Countdown to Sovereignty
Rebuilding Iraq
March 2004
The information contained in this text was provided by the relevant Ministries and CPA Senior Advisor’s offices.
COMMUNICATIONS
Under the former regime, average Iraqis were denied access to telephones. Only a select few of his most loyal followers were allowed have telephones in their homes or businesses. Iraq’s undeveloped communications technologies left the country unable to easily communicate on a national or global scale.
Pre-conflict
Iraqi Telephone and Posts Company had 833,000 active telephone subscribers in the entire country.
Cellular telephones were virtually non-existent.
There was practically no chance at internet connectivity for Iraq.
Cellular telephones, credit card services and ATM machines were non-existent, as well as the technology (data network) to provide these services.
Post Conflict
Today, there are over 700,000 active telephone subscribers in Iraq.
The total number of telephone subscribers in Iraq, including the 300,000 cell phones subscribers, equals 1,005,580, which is 20% percent greater than the number of active subscribers pre-conflict.
With the CPA stimulating the private sector, three private cell phone carriers built networks here in Iraq, without any cost to the American taxpayer.
One, two-year operating licensee was awarded to each of the three regions:
o Asia Cell -- Northern region
o Iraqna -- Central region
o Atheer – Southern region.
With the debut of mobile phone networks, cell phones are selling at the rate of over 15,000 per week. Total number of phones sold has exceeded 300,000. Demand has stripped supplies. Consumers are placing large deposits just to reserve a spot on the next shipment.
The three new cell phone providers are creating thousands of jobs for Iraqis.
On December 30, 2003, a satellite gateway system was installed at Al Mamoun in Baghdad to provide international calling service. Approximately $50 million will be obligated on satellite gateway construction.
The US supplemental appropriation for Iraqi reconstruction funds provides $225 million for continued expansion of the Iraqi telephone system.
CPA is working to upgrade Iraq’s fiber optic network to satisfy modern data networking demands. The upgraded fiber network will be able to support a ubiquitous internet access, electronic banking, electronic funds transfers, credit card transactions, point of sale terminals, and ATM machines.
The new data network will be regulated, so as to provide equal access to all licensed common carriers, including the domestic long-haul traffic of the new cell phone operators.
CPA has trained Iraqi engineers and technicians to maintain both the satellite gateway system and telephone switches.
A "First Responder Network" (FRN) is being implemented for Iraqi police, border patrols and emergency personnel through CPA, which will improve the security situation in Iraq. FRN will be the first nationwide emergency communications network to provide the communications needs of Iraq’s civil and military authorities.
The CPA has modernized the telephone system by installing 13 digital telephone switches since May 2003 with full supporting service.
Future plans
By October, the upgraded fiber network will be able to support ubiquitous internet access, electronic banking, electronic funds transfers, credit card transactions, point of sale terminals, and ATM machines.
CPA will deliver an additional 10,000 radios through the "First Responder Network" for police and border guards over the next 90 days.
Future plans to issue additional cellular licenses will be decided by the Iraqi people and approved by the soon-to-be created Iraqi independent regulatory commission. The term of the cell operators’ licensees is two years.
In addition to constructing new satellite earth stations, CPA will make major investments for connecting Iraq to submarine fiber optic carriers, providing low cost/high speed connections to the rest of the world.
Increased bandwidth will be used to support an explosive growth demand for Internet, financial services, e-business, and to support the large enterprise systems of multi-national corporations planning to invest in Iraq.
ECONOMY
During Saddam Hussein’s rule, three decades of economic mismanagement crippled Iraq’s economy. Repressive economic policies isolated Iraq internationally and concentrated wealth in the hands of Saddam’s supporters while the majority suffered widespread poverty. The CPA is working with our Iraqi partners to build a strong market economy based on a number of key principles: openness, transparency of Iraq’s economic institutions, a sound and comprehensive policy framework, economic integration with the international community, and a dynamic and responsive financial system.
Pre-conflict
Saddam Hussein ran up Iraq's foreign debt to approximately $125 billion.
Iraqis had little faith in the banking system. 6 state-owned banks were under-capitalized and poorly managed. The operations of 17 private banks were heavily restricted.
Two different types of currency were used in Iraq. The Saddam dinar, prone to counterfeiting, traded in areas of the country under Saddam's control. "Swiss" dinar notes circulated in the north. The two currencies traded at vastly different rates, with the debased Saddam dinar having only a small fraction of the value of a Swiss dinar.
The Central Bank was controlled by the government and it was used to finance the profligate spending policies of the regime, adding inflationary fuel to the fire.
Company Law #21 restricted share ownership and was unfavorable towards private business.
High taxes targeted the private sector and were subject to abuse by the regime.
Interest rates were fixed.
GDP, a measure of the size of the economy, substantially declined. GDP growth was estimated at -3% in 2002.
Post Conflict
The Central Bank of Iraq announced on January 31, 2004 that 3 foreign banks have been granted preliminary approval to operate in Iraq: Hong Kong Shanghai Banking Corporation, Standard Chartered and National Bank of Kuwait.
315 state-owned bank branches have re-opened as of February 2004. 19 private banks are operating with 140 branches across Iraq. New private banks are seeking regularization.
