Fed: Aust set to win Iraq contracts - but BYO security

AAP General News (Australia)
02-11-2004
Fed: Aust set to win Iraq contracts - but BYO security

By Shane Wright

CANBERRA, Feb 11 AAP - Australian companies were told today they had a good chance
of winning contracts to rebuild Iraq - as long as they brought their own security.

Retired Admiral David Nash, head of the Iraqi Provisional Authority's program management
office, said although he could offer no favours to Australian firms he believed they had
the skills required to work in Iraq.

It was Admiral Nash's first visit to Australia where contractors are vying for a share
of the almost $US19 billion ($A24.42 billion) on offer to rebuild the war-torn country.

He addressed a roundtable of 68 companies that included Toyota, Holden, BHP Billiton,
Santos, Leightons, Toro and Longreach Wireless that are looking to tender for some of
the work available.

Almost $US5 billion ($A6.43 billion) in contracts are to be let to rebuild Iraq's power
systems and another $US4 billion ($A5.14 billion) on water and sewerage.

About $US2 billion ($A2.57 billion) is to be spent on security infrastructure, including
training of the Iraqi police officers.

Despite the special visit to Australia, Admiral Nash said the US was constrained in
giving special preference to members of the coalition of the willing for a share of the
contracts.

But he believed Australian firms, particularly in the petroleum, power and water sectors,
would do well once contracts were decided next month.

"I have to be for full and open competition, and the winners will be the ones that
bring the competitive ideas and competitive proposals," he told reporters.

"(But) I have great respect for the Australian people and the Australian contribution.

"I think certainly Australian companies are as competitive as others in the world."

With personal insurance up to $1,000 a day, there are some added costs for firms looking
to work in Iraq.

Admiral Nash said the US would cover acts of terrorism against work done by firms,
but those companies had to also provide some security of their own.

"We're saying you must bring some security for yourself, probably your own camp," he said.

"I'm not only concerned about the security for the people from the terrorists but I
also want to make sure we don't have any friendly fire problems."

Admiral Nash said the situation was improving daily in Iraq, indicating few of the
firms at today's roundtable had raised security concerns.

Already Australian firms have won close to $1 billion worth of work in Iraq, including
$350 million worth of wheat contracts for AWB Ltd.

Trade Minister Mark Vaile said local firms were in a good position to claim even more
work in Iraq.

"Australian companies have already made a significant contribution to Iraq's rehabilitation
and are well positioned to continue this good work, particularly in the fields of agribusiness,
infrastructure, consultancy and other services," Mr Vaile said.

AAP sw/sb/tma/de

KEYWORD: IRAQ AUST NIGHTLEAD

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