EXECUTIVE OFFICE OF T H E PRESIDENT

EXECUTIVE OFFICE OF T H E PRESIDENT OFFICE OF MANAGEMENT AND BUDGET WASHINGTON, D C. 20503 THE DIRECTOR January 5,2004 The Honorable C. W. Bill Young Chairman Committee on Appropriations U.S. House of Representatives Washington, D.C. 20515 Dear Mr. Chairman: Enclosed you will find the first in a series of quarterly reports required by Section 2207 of the Emergency Appropriations Act for Defense and for the Reconstruction of Iraq and Afghanistan, FY 2004 The report relies on the capable planning and analysis of the Coalition Provisional Authority in Baghdad and reflects the priorities Ambassador Bremer has identified as essential to Iraq's security, political stability and economic growth. As you know, soon after the President signed the Act, the Coalition Provisional Authority and the Governing Council agreed to accelerate the process by which sovereignty would be transferred to the Iraqi people. This decision has resulted in a revision to the Administration's preliminary plans for investments of Supplemental funding. The enclosed report reflects some shift in emphasis to expand and accelerate democracy-building initiatives, and it notes a greater concentration of resources on local, facilities, and community security efforts. We expect conditions on the ground to continue to change. As they do, we will advise the Congress and update this report to reflect appropriate spending adjustments. The enclosed report is organized by projects or programs within each sector and provides our cnrrent cost estimates for each quarter in our fiscal year 2004, as well as follow-on 2005 planning. The report focuses primarily on the uses of the Supplemental funds appropriated by the US. Congress. The Coalition Provisional Authority is working with donors to develop their plans to contribute to Iraq's future. While pledges at the October International Donors Conference in Madrid were significant, this planning is in the early stages, so detailed information on what activities other nations will support is not yet available. Funds provided in the FY 2003 Emergency Supplemental Appropriations Act were subject to reporting provisions in section 1506 of that Act that are similar to the requirements in section 2207 of the current FY 2004 Act. I believe the enclosed report reflects the information required by both statutory provisions. /' Sincerely, / - Joshua B. Bolten Director Identical Letter Sent to The Honorable David R. Obey, The Honorable Ted Stevens, and The Honorable Robert C. Byrd EXECUTIVE OFFICE OF THE PRESIDENT OFFICE OF MANAGEMENT A N D BUDGET WASHINGTON, D. C. 20503 THE DIRECTOR January 5,2004 The Honorable David R. Obey Committee on Appropriations U.S. House of Representatives Washington, D.C. 20515 Dear Representative Obey: Enclosed you will find the first in a series of quarterly reports required by Section 2207 of the Emergency Appropriations Act for Defense and for the Reconstruction of Iraq and Afghanistan, FY 2004. The report relies on the capable planning and analysis of the Coalition Provisional Authority in Baghdad and reflects the priorities Ambassador Bremer has identified as essential to Iraq's security, political stability and economic growth. As you h o w , soon after the President signed the Act, the Coalition hovisional Authority and the Governing Council agreed to accelerate the process by which sovereignty would be transferred to the Iraqi people. This decision has resulted in a revision to the Administration's preliminary plans for investments of Supplemental funding. The enclosed report reflects some shift in emphasis to expand and accelerate democracy-building initiatives, and it notes a greater concentration of resources on local, facilities, and community security efforts. We expect conditions on the ground to continue to change. As they do, we will advise the Congress and update this report to reflect appropriate spending adjustments. The enclosed report is organized by projects or programs within each sector and provides our current cost estimates for each quarter in our fiscal year 2004, as well as follow-on 2005 planning. The report focuses primarily on the uses of the Supplemental funds appropriated by the U.S. Congress. The Coalition Provisional Authority is working with donors to develop their plans to contribute to Iraq's future. While pledges at the October International Donors Conference in Madrid were significant, this planning is in the early stages, so detailed information on what activities other nations will support is not yet available. Funds provided in the FY 2003 Emergency Supplemental Appropriations Act were subject to reporting provisions in section 1506 of that Act that are similar to the requirements in section 2207 of the current FY 2004 Act. I believe the enclosed report reflects the information required by both statutory provisions. Sincerely, , U h u a B. Bolten Director Identical Letter Sent to The Honorable C. W. Bill Young, The Honorable Ted