CPA has signed the Central Bank of Iraq Law, aimed at achieving and maintaining domestic price stability and the Banking Law, aimed at achieving a stable, competitive market-based financial system.
Although the data needs to be interpreted carefully, it appears that inflation is roughly 32% and is stable; this is remarkable for a post-conflict society.
Interest rates on deposits, loans, credits, securities and all other domestic financial instruments are liberalized as of March 1, 2004 and will be fully determined by market conditions. (Current rates: 7% current deposits, 10% 2-year fixed deposits, 4% commercial bank overdrafts, 14-16% bank loans.)
Iraq Currency Exchange was completed on January 15, 2004. Nearly 5 trillion dinar were exchanged over a three month period. Exchange of registered 25 "Swiss" dinar notes ends on April 17, 2004. Iraq now has a single, high quality currency, a crucial step for stimulating economic growth, while the exchange rate is determined by market forces. The new dinar has appreciated in value, from 2300 ID to the dollar in September 03 to 1400-1450 ID to the dollar approximately in March 04(?), a sign of investor confidence in Iraq's new currency.
Taxation was suspended April 03 to provide economic stimulus. Since then, the CPA and the Iraq Government have worked to provide a simple, transparent tax system that will stimulate economic growth and allow the Government of Iraq to progress rapidly towards economic self-reliance.
On April 1, 2004 there will be a 15% maximum marginal tax rate on personal and corporate income, together with increased personal allowances.
Unemployment is estimated at around 25% (2004 estimate) but significantly lower than previously estimated; nonetheless, there remains a significant amount of underemployment.
Iraq Government Budget stands at $19.2 billion. The budget has been restructured for better management and co-ordination between ministries.
Future plans
Disbursal of the first $5 billion of the Iraq Supplemental to the U.S. budget is expected to have an enormous macroeconomic impact, including creation of modern infrastructure and thousands of new jobs through direct job creation as well as multiplier effects.
Iraq Government is also investing $125m to create 125,000 new jobs for Iraqis and $9m to open up new employment centers across Iraq.
2004 budget includes $453m to clear arrears with international financial institutions (IFIs). The IFI’s are laying the groundwork for lending programs that will be approved once lending conditions are met (in particular, the establishment of a new government). In addition, Iraqi financial authorities are working with creditors towards achieving substantial foreign debt reduction.
The International Finance Corporation (IFC) has identified its first participating financial institution (an Iraqi private bank) to participate in its Small Business Facility. They have identified an auditing firm to perform due diligence on this bank, and are working with a service provider to provide training to Iraqi loan officers on small business lending. If this process goes well, the IFC expects to disburse its first loan to the private bank by the end of May.
A bank supervision strategy is being established, with training on modern techniques in key areas including accounting, credit, operations and information technology.
A local market for T-bills will be operational within the next few months. This will give the CBI a second tool of monetary policy in addition to the currency auction.
The new Iraq Stock Exchange is planned to open in April 04.
Central Bank of Iraq will become a member of SWIFT for international payments as early as June 04. Private banks are joining the VISA international payments and clearing system. A robust Real Time Gross Settlement system will be in place around the end of the year.
EDUCATION
Before the 1990s, Iraq had one of the best education systems in the Middle East, with national primary school enrollment and high rates of literacy among women. A decade later, the tight control from the central government resulted in buildings that were poorly or never maintained, teachers that were poorly paid and ill-trained, and shortages in basic equipment and schoolbooks. School enrollment for all ages had declined greatly.
The Coalition and its partners are revitalizing public education in Iraq by addressing urgent needs while laying the foundation for sustainable, decentralized quality schooling at the primary and secondary levels.
Pre-conflict
Since 1991, there was no ongoing maintenance program for school buildings nationwide.
Rather than investing in improved infrastructure, improved teacher training, updated curriculum and new technology, Saddam Hussein spent money building many ornate palaces.
Total number of teachers in Iraq: 272,122 in 2000-2001 (Source: UNESCO)
Number of school buildings: 14,924 (Kindergarten 631; Primary 11,066; Secondary 2,968; Vocational 158; Teacher training 101).
Post Conflict
Most schools were open very soon after liberation and the highly-valued national exams were given in June 2003 (had they not been given, Iraqi students would have lost an entire academic year).
The politicized education system was dismantled. More than 12,000 headmasters, headmistresses, and teachers, who were former Ba’ath Party members, were dismissed with a process for appeal at the local and national levels.
32,632 secondary school teachers and 3,000 supervisors have been trained in effective classroom management and curriculum delivery.
644 students are now in the accelerated learning program throughout the nation.
Entry-level teacher salaries were raised from a pre-war monthly salary of $5 to $66. The average is now about $120 per month.
USAID edited all primary and secondary school math and science books and printed 8.7 million copies which have been distributed to the governances. This is with US taxpayer money. With Oil-for-Food money, UNESCO did another 50 million.
Distributed 159,000 student desks, over 26,437 teacher desks, 61,000 chalkboards and 58,000 teacher kits including distributions in non-permissive areas.
Distributed 808,000 primary student kits and 81,735 primary teacher kits.
Number of schools requiring repair post-war due to years of neglect and looting: 11,939 (of which 50% require major work or rebuilding)
By March 2004, more than 2,500 schools had been rehabilitated, with another 869 underway, by various U.S. civilian agencies, NGOs, international agencies, and the military.
