was illegal because of inadequate feasibility studies, but the company could appeal that ruling to the country’s Supreme Court". SSA also has operations in Chile, India, Mexico, Panama, South Africa and Vietnam (Corporate Research E-Letter EXTRA, "The next wave of invaders: US hires anti-union company to run key port in Iraq", by Philip Mattera, 25/3/03, http://www.goodjobsfirst.org/crp/extra_32503.htm).

COMPANY: Creative Associates International, Inc.(CAII), of Washington, DC.

CONTRACT/ACTIVITY: Primary and Secondary Education.

"This contract goes by the name of RISE – Revitalization of Iraqi Schools and Stabilization of Education. Contract calls for: increased enrollment and improved quality of primary and secondary education, including ensuring classrooms have sufficient material by start of new school year (i.e., desks, computers, pencils, paper); facilitation of community involvement and other social mobilization to retain students; and development of baseline indicators.

"Short-term activities will include development of baseline indicators to measure educational progress, and procuring and distributing essential school materials, equipment and supplies. These materials will be provided in time for the new school year to open, reducing any disruptions in classroom education. Child-centered, participatory teaching methods will be introduced to lay the foundations for democratic practices and attitudes among students, parents and teachers.

"CAII will also work to improve teacher training and school leadership programs, and provide high-level technical assistance to help reform the educational system. As nearly 25% of school-age children are not currently attending school, the RISE initiative will pilot accelerated learning programs throughout Iraq and offer short-term, intensive bridge programs to help children re-enter the education system at the appropriate grade levels for their ages. The RISE contract does not include production of textbooks. USAID solicitations related to the production of textbooks on certain school subjects will be forthcoming".

CAII carried out a similar contract in Afghanistan, describing it as follows (also with AMEG as a partner):

"On the eve of the new school year in Afghanistan, 50 metric tons of new primary textbooks were revised, printed and are being delivered to schools across Afghanistan.

"Under the USAID-funded $US16.5 million Afghanistan Primary Education Program (APEP) and in close collaboration with the Afghanistan Ministry of Education, a consortium led by Creative Associates International completed the job. Requiring complex logistics, books were airlifted from Indonesia to meet the March 22, 2003 school season deadline. … By late May, in close collaboration with the American Manufacturers Export Group (AMEG), more than ten million new text books will have been produced and transported to Afghanistan by Creative Associates International".

It will be collaborating with AMEG in Iraq too. Just how it creates text books in such short time periods is a matter of some conjecture – let alone books with content suitable to Iraqi (or Afghani) children.

The company’s President and Chief Executive Officer (CEO), Charito Kruvant, is in the heart of the Washington business Establishment and rated as one of the 100 most powerful women in the capital. She was born in Bolivia and raised in Argentina. "Since 1998, she has been a leader in the Project in Search of a National Security Strategy, an effort that focuses on US interests and values through the promotion of legitimate governance and economic opportunities at home and abroad. It involves the integration of concepts of democratic freedom, the rule of law, human rights, free markets, and American idealism".

She is also involved in "combating terrorism and emergency situations in Washington" and even claims to have helped the US disarm the Contras (the terrorists used as US proxies by the Reagan Administration in the 1980s to wage war on Nicaragua’s Sandinista government. Ed).

AMEG, CAII’s partner in both Afghanistan and Iraq "is a small woman-owned firm whose core business is as a Procurement Services Agent (PSA); however, AMEG’s strength is in providing a range of technical services for humanitarian and economic development projects worldwide. While AMEG specializes in the fields of procurement and logistics, we have also built a reputation for capable management of large scale programs, high quality feasibility studies, design, implementation, and evaluation". Sandra Tribble is President, Wess Tribble is Executive Vice President: "Wess Tribble has extensive international experience as a private sector executive, as a senior Foreign Service Officer, and Officer in the US Marine Corps. He served with USAID Missions in Asia, Africa, and the Middle East. Upon retirement from the Foreign Service, he assumed the position of Executive Vice President of AMEG. He has been involved in numerous sensitive programs worldwide". Another company that is obviously closely tied into the US business-military-intelligence complex.

