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Iraq

USAID: Iraq Reconstruction and Humanitarian Relief Weekly Update #19 (FY 2005)

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ELECTRICITY

USAID's goals include the emergency repair or rehabilitation of power generation facilities and electrical grids. Teams of engineers from the Ministry of Electricity, USAID and the U.S. Army Corps of Engineers have been working since May of 2003 to restore the capacity of Iraq's power system.

Major Accomplishments to Date

  • By October, 2003, rehabilitated electric power capacity to produce peak capacity greater than the pre-war level of 4,400 MW. Production reached 5,365 MW on August 18, 2004.

  • Since achieving record power production in Summer '04, the Ministry of Electricity - with assistance from USAID - has begun the standard Fall maintenance process which will necessarily reduce the amount of power available for consumption. USAID worked with the MOE to conduct last Fall's maintenance program.

  • Repairing thermal units, replacing turbines, rehabilitating the power distribution network, and installing and restoring generators.

  • USAID has added 600 MW of capacity through maintenance and rehabilitation work, and also repaired a 400 KV transmission line.

  • USAID and the Ministry of Electricity are working with partners to add a total of more than 792 MW to the national grid by December 2005 through maintenance, rehabilitation, and new generation projects.

  • USAID completed a project to convert two units that produce 80 MW each to operate on crude/heavy fuel oil instead of diesel which is in short supply.

  • USAID initiated a project to rehabilitate 13 existing substations and construct 24 new substations in Baghdad. These 37 substations will improve the distribution and reliability of electricity for more than two million Baghdad residents. USAID recently handed over work on 12 of these substations to the Ministry of Electricity.

Highlights this week

Work is nearly complete on the restoration of Baghdad International Airport Electrical Substation #1 which controls airstrip lighting on the commercial side of the airport. The power facility was bombed and badly damaged during the war. Switchgear and constant-current regulators were damaged beyond repair. Although the building that houses the substation remains intact the old 500 kVA emergency diesel generator that provides standby power must be removed and replaced.

The scope of work for this project calls for the procurement and installation of new electrical components for the substation including constant-current regulators, an emergency diesel generator, 11 kV circuit breakers, a 400V distribution system, an 11kV-to- 400V transformer, and 11kV bus and auxiliary equipment as required. Also incorporated into the project are general improvements to the heating, ventilation and air conditioning system; the enclosure building as required, and the installation of a carbon dioxide-based fire suppression system. Existing cables for power and controls from the substation to runway lighting fixtures are in place and will be reused. This project is expected to be completed by mid-March 2005.

The LGP is working with Civil Military Cooperation (CIMIC) army groups from Poland and El Salvador to prepare them to better administer infrastructure development projects in South Central Iraq.

South Central's LGP specialists are meeting with Basrah governorate officials to prepare over 30 projects for proposal to the Polish Multinational Division's CIMIC. The LGP council trainer met with 10 Basrah council leaders to identify projects to propose to CIMIC. The Polish CIMIC has significant funds and the will to invest in the governorate but has few engineers on staff. LGP has many engineers but no money to fund infrastructure projects so bringing the two together for short, defined purposes is beneficial for both organizations.

Specialists also recently completed the construction of a database of contractors who have worked with LGP for the benefit of the newly rotated El Salvadoran Battalion's CIMIC unit which is now responsible for infrastructure projects in southern Babil governorate. The Salvadoran CIMIC can save time and money by working with proven contractors and tested Iraqi businesses.

LGP engineers regularly cooperate with other coalition engineering programs such as the U.S. Army's Corps of Engineers, the Project Coordination Office, U.S. Army and Marine Corps Civil-Military units, and the Multinational Force's Civil-Military Affairs units. LGP engineers can help with project identification and design, estimation of bills of quantity, and project supervision.

WATER AND SANITATION

USAID's goal is to improve the efficiency and reliability of existing water and wastewater treatment facilities, especially those in the south where water quantity and quality are particularly low. An anticipated 11.8 million Iraqis will benefit from USAID's $600 million in water and sanitation projects.