Future plans
4500 new schools to be built over the next four years to overcome crowding.
U.S. Congress has allocated $88 million in construction funds to rehabilitate 1,000 schools in 2004 and $82 million in non-construction funds for (1) restoring water and sanitation services to schools; (2) forming or reactivating PTAs; (3) reducing the number of schools holding multiple shifts; (4) establishing 162 model schools, Centers of Excellence; (5) developing television for pre-school children; and (6) ensuring the delivery of school supplies.
Higher Education
USAID awarded five grants worth $20.1 million to create partnerships between U.S. and Iraqi universities.
ELECTRICITY
For more than a generation Saddam Hussein used power, like everything else in Iraq, as a weapon to punish those who opposed his regime. Due to an inequitable distribution of power by Saddam, most provinces suffered greatly. Compounding the problem, decades of operation without regular maintenance have severely hampered dependable electricity production. After the liberation of Iraq, the CPA immediately started repairing or replacing damaged equipment to provide a short term solution that increased power and improved quality of life. After achieving pre-conflict levels the CPA implemented a spring maintenance program to improve the entire electricity infrastructure of Iraq.
Pre-conflict
Due to the inequitable distribution of power by Saddam, most provinces suffered greatly. All provinces, with the exception of Fallujah, sections of Baghdad, and Tikrit, were getting 0 – 10 hours of power. Fallujah, sections of Baghdad, and Tikrit were getting 10 – 24 hours of power. There was an obvious favoritism in the distribution of power.
Exact numbers for individual cities pre-war are not available. However, the policy for the last several years prior to 2003 was that Baghdad would receive 24 hours of power, and all remaining power will be divided among Governorates. According to the CPA-Electricity Program Manager, Baghdad generally received 24 hrs/day, and most all other places averaged 4 hrs/day. Further records are unavailable.
The electrical system is probably the single greatest example of Saddam’s neglect of the infrastructure and his people’s needs. There is equipment that is so old and dilapidated that spare parts no longer exist anywhere in the world. It demonstrates the ingenuity of the Iraqi engineers to produce electricity. Ingenuity, combined with the resources and encouragement of the coalition engineers is driving the reconstruction of the system forward.
Post Conflict
Power production reached 4,518 MW on October 6, exceeding the pre-conflict capacity and the system generated 91,474 MW hours on Wednesday, February 18.
Implemented a spring maintenance program which is necessary for the upkeep of existing and new plants. Each plant is evaluated for necessary parts that need replacement or repair due to age, regular usage, vandalism, theft, or accidents. The spring maintenance program will end by mid-May in order to have all scheduled projects operational by the 1 June deadline.
As of February 18, 41 generation units were being serviced. Twenty-three units were out for unscheduled service. Nine thermal and nine gas turbine units were out for scheduled service.
CPA is adding 930 MW of capacity by summer 2004 through maintenance and rehabilitation projects at nine gas turbine units and three diesel units.
CPA is adding 1,636 MW of capacity by summer 2004 through new generation projects, including new gas turbine units being installed at 10 sites.
CPA is restoring 1,194 MW of capacity to the system through repairs to 550 kilometers of 400-kilo volt transmission line.
Future plans
CPA’s goal for Iraq is to reach 6000 MW’s by June 30.
Reaching 6000 MW’s will be accomplished by relying on the Spring Maintenance Program and rehabilitation for existing power plants and building and bringing new power plants online.
GOVERNANCE
The Iraq government was structured to repress and isolate the Iraqi people from the rest of the world and set individual against individual, neighbor against neighbor, ethnic group against ethnic group, and religious group against religious group. After liberation, it was clear that the Iraqi people had always wanted to be free, and would never again allow their freedom to be taken from them.
Post Conflict
Transitional Administrative Law
The Transitional Administrative Law will be the Supreme Law of Iraq, during the transitional period. It will expire once a government is elected under a permanent constitution and take office by the end of 2005.
All 25 of Iraq’s Governing Council Members - Shiia, Sunni, Kurd, Christian, Turkmen, women and men - were represented at the signing of Iraq’s Transitional Administrative Law this morning in Baghdad. This was a central milestone in the November 15 Agreement.
A cornerstone of the interim constitution is a Bill of Rights. This is a historic document. In its protection of individual rights, it is unprecedented for Iraq [and the region].
It guarantees the human rights and fundamental freedoms of all Iraqis, including freedom of religious belief and practice, the right to free expression, to peacefully assemble, to organize political parties, and to form and join unions. This Transitional Administrative Law also guarantees the right to peacefully demonstrate and strike, to vote, to a fair trial, and to be treated equally under the law. Discrimination based on gender, nationality, religion, or origin is prohibited.
Under this law, all persons are considered innocent until proven guilty, and have the rights to counsel and to remain silent. A fair, speedy, and open trial is guaranteed. Iraqi authorities may not subject anyone to arbitrary arrest or detention, including for their political or religious beliefs. The right to habeas corpus is also included in the bill of rights.
Local Government
CPA has facilitated the refreshment of Provincial Councils in twelve governorates in Iraq. The new Councils are more representative of their populations, in terms of gender and ethnicity. Baghdad has established a Provincial Council for the first time and is in the process of selecting a Governor through a participatory process. In addition, hundreds of municipal and district councils have been established.
