Iraq: Recent Developments in Reconstruction Assistance

Abstract

Large-scale reconstruction assistance programs are being undertaken by the United States following the war with Iraq. To fund such programs, Congress approved on April 12, 2003, a $2.48 billion Iraq Relief and Reconstruction Fund in the FY2003 Supplemental Appropriation. On November 6, 2003, the President signed into law P.L. 108-106, the FY2004 Emergency Supplemental Appropriation, providing $18.4 billion for Iraq reconstruction. Contributions pledged at the October 24, 2003, Madrid donor conference by other donors amounted to roughly $3.6 billion in grant aid and as much as $13.3 billion in possible loans. On June 28, 2004, the entity implementing assistance programs, the Coalition Provisional Authority (CPA), dissolved, and sovereignty was returned to Iraq. Security Council Resolution 1546 of June 8, 2004, returned control of assets held in the Development Fund for Iraq to the government of Iraq. U.S. assistance is now provided through the embassy of the United States under Ambassador John Negroponte. Many reconstruction efforts on the ground are underway, but security concerns have slowed progress considerably. Most reconstruction funding is targeted at infrastructure projects roads, sanitation, electric power, oil production, etc. Aid is also used to train and equip Iraqi security forces. A range of programs are in place to offer expert advice to the Iraqi government, establish business centers, rehabilitate schools and health clinics, provide school books and vaccinations, etc. However, of the $18.4 billion appropriated by Congress in October 2003, only $9.6 billion had been obligated and $2.1 billion spent by mid-December 2004. Congress approved on September 29 an Administration-proposed re-allocation of $3.5 billion in previously appropriated reconstruction funds to give greater emphasis to security, employment generation, and debt relief.

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Document Details

Document Type
Technical Report
Publication Date
Dec 20, 2004
Accession Number
ADA472425

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  • Curt Tarnoff

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  • Library of Congress

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