09 February 2005 D E P A R T M E N T O F S T A T E Iraq Weekly Status Report UNCLASSIFIED UNCLASSIFIED 09 February 2005 Table of Contents D E P A R T M E N T O F S T A T E SECTION SLIDE(S) Highlights 3 1.0 Neutralize the Insurgents 5 2.0 Ensure the Continuation of Support for Iraq’s Electoral Process through 2005 6 3.0 Create Jobs and Provide Essential Services 10 4.0 Establish Foundations for a Strong Economy 15 5.0 Establish Good Governance, Rule of Law 21 6.0 Maintain International Engagement & Support 23 General Information 25 2 UNCLASSIFIED UNCLASSIFIED 09 February 2005 Highlights D E P A R T M E N T O F S T A T E 1.0 Neutralize the Insurgents • Iraq and Coalition forces continue operations to neutralize the insurgents. 2.0 Ensure the Continuation of Support for Iraq’s Electoral Process through 2005 • All results from polling stations around Iraq have arrived in Baghdad. The Independent Electoral Commission for Iraq (IECI) is completing the vote count while addressing complaints about the electoral process. 3.0 Create Jobs and Provide Essential Services • Over 1,714 construction starts have been made to date -- including 1,359 Iraq Relief and Reconstruction Fund (IRRF) projects and 354 Accelerated Iraq Reconstruction Projects (AIRP); 516 projects have been completed, including 268 IRRF projects. • The Rapid Construction Initiative (RCI) is accelerating reconstruction using local Iraqi firms, laborers, and suppliers. Thirty-six electrical distribution projects are under construction and 177 are planned in total. There are now 362 km of village roads under construction, providing sustained, stable, longterm employment in rural areas. 3 UNCLASSIFIED UNCLASSIFIED 09 February 2005 Highlights D E P A R T M E N T O F S T A T E 4.0 Establish Foundations for a Strong Economy • USAID’s Private Sector Development II (PSD II) program is working closely with the Iraqi stock exchange (ISX) and private companies to develop capital markets. A functioning capital markets system can greatly ease the flow of investment from Iraqi and foreign sources. 5.0 Establish Good Governance, Rule of Law • The Local Governance Program’s Policy Research Team (PRT) worked to finalize the preparation of a concise handbook on Local Government Associations (LGA) for local councils and civil society organizations. 6.0 Maintain International Engagement and Support • International reaction to Iraq’s election was extremely positive and the UN and EU have pledged continued support for Iraq’s electoral process. 4 UNCLASSIFIED UNCLASSIFIED 09 February 2005 [1.0] Neutralize the Insurgents – Iraqi Security Forces Update D E P A R T M E N T COMPONENT TRAINED & EQUIPPED POLICE 57,287 HIGHWAY PATROL COMPONENT OPERATIONAL ARMY 56,587 AIR FORCE 186 OTHER MOI FORCES 21,589 NAVY 525 TOTAL 78,876* TOTAL 57,298** O F S T A T E Ministry of Defense Forces Ministry of Interior Forces Total Trained & Equipped ISF: 136,174 * Ministry of Interior Forces: Unauthorized absences personnel are included in these numbers ** Ministry of Defense Forces: Unauthorized absences personnel are not included in these numbers Data as of February 7, 2005 5 UNCLASSIFIED UNCLASSIFIED 09 February 2005 [2.0] Ensure the Continuation of Support for Iraq’s Electoral Process through 2005 – Developments D E P A R T M E N T O F S T A T E Election Outcomes: • All results from polling stations around Iraq have arrived in Baghdad. The Independent Electoral Commission for Iraq (IECI) is completing the vote count while addressing complaints about the electoral process. Elections Monitoring: • In its report on the Iraqi elections, the Iraqi Election Information Network (EIN) – comprising 10,000 Iraqi monitors – declared that “the elections were conducted without systemic flaws and in accordance with basic international standards.” • EIN noted several voting problems across the country; it estimated that roughly 15,000 voters in Ninewa Province were unable to vote. • Elections irregularities are being handled by the IECI through the dispute resolution mechanism as laid out in IECI Regulation 15. 