The USAID Iraq Local Governance Program currently works in 17 governorates. As of the end of February LGP had fielded 228 international professionals in all approved governorates and had built an Iraqi staff of more than 1,932 employees of which 20 percent are considered professional staff. Grants through the Local Governance Program have provided millions of Iraqis improved access to water, sanitation, health, education, electricity, fire safety, transportation, and agricultural services. More and more Iraqis have access to clean water, more daily operating hours for electricity service, rehabilitated municipal buildings and community centers, and rehabilitated schools and public health clinics.
Through the Local Governance Program throughout the provinces, governors, local councils, and heads of local government service delivery departments have held neighborhood meetings to understand and respond to priority needs of local communities. Citizen complaint centers and desks have been established in most governor/mayor’s offices and at the offices of service-delivery departments. In addition, executive departments and councils’ media and public relations capabilities are more transparent, and accountability and communication between local government officials and citizens has been improved. With LGP technical assistance, local government service-delivery departments have now begun to plan, budget, and manage resources entrusted to them.
Civil Society Development - Civic Education
Hundreds of meetings, large and small, have been taking place across Iraq since late December, 2003, focusing on issues related to Iraq's democratic transition. To date, there have been 17 televised Town Halls held in all areas of the country with five more scheduled by the end of March. Countless smaller meetings have been held in advance and after those sessions, most spontaneously. A second series of Town Halls will be held to discuss issues involving the Transitional Administrative Law. Discussion topics for Town Hall meetings vary by region and governorate, but the primary topics of interest across Iraq have been: federalism and decentralization, security issues, women's rights and the role of women in government, the rights of minorities, the role of Islam in Iraq's government, and the role of sheiks and clerics in Iraq's government.
Leaflets and posters are printed in lots of one million and distributed based upon need around the nation of Iraq. The leaflets include information on the Transitional Administrative Law, Citizen's Rights, Federalism, and What is Democracy.
CPA is establishing libraries and has helped to establish the first printing house dedicated to translating and publishing works on democracy in Iraq and, perhaps, the Arab world.
Through the Local Governance Program CPA is implementing the Democracy Dialogue Activity (DDA) in preparation for the transition to sovereignty. As of March 10, 441 Iraqis (385 facilitators and 56 team leaders) have been hired, with training completed in the first week of March. These facilitators will meet with Iraqis in smaller gatherings, providing the average Iraqi with the chance to learn about democracy, and to talk with other Iraqis about the shape of Iraq’s emerging democracy.
The Local Governance Program continues to identify and support civil society organizations that interact with and hold local government officials accountable. Teams have initiated or completed surveys of civil society organizations (CSOs) in their respective governorates and provided CSOs with training on organizational strategies, fundraising, and computers. Other key training delivered includes workshops on democracy and democratic values, and conflict management and tolerance. Finally, teams have provided support for youth clubs and assisted with establishing information centers for women, libraries, and meeting places. As a result of these activities, towns from Mosul to Kirkuk to Basra, an increasing number of independent CSOs are forming or consolidating and are more effectively representing the interests of their members. A special emphasis has been placed on providing assistance to women’s organizations and facilitating a stronger, more meaningful role for women in their communities and government.
CPA is supporting two indigenous Iraqi research institutes as they conduct 11 public opinion polls during the first sx months of 2004. These polls, centered on issues related to the return of sovereignty will inform nascent Iraqi institutions and the Iraqi citizenry about perceptions and beliefs regarding the Transition to Sovereignty.
The United States Institute of Peace is supporting the Iraq Committee for Reconciliation and Peace (ICRP). The ICRP brings several religious leaders together s the signing of a ten-point document, known as "The Baghdad Religious Accord". It calls for an end to violence and pledges that Iraqi religious leaders will work together to help Iraq become a democracy. The ICRP will hold a formal conference this Spring to create a robust actionable agenda of inter-religious reconciliation initiatives.
Political Party Assistance:
CPA has supported various conferences that engage several political parties in creating common agendas and promote alliances that will strengthen the ability of these parties to participate in the forthcoming political process. The assistance encourages political parties to develop strategies to achieve their goals through the political transition, and to work for the establishment of a government respectful of civil liberties, free economic systems, equal opportunity for women, protection of minorities, and civilian control of the military.
Through USAID and the National Endowment for Democracy, the International Republican Institute and the National Democratic Institute completed an assessment of Iraq’s political parties which identified at least 200 political parties in existence in Iraq. Both IRI and NDI have initiated training for political parties in Hillah, Baghdad, and Tikrit with participants from all over Iraq. The training focuses on the basics of political party development and the role of political parties in a democracy.
Women’s Programs
CPA is working to increase women's participation in government. The Governing Council's March 1 agreement on the Transitional Administrative Law includes language calling for an election system to be designed with the goal of no less than 25 percent representation of women in the interim national assembly. CPA's Office for Women's Affairs has set up the Inter-Ministerial Working Group to provide a focal point for all ministries as they recruit and promote women in the ministries and to monitor the number of women in management and leadership positions in the ministries.
CPA has supported several women's groups to ensure that Iraqi women are able to fully participate in Iraqi society. The Office of Women's Affairs CPA supported the country's first major women's conference in Baghdad in July 2003. Since then CPA has sponsored three regional conferences and given support to six newly established women's organizations.
