Monday, August 30, 2010
KHAN BANI SAAD, Iraq – A $40 million prison sits in the desert north of Baghdad, empty. A $165 million children's hospital goes unused in the south. A $100 million waste water treatment system in Fallujah has cost three times more than projected, yet sewage still runs through the streets
As the U.S. draws down in Iraq, it is leaving behind hundreds of abandoned or incomplete projects. More than $5 billion in American taxpayer funds has been wasted — more than 10 percent of the some $50 billion the U.S. has spent on reconstruction in Iraq, according to audits from a U.S. watchdog agency.
That amount is likely an underestimate, based on an analysis of more than 300 reports by auditors with the special inspector general for Iraq reconstruction. And it does not take into account security costs, which have run almost 17 percent for some projects. […]
Christensen acknowledged that mistakes have been made. But he said steps have been taken to fix them, and the success of the program will depend ultimately on the Iraqis — who have complained that they were not consulted on projects to start with.
"There's only so much we could do," Christensen said. "A lot of it comes down to them taking ownership of it."
The reconstruction program in Iraq has been troubled since its birth shortly after the U.S.-led invasion in 2003. The U.S. was forced to scale back many projects even as they spiked in cost, sometimes to more than double or triple initial projections.
As part of the so-called surge strategy, the military in 2007 shifted its focus to protecting Iraqis and winning their trust. American soldiers found themselves hiring contractors to paint schools, refurbish pools and oversee neighborhood water distribution centers. The $3.6 billion Commander's Emergency Response Program provided military units with ready cash for projects, and paid for Sunni fighters who agreed to turn against al-Qaida in Iraq for a monthly salary.
But sometimes civilian and military reconstruction efforts were poorly coordinated and overlapped.
Iraqis can see one of the most egregious examples of waste as they drive north from Baghdad to Khan Bani Saad. A prison rises from the desert, complete with more than two dozen guard towers and surrounded by high concrete walls. But the only signs of life during a recent visit were a guard shack on the entry road and two farmers tending a nearby field.
In March 2004, the Corps of Engineers awarded a $40 million contract to global construction and engineering firm Parsons Corp. to design and build a prison for 3,600 inmates, along with educational and vocational facilities. Work was set to finish in November 2005.
But violence was escalating in the area, home to a volatile mix of Sunni and Shiite extremists. The project started six months late and continued to fall behind schedule, according to a report by the inspector general. […]
Another problem was coordination with the Iraqis, who have complained they weren't consulted and often ended up paying to complete unfinished facilities they didn't want in the first place.
"Initially when we came in ... we didn't collaborate as much as we should have with the correct people and figure out what their needs were," Christensen said. He stressed that Iraqis are now closely involved in all projects. […]
The U.S. military pinned great hopes on a $5.7 million convention center inside the tightly secured Baghdad International Airport compound, as part of a commercial hub aimed at attracting foreign investors. A few events were held at the sprawling complex, including a three-day energy conference that drew oil executives from as far away as Russia and Japan in 2008, which the U.S. military claimed generated $1 million in revenues.
But the contracts awarded for the halls did not include requirements to connect them to the main power supply. The convention center, still requiring significant work, was transferred to the Iraqi government "as is" on Jan. 20, according to an audit by the inspector general's office.
The buildings have since fallen into disrepair, and dozens of boxes of fluorescent lightbulbs and other equipment disappeared from the site. Light poles outside have toppled over and the glass facade is missing from large sections of the abandoned buildings.
Waste also came from trying to run projects while literally under fire. […]
By contrast, the Basra children's hospital — one of the largest projects undertaken by the U.S. in Iraq — looks like a shining success story, with gardeners tending manicured lawns in preparation for its opening. But that opening has been repeatedly delayed, most recently for a lack of electricity.
The construction of a "state of the art" pediatric specialist hospital with a cancer unit was projected to be completed by December 2005 for about $50 million. By last year, the cost had soared above $165 million, including more than $100 million in U.S. funds, and the equipment was dated, according to an auditors' report.
Investigators blamed the delays on unrealistic timeframes, poor soil conditions, multiple partners and funding sources and security problems at the site, including the murder of 24 workers. Bechtel, the project contractor, was removed because of monthslong delays blamed on poor subcontractor performance and limited oversight, the special inspector general's office said. A Bechtel spokeswoman, Michelle Allen, said the company had recommended in 2006 that work on the hospital be put on hold because of the "intolerable security situation."
In an acknowledgment that they weren't getting exactly what they hoped for, Iraqi officials insisted the label "state of the art" be removed from a memorandum of understanding giving them the facility. It was described as a "modern pediatric hospital."
Hospital director Kadhim Fahad said construction has been completed and the electricity issue resolved.
"The opening will take place soon, God willing," he said.
Residents are pleased with the outcome. One, Ghassan Kadhim, said: "It is the duty of the Americans to do such projects because they were the ones who inflicted harm on people."
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