6 UNCLASSIFIED UNCLASSIFIED 09 February 2005 [2.0] Ensure the Continuation of Support for Iraq’s Electoral Process through 2005 – Developments D E P A R T M E N T O F S T A T E Transitional National Assembly (TNA): • Once announced, the TNA will: - Serve as Iraq's national legislature until the election of a new government under a permanent constitution. - Name a Presidency Council, consisting of a president and two deputy presidents, that will appoint a prime minister. The Prime Minister and his Council of Ministers must receive a vote of confidence in the Assembly by a simple majority. - According to the Transitional Administrative Law, the TNA will draft Iraq's new Constitution by August 15, 2005; this will be presented to the Iraqi people for their approval in a national referendum by October 15, 2005. - If it is approved, an election for a permanent Iraqi government under that new Constitution will occur by the end of the year. 7 UNCLASSIFIED UNCLASSIFIED 09 February 2005 [2.0] Ensure the Continuation of Support for Iraq’s Electoral Process through 2005 – Electoral Process Timeline JAN FEB D E P Jan 30 A R Election Day T February M Results E Announced N TNA T O F S T A T E MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Oct 15 National Referendum on Constitution 31 Dec National Elections for Permanent Government Seated by end of Feb Drafting of Constitution 8 UNCLASSIFIED UNCLASSIFIED 09 February 2005 [3.0] Create Jobs and Provide Essential Services – Economy D E P A R T M E N T O F S T A T E Oil Update: • Crude oil prices in world markets for the week ending January 28 closed with Kirkuk Crude at $38.13/barrel, Basra Light at $36.76/barrel, and the OPEC basket at $42.63/barrel. Employment Update: • Number of Iraqis employed by USG-administered projects in each sector Iraqis Last Iraqis This Week Week Employing Organization PCO (Project and Contracting Office) USAID AIRP (Accelerated Iraqi Reconstruction Program) MILCON (Military Construction) *CERP (Commanders' Emergency Response Program) MNSTC-I IRRF NON-CONSTRUCTION GRAND TOTAL % Increase on Week 19,494 48,181 6,850 437 33,671 3,799 13,450 17,521 53,613 5,497 534 33,671 4,035 13,379 -10.1% 11.3% -19.8% 22.2% 0.0% 6.2% -0.5% 125,882 128,250 1.9% *CERP numbers are from the latest GRD Sitrep Data as of February 3, 2005 9 UNCLASSIFIED UNCLASSIFIED 09 February 2005 [3.0] Create Jobs and Provide Essential Services – Job Creation and Telecommunications D E P A R T M E N T O F S T A T E Rapid Construction Initiative: • The Rapid Construction Initiative (RCI) is accelerating reconstruction using local Iraqi firms, laborers, and suppliers. Thirty-six electrical distribution projects are under construction and 177 are planned in total. There are now 362 km of village roads under construction, providing sustained, stable, long-term employment in rural areas. Telecommunications : • Installation of the Advanced First Responders Network infrastructure in Baghdad continues, and Base Transceiver Stations (BTS) in the Baghdad area were operational before the January 30 election. The remaining BTS sites in Baghdad are expected to be operational by February 21, and another 15 cities are due to be operational by June 30. • Wireless Broadband Network (WBBN) is a project that will provide high capacity data and voice communications to government sites in Baghdad. Initial ministries are due to be connected by February 14, and the network is expected to be operational for all locations by end of March. 10 UNCLASSIFIED UNCLASSIFIED 09 February 2005 [3.0] Create Jobs and Provide Essential Services – Health Care and Transportation D E P A R T M E N T O F S T A T E Health Care Center Renovation: • Local Governance Program (LPG) specialists visited a health center in Diwaniyah to supervise its renovation as part of a $65,000 LGP grant through a Polish civil-military cooperation group. The renovated center and new wing will serve 3,000 citizens in the area. Restoration is approximately 50 percent complete. Transportation: • Work to refurbish the Air Traffic Control (ATC) Center and Tower at Baghdad International Airport (BIAP) should be fully complete in February 2005. Like much of Iraq’s essential infrastructure, the airport’s ATC Center had deteriorated due to a lack of preventative maintenance over several decades. The ATC Center’s communications system – which provided a link between BIAP and other airports and aircraft in the vicinity – was destroyed during the conflict. The communications link was rehabilitated and is now fully operative. 