CPA has provided funding for Women's Centers throughout the country. These Centers offer vocational training and educational opportunities and give women a place to congregate, share experiences, and plan for the future. To date, assistance has been provided to Women's Centers in nine major cities and CPA is currently working on centers in four additional cities. In addition, nine Women's Centers are planned for Baghdad; the first celebrated its opening on International Women's Day on March 8.
HEALTH
The Iraqi Ministry of Health (MOH) is making great strides by structuring a comprehensive healthcare system that is financially sound and assures quality care that is accessible, affordable and available regardless of ethnicity, geographic origin, gender or religious affiliation; and a healthcare system that is self-sustaining for the future.
Pre-conflict
Saddam Hussein's regime provided only $16 million for the Ministry of Health in 2002 (less than $1.00 per person).
The Iraqi medical system severely lacked modern equipment and medical capabilities.
Doctor’s pre-conflict salaries were approximately $20 per month.
Post Conflict
Since liberation, the country has not faced a major public health crisis.
Iraq's 2004 budget for health care is $950 million – a $934 million increase over 2002.
The entire country is at pre-war capabilities for providing health care - 240 Iraqi hospitals and more than 1,200 primary health centers are operating.
Doctors' salaries have increased to between $120 per month and $180 per month, up from $20 per month pre-conflict.
Three Facility Protective Services classes have trained over 1,300 personnel to protect healthcare facilities.
The Ministry of Health has completed a $1.7 million headquarters refurbishment project.
More than 30 million doses of children's vaccinations have been procured and distributed. Also, the Ministry has received grants to immunize the country's 4.2 million children under the age of five against preventable diseases such as polio, tetanus, diphtheria, measles, and tuberculosis (70% have been inoculated to-date).
More than 700,000 pregnant women have received a tetanus toxiod vaccine to improve the quality of maternal healthcare.
Since May 24, the Ministry of Health has delivered more than 25,000 tons of pharmaceuticals and supplies to healthcare facilities across Iraq.
The Mosul Tuberculosis Center was rehabilitated, as well as the Mosul General Hospital, the Basrah General Hospital Burn Unit, and the Primary Health Directorate Building.
Thirty-five small grants, worth almost $2 million, have been awarded to support Iraqi NGO healthcare efforts throughout Iraq.
The MOH spent $40 million on purchase and installation of 128 generators and uninterruptible power supply systems, as well as the refurbishment of ten additional generators.
Approximately $5 million of laboratory equipment and supplies provided the foundation to re-establish the Central Public Health Laboratory in Baghdad, National Center of Drug Control and Research, the Nutritional Research Institute, and regional and governorate public health laboratories.
National Drug Formulary for Iraq: This new purchasing structure will facilitate the arrival of treatments virtually non-existent under the old regime. This includes top-tier cancer drugs and many other progressive pharmaceuticals. It will also improve the sourcing of drugs, resulting in better quality and better health outcomes.
Future plans
Continued focus on the rehabilitation of existing hospitals and primary health centers. To that point, the CPA, in cooperation with USAID, is continuing to re-equip 600 facilities throughout Iraq to provide essential primary healthcare services. These locations will receive medical supply kits distributed by MOH/USAID partner Abt Associates. The $4,500 kit stocks clinics with state-of-the-art equipment and basic clinical supplies.
The continued decentralization of healthcare.
Further support for critical maternal and child health programs.
Significant progress towards cutting the infant mortality in half by the end of 2005.
Continued development of community health and mental health programs.
Growing public health programs, including clean water, nutrition, and disease surveillance.
Working with healthcare officials to increase professional training in both clinical and management settings.
IRAQ’S JUSTICE SYSTEM
Before the liberation of Iraq, Iraq’s judiciary was merely an arm of the central government, controlled by Saddam Hussein. Today, the Iraqi judiciary is independent from the Ministry of Justice, overseen by the newly reestablished Council of Judges which is headed by the Chief Judge of the Court of Cassation of Iraq.
Post Conflict
The Iraqi justice system is operational. The nation’s courts are open, issuing judgments in civil cases and imposing punishment in criminal cases. Those convicted are serving their sentence.
Over the last few months in Baghdad, crime on the streets has declined by 39 percent; in Basra it has declined by 70 percent.
The Judicial Review Committee has reviewed all 860 judges and prosecutors in Iraq, removing 169 from the Iraqi judiciary for senior Ba’ath party affiliation and corruption.
The Judicial Review Committee has reinstated 72 judges who were wrongly removed by the former regime.
Nearly 100% of Iraqi courts are open and hearing cases. Every pre-conflict court in Baghdad is open and fully functional.
Today, defendants in Iraqi criminal courts have rights that were previously unheard of under Saddam Hussein’s regime.
These rights include:
The right to a fair, expeditious and open trial.
The right to a fair and public hearing by an independent and impartial tribunal, regardless of whether the proceeding is civil or criminal.
The accused has the right to defense counsel at all stages of criminal proceedings, to remain silent, and torture in all its forms as a means of extracting evidence has been abolished. At the time of arrest, he/she must be notified of these rights.
Approximately 3,000 newly trained Iraqi Corrections Service officers are on the job at prisons and detention facilities around Iraq.
