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Australia looks for rebuild role
SYDNEY, Australia (CNN) -- Australian companies will be able to compete for sub-contracting work in the multi-billion dollar rebuilding of Iraq, according to the Australian Government. The United States Agency for International Development (USAID) said last week only U.S. companies would be able to bid for the initial contracts, worth about $2 billion, that it is awarding. But Australian Trade Minister Mark Vaile said Canberra had won assurances from the U.S. administration that Australian companies would be eligible to take part in the USAID program as sub-contractors. Australia is a strong supporter of the U.S.-led military campaign in Iraq, and has contributed about 2,000 troops, along with warplanes and warships. About 50 Australian companies so far have expressed interest in being involved in the reconstruction of Iraq, an Australian government official said Monday. Martin Walsh, national infrastructure manager for the Australian trade and investment promotion agency Austrade, told CNN Monday that the initial focus was on infrastructure reconstruction and development. Australian companies are also regarded as being well-positioned to contribute in humanitarian relief in Iraq, in sectors such as agribusiness, resources, power generation and distribution, water and sanitation, telecommunications, education and health services. "Australia has a great deal of relevant expertise in relief and reconstruction," Vaile said in a statement on Sunday. Walsh said Australian companies are being encouraged to present their capabilities to Austrade so that information can be exchanged with U.S. companies. USAID is in the process of awarding eight civilian contracts for initial reconstruction, with an estimated value of $900 million. These cover seaport and airport administration, capital construction (the largest item, at $600 million), health, education, personnel support, theatre logistical support and local governance. About half of the value of this work may go to subcontractors, including those from other countries. Walsh said Austrade is coordinating its efforts with a number of Australian interested parties, including the Australia Arab Chamber of Commerce and Industry, Australian Business Ltd, Australian Industry Group, ISONET and the Australian Council for Infrastructure Development. Other agencies
In addition to the USAID contracts, major agencies such as the United Nations and the World Bank will have humanitarian and reconstruction programs for Iraq. British Prime Minister Tony Blair is to meet U.S. President George W. Bush in Northern Ireland later on Monday, with reconstruction a large part of the agenda. Britain is the major ally of the U.S. in the attack of Iraq, contributing about 45,000 troops, along with warships and aircraft. But Blair has called for a larger U.N. role in postwar Iraq, a view that is at odds with the White House. An assessment in February by the Washington-based Center for Strategic and Budgetary Assessments suggested Iraq's reconstruction could cost anywhere from $10 billion to more than $100 billion. Help for neighboring countries could cost up to another $10 billion, as could humanitarian assistance. Another $5 billion to $12 billion could go on governance and up to $360 billion for debt relief. Along with Australia, China too has been lobbying for a share of Iraq's post-war reconstruction pie, despite the barrage of criticism in its official media against Washington for having attacked Iraq without U.N. approval. In a report over the weekend, the official Xinhua news agency said that since Chinese products had a good reputation in Iraq, economic cooperation between the two countries could resume very quickly after the war. Liu Yueqing, a Middle East expert at the Chinese Academy of Social Sciences said major state-owned enterprises in the areas of oil, electricity, petrochemicals, and building construction had won $1.34 billion worth of contracts under the "food for oil" program mandated by the United Nations. China's Global Times reported that state-owned Chinese construction firms were eager to return to the Iraqi market. It said some of these companies had had more than a decade of experience in civil engineering and infrastructure projects in the Middle East. The newspaper said Iraq could in future become one of China's major export markets. In Japan, the administration of Prime Minister Junichiro Koizumi is considering the deployment of Self-Defense Force personnel to assist in rebuilding Iraq's infrastructure, according to the Nihon Keizai Shimbun. The business daily said this could involve providing medical and transport assistance, and participating in mine-clearing activities.
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