Iraq reconstruction moves into new phase

Reconstruction work in Iraq has moved beyond its early emphasis on immediate humanitarian relief to a new stage focused on restoring the country's infrastructure and health care system, according to a new report issued by the White House Office of Management and Budget.

At this point, there is no food, refugee or public health crisis in the country, as many before the war had predicted. Nonetheless, the report acknowledges that security remains the top priority of the occupation forces. U.S. forces continue to battle remnants of the Baathist regime of Saddam Hussein, but are also working to reestablish an Iraqi police force and army.

Former New York City Police Commissioner Bernard Kerik is working with Paul Bremer, the head of the U.S.-led occupation authority. Kerik recently completed a study that recommended the creation of a 50,000 to 80,000-strong Iraqi police force. Meanwhile, in mid-July, the Coalition Provisional Authority (CPA) that Bremer heads began to pay out monthly stipends to former members of the Iraqi army. The CPA's current plan is to build a new army of about 40,000 members over two years.

The report also outlines accomplishments in the humanitarian relief and reconstruction efforts. According to the document, the international community led by the United States has delivered more than 1 million tons of food to Iraq, with another 2.2 million tons expected to reach the country by the end of October. The CPA, working with the United Nations World Food Program, has restarted the country's public food distribution system, and purchased 150,000 tons of Iraqi-grown wheat and 20,000 tons of barley.

In the health care sector, the report says that nearly all of Iraq's hospitals are open and receiving patients. Services at these facilities are at approximately 90 percent of their pre-war levels in northern Kurdish areas, 80 percent in southern Iraq, and 70 percent to 75 percent in Baghdad. A national immunization day for children was held on June 22.

Baghdad also trails the rest of the country in the recovery of its electrical grid and water supply. While most of the country has returned to pre-war electricity levels, Baghdad still receives only about 40 percent of its pre-war level of electricity. The problem remains because of "continuing, targeted sabotage of power lines and stations and looting of spare parts and computers," the report said. The water supply in Baghdad is faring better, but is still at only about 80 percent of pre-war levels.

Iraqi funds have helped to fuel the recovery. Limited Iraqi oil exports resumed in late June, and crude oil production is expected to hit 1 million barrels per day by late summer. The revenue from the sale of the oil through Sept. 30 should hit $1 billion. Daily gasoline supplies are fluctuating at between 50 percent and 100 percent of pre-war levels.

Bremer has also begun the process of restoring confidence in Iraqi public institutions. A new judicial review committee, for example, is examining all judges and prosecutors nationwide for complicity in crimes committed under the former regime. New police and army recruits are also being vetted for ties to the old regime.

In reorganizing the Coalition Provisional Authority, Bremer has established a program review board to recommend new projects. The board is made up of members of Bremer's staff, as well as members from the U.S. Agency for International Development, the Defense Department, the Iraqi Ministry of Finance, and representatives of the British and Australian governments.

At the same time, Bremer established a new Council for International Coordination in late June to work with the CPA to "support, encourage and facilitate international participation in the relief, recovery and development efforts in Iraq."

Already, the report says that new multinational divisions under the lead of the United Kingdom and Poland are being established. Countries, including Spain, Italy, the Netherlands, Denmark and El Salvador, have offered to send forces to help fill these new divisions.

Through the end of June, the U.S. government had spent about $2.7 billion in Iraqi and U.S. funds for relief and reconstruction, the report said.

OMB Director Josh Bolten and Deputy Defense Secretary Paul Wolfowitz testified Tuesday before the Senate Foreign Relations Committee, fending off repeated demands by committee members even for off-the-cuff estimates of the postwar reconstruction costs there. As some senators fumed about what Foreign Relations ranking member Joseph Biden, D-Del., labeled the administration's "lack of candor," several others worried about mounting reaction from constituents about seemingly indeterminate tours of duty of U.S. solders in Iraq, as well as continued combat losses against hit-and-run guerrillas.

David Hess of CongressDaily contributed to this report.