Article: US firms set to cash in on reconstruction of Iraq

The Saint

The American government is on the verge of awarding construction contracts worth hundreds of millions of dollars to rebuild Iraq once Saddam Hussein is deposed.
Halliburton, one of the companies in the running for the highly profitable deals, was formerly headed by the US vice-president, Dick Cheney. Halliburton has already been awarded a lucrative contract to resurrect the Iraqi oilfields if there is a war.

Other companies have strong ties to the US administration, including the construction giant Bechtel, the Fluor Corporation, and the Louis Berger Group, which is involved in the reconstruction of Afghanistan.

Only US companies are on the shortlist of five. The US Agency for International Development (USAID) defended the narrow shortlist.

A spokeswoman said: "Because of the urgent circumstances and the unique nature of this work, USAID will undertake a limited selection process that expedites the review and selection of contractors for these projects."

The spokeswoman said that it was a policy of USAID to use US companies for projects funded by the American taxpayer. Non-US companies were free, through their governments, to organise their own business, she said.

The winning company would get about $900m (£563m) to repair Iraqi health services, ports, airports, schools and other educational institutions.

Sources at the companies said the invitation was unusual in that USAID did not ask them to set a price for defined services but rather asked them to say what they could do for $900m.

All five bidders have submitted their proposals or are preparing to do so after USAID "quietly" sent out a detailed request soliciting proposals from the likely bidders.

According to the Wall Street Journal, the Iraq reconstruction plan will require contractors to fulfil various tasks, including reopening at least half of the "economically important roads and bridges" - about 1,500 miles of roadway within 18 months.

The contractors will also be asked to repair 15% of high-voltage electricity grid, renovate several thousand schools and deliver 550 emergency generators within two months.

Construction industry executives said the handful of firms are competing fiercely in part because they believe it could provide an inside track to postwar business opportunities. The most highly sought-after prizes are oil industry contracts.

The US government is believed to be wary of any backlash against an invasion and is preparing plans for a "hearts and minds" operation that will swing into place as soon as the country is occupied. The government is mindful of the long-term benefits of feeding hungry Iraqis, delivering clean water, and by paying teachers and health workers.

"It's a sensitive topic because we still haven't gone to war," said one industry executive. "But these companies are really in a position to win something out of this geopolitical situation."

It remains unclear whether Iraqis, Americans or an international consortium will manage the oil industry during an early post-conflict period.

Steven Schooner, a George Washington University law professor, said many billions of dollars are at stake. He estimated that $900m would barely last six months given the scope of the projects the administration has sketched out.

"The most sophisticated firms that come in first, and establish good will with the locals obviously will reap huge benefits down the road," said Mr Schooner.

"These are going to become brand names in Iraq. That's huge."

http://www.guardian.co.uk/Iraq/Story/0,2763,911942,00.html


I like this bit the most:
Halliburton, one of the companies in the running for the highly profitable deals, was formerly headed by the US vice-president, Dick Cheney. Halliburton has already been awarded a lucrative contract to resurrect the Iraqi oilfields if there is a war.

So (President) Dick Cheneys old buddies get the oil contracts, surprise, surprise and only American companies are on the short list for reconstruction. Something stinks. Liberate Iraq and its oil fields. I'm sure the Iraqis will only be too delighted to have these rightious companies working on their behalf.

gandalf

HOW MANY TIMES DO WE HAVE TO TELL PEOPLE TO PUT THEIR OWN OPINIONS ON ANY QUOTED ARTICLES !

The Saint I expect your opinions to be added to this article before the end of the day. If not I will delete this thread. If you do this again I will ban you.

Gandalf.

The Saint

This is the first time I have done it, chill out.

gandalf

I do not care if its the 1st time or the 50th time. Put your own opinions onto this thread.

Gandalf.

The Saint

I already have. Theres no need to throw a little fit and threaten to ban me.

Thorbar

At least America are willing to help out in rebuilding Iraq after they blow it up, although I'm sure the Iraqi people would prefer if they just could by-pass the auld carpet bombing. I wonder how effective this will be for winning the hearts and minds. The French hate the Americans and they're still on the Marshall plan. Then again they are French. I wonder if the Americans would forgive Osama bin ladin if he offered to pay for rebuilding the twin towers?

The Saint

Didnt the Americans say that they would rebuild Afghanistan after they levelled it and its still not looking too good. I suppose they dont have oil to pay for it.

Johnmb

The spokeswoman said that it was a policy of USAID to use US companies for projects funded by the American taxpayer.