IRAQI SECURITY SERVICES
The security of Iraq and its people remain a top priority for the CPA and the Governing Council. Significant progress has been made in this area, with still more to come. Despite the fact that for so many years police were feared as political weapons of the former regime, public trust in the new Iraqi police is on the rise. A recent survey conducted by the US State Department Office of Research shows that nearly 80 percent of Iraqis feel that, in general, local Iraqi police are trusted by most members of their communities. A percentage that is almost as large (70%), believe that local Iraqi police are accessible to help resolve problems. Of note, there are more Iraqis now working to secure Iraq and its people than there are Coalition forces working here.
Post Conflict
There are more than 150,000 Iraqis working for the Iraqi security services – more than the number of Coalition forces. The Iraqi security services are bringing stability and security to Iraq making them a serious threat to the enemy. As they become more credible, professional and capable, they become targets to those whose aim is instability and a return to the past.
A majority of Iraqis have regained trust in the Iraqi police to protect them and their families.
In its 2004 Supplemental budget, the United States has earmarked $3.2 billion for improving Iraqi security. Much of this money will be put to work by the Ministry of Interior.
More than 8,000 border police officers are on duty today. The United States has dedicated $300 million to support this border security effort.
Nearly 1,500 newly-hired IPS officers have completed their eight-week basic training course and are on the streets of Iraq protecting the people.
More than 12,000 rehired IPS officers have completed a three-week Transition and Integration Program (TIP) training course during which they were instructed in international standards for human rights, modern police patrol procedures and techniques, and Iraqi criminal law and procedures.
Future plans
By the end of 2004, the MOI will hire and train more than 20,000 new Iraqi police officers at the Baghdad Police Academy and at the Jordan International Police Training Center.
8,000 more border police will be in place soon. Hundreds of additional vehicles will be delivered shortly to support the border security teams. The refurbishment and constructing of new border police posts and immigration check-points will continue.
MOI will continue to provide Transition and Reintegration Program (TIP) training for those former officers who have been rehired.
INFRASTRUCTURE – PORTS
Iraq’s coastline is a highly valuable resource for importing and exporting goods. The Iraqi Ministry of Transportation is working with the Coalition Provisional Authority and other international partners to maximize the effectiveness of Iraq’s ports at Umm Qasr and Khawr Az Zubayr in order to provide safe, modern and reliable facilities to boost trade and help the economy of the New Iraq.
Post Conflict
Re-opened Umm Qasr seaport to commercial traffic June 17.
Umm Qasr is handling larger ships compared to pre-conflict levels. Before the war the port could only cope with eight 10,000 ton commercial dhows. Now it can take (how many?)50,000 ton cargo ships.
On March 1, 243 Iraqi Ports Authority guards were placed into service.
Currently, more than 65 ships offload cargo at the port every month.
Have resumed dredging operations.
All 21 berths are now open to deep-draft ships.
Completed renovation of grain-receiving facility
o More than 200,000 tons of grain has been unloaded since the first ship arrived in mid-November.
o The maintenance and management of the grain-receiving facilities have now been handed over to the Iraqi Grain Board.
o
Future plans
The grain-receiving facility aims to process up to 9,000 to 10,000 metric tons of grain per day.
One Iraqi dredger has been rehabilitated and will maintain the harbor. Two new dredgers have been purchased through OFF funds.
INFRASTRUCTURE – RAILROAD
Restoring and upgrading normal rail services is a major step in improving the transportation infrastructure in Iraq.
Post Conflict
Cross border freight service reopened in August with service to both Syria and Turkey. This traffic includes petroleum products, LP gas, grain and manufactured products.
The railway from the Port of Umm Qasr to Baghdad and various locations throughout Iraq has served as a vital link in military re-supply as well as carrying fuel from the Shouaiba refinery.
In December, a weekly international passenger service was reopened between Mosul and Alepo. The railway is prepared to support the reopening of fertilizer and cement production in the western part of Iraq.
Iraq’s railway system is guarded by Iraqis – armed Iraqi Rail Police officers travel on every train to ensure passenger safety.
There are currently 250 Iraqi Rail Police in service.
Future plans
Three-hundred more Iraqi Rail Police are assigned to begin security on the rail line soon.
INFRASTRUCTURE – AIRPORTS
The Ministry of Transport and Coalition Provisional Authority are working with international partners to bring Iraq’s aviation system into the 21st century. This year will see the introduction of modern navigation and communications links, state of the art meteorological systems, and training for Iraq’s Civil Aviation Administration staff. These new facilities will help position Iraq to be a regional leader in air travel – for passengers and cargo.
Post Conflict
Each day, over 50 humanitarian assistance and reconstruction-related flights occur throughout Iraq.
The CPA completed emergency infrastructure work at Baghdad International Airport for civil air operations, including:
o Repair of Terminal C and administration offices.
o Building a security checkpoint and 240-car parking lot.
o Installing satellite based communications systems, VSAT system, air traffic control link and 6.5-megawatt power generators.
o Repair perimeter security fence.
o Restore power, water and sanitation systems.
Al Basrah International Airport readying for increased cargo operations to begin to support Iraq reconstruction. Projects have included:
o Runway, taxiway, and apron striping.
o Installing two baggage x-ray units.
o Toilets, passenger lounges, signs, and baggage carts.
o Installing satellite based communications systems.
o Restore water and sanitation systems.
o Replace perimeter security fence.
