April 17, 2003

U.S. Awards Contract to Rebuild Iraq's Infrastructure

By THE ASSOCIATED PRESS

Filed at 5:37 p.m. ET

WASHINGTON (AP) -- The government awarded Bechtel Corp. a
contract on Thursday that could reach $680 million to help rebuild
Iraq, including the nation's power, water and sewage systems.

The U.S. Agency for International Development said the initial
contract was for $34.6 million but it could be worth the larger figure
over 18 months, subject to congressional approval.

Several Democratic lawmakers have complained the Bush
administration did not allow open competitive bidding, but rather
invited a small number of firms to submit proposals. USAID has
defended the procedure as the only way to get help to Iraq quickly.

The company has employed several officials after they left high
government jobs, including former Secretary of State George Shultz
and former Defense Secretary Caspar Weinberger,

The Bechtel Group and its employees have been among the biggest
political givers in the general contracting industry, according to an
analysis by the Center for Responsive Politics, a nonpartisan
Washington-based group that tracks campaign finance.

The company and its workers contributed at least $277,050 to federal
candidates and party committees in the last election cycle, about 57
percent to Democrats and 43 percent to Republicans, the center found.

In addition to Bechtel's work utility systems, the contract also
provides for rehabilitation or repair of airport facilities and dredging,
repair and upgrading of the Umm Qasr seaport in cooperation with
other contractors, the assistance agency said.

Bechtel also may have a role in repair and reconstruction of hospitals,
schools, selected government ministry buildings, irrigation facilities
and transportation links.

The agency said Bechtel probably would hire subcontractors for many
of the projects.

``Through all of its activities, it will also engage the Iraqi population
and work to build local capacity,'' the announcement said.

``Bechtel is honored to have been asked by USAID to help bring
humanitarian assistance, economic recovery and infrastructure
reconstruction to the Iraqi people,'' said Tom Hash, president of
Bechtel National, Inc.

The question of who rebuilds Iraq has divided the president's advisers
and even the two major coalition partners in the current war, the
United States and Britain. British Prime Minister Tony Blair has
sought deeper U.N. involvement in postwar Iraq than President Bush.