*EPF207 01/06/2004
Text: USAID Grants Bechtel $1.8 Billion Contract for Iraq Reconstruction
(Engineering giant to work with Iraqi subcontractors) (460)

The U.S. Agency for International Development (USAID) has granted a $1.8 billion contract to the engineering and heavy construction company, Bechtel, for continuing work in developing Iraq's infrastructure.

According to a January 6 USAID press release, the two-year contract will fund various projects including repair of power generation facilities, electrical grids, municipal water systems and sewage systems; continued rehabilitation or repair of airport facilities; and additional dredging, repair and upgrading of the seaport at Umm Qasr.

The press release also indicates that the contractor will be called upon to build and repair government facilities, irrigation structures and transportation systems.

According to USAID, Bechtel will work with Iraqi subcontractors in order to develop the local capacity to undertake major infrastructure projects and maintain the facilities once they are built.

Following is the text of the press release:

(begin text)

FOR IMMEDIATE RELEASE
January 6, 2004

USAID AWARDS IRAQ INFRASTRUCTURE II CONTRACT

WASHINGTON, DC -- In support of the Coalition Provisional Authority's (CPA) reconstruction efforts in Iraq, the U.S. Agency for International Development (USAID) today announced the selection of a multi-million dollar Iraq infrastructure repair and rehabilitation contractor, otherwise referred to as the Iraq Infrastructure II contract, to Bechtel National, Inc. based in San Francisco. Bechtel is teamed with the Parsons Corporation of Pasadena, California. The contract award provides funding up to $1.8 billion over 24 months. Funding is subject to congressional notification and availability of funds.

This contract will fund work similar to the work initiated under USAID's current infrastructure contract in Iraq, which was awarded in April, 2003. The Iraq Infrastructure II contract will fund a range of projects including: repair of power generation facilities, electrical grids, municipal water systems and sewage systems; continued rehabilitation or repair of airport facilities; and additional dredging, repair and upgrading of the seaport at Umm Qasr. The contractor will also repair and build government and public facilities including schools, selected ministry buildings and major irrigation structures, as well as restore essential transport links.

It is anticipated that Bechtel National, Inc. will work through subcontractors on a number of these tasks after developing an implementation plan in conjunction with USAID. Through all of its activities, the contractor will work with the Iraqis to strengthen the local capability to undertake infrastructure projects.

The Iraq Infrastructure II contract is part of the U.S. government's reconstruction assistance to the Iraqi people, aimed at helping maintain stability, ensuring the delivery of essential services, and facilitate economic recovery. For more information on USAID's humanitarian relief and reconstruction efforts in Iraq, as well as the actual Iraq Infrastructure II request for proposal, please visit www.usaid.gov/iraq/.

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(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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