On February 29th a new voice and data computer system was installed to improve voice and data linkage between air traffic control and aircraft at Ar Rutbah in Western Iraq. This was the last of seven voice data computer systems to be installed in Iraq, which provide the backbone for communicating air traffic control throughout the country.
This new service is part of a network of seven systems throughout Iraq that help pilots communicate effectively with Iraq’s air traffic controllers.
Future plans
In December 2003, the Air Navigation System contract was awarded to Raytheon Corporation. Once installed, civil aviation carriers will be able to take off and land from all major airports in Iraq day or night – and in adverse weather conditions.
The Ministry of Transport has infrastructure improvement projects in hand with the PMO that will soon see substantial improvements to Baghdad International Airport’s airfield lighting, terminal infrastructure and security checkpoints.
Iraq will soon have new meteorological services – worth $60 million.
The new Iraq Meteorological Organization will be established with money from the World Bank and the Italian Government and will greatly improve weather capabilities for Baghdad International Airport.
OIL
Iraq’s oil was once used to build palaces and weapons in the interest of one man. Today, Iraq’s greatest natural resource now belongs to the entire nation, and its revenues are used to improve the lives of all the Iraqi people.
Pre-conflict
Oil production averaged 2 million barrels per day (MBPD) in 2002.
Oil exports averaged 1.3 MBPD in 2002.
Post Conflict
Production capacity has exceeded pre-conflict levels and currently stands at approximately 2.5 MBPD.
Daily Exports average 1.58 MBPD.
As of March 10, 2004, estimated crude oil export revenue reached $2.8 billion for 2004.
Oil exports have generated $1.8 billion more revenue between October 2003 and January 2004 than originally anticipated.
Met high winter demands for benzene, diesel, kerosene and liquefied petroleum gas (LPG).
Built inventories to about 7 days for benzene, diesel, kerosene and LPG.
Iraq conservatively has 110 billion barrels of crude oil reserves (second largest proven reserves in world—behind only Saudi Arabia)
Iraq has approximately 100 trillion cubic feet of gas to develop for internal use or exports.
Security measures at pipeline facilities and the crackdown on smuggling demonstrate the coalition’s commitment to working with Iraqis to protect their nation’s assets, so that they can benefit all Iraqis, rather than the criminals.
Oil infrastructure security force was established and 14,000 Iraqi oil security guards have been trained and deployed.
Future Plans
Achieve total production of 3.0 million barrels per day—approximately 2 million barrels per day will be exported—by January 2005.
Establish Iraq National Oil Company and its relationship to the Ministry of Oil
Establish complete pipeline rapid repair capability.
Build stocks to 15 days for benzene, diesel and LPG; build kerosene stocks to 500 million liters prior to winter.
Continue to increase marine terminal and pipeline export capacity.
Begin work to re-establish natural gas production and transmission.
TRADE
Iraq became isolated from the international trading system during Saddam Hussein’s regime. Private business was severely restricted, while decades of under-investment in infrastructure hindered normal economic activity. Since the conflict, CPA has been working to connect Iraq with the international trading system and to provide strong incentives for private sector development.
Pre-conflict
· Iraq was placed under trade sanctions by the international community.
· Foreign direct investment was severely restricted.
Border tariffs and customs duties were subject to abuse by the regime.
60% of the Iraqi population depended on food aid under the Oil for Food Program.
Post Conflict
· CPA signed the Foreign Direct Investment Law, permitting 100% foreign ownership and creating one of the most friendly environments for FDI in the Middle East.
The Trade Bank of Iraq (TBI) became operational during December 2003, the first Iraqi bank to rejoin the international trade finance community after decades of exclusion. A consortium of 13 international banks led by JP Morgan Chase is responsible for administration of TBI. By 14 March 2004 TBI had issued 109 letters of credit totaling approximately $499M, covering imports from 24 countries, on behalf of 9 Iraq Government ministries and state-owned enterprises, with an additional 20 letters of credit in the pipeline. In December 2003, 16 national export credit agencies joined together to provide over $2.4B in credit support to TBI.
United Nations Security Council Resolution 1483 removed international trade sanctions against Iraq and terminated the Oil for Food program as of November 21, 2003. CPA’s administration of pre-existing contracts under the program will provide approximately $9 billion worth of goods for the Iraqi population and rebuilding of the country's infrastructure.
CPA suspended all tariffs, customs duties and import taxes until April 1, 2004 to stimulate trade.
Oil exports have generated $1.8 billion more revenue between October 03 and January 04 than originally anticipated.
Six commercial border crossings are open for business. 1400 trucks approximately enter Iraq every day through Ibrahim Kahlil border crossing alone.
· Over 3000 new company registrations have been recorded at the Iraq Ministry of Trade since April 2003.
· Iraq now enjoys observer status at the World Trade Organization as of February 11, 2004.
Future plans
· Destination Baghdad Expo from April 5-8, 2004 is expected to draw hundred of exhibitors and thousands of Iraqi businesspeople: a unique chance for foreign companies to meet their Iraqi counterparts.
· As of April 1, 2004, a flat 5% reconstruction levy will be charged on all imports except humanitarian goods. This will help Iraqis to generate revenue for reconstruction and develop a modern customs administration.
