Cyprus takes place in queue for Iraq contracts

Cyprus Weekly ^ | 07-04-03 | Charlie Charalambous

[pkpjamestown]

Cyprus took the opportunity yesterday to edge forward in the pecking order for construction contracts in Iraq during the visit here of America's chief aid administrator for rebuilding the war-torn country.

Andrew Natsios, the administrator of the US Agency for International Development (USAID), is on a two-day visit to Cyprus to witness first-hand UN-run bicommunal projects funded by American money.

But after a meeting with acting-President Demetris Christofias, Natsios conceded that Cypriot companies vying for contracts in Iraq was on the agenda.

San Francisco-based Bechtel has been given the largest contract to restore Iraq's infrastructure but Natsios said 85% of the work would be sub-contracted allowing foreign companies to compete for a slice.

"We have chosen Bechtel to be the prime contractor which means the overall manager of the construction project, but subcontractors may come from any country of the world except from the seven terrorists states," Natsios told reporters.

Federal law prohibits USAID from awarding contracts to non-American companies but they can subcontract to foreign companies and competition is fierce for the multi-million pound projects.

Bechtel has initially been granted $34.6m and the open-ended contract to rebuild Iraq could reach an estimated $680m over 18 months, which is why Cypriot firms are keen to get the nod.

Natsios said the US could "not dictate to Bechtel who they choose" but he said his agency can facilitate companies "connecting" to Bechtel.

However, he encouraged Cypriot firms to participate undertanding their region know-how.

"You know this area (Middle East) of the world very well, your companies are very respected," said Natsios.

"But Bechtel's ultimate judge will not be ethnic background of the company. They will choose a company based on the best, lowest price and highest quality," he added.

Asked whether Cypriot companies met the high criteria Natsios answered: "My impression is yes. But only competition will tell. It's a business proposition."

Moreover, the senior US official thanked Cyprus for agreeing to house the UN's aid relief coordination hub for Iraq following the outbreak of war.

"We do appreciate the facilitation by the Republic of Cyprus of the UN offices here, many of the officers are friends of mine and they tell me they've been treated very well," said Natsios.

Over a hundred humanitarian aid workers were airlifted from Baghdad to Cyprus two days before the US-led war on Iraq began on March 18. An office for the UN humanitarian coordinator for Iraq has remained here on the south coast of Larnaca where UN weapons inspectors also still have a field base.