For sources and more details on these intriguing arms of US power, see "Burger philosophy to quick fix Iraq’s education system", by Jan Oberg, Transnational Foundation for Peace and Future Research,

http://www.transnational.org/pressinf/2003/pf182_BurgerStyleEducat.html.

Amount: US$1 million initially, up to US$62.6 million over 12 months.

New Zealand Connection: None known.

COMPANY: Research Triangle Institute (RTI) of North Carolina.

CONTRACT/ACTIVITY: Local Governance.

"Contract provides for: strengthening of management skills and capacity of local administrations and civic institutions to improve delivery of essential municipal services such as water, health, public sanitation and economic governance; includes training programs in communications, conflict resolution, leadership skills and political analysis".

"Under the USAID contract RTI will provide technical assistance to strengthen local administrations, civic institutions and civil society. RTI, an independent, non-profit organization based in Research Triangle Park, North Carolina, will create programs to increase management skills, knowledge and capacity of local administrators to direct services such as water, health, and public sanitation and in areas such as economic governance.

"A provision in the contract allows RTI to authorize grants to both Iraqi and foreign non-governmental organizations (NGOs) to improve municipal infrastructure, assist local NGOs with capacity building and undertake training programs in communications, conflict resolution, leadership skills and political analysis. All activities under the RTI contract will target underrepresented or "at risk" groups, including organizations that promote women’s rights and strive to help youth and minority groups to participate in the political process".

There could be little that speaks more about the colonial attitude of the US Administration that it sends one of its own companies into Iraq to show them how to run their own country.

Amount: $7.9 million initially, up to $167.9 million over 12 months.

New Zealand Connection: None known.

COMPANY: Bechtel of San Francisco.

CONTRACT/ACTIVITY: Capital Construction.

"Contract provides for: emergency repair or rehabilitation of power generation facilities, electrical grids, municipal water systems, sewage systems, airport facilities, the dredging, repair and upgrading of the Umm Qasr seaport and reconstruction of hospitals, schools, ministry buildings, irrigation structures and transportation links; goal is to repair or rehabilitate up to 100 hospitals, 6,000 schools (out of approximately 25,000), up to six airports, and one southern seaport".

This collection of projects indicates the enormity of the damage to civilian facilities during the US invasion.

While it is subcontracting to some Iraqi companies, Bechtel is also subcontracting to a whole further layer of US, UK, Saudi and Kuwaiti companies. One is apparently from Singapore, but is in fact the International Air Transport Association from its Singapore base, and one is apparently from Ireland (we can only guess at the abbreviation IRL), but is in fact a subsidiary of a UK company, the Compass Group. Some of these – including Motorola, Lockheed Martin, and ESS Support Services (formerly Eurest Support Services) – have a New Zealand presence.

Notably absent are any companies from other countries. At 18 July according to its Website https://supplier.bechtel.com/bni/usaid/, the following US and UK companies had been given contracts by Bechtel:

Vendor Name

Contact Information

Description of Services

Origin

Great Lakes 2122 York Road
Initial Survey & Emergency Dredging

US

Oak Brook, IL 60523
Olive Security 2 Charles Street Initial Security Officer Assistance

UK

London, UK, W1J5DB
ArmorGroup 3rd Flr/7 Wests Centre Initial UXO/EOD Assistance

UK/US

Bath Street, St Helier
Jersey, CI, JE2 4ST
Olive Security 2 Charles Street Expanded Emergency Security

