"Most amazing of all, the OMB report showed that not a single cent of US

money had been spent on Iraqi healthcare, water treatment or sanitation
projects--though $9 million was dithered away on administrative costs of

now defunct Coalition Provisional Authority."
"In all, the CPA spent roughly $19 billion of Iraqi oil money--on what
exactly is not quite clear."

Bingo!! Not so hilarious, but interesting.
Fables of the Reconstruction
by CHRISTIAN PARENTI The Nation, August, 2004

As we speed down the Tigris River under a brilliant sun in a fiberglass
skiff, Iraq almost seems like Vacationland--but only for a moment. Soon
we're dodging the half-submerged barges and ferries sunk in last year's
bombing. Then two Black Hawk helicopters dash low overhead, their menacing
door gunners fully visible.

Farther on, there are more bad signs. A strange column of dark smoke rises
from a lush palm grove. And suddenly, huge nauseating plumes of raw sewage
spill from pipes at Baghdad's southern edge.

Not far from these fetid torrents are several major water-intake stations
and a handful of fishermen setting long gill nets from wooden boats.

of the fishermen, their vessels tucked in the shade of reed patches

for the nets to fill, say the catch is in decline. "Sometimes the fish
tastes and smells like sewage," explains one. Downriver, millions of

in cities like Basra draw their water from the Tigris.

The sorry state of this river is just one piece of Iraq's failed
reconstruction. Throughout the country, vital systems, from water and

to healthcare and education, are in woeful disrepair. The World Bank
estimates that bringing Iraq back to its 1991 level of development will

$55 billion and take at least four years.

In the past seventeen months, US taxpayers have set aside a total of $24
billion to rebuild Iraq. Most of that sum has not been spent, though
billions of dollars of poorly accounted for Iraqi oil revenues have been
expended, or at least allocated to foreign (mostly American) contractors.

Humanitarians see reconstruction as a moral obligation: a form of
reparations for two US-led wars and thirteen years of brutal sanctions.

a military standpoint, reconstruction is central to the US

effort. The occupation's star officers, like Maj. Gen. David Petraeus,
readily acknowledge that a broken economy means more violence. But seen up
close, reconstruction in Iraq looks less like a mission of mercy or a
sophisticated pacification program and more like a criminal racket.

At the Rustimiyah South sewage-treatment plant, all is quiet except for a
few mourning doves in the eucalyptus trees and a handful of Iraqi
construction workers building a brick shed to house a new generator. This
plant and its sister facility, Rustimiyah North, have been sitting
dry--waiting for Bechtel, the largest US construction company and one of

lead contractors in occupied Iraq.

As soon as Baghdad fell, Bechtel was in Iraq making deals with USAID, the
government agency tasked with overseeing reconstruction. In total, the

now has more than $2.8 billion in Iraq reconstruction jobs. As the

contractor on much of Iraq's water system, as well as key parts of its

grid and some of the healthcare infrastructure, Bechtel's responsibilities
are quite broad. Its initial April 2003 contract stated:

The contractor will commence repairs of water infrastructure in 10 urban
areas within the first month. Within the first 6 months the contractor

repair or rehabilitate critical water treatment, pumping and distribution
systems in 15 urban areas. Within 12 months potable water supply will be
restored in all urban centers, by the end of the program approximately 45
urban water systems will be repaired and put in good operational

and environmentally sound solid waste disposal will be established.

None of those deadlines have been met--but luckily Bechtel's contracts are
indemnified with loophole phrases like "depending on the availability of
equipment."

The Rustimiyah sewage plants are among the few facilities given explicit
mention as priority projects in Bechtel's contract-related documents.
Together the two plants should handle all the sewage from Baghdad's

east side, known as Rusafa; before the war the plants were fully

but working beyond capacity. During the invasion they were knocked out by
fighting and were then further damaged by looting. The sister plants

processed any sewage since April 2003.

Now their daily flow of 780,000 cubic yards of human and industrial

nasty cocktail of organic solids, heavy metals and poisonous chemicals

a battery factory, a soap factory, an electronics plant and other light
industry--goes directly into the Diyala River, which joins the Tigris

miles southwest of the plants. A third plant, farther north, has just
started up again, but it is working at only about 20 percent capacity.

