The first batch of overdue US projects worth $18.4 billion to rebuild Iraq will be implemented in the next few months to help stabilise the occupied country, US and Iraqi officials said on Monday.
"Assuring complete transparency and conformity with the applicable laws and regulations has taken longer than anyone would have liked, but we are accelerating now," said Admiral David Nash, head of the Programme Management Office, which manages the contracts.
"By this time next month we should have our prime contractors on the ground. Physical reconstruction will start not long thereafter," he told a news conference.
The United States has spent an estimated $4 to $5 billion to rebuild Iraqi after decades of wars, a crippling economic embargo and widespread looting after last year's US-led invasion.
An additional $18.4 billion was allocated last year, of which around $5 billion worth of contracts were awarded this month, including for electricity and water infrastructure projects.
US companies such as Bechtel and Halliburton have been awarded most of the work to rebuild Iraq so far.
Nash was speaking after meeting Iraqi contractors, who criticised US firms for what they described as disregard for local firms and reluctance to give them work.
Nash said creating jobs for Iraqis was a priority and incentives have been devised in the new contracts to reward US contractors for giving work to Iraqi companies.
"It is in the best interest of US companies to help. I know of no better way than incentives," Nash told an open meeting with Iraqi businessmen.
The $18.4 billion US allocation includes $5.56 billion to rebuild the electricity sector, which is operating at around prewar output levels, $4.33 billion for public works and water, $4.56 billion for security, and $1.7 billion for oil.
Nash said most of the remaining projects would be awarded before power is transferred to an Iraqi government in July.
A rebuilt Iraq with a growing economy could help lessen hostility to the US-led occupation and increase the legitimacy of the Iraqi government due to take power from the US-led forces on July 1.
Iraqi Planning Minister Mehdi al-Hafedh said success of the power transfer partly depended on improved security and progress on infrastructure rebuilding.
"Iraq can liberate millions of its citizens from poverty through sound economic policies," Hafedh said, adding that years of Baath Party mismanagement had helped ruin the economy.
"Creating jobs could have direct results on the general economic condition, help uproot terrorism and finish extremism," he said.
Hafedh, Nash and Iraq's US governor Paul Bremer held a news conference on Monday to detail the $18.4 reconstruction projects, which they said laid the basis for Iraqi prosperity.