UK

London, UK, W1J5DB
Titan Maritime 410 SW 4th Terrace Umm Qasr Wrecks Survey

US

Dania, Florida 33004
Great Lakes 2122 York Road Umm Qasr Dredges Survey

US

Oak Brook, IL 60523
Olive Security 2 Charles Street Additional Security Services

UK

London, UK, W1J5DB
Verestar 3040 Williams Dr. Initial Energecy Satellite

US

Fairfax, VA 22031 Communications
MPRI 1201 E. Abingdon Dr. Pre-Deployment CONUS

US

Alexandria, Va. 22314 Equivalent Training
Great Lakes 2122 York Road Bathymetric Survey

US

Oak Brook, IL 60523
Halcrow PO Box 360 Misc. Engineering Services

UK

Dubai, UAE
ArmorGroup 3rd Flr/7 Wests Centre General Security Services

US/UK

Bath Street, St Helier
Jersey, CI, JE2 4ST
Lockheed Martin 9221 Corporate Blvd. Airport Telecommunications

US

Rockville, MD.20850
Aggreko 12000 Aerospace Ave. Emerg. Diesel Generators

US

Ste 300 Houston, Tx
Halcrow PO Box 360 Marine Engineering Services

UK

Dubai, UAE
Panalpina 18600 Lee Road Freight Forwarding/Customs

US

Humble, Tx 77338
Motorola 7230 Parkway Drive Baghdad Airport Trunked Radios

US

Hanover, Md 21076
IATA 77 Robinson Rd #5-00 Baghdad Airport - Air Traffic Control Sys

SWT

SIA Bldg Singapore
ESS Support Services 80 Nikou Pattichi Basrah Permanent Camp

IRL

3070 Limassol
Cyprus
ELS Land Solutions Redhill Chambers UXO/EOD Services

UK

2d High Street
Surrey RH1 1RJ
UK

A family-controlled company, Bechtel describes itself as "one of the world’s largest engineering-construction firms". "Our 47,000 employees are teamed with customers, partners, and suppliers on some 900 projects in nearly 60 countries. In 2002, we booked US$12.7 billion in new business and worked off US$11.6 billion in revenue".

It is also one of the most notorious. It immediately came under attack for winning this contract, due to its close connections with the Bush Administration and doubts over the openness of the tendering. It devotes an entire Webpage on its Website (at http://www.bechtel.com/staging/iraqresponse.html) to its version of "The truth about Bechtel and the USAID Iraq contract: Bechtel’s record of success reflects performance, not politics". On its board of directors is former US Secretary of State, George Shultz, a former president of the company. Ronald Reagan’s Secretary of Defense, Caspar Weinberger, left Bechtel for the position.

A report on Bechtel, "Bechtel: Profiting from Destruction – Why the Corporate Invasion of Iraq Must be Stopped", was published by US organisations CorpWatch, Global Exchange and Public Citizen in June 2003. It is available at www.globalexchange.org, www.corpwatch.org and www.citizen.org/cmep/. It chronicles Bechtel’s insider influence, its aggressive part in water privatisation (including part ownership of the company that was closed down in Cochabamba, Bolivia after popular revolt at the prices it charged, which is now using international investment treaties to sue the Bolivian government for US$25 million), its part in both military and commercial nuclear industries, its history of "taxpayer abuse", and "horrendous" labour conditions.

Of more local interest, Bechtel has a long record of work for Comalco and mining companies in Australia, Papua New Guinea, and the region. Most notably, it worked for Comalco’s former parent, Conzinc Rio Tinto on its notorious Bougainville Copper Mine from 1966-1973 in a US$350 million project. The mine led to the devastating war in Bougainville which is only now being resolved with the closure of the mine. It managed the expansion of Comalco’s Boyne Smelter in Queensland, Australia, from 1995-97, in a $US795 million project.

Amount: US$34.6 million initially, up to US$680 million over 18 months.