So does this mean that the US aren't going to divert any of the Iraqi oil money to pay for the repairs their bombs will do? Somehow I can't see any US taxpayers money being used, only Iraqi money paying overinflated prices to US companies, and the american people scratching their heads and wondering why the Iraqis hate them so much in about 10 years time.

The Saint

Didnt the US use taxpayers money to rebuild Europe after WWII, it was called the marshall plan.

Well considering the US have become guardians of most the nations they've conquered, they've usually received some monetary gain as a result.

If you look at the mandates for US troops in Japan, it includes, the guardianship of its natural resources. I know they've invited the UN to take control of the oil-fields, but i'd be on the watch for some loop-hole whereby the US would receive a % on oil sales, or lower prices, when purchasing etc.

In regards to performing reconstruction, using taxpayers money, has this been approved of, as yet? I mean the American People might not be too happy with this situation...

Also consider that if American firms are paid by Taxpayers money, then they in turn will be taxed, which comes back in the end to the US. Good PR, and in the end will pay off anything they might have to spend.

The French hate the Americans and they're still on the Marshall plan

Most French people i know, don't hate the US. They just pity them, for their lower intelligence. Their joke, not mine.

Johnmb

The Marshall plan wasn't free money, the US got it back in many ways. Stopping the spread of communism was a nice side effect too. Plus, Europe wasn't quite the same thing, and it didn't have anything near the oil reserves that Iraq does.

Also as a result of the Marshall Plan, & Lend lease, they got Allies that supported them for years at a very cheap price. Lend lease they made a profit on. Marshall plan, i'm sure was equally profitable, since they still have Bases in Germany & Japan. Also American Corporations have received hefty bonuses for establishing in both countries, as a result of the goodwill from that Plan.

Éomer of Rohan

I laughed my ass off when I read through this thread. I have to say, I am glad some people are realising the utter sham of US claims that the upcoming war will be about 'democracy and freedom for the people of Iraq' and personally, having read 'Stupid White Men' by Michael Moore and then researched through some of his bibliography, I am not surprised at Halliburton being named as one of the USAID countries - what did surprise me is that there was not a politico-economic sop to the UK by placing a UK company on said shortlist; perfectly within their remit.

DadaKopf

Wow, there's a surprise. I was wondering when the media would start mentioning this.

Thorbar

Originally posted by Éomer of Rohan
I laughed my ass off when I read through this thread. I have to say, I am glad some people are realising the utter sham of US claims that the upcoming war will be about 'democracy and freedom for the people of Iraq' and personally, having read 'Stupid White Men' by Michael Moore and then researched through some of his bibliography, I am not surprised at Halliburton being named as one of the USAID countries - what did surprise me is that there was not a politico-economic sop to the UK by placing a UK company on said shortlist; perfectly within their remit.

I'd take what Michael Moore has to say with a pinch of salt. The man raises some very interesting points but he is completely one sided and bias and never shows the other side of the arguement. What was his proposed solution to the troubles in the north again? Just throw all the loyalists out of the country jaysus that's open mindedness for ya.

Éomer of Rohan

and then researched through some of his bibliography,

I am actually aware of Moore's bias, him being a strict democrat yet a member of the NRA and all the contradictions lying therein. However as you admit his points ARE valid and the section dealing with industrial connections within the Bush junta WAS fact.

Yeah, I too, take Michael moore with a large grain of salt.
I certainly wouldn't rely on him for my opinions.
He is essentially a satirist, who does that job well,but is a tad shaky on the facts behind his satire.

Well , according to an article anyway. http://www.spinsanity.org/columns/20020403.html
He has a lot of facts wrong in his stupid white men book.

But then , I've only read one interview with him so far( on BuzzFlash.com ) and he's already arrogant, in relation to U.S public opinion polls, he reckons it's a case of when asked do they approve of the president, joe U.S public says:

Yes, I do. Yes, I approve. I approve. My wife approves too. The dogs approve.

I mean , no body can say something like that, unless they are there, when the question is asked.
It suits his argument though like a lot of convenient things.

Now Back to the topic at hand , the French can have as much of the re-building of Iraq that they like,if they vote for the 18th UNSC resolution on Iraq this week.
mm

the French can have as much of the re-building of Iraq that they like,if they vote for the 18th UNSC resolution on Iraq this week

thats nice for them. Amazing how the US frown on the French bribing for votes, when they're currently doing the same. Can anyone here tell me that this offer isn't a bribe? I could be wrong abt this, but thats the way its appearing to me.