Major Accomplishments to Date

  • Nationwide: Repaired various sewage lift stations and water treatment units.

  • Baghdad: Expanding and rehabilitating one water treatment plant and constructing another to increase capacity by approximately 120 million gallons per day; rehabilitating sewage treatment plants.

    - A major wastewater treatment plant in Baghdad began operating in June of 2004; this is the first major sewage plant in the country to operate in over 12 years.

    - The sewage treatment system in Baghdad, barely functioning for years before the conflict, will be restored to almost 100-percent capacity, serving 80 percent of Baghdad's population.

    - Standby generators are being installed at 41 Baghdad water facilities.

  • South: Rehabilitated parts of the Sweet Water Canal system, including repairing breaches, cleaning the main reservoir, and refurbished 14 water treatment plants around Basrah serving 1.75 million people.

  • South Central: Rehabilitating two water plants and four sewage plants.
  • - Completed the rehabilitation of a sewage plant in Babil Governorate.

    - Sewage plants in An Najaf, Al Qadisiyah, Karbala, and Babil Governorates will serve 440,000 upon completion.

    - Water treatment in Najaf and Babil will serve residents and visitors at Iraq's holiest shrines.

  • North: Completed rehabilitation of Kirkuk water plant and continuing refurbishment of sewage plant near Mosul.

Highlights this week

Work is in progress at 48 sites on USAID's rural water initiative, which extends water for drinking and irrigation to mid-sized communities that had previously lacked reliable sources. Contracts have been awarded for reverse osmosis units and water treatment plants and USAID is considering a proposal to add a hygiene training program to the original work plan. Site investigations for unit installation are being conducted in Wasit, Karbala, Dahuk, Tamim, and Kirkuk, and the security situation is being monitored in areas that are not currently accessible. The initiative will install 110 units in remote locations throughout Iraq, filling the gap in water service for approximately four million rural Iraqis who live in regions where water is either scarce or of poor quality.

USAID's work to improve sewer lines in a northern suburb of Baghdad is about 44% complete. The project will clean, repair, replace, and expand sewer lines and equipment to improve performance. Unfortunately, additional line collapses are impacting downstream pump stations. To address this recent development, a scope of work amendment is being prepared to repair the collapses. The estimated construction cost of this project is $1.8 million and the work is expected to be finished by June, 2005.

The Municipal Solid Waste Group of USAID's Local Governance Program (LGP) Baghdad team recently provided a six day training session on Municipal Waste and Landfill Management for senior Baghdad Mayoralty officials responsible for the management of municipal solid waste. The program addressed issues in management, operations, environmental considerations, and cost effective and environmentally sound operations. Twenty-nine solid waste professional staff from the Mayoralty participated.

In mid-February, specialists from LGP's Baghdad team met for the first time with the new Director General of the Sewage Department and the new Deputy Director General of the Water Department. The officials discussed plans for reorganizing the operations of the water and sewage departments, moves that are being considered in response to a consolidation study performed by LGP last year. If implemented, the Sewage Department would be divided geographically in two sections with each site headed by a Director General reporting to the Deputy Mayor for Technical Affairs. The Water Department would also be divided along administrative lines into production and distribution divisions.

The Baghdad LGP team completed a two-day computer training session In February for 10 members of the finance staff from the Baghdad Water and Sewage Departments. The training focused on Microsoft Word and Excel spreadsheets and will form the basis for future training in finance, budgeting, revenue, and expenses.

The Community Action Program (CAP) is facilitating the overhaul of a rural village water system in Ninawa Governorate. The village was destroyed in 1988 and more than 100 families were displaced. They are now returning to a village that lacks essential infrastructure. USAID's CAP implementing partner in the north is supplying one kilometer of pipes and the expertise needed to help the community to connect them. The local water department is also supplying one kilometer of pipes. Establishing a new water pipeline will make daily life immeasurably easier. The project cost is $11,000 with $4,750 in local contribution.