New Zealand Connections:

Bechtel has a long history in New Zealand, some of the projects being described in the table below, kindly supplied by Bechtel’s web site (which omits its design of the original Manapouri Power Station, which created a national scandal both for its flooding of the lake and its extraordinary cost overruns). The company’s current Chairman and Chief Executive Office, Riley P Bechtel, "worked as general field superintendent on the New Zealand Gas-to-Gasoline project, directing and organizing field construction activities, including operations, safety, and procurement" in 1984. The company has 750 staff in its Oceania operations. It recently acquired Minenco, the former engineering arm of Rio Tinto.

Carter Holt Harvey Kinleith Modernization Project. Reconfiguration of existing 3-machine mill into 2-machine facility.
Duration: 1996–1998
Engineering, procurement, construction management US$213 million
Tasman Pulp & Paper Co. Ltd. Tasman Pulp & Paper Mill Project. New thermomechanical pulp mill and modifications to existing pulp dryer.
Duration: 1995–1997
Project management, engineering, construction management US$116 million
New Zealand Synthetic Fuels Gas-to-Gasoline Project. Grassroots plant for converting natural gas to methanol to ULP. Plant relied extensively on prepackaged modularized units constructed in Asia and New Zealand.
Duration: 1982–1988
Engineering, procurement, construction management US$1 billion
New Zealand Coal Board Huntly Coal Project. New mine, surface facilities, and infrastructure.
Duration: 1974–1980
Engineering, procurement, construction management US$30 million
Government of New Zealand Rimutaka & Maoribank Tunnels.
Duration: 1953–1954
Construction N/A

COMPANY: Air Force Contract Augmentation Program (AFCAP) – "a pre-existing arrangement for the timely support to and supplementation of existing US Air Force contracts". AFCAP describes itself as "The Government and Private Industry team to provide cost-effective, responsive solutions to meet the realities of today and the challenges of tomorrow". It uses a private comapny, Readiness Management Support LC (RMS), which is a wholly owned subsidiary of Johnson Controls, "created to coordinate contingency support as part of the AFCAP". The companies appear to be deeply involved in US military operations around the world.

CONTRACT/ACTIVITY: Theatre Logistical Support.

"AFCAP will provide a broad range of logistical support services to USAID and its family of contractors engaged in assisting the Iraqi reconstruction effort; these efforts may include warehousing, customs clearance, trucking and provision of bottled water".

Amount: US$4 million initially, with up to US$26 million over 12 months.

New Zealand Connection: None known.

COMPANY: SkyLink Air and Logistic Support (USA), Inc.

CONTRACT/ACTIVITY: Airport Administration.

"Contract provides for assessment of civilian airports and collaboration for the timely repair; management of civilian airports for the expeditious reception and onward processing of humanitarian assistance, reconstruction material and personnel".

"SkyLink will assess and manage the airports to insure that people, technical assistance, supplies, food and materials for reconstruction enter the country smoothly. Five Iraqi airports are covered under the terms of the contract. SkyLink will provide international staff with management expertise to assess and operate the airports, vehicles and equipment. SkyLink will also develop plans to ensure smooth airfreight and passenger service and prioritize improvements necessary to insure that the airports operate in accordance with International Civil Aviation Organization standards. As the contract progresses, SkyLink will work with Iraqi staff in preparation for turning over management" (see Time, 14/7/03, "Grounding Planes The Wrong Way", for a fascinating account of how it was actually US troops and their Iraqi stooges that extensively vandalised and looted Baghdad’s international airport, including rendering five passenger aircraft unusable. Damage is estimated to be as high as $US100 million. An anonymous US military official is quoted: "Soldiers do this stuff all the time, everywhere. It’s warfare. But the conflict was over when this was done. These are just bored soldiers". Ed.).

SkyLink says of itself: "Whether assisting during natural disasters involving evacuation measures; undertaking housing construction projects in the South Pacific; supporting free elections in Africa; or providing security support operations using biometric surveys in Afghanistan, SkyLink continues its commitment to excellence – making a difference around the world" (http://www.skylinklogistics.com/company.html)

The Australian transport company Patrick Corporation has won a contract to assist Skylink "to prepare a report on whether the airport was ready to resume operations" (Sydney Morning Herald, "Patrick snares Baghdad Airport contract", 7/5/03). Prominent strike breaker, Patrick is a partner with Toll Holdings, would-be owner of TranzRail, in rail businesses FreightCorp and National Rail.

