US keeps Germany and France out of Iraq work

12 Jan, 2004

Companies from countries that opposed the Iraq war remain barred from bidding for $5 billion in US-funded reconstruction contracts, a US official said on Sunday, despite hints the United States could soften its stance.
"With the current RFPs (Requests for Proposals) there has been no change to the original position," Retired Adm. David Nash, who is in charge of the Pentagon-run Program Management Office, said on the sidelines of an Iraqi reconstruction conference in Jordan.
He declined to say whether the list of 63 eligible countries, which excludes firms from countries such as Germany, France, Russia and Canada that did not support the US invasion, would be revised ahead of further lucrative deals funded by a total $18.6 billion of US money allotted for reconstruction.
The United States opened up bidding earlier this week for the first string of new contracts, worth $5 billion, after more than a month's delay.
The US said then that the eligibility list was under review.
One French firm, T-Systems International, exhibited its irrigation equipment at the conference that began on Sunday but generally German, French and Canadian companies were absent, while there was a strong showing by firms from nations whose governments had backed the US war.
But Nash came under heavy criticism from Iraqi firms who said they were being overlooked and complained that they lacked the financing and know-how to compete effectively.
"We hear that there is money, so many billions of dollars to be spent but we see none of it," said one Iraqi engineering consultant. "We tried to apply for several projects but we didn't even get any reply at all. That is why we came here."
Nash said he was endeavouring to include Iraqis in the process but also told angry Iraqi delegates they had to provide "quality work" and "no corruption".
"We've worked hard to work with the (Iraqi) ministries at every level...We know this will be a continuing process. We had a meeting in Baghdad with about 600 contractors in December," he said.
Nash said his office would likely remain in place long after the United States hands over power to Iraqis at the end of June.
"I think it will probably be in place for the three or four years. As long as it's US taxpayers' money being spent in accordance with US law then it has to be within the US chain of command."

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