11 UNCLASSIFIED UNCLASSIFIED 09 February 2005 [3.0] Create Jobs and Provide Essential Services – Education D E P A R T M E N T O F S T A T E Building Capacity in the Ministry of Education: • Twenty-four supplies directors from Iraq’s Ministry of Education (MOE) participated in a 10-day study tour in Cairo to learn how to deal with issues related to textbook production and distribution. The tour was part of the UNESCO Textbook Program for Iraq’s primary and secondary schools that was funded by a $10 million grant from USAID. Iraq Millennium Development Goals Update: • With funding from USAID, the United Nations Children’s Fund (UNICEF) is implementing a comprehensive package of activities designed to help Iraq meet Millennium Development Goals in public health, sanitation and education. As part of its efforts to support the MOE in education reforms, UNICEF updated findings from a national school survey last year; an analytical report on this survey (Volume II) was recently completed and submitted to the MOE for final approval. 12 UNCLASSIFIED UNCLASSIFIED 09 February 2005 [3.0] Create Jobs and Provide Essential Services – Water and Sanitation D E P A R T M E N T O F Water and Sanitation: • Work is 60 percent complete on a project to extensively repair the sewage collection system of a central district of Baghdad. The project will restore critical elements of the sewage collection system and restore sewage flow from the district to wastewater treatment facilities. Work is scheduled to be completed in June and will improve service for about 1.5 million residents. • Work is 66 percent complete to rehabilitate the water and sewage treatment plant facilities serving rural, north-central Diyala Governorate. USAID’s project will generate enough potable water to serve the region’s 60,000 residents. This project is scheduled to be complete in May. S T A T E 13 UNCLASSIFIED UNCLASSIFIED 09 February 2005 [3.0] Create Jobs and Provide Essential Services – Electricity Overview Megawatt-Hour (MWh) Load Served 30 June 2005 Goal Actual 7-day Average Pre-War 140,000 120,000 100,000 MWh D E P A R T M E N T 80,000 60,000 40,000 20,000 S T A T E 3/ 1/ 2 3/ 00 15 4 /2 3/ 00 29 4 /2 4/ 00 12 4 /2 4/ 00 26 4 /2 5/ 00 10 4 /2 5/ 00 24 4 /2 0 6/ 04 7/ 2 6/ 00 21 4 /2 0 7/ 04 5/ 2 7/ 00 19 4 /2 0 8/ 04 2/ 2 8/ 00 16 4 /2 8/ 00 30 4 /2 9/ 00 13 4 /2 9/ 00 27 4 10 /20 /1 04 1 10 /20 /2 04 5/ 2 11 00 /8 4 11 /20 /2 04 2/ 2 12 00 /6 4 12 /20 /2 04 0/ 20 1/ 04 3/ 2 1/ 00 17 5 /2 1/ 00 31 5 /2 00 5 O F Date • Electricity load served in the last week (31 January - 6 February) hovered slightly below estimated pre-war levels at 94,000 MWh. Hours of available power averaged 11 hours in Baghdad. • Peak demand remains at record levels (>8,000 MW). • Unplanned and planned outages continue to lower output. At the end of the week, there were 816 MW and 839 MW, respectively. 14 UNCLASSIFIED UNCLASSIFIED 09 February 2005 [4.0] Establish Foundations for a Strong Economy D E P A R T M E N T O F S T A T E Capital Markets Development: • USAID’s Private Sector Development II (PSD II) program is working closely with the Iraqi stock exchange (ISX) and private companies to develop capital markets. PSD II capital markets development activities provide technical assistance to the ISX to deepen financial markets through training programs, financial instruments, IT systems, improved procedures, information dissemination, regulation and oversight. A functioning capital markets system can greatly ease the flow of investment from Iraqi and foreign sources. Capital markets development efforts are in the inception phase, with a current focus