Amount: Initially US$2.5 million

New Zealand Connection: None known, other than through subcontractor Patrick Corporation of Australia.

COMPANY: Abt Associates, Inc. of Cambridge, Massachusetts.

CONTRACT/ACTIVITY: Public Health.

"This ‘Health System Strengthening Contract’ will support Iraqi-led initiatives in meeting the health needs of the population. Assistance will include supporting a reformed Iraqi Ministry of Health (MOH) at the national, regional and local levels as well as delivering health services, providing medical equipment and supplies, training and recruiting health staff, providing health education and information, and determining the specific needs of the health sector and vulnerable populations such as women and children.

"The Cambridge, Massachusetts-based research and consulting firm will coordinate with international organizations, including USAID awardees such as UNICEF and the World Health Organization (WHO), that are already working within the health, water, and sanitation sectors. Under the terms of the contract, Abt Associates Inc. will have the flexibility to provide rapid response grants to civil society to address specific health needs in Iraq. Assistance will also complement ongoing humanitarian relief efforts that address the needs of vulnerable populations, including the delivery of essential services".

Note that UN agencies are now being drawn in to the US administration of Iraq.

"Non-Iraqi sources for all items/services must be identified given (1) the uncertainty of conditions that will exist after the conflict and (2) the current ban on procuring goods and services in Iraq".

"Abt Associates serves clients from seven US and two international corporate offices and more than 25 project sites worldwide. A truly global company, we are committed to maintaining and developing our international services and supporting a diverse client base in Africa, Asia, Eastern Europe, Latin America, and the Middle East.

"Abt Associates works with governments, international organizations, foundations, nonprofit associations and institutions, and business and industry in countries throughout the world. …

"Abt Associates researchers and consultants have applied their skills in the international arena since the company’s inception in 1965. One of Abt Associates’ first contracts involved the design of computer simulations of international relations. Since that time, our staff has been active in projects ranging from agricultural improvements in Africa to rebuilding health systems in the former Soviet Union, from counseling health alliances that combat HIV/AIDS, to housing, health, and employment initiatives in the United States". See http://www.abtassoc.com for further details.

Amount: US$10 million initially, up to US$43.8 million over 12 months.

New Zealand Connection: None known.

Yet To Be Let

Some contracts are notified but yet to be let:

CONTRACT/ACTIVITY: "Agriculture Reconstruction and Development".

The US plan for Iraq’s agriculture was drawn up by Dan Amstutz, a former executive of agribusiness giant Cargill Inc. and the North American Export Grain Association. The appointment of Amstutz was criticized by Oxfam because of his industry connections and his espousal of free-market principles. He was an agricultural trade negotiator in the Reagan Administration.

Amstutz worked on this with Australian Trevor Flugge, former chairman of the Australian Wheat Board (AWB). Before the 1991 Gulf War, Iraq was a one million metric ton per year importer of American wheat (on which the US claims Iraq owes it US$4 billion in loans and interest. Guess who’ll get the first benefit of any Iraqi production). After the US left Iraq in 1991, Australia took over where the US had left off and the AWB holds contracts to deliver more than one million tonnes of wheat in 2003. Part of Flugge’s job will be to insist that those contracts be honored despite the fall of Hussein, and to position Australia as the natural source for much of the anticipated food aid flowing to Iraq during the country’s rebuilding (Des Moines Register, "Amstutz foresees Iraq agriculture making transition into a ‘free market economy’, by Philip Brasher, reprinted in Agribusiness Examiner, 6/5/03, no. 244).