· CPA is working to develop local securities and stock markets. An Interim Law on Securities Markets will be signed soon, paving the way for the planned opening of the Iraq Stock Exchange.
WATER & SANITATION SYSTEMS
Coalition supported water and sanitation projects are on schedule to bring clean water to more than 20 million of Iraq’s 27 million inhabitants, helping to advance Iraq’s economic and social development. CPA plans will ensure that every Governorate and Municipality is capable of achieving national standards for water supply and distribution, sewerage, and environmental health. The CPA is actively restoring the most degraded portions of the system with a plan to replace the entire system in five years as well as expand to areas not currently serviced by the system.
Pre-conflict
Approximately 55% to 60% of Iraqi citizens were receiving necessary amounts of potable water.
According to a January 2003 survey there are 1385 water treatment facilities, some very small covering only a thousand people and others covering up to 650,000 people. The survey concluded that only 23 out of these 1385 water treatment facilities were operating at 100% of capacity.
The Baghdad sewage system suffers from decades of chronic neglect and underinvestment.
The three major sewage treatment plants in Baghdad were largely inoperable.
In Baghdad, the original system was designed to support a city of only 3 million people. The current population is 5.6 million.
Prior to the war, Iraq had 3 major sewage treatment plants and more than 7,000 kilometers of sewage line network which served only 75% of Baghdad’s population.
Post Conflict
CPA and it contractors, through USAID, are currently providing funding for extensive renovations at the Shark Dijila water treatment plant. Population impact of this effort will be 5.5 million people.
CPA, through USAID, is currently rehabilitating three sewage treatment plants. The first of the sewage treatment plants will come on-line in April 2004.
Installing 6-MW generators independent of the national power grid at 39 Baghdad water facilities to ensure continuous water flow.
In the South, rehabilitating the entire Sweet Water Canal system, including the canal, its reservoirs, and 14 water treatment plants and pumping stations. The system provides potable water to 1.75 million people.
In Central, rehabilitating one water treatment plant and four sewage treatments plants.
o Sewage treatment plants in An Najaf and Al Hillah will serve 194,000 people.
In the North, rehabilitating two water treatment plants and one sewage treatment plant. USAID is also procuring construction equipment for the Ninewa Sewer and Water Directorates for the repair and replacement of their present water and waste water systems.
Rehabilitating 14 water treatment lifts and pump stations around Al Basrah; the An Nasiriyah Water and Sanitation Department building, water units in Maysan governorate, the Kirkuk water testing facility, the Hay ad Hussein water plant, which serves holy shrines in and around Kerbala.
Under the "US Supplemental" funding the Ministry of Municipalities and Public Works has approximately US$ 3.2 Billion in over 100 projects potentially improving the water supply to 10 million urban and 2 million rural Iraqi people. This program is being "rolled out" now and will hopefully be complete by the end of 2006.
The Coalition has allocated more than $100 million toward repairs and refurbishments to the sewer system. The CPA has approved $70 million form Iraqi funds and USAID has approved $30 million. These monies will be used for planned, long-term improvements to the treatment plants, pumping stations and overall network.
More than $6 million in Iraqi-seized funds has been dedicated for emergency operations and repairs.
Over the past four months, more than $200 million has been obligated toward more than 200 emergency projects in nine different districts.
City engineers have developed a 45-day intensive improvement program totaling $1.8 million to clean, refurbish and repair portions of the sewage infrastructure throughout Baghdad.
Investment Plan
Steadily rising domestic budget 2004 2005 2006
$200M $500M $600M
Madrid Pledges for Donor Assistance (all sectors)
o Japanese $1.5bn grant + $3.5bn loans
o Others totaling a further $10bn
USG Supplemental Budget - total $18.6bn
Potable Water $2,800,000,000
Water Loss Management $30,000,000
Sanitation $675,000,000
Solid Waste Management $22,000,000
YOUTH & SPORTS
The Iraqi Ministry of Youth and Sports has made impressive advancement in reconstructing critical regional and national sports programs. Additionally, the CPA is working on creating new youth programs, such as the first-ever Scouting program for this country. This year will see a milestone for the Iraqi people, as their athletes return to the Olympic Games at the 2004 Summer Games of Athens.
Pre-conflict
Iraq had been suspended as a member of the International Olympic Committee.
Athlete abuse was well known under the reign of Uday Hussein.
Little focus was placed on the development of national youth programs.
Post Conflict
In order to create the General Assembly to elect the new National Olympic Committee of Iraq, more than 500 free and independent local elections occurred in villages, towns, and cities across Iraq to replace members of the old regime.
On January 29, 2004, the new National Olympic Committee of Iraq was elected. This election was the culmination of six months of work to bring about regime change in Iraqi sports.
On Friday, February 27, at a joint meeting of the IOC Executive Board and the National Olympic Committee Presidents, a vote passed to lift Iraq’s Olympic suspension.
Iraq was reinstated to the International Olympic Movement. Seven sports in Iraq have the ability to qualify and participate in the Olympic Summer Games in Athens: weightlifting, wrestling, boxing, tae kwan do, swimming, track and field, and football (soccer).
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Gregg Edgar
Coalition Provisional Authority
Office of Strategic Communications