Rustimiyah South's director is Riyidh Numan, a hospitable and reflective
engineer in his early 30s working for the Baghdad Sewage Authority. Since
Bechtel took over a year ago, his job has mostly consisted of sitting

and waiting for the foreign contractors to execute the repairs. Numan says
the first thing Bechtel did when it showed up was to start painting
buildings. He demanded that they stop and switch to repairing the plant's
primary functions. Since then work has been slow, and all Numan can do is
complain to the Baghdad Sewage Authority, which in turn dispatches

letters to Bechtel.

On a tour of the wrecked plant, we stroll past the empty desiccation beds
and the empty settlement and de-greasing tanks and then descend three
stories below ground into the plant's guts. In a dimly lit, cavernous pit
lined with massive pipes and VW-bug-sized German pumps, Numan speaks more
freely.

"Bechtel got angry at me when I talked to Azzaman," he says, referring to

major Iraqi newspaper. "We were supposed to be back on line in June, then
September. Now it's January. Every day we send untreated sewage into the
river, thousands of people downstream become sick." He pauses. "This work

more important than schools. It's more important than hospitals. This is
about preventing problems."

Will Rustimiyah South be on line by New Year's? For a moment it seems like
Numan won't answer the question, then, looking in the pit below, he says,
"No, this will not get done. The parts aren't even here yet." Asked about
these problems, Bechtel spokesman Francis Canavan acknowledged the
regrettable delays in the sewage rehab work but attributed them to the
complicated nature of the task: Many old machines have to be custom

in Europe. And then there is the abysmal security. Looting and ambushes on
all the main highways have held up the arrival of crucial parts.

But Iraqi engineers and engineering professors I interviewed at
water-treatment plants and power stations and at Baghdad University all
claim that the work could be going much faster if the "accumulated
knowledge" of Iraqi engineers were put to better use.

"These systems, their repairs, they are not all on some blueprint
somewhere," says Gazwan Muktar, a rather intense, highly intellectual
retired electrical engineer. "You need to have the people who spent twenty
years running these irrigation canals or power plants to be there. They

the tricks; they know the quirks. But the foreign contracts ignore Iraqis,
and as a result they get nowhere!"

Conditions at the other end of the pipe--that is, at Baghdad's seven
drinking-water-treatment plants--are also bad. At the Mishrul Magi Al

plant, a crew of about a dozen engineers and technicians wage a quiet
struggle to supply 15-20 percent of the city's potable water. Al Wahady
first went on line in the early 1950s. Its capacity is now stretched to

limit, and a few miles upstream two sewage-discharge stations contaminate
the river, making the plant's job even harder.

The plant needs lots of help. It lacks a forklift to move the huge metal
canisters of chlorine gas (which comes from UNICEF, not Bechtel). It lacks
emergency medical gear, basic tools and a lab to test its water for
biological contamination or excess chlorine. Most treatment plants test
their water three times a day, but here a mobile technician takes samples

a lab only three times a week.

The manager, Jabbar Sattar, needs a car--his was shot up by US troops a

ago and now sits on the plant's lawn as a totem to close calls and
longevity. To get to the local government offices downtown or check on the
plants' riverfront intake pumps, Sattar has to take cabs and use his own
money. The plant even needs mundane things like lighting, a bathroom and
desks.

"We had big promises from Bechtel, but I only met with them twice," says
Sattar. There is one bit of good news: At the beginning of June, the US

Corps of Engineers started supplying emergency spare parts and tools and
helping to refurbish some of the plant's intake pumps down by the river.

The situation is almost identical at several other water-treatment plants

visited. Bechtel and its subcontractors are rarely around; the local
managers are kept in the dark about what work is planned; the emergency
support (such as supplies of chlorine gas and spare parts) comes from
UNICEF, the Red Cross, the Swiss Embassy or various European NGOs and more
recently from the US Army Corps of Engineers. Bechtel is never mentioned

providing help.

"Water is very important to life," says Layla Mijbil, deputy manger of the
Al Wathba water-treatment plant in north central Baghdad. "And when there

no care for water there is no care for Iraqi life." Bizarrely, Bechtel

off these complaints with reference to the limits placed on it by USAID's
job orders.

