Iraq hostilities disrupt rebuilding projects

Major US engineering and construction companies working to rebuild Iraq said on Friday hostilities are disrupting their projects but most of their work is on schedule.
San Francisco-based Bechtel Corp, which has two Iraq reconstruction contracts of about $3 billion from the US Agency for International Development, said the recent surge in hostilities has interrupted work at 10 percent of its projects.
Iraq officials and businessmen on Thursday said more than 100 US nationals working to rebuild Iraq's electricity network, including staff from General Electric Co, had pulled out of the country.
General Electric and German engineering conglomerate Siemens are subcontractors for Bechtel, but Bechtel declined to discuss their activities.
Bechtel has about 50 job sites in Iraq to rebuild airports, electricity, water, telephone, and rail systems, and "work is continuing at roughly 90 percent of our sites. The remaining few sites have experienced temporary interruptions of work," the company said.
Privately-held Bechtel moves workers out of high-risk areas to other job sites and to company offices in Jordan and Kuwait. It is sticking to its timetable to wrap up its work and be out of the country by the end of 2005.
Parsons Crop, a private construction giant based in Pasadena, California, said some of its Iraq subcontractors are not showing up for work because of the hostilities.
"We hope to be able to keep to our schedule but it's too early to tell. The situation is constantly changing," said Parsons spokeswoman Erin Kuhlman.
She declined to give the number of Parsons employees or subcontractors in Iraq.
Parsons has received contracts with a potential value of more than $2 billion from USAID, the US military and the US-led Coalition Provisional Authority for Iraq reconstruction, including bases for security forces, police and fire stations, health facilities and other projects.
Fluor Corp, of Aliso Viejo, California, has been forced to move workers out of dangerous areas for up to 48 hours and work has slowed in some regions because supplies could not be delivered safely, said spokesman Jerry Holloway.
Fluor and a joint venture partner have Iraq rebuilding contracts valued at up to $1.6 billion and an additional $500 million to $600 million for Fluor alone, he said.