BAGHDAD, 31 July 2003 — World Bank President James Wolfensohn arrived in Iraq yesterday to assess reconstruction needs, but hinted an aid package for the war-ravaged nation may only materialize after a constitution is drawn up.
“At some point that will, I’m sure, happen but as you know, there is a need first to have a constitution, to have a government, to reestablish Iraq as the Iraqi people would like to have it,” Wolfensohn told reporters after meeting with the United Nations special representative to Iraq, Sergio Vieira de Mello.
Iraq’s government collapsed in April when a US-led coalition invaded the country and toppled the regime of Saddam Hussein on April 9.
Shortly after Saddam’s ouster, Wolfensohn announced that the bank would help in the rebuilding of Iraq under UN auspices, but stressed it could only deal with governments recognized by the world body.
In Baghdad, the bank chief stressed that any aid package drawn up for Iraq would be “one that benefits from and is owned by the Iraqi colleagues and people”.
After his talks with Viera de Mello, which he termed “highly constructive,” Wolfensohn was escorted to coalition headquarters for meetings with US overseer in Iraq, Paul Bremer, and then the newly inducted 25-member Governing Council.
The World Bank director for the Middle East, Joseph Saba, visited Iraq earlier this week and warned Baghdad would have a tough transition to a market economy after a decade of economic sanctions and a tenuous security situation.
Meanwhile, Iraq is planning to reopen its northern Kirkuk oil pipeline in the next few days, a crucial landmark for the rehabilitation of Iraq’s oil industry.
The target of several post-war sabotage attacks, the line through Turkey is being refilled with crude prior to resuming exports, industry sources in Iraq told Reuters yesterday. “The pipeline will be ready for exports by about Aug. 1 and I expect it will be handling about 200,000 to 300,000 barrels a day initially,” one source familiar with the plans said.
Baghdad has been reluctant to discuss a timetable for resuming operations on the pipeline for fear of further sabotage particularly in the area around Baiji, north of Baghdad.
Officials declined comment.
Kirkuk exports of 250,000 bpd would lift total Iraqi crude sales to 900,000 bpd, still well short of pre-war export capacity of 2.2 million bpd.
The Kirkuk line delivers crude from Iraq’s northern fields to the Turkish Mediterranean export terminal Ceyhan — one of two main export routes.
The northern fields can pump about 900,000 bpd but war damage on the pipeline is likely to restrict exports in the near-term to 500,000 bpd.
A bridge, bombed by US forces during the war, collapsed on the line and repairs are needed before larger volumes can be pumped.
Iraq’s oil sales since the war so far have been restricted to supplies from its southern Basra fields. Supplies there now are sufficient to export 650,000 bpd in August from the south.