"We only do work that we have a job order for," explains Bechtel's

Who generates these job orders? USAID. And how does USAID make these
decisions? "We submit the job orders to them for approval," says Canavan.

still seems that Bechtel simply gets to decide on its own how much work it
will, or will not, do for $2.8 billion of US taxpayers' money. Canavan
doesn't like this suggestion and says I am visiting the wrong places. I
should go to the Sharkh Dijlah treatment plant, formally known as the Saba
Nissan plant, or Seventh of April (named for an old Baathist holiday).

"We are doing a major expansion on that facility, says Canavan. All the
equipment is brand-new. It's a major investment which will really help
Baghdad."

As at most job sites, getting in requires five signatures from various

bureaucracies. When I finally get to the Sharkh Dijlah, just north of
Baghdad, there is indeed construction under way, but no workers around.
Bechtel has just sent out a warning about guerrilla attacks, and the night
before some mortars landed in a village just outside the plant.

The Sharkh Dijlah expansion will increase the plant's potable outflow from
120 million gallons a day to 170 million. But on closer examination, the
work is not as impressive as it seems. First of all, Bechtel's initial
completion date was this summer, but by early July the work was far from
done. And a second expansion has been canceled.

This project is not solely the work of Bechtel. The extension was started
several years ago by the Iraqi government and a Greek construction firm.
When Bechtel arrived, the designs were complete, 75 percent of the
extension's parts were already delivered and paid for, and about 20

of the civil engineering was done.

Bechtel spent four months studying the plans, then announced they were
adequate, kicked out the Greek firm, took over the project and allowed

of the original Iraqi subcontractors to continue their work. Bechtel was,
according to its own paperwork, also supposed to assist in refurbishing

supplying the already existing parts of Sharkh Dijlah. The Iraqi engineers
here say they instead rely on the local water department and some aid from
the UN.

Progress in rehabilitating the electrical grid is also in limbo. At the Al
Daura power plant, Baghdad's main source of electricity, Bechtel's main
subcontractors, Siemens and General Electric, fled after four Russian
contractors were assassinated, according to sources at the plant.
Nationally, output was to have reached 6,500 megawatts per day by now but

stalled at 4,500 megawatts. Schools listed as fully rebuilt are in fact
flooded with sewage and lack desks, but are often freshly painted. Health
clinics listed as fixed are dilapidated, low on supplies and short on

and electricity. When I interviewed the Deputy Minister of Health, Dr.

Al-Khuzaie, he claimed not to even know the name of the US firm that has

contract to supply his ministry with medicine. Everywhere one looks, the
reconstruction effort is marked by chaos, corruption and incompetence.

One problem is that most of the promised American financial help hasn't
materialized. Of the $24 billion in US tax money set aside to rebuild

only $5.3 billion had been allocated to specific reconstruction contracts

of late June 2004. According to a report from the White House Office of
Management and Budget, of the $18.4 billion reconstruction honey-pot
approved last fall only $366 million had been spent by late June--that is,
invested in Iraq. Instead of creating 250,000 jobs for Iraqis, as was the
original goal, at most 24,000 local workers have been hired.

Most amazing of all, the OMB report showed that not a single cent of US

money had been spent on Iraqi healthcare, water treatment or sanitation
projects--though $9 million was dithered away on administrative costs of

now defunct Coalition Provisional Authority. Most of the little that has
been invested in healthcare, water treatment and sanitation has come from
Iraqi oil revenues, managed for most of last year by the Development Fund
for Iraq, a US controlled successor to the UN-run Oil for Food program. In
all, the CPA spent roughly $19 billion of Iraqi oil money--on what exactly
is not quite clear.

A recent audit by the accounting firm KPMG on behalf of the International
Advisory and Monitoring Board (IAMB)--a UN project to monitor the use of
Iraqi oil money--found that four major CPA-awarded contracts were granted
(in violation of CPA rules) without competitive bidding. For seven other
contracts, which the CPA insisted were awarded via competitive bidding,
there is no evidence to back up this claim.