on assessment and stabilization. Local Governance Program: • Local Governance Program (LGP) staff in northern Iraq recently completed data collection for a strategic planning questionnaire at the Ministry of Municipalities in preparation for an institutional audit that will be held in February. The questionnaire, unlike traditional institutional audit questionnaires, focused on how individual managers perceived the Ministry and its functions. The same procedures will be used throughout the strategic planning process which is scheduled to commence on February 15. – The audit is an example of how LGP is working throughout Iraq to streamline local fiscal and administrative practices. 15 UNCLASSIFIED UNCLASSIFIED 09 February 2005 [4.0] Establish Foundations for a Strong Economy – Crude Oil Production O F 2.80 MOO Goal: 2.5 MBPD 2.60 2.40 2.20 Millions of Barrels Per Day D E P A R T M E N T 2.00 1.80 1.60 1.40 1.20 1.00 6-12 Decem ber 13-19 Decem ber 20-26 Decem ber 27 Decem ber - 2 S January T Production A T • Weekly Average (24 - 30 Jan) of 2.12 MBPD E • Pre-War Peak: 2.5 MBPD in Mar 03 3-9 January 10-16 January 17-23 January 24-30 January Target • Post-War Peak: 2.67 MBPD 16 UNCLASSIFIED UNCLASSIFIED 09 February 2005 [4.0] Establish Foundations for a Strong Economy – Crude Oil Export 2.500 $2.50 2.000 $2.00 1.825 1.804 1.679 1.524 1.541 1.537 1.500 1.607 1.513 1.382 1.406 1.380 1.149 1.148 1.462 1.351 $1.50 1.114 0.983 1.000 $1.00 $1.99 $1.61 0.646 $1.21 0.500 $1.50 $1.26 $1.10 $1.36 $1.28 $1.44 $1.40 $1.24 $1.25 $1.31 $0.50 $0.73 0.200 $0.36 $1.26 $1.75 $0.89 0.322 S T A T E Monthly Export (mbpd) Monthly Revenue ($Billions) O F Monthly Revenue (US$B) Millions of Barrels Per Day D E P A R T M E N T $0.44 $0.20 0.000 $0.00 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 • 2003 Revenue: $5,076.6M • 2004 Revenue: $17,012.3M • 2005 Revenue: $1,312.1M 17 UNCLASSIFIED UNCLASSIFIED 09 February 2005 [4.0] Establish Foundations for a Strong Economy – Refined Products Production % O F 200% 180% Percentage of Monthly Target Reached This Week D E P A R T M E N T 160% 140% 120% 100% 80% 71% 60% 65% 33% 40% 20% S T A T E Import % 32% 44% 14% 26% 12% 0% Diesel Kerosene Benzene LPG Note: This chart represents the average percentage of daily target reached for the week of January 24 - 30 • Diesel: 11.3 ML of 17.5 ML • Kerosene: 5.0 ML of 19.5 ML • Benzene: 16.4 ML of 18 ML • LPG: 4,934 tons of 4,300 tons 18 UNCLASSIFIED UNCLASSIFIED 09 February 2005 [4.0] Establish Foundations for a Strong Economy – National Stock Levels Jan-05 Goal 20 15 Days of Stocks D E P A R T M E N T 10 8 8 7 6 O F S T A T E 5 0 Diesel Kerosene Benzene LPG • The goal is for all refined products to be over 15 days worth of stocks at maximum consumption rates and does not represent seasonal change. The numbers given above are monthly averages. 19 UNCLASSIFIED UNCLASSIFIED 09 February 2005 [4.0] Establish Foundations for a Strong Economy – IRRF I & II Financials D E P A R T M E N T O F S T A T E Financial Status-IRRF I & II Committed Obligated Disbursed Current Last Week Current Last Week Current 4493 4502 3414 3442 1403 1458 4077 3328 3485 2688 2699 715 732 1701 1701 1434 1439 942 935 137 139 1120 1120 946 946 672 672 145 154 832 832 751 751 660 661 207 208 Education, Refugees, Human Rights, Governance 379 379 227 248 205 220 48 61 Roads, Bridges, and Construction 359 355 283 283 184 184 37 37 Health Care 786 786 750 735 511 497 34 36 Transportation and Communications 513 513 462 462 323 323 33 34 Water Resources and Sanitation 2279 1770 1304 1307 891 898 47 54 Private Sector Development 843 835 402 402 357 357 74 74 Admin Expense (USAID, State) 213 29 29 29 29 29 29 29 IRRF II SUBTOTAL 18439 17442 14409 14589 10876 10917 2909 3016 11306 10378 8626 8762 8645 6513 1486 1522 6301 6232 5032 5076 1571 3743 1216 1286 IRRF II DEMOCRACY 832 832 751 751 660 661 207 208 IRFF I SUBTOTAL 2475 2475 2475 2475 2475 2475 1907 2017 GRAND TOTAL IRRF I & II 20914 19917 16884 17064 13351 13392 4816 5033 Sector 2207 Report Security and Law Enforcement Apportion Last Week 5045 5045 