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Elias Semaan

Iraq Infrastructure Reconstruction Project Update

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CPA Sectors

NorthCentralHeartlandSouth

Program Goals

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Program Goals

U.S. Government MandateRestoration of the country’s key infrastructure is a priority of the U.S. government’s effort to strengthen Iraq’s economy and ensure delivery of essential services to the Iraqi people.

Bechtel’s RoleOur contract, which runs through December 2004, is for emergency infrastructure repair and rehabilitation work in Iraq.

Key PriorityBechtel intends to subcontract 90% of this work and is working to maximize the participation of Iraqis.

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Mobilization Milestones

Milestone Date Contract award April 17

Mobilize to NoVA April 17

Mobilize to Kuwait April 20

First entry into Iraq April 23

Begin dredging in Port of Umm Qasr May 8

Establish Baghdad pioneer camp May 20

Open Port of Umm Qasr to commercial traffic

June 16

Submit Assessment Report & Recommended Implementation Plan

June 25

Implementation Plan approved by USAID / CPA

July 17

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Staffing

As of December 28, 2003, 128 Bechtel personnel are in Iraqi offices and camps in Baghdad, Mosul, Basrah, and Al Hillah

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Port of Umm Qasr

Port opened to commercial traffic on June 16

Dredging, wreck removal, and grain facility rehabilitation are complete

Port is open to ferry service from Dubai and to bulk ships delivering food and humanitarian supplies

450 jobs created, including employment by Iraqi Grain Board

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Subcontracts

Over 10,000 companies from 100 countries have registered on Bechtel’s supplier portal

183 subcontracts awarded to date 128 subcontracts to 102 different Iraqi companies Goal is to maximize participation of Iraqis, with 70% of

subcontracted work going to Iraqi firms

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Schools

USAID, with Bechtel’s assistance, rehabilitated1,239 schools in less than 3 months

Met goal to complete work by start of the new school year

More than 30,000 local laborers at work at program’s peak

Approximately 1 million children returned to newly refurbished schools

Site visits and follow-up meetings continue, to ensure satisfactory work at all schools in Bechtel’s scope

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Power

At the direction of USAID, Bechtel is reconstructing, repairing, rehabilitating, and upgrading Iraq’s power system

Work includes generation, transmission, and distribution; CPA Program support; and institutional strengthening of Iraq’s Ministry of Electricity

Working with other USAID and CPA contractors, restored generation to pre-conflict

levels of 4,400 MW per day

Progressing toward target of 6,000 MW per day by summer 2004

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Roads and Bridges

Bechtel is reconstructing three key bridges in Iraq: Khazir Bridge, Al Mat Bridge, and Tikrit Bridge

Four-lane Al Mat Bridge bypass completed in July 2003

Reconstruction work moving forward on all three priority bridges

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Rail

Bechtel and Iraqi Republic Railways (IRR) are constructing a new European-standard rail line to improve freight transport service from the Port of Umm Qasr to the rest of Iraq

Five-fold increase in train service expected Repairing IRR-owned equipment and workshops Training IRR personnel in current industry practices

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Airports

Bechtel is helping to restore critical infrastructure at Baghdad and Basrah International Airports

Baghdad airport ready to receive commercial flights

Work includes: Providing emergency power Installing communications systems Installing security fencing and lighting

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Water/Wastewater

The mission: Restore Iraq’s water and sanitation systems to ensure a reliable supply of potable water to the general public

Work includes restoring water and sanitation systems in Baghdad and six other urban centers across Iraq

Completed work on Safwan water supply system south of Basrah, restoring reliable potable water service to Safwan’s 40,000 residents

Ongoing wastewater treatment facility restoration work in Baghdad is helping improve sanitation service for 700,000 people

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Telecommunications

Bechtel is working to restore connectivity to Baghdad area telephone subscribers, and to restore the fiber optic backbone to pre-conflict functionality

The program includes: Installing containerized switches

at 12 sites, allowing reconnection of 240,000 subscribers

Installing international satellite gateway in Baghdad to enable international calls

Restoring the country’s main north-south fiber optic backbone