Six other projects were improperly approved by a skeleton crew of the

Program Review Board. Contract approval required the presence of at least

percent of that board's voting members, but decisions were frequently made
without a quorum. The only Iraqi with voting power on the PRB attended a
mere two of the board's forty-three meetings.

In the face of this damning KPMG audit, a CPA spokesperson told the
Financial Times that "extraordinary steps" had been taken to make sure

funds were expended in the interests of the Iraqi people." But a new

by the CPA's inspector general reinforced KPMG's conclusions, documenting
extensive corruption and waste in the handling of Iraqi oil money by US
officials and private contractors, twenty-seven of whom face criminal
investigations.

What does the failure of reconstruction mean for the average Iraqi? The
answer is evident in places like the village of Amar Bin Yasser, not far
from where the Rustimiyah's untreated sewage hits the Diyala River.

In a palm-frond-and-plywood kiosk by a road, Khalid Salman and his three
young nephews sell lamb and mutton. The meat hangs in the shade, greasy

dotted with flies. Beside Salman and the boys are two peaceful sheep,
oblivious to the fate awaiting them. Across the road is the river: a thick
soup of sewage. Salman explains that since the war, he has been unable to
use the river water even for his animals. Instead he has to buy water at

dinars a liter (less than a penny) from tanker trucks that come down from
Baghdad. The price is not high, but neither is Salman's income.

"The farmers here suffer from rashes and disease," says Salman. "To

their fields they sometimes have to stand in this water up to their

Many children are sick with some kind of poisoning, and we all have

pains." He says the pollution contaminates the local wells and has brought
swarms of insects, and because there is so little electricity it is hard

keep the bugs away from the children at night with electric fans. Medical
care is meager at the local clinics; there are doctors but no medicine.

His tirade is cut short as a convoy of US tanks rolls by, towed on
heavy-duty flatbed trucks. From the turrets, grim-looking soldiers behind
.50-caliber machine guns watch the mud huts pass below them. Salman glares
at the convoy with hate in his eyes. This is resistance country, and the
local base gets mortared regularly. Each tank has a nickname stenciled on
its cannon barrel: Fat *****, Controlled Rage, Crotch Rocket, Another

and Chubby Cowboy.

Farther downriver the situation is the same. In the village of Azhira a
woman in a black abaya with blue tattoos on her chin explains how the
village is dependent on the tanker trucks and cash for its water. Her
husband says all the fish are dead and that the fishermen have no work.

get only three hours of electricity and then are cut off for up to five
hours at a time. It is hard to keep food fresh, and the heat only makes it
worse.

Outside the village I stop and talk with a squad of GIs whose armored

is tucked beneath a stand of trees along a raised dirty road. Their

is to guard a bridge over the Diyala and keep tabs on Azhira.

"Everything's pretty mellow," says one of the soldiers. His comrades read
magazines in the Humvee or watch the surrounding trees and houses.
"Sometimes they take potshots at us from over there." He points to the
village. "But when you meet the people, they're not all bad." None of the
GIs are aware of the water situation or the sewage problem or the real
extent of the economic crisis around them. But they are not unsympathetic.
"Living near a river of *****--that would definitely suck," says one of

"No wonder these people are pissed."

"Most amazing of all, the OMB report showed that not a single cent of US

money had been spent on Iraqi healthcare, water treatment or sanitation
projects--though $9 million was dithered away on administrative costs of

now defunct Coalition Provisional Authority."
"In all, the CPA spent roughly $19 billion of Iraqi oil money--on what
exactly is not quite clear."

Bingo!! Not so hilarious, but interesting.
Fables of the Reconstruction
by CHRISTIAN PARENTI The Nation, August, 2004

As we speed down the Tigris River under a brilliant sun in a fiberglass
skiff, Iraq almost seems like Vacationland--but only for a moment. Soon
we're dodging the half-submerged barges and ferries sunk in last year's
bombing. Then two Black Hawk helicopters dash low overhead, their menacing
door gunners fully visible.

Farther on, there are more bad signs. A strange column of dark smoke rises
from a lush palm grove. And suddenly, huge nauseating plumes of raw sewage
spill from pipes at Baghdad's southern edge.

