Within Iraq, a new era in both business and politics has begun. Aided by the support of coalition countries, the rebuilding effort in Iraq has grown in momentum, with a number of key outlined objectives met since the redevelopment commenced in 2003.

Businesses from across the globe have worked with Iraqis to aid in the country's reconstruction, with a multitude of projects undertaken in various sectors, including programs in education, healthcare, food security, infrastructure reconstruction, airport and seaport management, economic growth, community development initiatives, local governance and transition initiatives.

In less than one year, over 2,100 projects have started and are going strong – including 349 completed ones. A further look at the numbers reveals that $1.89 billion of work is in place and $7.92 billion has been obligated. Obligated commonly refers to funds that have are contractually and legally tied to particular projects. These obligated funds will be disbursed as construction milestones are met.

Background

The Program Management Office (PMO) was set up by the Coalition Provisional Authority (CPA) to prioritise and oversee all procurement funded by the new US government appropriation of over $18.6 billion for Iraq's reconstruction. In January 2004 the PMO released nine requests for proposals (RFPs) for 17 contracts, awarded in March 2004. Seven of these contracts were for program management services, one of which supported the activities of the PMO, while the other six supported the electrical, public works and water, security and justice, building and health, transport and communications, and oil sectors respectively.

Companies from 63 coalition countries were eligible to compete as prime contractors, while companies from all non-terrorist countries are eligible for sub-contracts, provided that they demonstrated the necessary experience, financial capability, personnel competancy and desire to have a positive impact on the Iraqi economy. These prime contractors and sub-contractors were expected to partner with local Iraqi companies at every opportunity.

Transfer of power

In July 2004, the PMO confirmed that it would continue work on $18.4 billion in infrastructure projects in the reconstruction of Iraq following the transfer of power to the country's interim government on 28 June 2004, announcing that it would now be known as the Project and Contracting Office (PCO). The mission of the PCO is to serve the people of the United States and Iraq by contracting for and delivering services, supplies and infrastructure identified within the Iraqi Relief and Reconstruction Fund (IRRF).

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