Bechtel Wins Iraq Reconstruction Contract
April 17, 2003 04:37 PM EDT

Smoke from burning oil fires set ablaze by Iraqis as a shield against
incoming missiles and air raids obscures Baghdad, Tuesday, 
April 1, 2003. It's not just a history of creating landmarks such as 
the Hoover Dam that made Bechtel Corp. a leading contender for a
windfall contract to rebuild Iraq. The company also has forged
lasting political bridges, raising worries it has an unfair advantage
in the bidding to lead the biggest reconstruction since World WarII.
(AP Photo/Jerome Delay)
WASHINGTON - The government awarded Bechtel Corp. a contract on Thursday that could reach $680 million to help rebuild Iraq, including the nation's power, water and sewage systems

The U.S. Agency for International Development said the initial contract was for $34.6 million but it could be worth the larger figure over 18 months, subject to congressional approval. 

Several Democratic lawmakers have complained the Bush administration did not allow open competitive bidding, but rather invited a small number of firms to submit proposals. USAID has defended the procedure as the only way to get help to Iraq quickly.
 
 

The company has employed several officials after they left high government jobs, including former Secretary of State George Shultz and former Defense Secretary Caspar Weinberger, 

The Bechtel Group and its employees have been among the biggest political givers in the general contracting industry, according to an analysis by the Center for Responsive Politics, a nonpartisan Washington-based group that tracks campaign finance. 

The company and its workers contributed at least $277,050 to federal candidates and party committees in the last election cycle, about 57 percent to Democrats and 43 percent to Republicans, the center found. 

In addition to Bechtel's work utility systems, the contract also provides for rehabilitation or repair of airport facilities and dredging, repair and upgrading of the Umm Qasr seaport in cooperation with other contractors, the assistance agency said. 
 
 

Bechtel also may have a role in repair and reconstruction of hospitals, schools, selected government ministry buildings, irrigation facilities and transportation links. 

The agency said Bechtel probably would hire subcontractors for many of the projects. 

"Through all of its activities, it will also engage the Iraqi population and work to build local capacity," the announcement said. 

"Bechtel is honored to have been asked by USAID to help bring humanitarian assistance, economic recovery and infrastructure reconstruction to the Iraqi people," said Tom Hash, president of Bechtel National, Inc. 

The question of who rebuilds Iraq has divided the president's advisers and even the two major coalition partners in the current war, the United States and Britain. British Prime Minister Tony Blair has sought deeper U.N. involvement in postwar Iraq than President Bush. 


US Special forces run through the gutted interior of 
Baghdad's Central Bank complex as they search the area
for bank robbers and looters Thursday April 17, 2003. 
Baghdad's banking district remains one of the last centers
of attraction for looters attempting to cart of millions 
remaining in the vaults of the capital's institutions. 
(AP Photo/David Guttenfelder)