U.S. contracts in Iraq

Investment in post-2003 Iraq refers to international efforts to rebuild the infrastructure of Iraq since the Iraq War in 2003.

Along with the economic reform of Iraq, international projects have been implemented to repair and upgrade Iraqi water and sewage treatment plants, electricity production, hospitals, schools, housing, and transportation systems. Much of the work has been funded by the Iraq Relief and Reconstruction Fund, and the Coalition Provisional Authority.

A significant event for aid or investment in post-2003 Iraq was the Madrid Conference on Reconstruction on 23 October 2003, which was attended by representatives from over 25 nations. Funds assembled at this conference and from other sources have been administered by the United Nations and the World Bank under the umbrella of the International Reconstruction Fund Facility for Iraq.

While reconstruction efforts have produced some successes, problems have arisen with the implementation of internationally funded Iraq reconstruction efforts. These include inadequate security, pervasive corruption, insufficient funding and poor coordination among international agencies and local communities. Many suggest that the efforts were hampered by a poor understanding of Iraq on the part of the international community assisting with the reconstruction.

During the 1970s Iraq made extensive investment in the water sector and other infrastructure using the proceeds of oil revenue. This investment slowed during the Iran-Iraq War of 1980 to 1988, but left Iraq in 1990 with a relatively modern electrical, water supply and sewerage system. During the Gulf War of 1991 aerial bombardment caused severe damage to the electric grid that operated the pumping stations and other facilities for potable water delivery and sewage treatment. The sanctions imposed by the UN at the conclusion of the Gulf War exacerbated these problems by banning the importation of spare parts for equipment and chemicals, such as chlorine, needed for disinfection. As a result of the war and sanctions, delivery of water dropped precipitously. For example, UNICEF estimates that before 1991, 95% of urban dwellers and 75% of rural dwellers were served by modern water supply systems that delivered treated water to homes and businesses. By 1999, urban coverage had dropped to 92% and rural coverage to 46%. Individual water availability showed greater changes. Between 1990 and 2000, the daily per capita share of potable water went from 330 litres to 150 litres in Baghdad, 270 to 110 in other urban areas, and 180 to 65 in rural areas.

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