Not far from these fetid torrents are several major water-intake stations
and a handful of fishermen setting long gill nets from wooden boats.

of the fishermen, their vessels tucked in the shade of reed patches

for the nets to fill, say the catch is in decline. "Sometimes the fish
tastes and smells like sewage," explains one. Downriver, millions of

in cities like Basra draw their water from the Tigris.

The sorry state of this river is just one piece of Iraq's failed
reconstruction. Throughout the country, vital systems, from water and

to healthcare and education, are in woeful disrepair. The World Bank
estimates that bringing Iraq back to its 1991 level of development will

$55 billion and take at least four years.

In the past seventeen months, US taxpayers have set aside a total of $24
billion to rebuild Iraq. Most of that sum has not been spent, though
billions of dollars of poorly accounted for Iraqi oil revenues have been
expended, or at least allocated to foreign (mostly American) contractors.

Humanitarians see reconstruction as a moral obligation: a form of
reparations for two US-led wars and thirteen years of brutal sanctions.

a military standpoint, reconstruction is central to the US

effort. The occupation's star officers, like Maj. Gen. David Petraeus,
readily acknowledge that a broken economy means more violence. But seen up
close, reconstruction in Iraq looks less like a mission of mercy or a
sophisticated pacification program and more like a criminal racket.

At the Rustimiyah South sewage-treatment plant, all is quiet except for a
few mourning doves in the eucalyptus trees and a handful of Iraqi
construction workers building a brick shed to house a new generator. This
plant and its sister facility, Rustimiyah North, have been sitting
dry--waiting for Bechtel, the largest US construction company and one of

lead contractors in occupied Iraq.

As soon as Baghdad fell, Bechtel was in Iraq making deals with USAID, the
government agency tasked with overseeing reconstruction. In total, the

now has more than $2.8 billion in Iraq reconstruction jobs. As the

contractor on much of Iraq's water system, as well as key parts of its

grid and some of the healthcare infrastructure, Bechtel's responsibilities
are quite broad. Its initial April 2003 contract stated:

The contractor will commence repairs of water infrastructure in 10 urban
areas within the first month. Within the first 6 months the contractor

repair or rehabilitate critical water treatment, pumping and distribution
systems in 15 urban areas. Within 12 months potable water supply will be
restored in all urban centers, by the end of the program approximately 45
urban water systems will be repaired and put in good operational

and environmentally sound solid waste disposal will be established.

None of those deadlines have been met--but luckily Bechtel's contracts are
indemnified with loophole phrases like "depending on the availability of
equipment."

The Rustimiyah sewage plants are among the few facilities given explicit
mention as priority projects in Bechtel's contract-related documents.
Together the two plants should handle all the sewage from Baghdad's

east side, known as Rusafa; before the war the plants were fully

but working beyond capacity. During the invasion they were knocked out by
fighting and were then further damaged by looting. The sister plants

processed any sewage since April 2003.

Now their daily flow of 780,000 cubic yards of human and industrial

nasty cocktail of organic solids, heavy metals and poisonous chemicals

a battery factory, a soap factory, an electronics plant and other light
industry--goes directly into the Diyala River, which joins the Tigris

miles southwest of the plants. A third plant, farther north, has just
started up again, but it is working at only about 20 percent capacity.

Rustimiyah South's director is Riyidh Numan, a hospitable and reflective
engineer in his early 30s working for the Baghdad Sewage Authority. Since
Bechtel took over a year ago, his job has mostly consisted of sitting

and waiting for the foreign contractors to execute the repairs. Numan says
the first thing Bechtel did when it showed up was to start painting
buildings. He demanded that they stop and switch to repairing the plant's
primary functions. Since then work has been slow, and all Numan can do is
complain to the Baghdad Sewage Authority, which in turn dispatches

letters to Bechtel.

On a tour of the wrecked plant, we stroll past the empty desiccation beds
and the empty settlement and de-greasing tanks and then descend three
stories below ground into the plant's guts. In a dimly lit, cavernous pit
lined with massive pipes and VW-bug-sized German pumps, Numan speaks more
freely.

"Bechtel got angry at me when I talked to Azzaman," he says, referring to

major Iraqi newspaper. "We were supposed to be back on line in June, then
September. Now it's January. Every day we send untreated sewage into the
river, thousands of people downstream become sick." He pauses. "This work

more important than schools. It's more important than hospitals. This is
about preventing problems."