Electricity Sector 4369 Oil Infrastructure Justice, Public Safety, and Civil Society -Democracy IRRF II CONSTRUCTION IRRF II NON-CONSTRUCTION Data as of February 9, 2005 20 No data received from OPIC or USIP this week Changes driven by actions on obligations UNCLASSIFIED UNCLASSIFIED 09 February 2005 [5.0] Establish Good Governance, Rule of Law – Refugees, Democracy and Human Rights D E P A R T M E N T O F S T A T E Local Governance Programs: • The Local Governance Program’s Policy Research Team (PRT) worked to finalize the preparation of a concise handbook on Local Government Associations (LGA) for local councils and civil society organizations. The LGA handbook will be widely distributed beginning in February as part of the LGA Toolkit. The handbook will help garner support among local councils and civil society organizations for the establishment of a national LGA with governorate branches or the establishment of governorate branches leading to the formation of a national LGA. • A local 400-member NGO in southern Iraq organized a series of seminars for women in an effort to increase women’s participation in political, economic and cultural activities. The seminars covered topics on economic development, the local role of women, education of women and children, and women's rights within new democratic systems. A $5,000 grant from the Iraq Transition Initiative (ITI) covered the cost of facilities, materials and other logistical needs. This project was also developed with the support of LGP. 21 UNCLASSIFIED UNCLASSIFIED 09 February 2005 [5.0] Establish Good Governance, Rule of Law – Rule of Law D E P A R T M E N T O F S T A T E Rule of Law: • On January 18, the Department of State’s Bureau of International Narcotics and Law Enforcement (INL) convened a Rule of Law Coordination meeting in Amman. The meeting brought together international donors to: – Share information on Rule of Law-related activities; – Raise the need for a comprehensive, well-coordinated approach to Rule of Law assistance in Iraq; and – Elicit expressions of interest for those needs that are not being funded. • Participants included representatives from Australia, Canada, Denmark, the EU, Japan, Norway, UNAMI, UNDP, the United Kingdom, the United States and the World Bank. • The meeting produced a document mapping current and proposed initiatives in the ROL sector and a clear process for further coordination between donors (bilateral and multilateral). 22 UNCLASSIFIED UNCLASSIFIED 09 February 2005 [6.0] Maintain Int’l Engagement & Support – Developments D E P A R T M E N T • On January 27, the Czech Republic approved extension of their 100 MPs until December 2005, when they will to roll over in place to a NATO role when the NATO training mission is ready to receive them. • Ukraine will gradually withdraw its 1,600-strong military force from Iraq and replace it with instructors and a civilian presence, according to Foreign Minister Borys Tarasyuk. • Portugal will begin withdrawing its military police contingent of 120 soldiers from Iraq this week. O F S T A T E 23 UNCLASSIFIED UNCLASSIFIED 09 February 2005 [6.0] Maintain Int’l Engagement & Support – Stability Contributors D E P A R T M E N T 27 Countries with forces in Iraq (in addition to US) Albania El Salvador Latvia Poland Armenia Estonia Lithuania Portugal Australia Georgia Macedonia Romania Azerbaijan Italy Moldova Slovakia Bulgaria Japan Mongolia Ukraine Czech Rep Kazakhstan Netherlands UK Denmark Korea Norway *Note: Fiji participating as a part of the UN mission in Iraq O F S T A T E TOTAL ~ 25,000 Forces 28 Countries and NATO (including US) Support Iraqi Stability Operations Data as of February 03, 2005 24 UNCLASSIFIED UNCLASSIFIED 09 February 2005 Iraq Weekly Status – General Information D E P A R T M E N T • This brief draws from multiple sources. References are cited on the respective pages in the “Notes Page” section (View Æ Notes Page). • Please forward all questions and/or comments to (unclassified) NEA-IIPOG-DL@state.gov or (classified) NEA-I-IPOG-DL@state.sgov.gov O F S T A T E 25 UNCLASSIFIED