ECONOMIC GOVERNANCE

USAID supports sustainable economic reforms in Iraq including examining and reforming laws, regulations, and institutions and providing a framework for private sector trade, commerce, and investment. The reforms will strengthen the Central Bank and the Ministries of Finance, Trade, Commerce and Industry - among others.

Major Accomplishments to Date

  • Worked with the Ministry of Finance to introduce the new Iraqi dinar.

  • Created more than 77,000 public works jobs through the National Employment Program.

  • Provided technical assistance on accounting, budgeting and lending activities at Iraq's commercial banks. Trained 116 bankers from the Rafidain and Rasheed banks in six training courses.

  • Assisted in management of $21 million micro-credit program.

  • Improved statistical analysis, monetary policymaking, and bank supervision procedures at Iraq's Central Bank; offered a two-week banking course to Central Bank staff with the Federal Reserve Bank of New York.

  • Evaluated and updated commercial laws on private sector and foreign investment.

  • Assisted in developing the five percent reconstruction levy on imports; built capacity of customs officials to implement levy.

  • Developed a government-wide IT strategy to support the automation of planning, budgeting and reporting processes across ministries.

  • Developed WTO Accession Roadmap in cooperation with Iraqi officials.

  • Provided technical assistance as well as information on contracting opportunities for Iraqi businesses and entrepreneurs through business centers.

  • Provided technical support for the re-opening of the Iraq Stock Exchange after it was closed down for more than 15 months; 3.6 billion Iraqi dinars ($2.4 million USD) in shares were traded in the first day.

Highlights this week

USAID's program advisors work with the Central Bank of Iraq (CBI) to improve its ability to conduct macroeconomic policy and supervise banking within the country. Recent activities in support of this objective have included:

Bank Supervision. Eight representatives of the CBI Bank Supervision Department are receiving training in accounting and financial reporting standards. IEG II advisors also developed a course in credit analysis that will include representatives of the International Monetary Fund, the Central Bank of Jordan, Banc du Libon, and the Federal Reserve Bank of New York.

Government Securities. The CBI, with IEG II support, is taking the first step toward the development of a secondary debt market by recapitalizing its negotiable treasury bills.

Macroeconomic Policy. Advisors finalized a briefing for the CBI Board of Directors on the status and composition of Gross Domestic Product for the final two months of 2004.

Inter-bank Payments. IEG II staff working with the U.S. Department of Treasury developed a position paper on the infrastructure necessary to support a fully functional inter-bank payment system. Contractors working for the Department of Treasury will implement the inter-bank payment system.

USAID's Iraq Economic Governance II (IEG II) program is continuing to work with Iraqi government counterparts to build their capacity to implement tax and customs reform. Recent activities in support of this objective have included:

Customs reform. Six customs officials completed training in Jordan on the operation of a new automated Reconstruction Levy system. The levy is a 5% tariff on nearly all imports, helping to finance Iraqi government reconstruction efforts.

Financial Management Information System. IEG II recently completed an orientation and computer skills training course in Amman, Jordan for 18 officials from various governorates and ministries that will be using a new Financial Management Information System.

Tax administration. IEG II advisors are assisting the Iraqi Tax Commission (ITC) in creating new tax forms. Advisors recently completed a final draft of an upgraded tax return form and a draft guide for the income tax return. Both the guide and the return form are now being translated into Arabic.

The Ministry of Labor and Social Affairs (MOLSA) is working with USAID's Vocational Training and Employment Services (VTES) program to improve vocational training and employment services in Iraq. Under this program, VTES will build the capacity of MOLSA to operate a network of training and employment centers. Although the centers already exist, the services they provide do not currently meet these needs. The training centers will develop vocational training in the job skills most needed in Iraq today, such as wood working, metal working, English language, and other skills. Employment centers will help connect Iraqi workers with companies that are hiring, and help ensure that MOLSA is aware of the current needs of the private sector.

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