Stevens, and The Honorable Robert C. Byrd EXECUTIVE OFFICE OF THE PRESIDENT OFFICE O F MANAGEMENT A N D BUDGET WASHINGTON. D.C. 20503 THE DIRECTOR January 5,2004 The Honorable Ted Stevens Chairman Committee on Appropriations United States Senate Washington, D.C. 205 10 Dear Mr. Chairman: Enclosed you will find the first in a series of quarterly reports required by Section 2207 of the Emergency Appropriations Act for Defense and for the Reconshuction of Iraq and Afghanistan, FY 2004. The report relies on the capable planning and analysis of the Coalition Provisional Authority in Baghdad and reflects the priorities Ambassador Bremer has identified as essential to Iraq's security, political stability and economic growth. As you know, soon after the President signed the Act, the Coalition Provisional Authority and the Governing Council agreed to accelerate the process by which sovereignty would be transferred to the Iraqi people. This decision has resulted in a revision to the Administration's preliminary plans for investments of Supplemental funding. The enclosed report reflects some shift in emphasis to expand and accelerate democracy-building initiatives, and it notes a greater concentration of resources on local, facilities, and community security efforts. We expect conditions on the ground to continue to change. As they do, we will advise the Congress and update this report to reflect appropriate spending adjustments. The enclosed report is organized by projects or programs within each sector and provides our current cost estimates for each quarter in our fiscal year 2004, as well as follow-on 2005 planning. The report focuses primarily on the uses of the Supplemental funds appropriated by the U.S. Congress. The Coalition Provisional Authority is working with donors to develop their plans to contribute to Iraq's future. While pledges at the October International Donors Conference in Madrid were significant, this planning is in the early stages, so detailed information on what activities other nations will support is not yet available. Funds provided in the FY 2003 Emergency Supplemental Appropriations Act were subject to reporting provisions in section 1506 of that Act that are similar to the requirements in section 2207 of the current FY 2004 Act. I believe the enclosed report reflects the information required by both statutory provisions. Sincerely, o hua B. Bolten w Identical Letter Sent to The Honorable Robert C. Byrd, The Honorable C. W. Bill Young, and The Honorable David R. Obey EXECUTIVE O F F I C E O F T H E PRESIDENT OFFICE OF M A N A G E M E N T A N D B U D G E T WASHINGTON, D.C. 20503 THE DIRECTOR January 5,2004 The Honorable Robert C. Byrd Committee on Appropriations United States Senate Washington, D.C. 205 10 Dear Senator Byrd: Enclosed you will find the first in a series of quarterly reports required by Section 2207 of the Emergency Appropriations Act for Defense and for the Reconstmction of Iraq and Afghanistan, FY 2004. The report relies on the capable planning and analysis of the Coalition Provisional Authority in Baghdad and reflects the priorities Ambassador Bremer has identified as essential to Iraq's security, political stability and economic growth. As you h o w , soon after the President signed the Act, the Coalition Provisional Authority and the Governing Council agreed to accelerate the process by which sovereignty would be transferred to the Iraqi people. This decision has resulted in a revision to the Administration's preliminary plans for investments of Supplemental funding. The enclosed report reflects some shift in emphasis to expand and accelerate democracy-building initiatives, and it notes a greater concentration of resources on local, facilities, and community security efforts. We expect conditions on the ground to continue to change. As they do, we will advise the Congress and update this report to reflect appropriate spending adjustments. The enclosed report is organized by projects or programs within each sector and provides our current cost estimates for each quarter in our fiscal year 2004, as well as follow-on 2005 planning. The report focuses primarily on the uses of the Supplemental funds appropriated by the U.S. Congress. The Coalition Provisional Authority is working with donors to develop their plans to contribute to Iraq's future. While pledges at the October International Donors Conference in Madrid were significant, this planning is in the early stages, so detailed information on what activities other nations will support is not yet available. Funds provided in the FY 2003 Emergency Supplemental Appropriations Act were subject to reporting provisions in section 1506 of that Act that are similar to the requirements in section 2207 of the current FY 2004 Act. I believe the enclosed report reflects the information required by both statutory provisions. Sincerely, Identical Letter Sent to The Honorable Ted Stevens, The Honorable C. W. Bill Young, and The Honorable David R. Obey