According to the official "solicitation" for the contract, "The purpose of this contract is to expand agriculture productivity, rehabilitate key agroecosystems, and restore the capacity of rural agroenterprise to produce, process, and market agricultural goods and services". The method for doing this is to cut price supports and food subsidies, and remove trade barriers, to be replaced by "the market" through "a new focus on agricultural support services provided mainly by the private sector, with an important role for the Government as facilitator and provider of the enabling environment.The role of government, civil society (including non-governmental organizations (NGOs)), and donor agencies will be crucial in helping the rural poor move to a market-led economic transformation….". New technologies (undefined) will be an important part of attempts to increase productivity: "Iraq needs to construct a modern agricultural economy that capitalizes on the opportunities offered by the globalization of agricultural markets and new technology developments. With sustainability in mind, Iraq must not merely build back the agriculture of the past, but develop a dynamic, growth-oriented, market-driven agricultural sector capable of meeting food requirements, as well as providing broad based employment and income opportunities".

The ambition of this vision is matched by its unreality.

Amount: US$40 million.

 CONTRACT/ACTIVITY: Higher Education and Development (HEAD)

This will use "partnerships" between US and Iraqi colleges and universities to remodel Iraq’s higher education system, including introducing "new courses … to prepare Iraqi youth for leadership and employment in a competitive market economy".

This is called "invigorating and modernizing Iraq’s institutions of higher education".

"The twelve-month program- with the possibility for two one-year extensions will be funded at up to $20 - 30 million, subject to the availability of funds. The program will be implemented through Cooperative Agreements with up to three to six US colleges or universities (or consortia of colleges and universities, including international institutions), each responsible for establishing partnerships with Iraqi institutions (with awards ranging from $3-5 million per award)".

"While the specific intricacies of the implementation work plan will be identified following ground-truthing in Iraq, illustrative sectoral areas of concentration include:

"Essential education, health, cultural or other social services
(Preventive health, medicine, water and sanitation, teacher training, cultural centers/antiquities, etc.)

Expansion of economic opportunities
(Management, marketing, economics, trade, agro-industry, etc.)

Growth and maintenance of economically critical infrastructure
(Civil engineering, water, power, agriculture, etc.)

Efficiency and accountability of government
(Public administration, civil society development, etc.)".

Grants To Non-Profit Agencies

Finally, grants have been given to non-profit agencies under four headings:

"Community Action Program" – "Promotion of diverse and representative citizen participation in and among communities throughout Iraq. Identification, prioritization, and delivery of critical reconstruction and development needs". Awarded to Mercy Corps, International Relief and Development, Inc. (IRD), Agricultural Cooperative Development International and Volunteers in Overseas Cooperative Assistance (ACDI/VOCA), Cooperative Housing Foundation International (CHF International) and Save the Children Federation, Inc.

"Back to School Campaign" – "promotion of a "Back-to-School" campaign aimed at the approximately 25% of children currently not in primary school; rapid assessments to determine the availability of school materials; establishment of temporary schools where none are functioning; training of teachers; the establishment of accelerated learning programs; and the development of an education management system for Iraq". Awarded to the United Nation's Children's Fund (UNICEF) – $1 million for one year initially, up to $7 million.

"Health, Water, and Sanitation Services" – "restoration/provision of basic health services to the most vulnerable populations, focusing on women and children; support for primary health care services; fund essential medicines, vaccines and micronutrients; establishment a rapid referral and response system for the most serious cases; and publishing and distribution relevant health education materials and nutritional assessments". Awarded to the United Nation's Children's Fund (UNICEF) – $8 million for one year initially, up to $40 million.

"Health System Strengthening" – "identification of crucial immediate and short-term health care needs of the population; rapid restoration of essential health services for the population; and strengthening of the capacity of a reformed Iraqi Ministry of Health to manage the health sector including review and further development of health policies and health system management". Awarded to the World Health Organization (WHO) – $10 million for one year.


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