Will Rustimiyah South be on line by New Year's? For a moment it seems like
Numan won't answer the question, then, looking in the pit below, he says,
"No, this will not get done. The parts aren't even here yet." Asked about
these problems, Bechtel spokesman Francis Canavan acknowledged the
regrettable delays in the sewage rehab work but attributed them to the
complicated nature of the task: Many old machines have to be custom

in Europe. And then there is the abysmal security. Looting and ambushes on
all the main highways have held up the arrival of crucial parts.

But Iraqi engineers and engineering professors I interviewed at
water-treatment plants and power stations and at Baghdad University all
claim that the work could be going much faster if the "accumulated
knowledge" of Iraqi engineers were put to better use.

"These systems, their repairs, they are not all on some blueprint
somewhere," says Gazwan Muktar, a rather intense, highly intellectual
retired electrical engineer. "You need to have the people who spent twenty
years running these irrigation canals or power plants to be there. They

the tricks; they know the quirks. But the foreign contracts ignore Iraqis,
and as a result they get nowhere!"

Conditions at the other end of the pipe--that is, at Baghdad's seven
drinking-water-treatment plants--are also bad. At the Mishrul Magi Al

plant, a crew of about a dozen engineers and technicians wage a quiet
struggle to supply 15-20 percent of the city's potable water. Al Wahady
first went on line in the early 1950s. Its capacity is now stretched to

limit, and a few miles upstream two sewage-discharge stations contaminate
the river, making the plant's job even harder.

The plant needs lots of help. It lacks a forklift to move the huge metal
canisters of chlorine gas (which comes from UNICEF, not Bechtel). It lacks
emergency medical gear, basic tools and a lab to test its water for
biological contamination or excess chlorine. Most treatment plants test
their water three times a day, but here a mobile technician takes samples

a lab only three times a week.

The manager, Jabbar Sattar, needs a car--his was shot up by US troops a

ago and now sits on the plant's lawn as a totem to close calls and
longevity. To get to the local government offices downtown or check on the
plants' riverfront intake pumps, Sattar has to take cabs and use his own
money. The plant even needs mundane things like lighting, a bathroom and
desks.

"We had big promises from Bechtel, but I only met with them twice," says
Sattar. There is one bit of good news: At the beginning of June, the US

Corps of Engineers started supplying emergency spare parts and tools and
helping to refurbish some of the plant's intake pumps down by the river.

The situation is almost identical at several other water-treatment plants

visited. Bechtel and its subcontractors are rarely around; the local
managers are kept in the dark about what work is planned; the emergency
support (such as supplies of chlorine gas and spare parts) comes from
UNICEF, the Red Cross, the Swiss Embassy or various European NGOs and more
recently from the US Army Corps of Engineers. Bechtel is never mentioned

providing help.

"Water is very important to life," says Layla Mijbil, deputy manger of the
Al Wathba water-treatment plant in north central Baghdad. "And when there

no care for water there is no care for Iraqi life." Bizarrely, Bechtel

off these complaints with reference to the limits placed on it by USAID's
job orders.

"We only do work that we have a job order for," explains Bechtel's

Who generates these job orders? USAID. And how does USAID make these
decisions? "We submit the job orders to them for approval," says Canavan.

still seems that Bechtel simply gets to decide on its own how much work it
will, or will not, do for $2.8 billion of US taxpayers' money. Canavan
doesn't like this suggestion and says I am visiting the wrong places. I
should go to the Sharkh Dijlah treatment plant, formally known as the Saba
Nissan plant, or Seventh of April (named for an old Baathist holiday).

"We are doing a major expansion on that facility, says Canavan. All the
equipment is brand-new. It's a major investment which will really help
Baghdad."

As at most job sites, getting in requires five signatures from various

bureaucracies. When I finally get to the Sharkh Dijlah, just north of
Baghdad, there is indeed construction under way, but no workers around.
Bechtel has just sent out a warning about guerrilla attacks, and the night
before some mortars landed in a village just outside the plant.

The Sharkh Dijlah expansion will increase the plant's potable outflow from
120 million gallons a day