AMMAN, 14 October 2003 — Iraqi government officials told an economic forum here yesterday that foreign aid and security were both essential to rebuilding Iraq, in an overview of the reconstruction drive in their war-devastated country.
The ministers of planning, housing, electricity, as well as a Trade Ministry official, Iraq’s Central Bank governor and private sector executives spoke to a packed room on Iraq’s post-war needs and the challenges it faces.
“We should not underestimate the heritage that the former regime left us: 20 years of wars, the militarization of the economy and mismanagement have made Iraq a hungry country,” Planning Minister Mehdi Al-Hafez said.
A report by the World Bank and the United Nations estimates that Iraq will need $36 billion to rehabilitate 14 sectors between 2004-2007, while the US administration seeks from Congress $20 billion to fill in the gap.
Speaking 10 days before a major donors’ conference to be held in Madrid on Oct. 23-24, Hafez said foreign funding was not sufficient. “The fate of Iraqi reconstruction does not rest on that alone. We must rebuild security and stability. This is the key to (attracting foreign) investments.
“We must also help the Iraqis build political institutions to end the occupation as soon as possible and merge Iraq’s economy with the world economy,” he said.
Housing and Reconstruction Minister Bayan Baqer Sulagh Al-Zubaidi said work was underway to erect “20 housing complexes” as well as build 142 bridges and roads by the end of 2004, with a budget of $1.2 billion.
He estimated that Iraq needs in the short-term one million housing units, adding that dwellings must be found for four million Iraqis who are homeless, refugees or those planning to return to the country from exile abroad.
Electricity Minister Ayham Al-Samarrai pleaded with neighboring Arab countries and the international community to grant Iraq in 2004 eight billion dollars to rebuild the power sector, saying tenders will be issued in November.
“I am asking for money, money, money .... Iraq needs electricity, otherwise it cannot develop its economy,” Samarrai said, adding he hoped to raise the level of electricity from 5,000 megawatts per day now to 12,000 megawatts in 2004.
Iraq’s first post-war Central Bank Governor Sinan Al-Shebibi said his country would grant licenses to six foreign banks over the next five years as part of efforts to rebuild the economy.
