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Last updated at: (Beijing Time) Saturday, March 20, 2004

Security situation holds off reconstruction process in Iraq

One year after the US-led invasionon Iraq, specialists and experts agreed that the deteriorating security situation in the war-torn country has affected the processof economic rebuilding.


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One year after the US-led invasionon Iraq, specialists and experts agreed that the deteriorating security situation in the war-torn country has affected the processof economic rebuilding.

Members of the US-appointed Iraqi Governing Council (IGC) admitted that the reconstruction process has been very slow becausethe security conditions delayed the reconstruction.

The coalition forces claimed some successes in the post-war reconstruction, but said there are still great challenges in the fields of security and basic services.

One year after the breakout of war, the Iraqi social system has changed little and the people are still living in a fragile financial situation.

Iraq would need more international aid, for till now only one third of the estimated sum of money needed for the reconstruction process has been provided, some experts said, adding that the totalsum needed is estimated at 55 billion US dollars.

"The main problem is security, as it reflects on everything, especially on discouraging investors," said Mohammed al Rubi, an Egyptian lawyer representing a number of foreign companies in Iraq.

After three wars and 13 years of economic sanctions, Iraq's infrastructure was in a bad shape, which has been furthered worsened by the deliberate negligence and wide spread of looting and sabotage after the war last year.

Saad Al Zubaidy, an engineer in the Ministry of Housing, said that the ministry was ready to start rebuilding roads and buildings, but insecurity was an obstacle.

Asim Jihad, a spokesman for the Iraqi Ministry of Oil, also saidthat the restoration of oil institutions in Iraq would have made greater progress if it were not for the frequent attacks against them.

Nevertheless, Iraqi officials expected the production level of crude oil, which was about 2.8 million barrels per day before the war, would be resumed in the first quarter of 2004.

The frequent attacks on the oil pipelines which were used to supply the power plants have affected the power production of Baghdad. Iraq now has a production capacity of about 3500 to 4000 megawatts, only one quarter of its demands.

The Ministry of Electricity hopes to double its production in 2004, but experts said that would not be enough.

As for the sector of telecommunication, technicians hoped that it would be back to normal as soon as possible. The country's mobile phones market started working in February.

Source:Xinhua




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