WASHINGTON, 11 October 2003 — The World Bank estimates Iraq’s reconstruction needs at $55 billion by 2007, including $17.5 billion for next year.
The long-awaited report, available on the World Bank website yesterday, confirmed the lower range of figures mentioned in recent debate in the US Congress.
The large sums involved would help correct “nearly 20 years of neglect and degradation of the country’s infrastructure, environment and social services”, the report said. The assessment came as international donors prepared to meet in Madrid Oct. 23 to 24 to discuss how to help Iraq rebuild after the United States and Britain ousted Saddam Hussein.
US President George Bush has made little headway with overtures for financial support through the United Nations, where he is also seeking military support to bolster or replace the more than 130,000 troops from the United States, Britain and dozens of other countries now stationed in the region.
US Secretary of Defence Donald Rumsfeld has told the US Congress he does not expect more than several billion dollars to be forthcoming from the donor conference.
The Core Group on Iraq — the United Arab Emirates, the United States, the European Union and Japan — along with the United Nations Development Group contributed to the World Bank report.
The group warned that the report was based on “the best possible data available” given “overall security and travel constraints” that included the lethal bombing of UN headquarters in Baghdad in August.
The financial needs for 2004 include $9.3 billion to cover desperate humanitarian needs and reconstruction of the health, education and water infrastructures. Another $8.2 billion is needed for security and police, oil infrastructure, and other needs.
Some of the costs can be covered by internal financing, from oil or tax revenues or private investments, the group said.
Meanwhile, major donors to Iraq have agreed how to operate a fund to channel aid independently of the US-led occupation authority and will unveil details next Tuesday, a European Commission official said in Brussels yesterday. “The design is pretty well complete and will be presented on Oct. 14 in New York in front of all potential donors,” the official said.
Details of the multi-donor trust fund have been worked out by a core group of donors, including the United States, international financial organizations and the European Union, which has pledged 200 million euros in reconstruction aid for the 14 months from November 2003 to the end of 2004.
While the EU has already pledged 200 million euros from the community budget ahead of the conference, the EU’s executive, the commission, expects individual states to make separate donations, paying them through the new fund.
No donor country has yet announced any figures, although some numbers may be made public when EU foreign ministers meet in Luxembourg on Monday. “There are no public pledges that we know of yet. Monday would be an opportunity if there are any member states who want to get the ball rolling,” the official said.
Diplomats said the EU had rejected any idea of linking its financial contribution to a new UN resolution setting a timetable for an early transfer of sovereignty to Iraqis under UN supervision.