Program Review Board (PRB) Minutes – March 6, 2004

Program Review Board (PRB) Minutes – March 6, 2004 * Rodney Bent Chairman/Director Office of Management and Budget * Dr. Aziz Iraq Ministry of Finance * Frederick C. Smith Deputy Senior Advisor for the Office of Security Affairs * Chris Milligan USAID * Amb Andy Bearpark, Director, Office of Operations & Infrastructure * Efraim Cohen Governance * COL Mike Toner Coalition Joint Task Force – 7, Comptroller * Yusaf Samiullah, Representative of the United Kingdom Government * Andrew Goledzinowski Representative of the Australian Government * Absent Program Review Board - Regional Programs Manager COL Jim Behring CPA Comptroller COL Tony Bell CPA – HCA Brendan Lund CPA – Office of Management and Budget COL Eric Engelbrektsson CPA – Office of Management and Budget Carlos Glover CPA – Office of Management and Budget LTC Jose Quero-Munoz CPA – Office of Management and Budget Sarah Horrigan CPA – Office of Management and Budget John Moore CPA – Office of Management and Budget Mr. Hazim Saed Iraq Ministry of Finance Taif Sami Iraq Ministry of Finance Mr. Ihsan Board of Supreme Audit Nick Horne CPA – Ministry of Electricity Joel Berwick CPA – Ministry of Oil Janusz Sznajder CPA – Council for International Cooperation COL Bob Speer CPA – Program Management Office Darrell Crawford CPA – Program Management Office COL Snodgrass CPA – Program Management Office Mounzer Fatfat Iraqi Ministry of Youth and Sports Iraqi Ministry of Planning and Development Coordination Col. Kevin Davis Ministry of Interior Capt Jajliardo Ministry of Interior Gordon Mott Ministry of Transportation Doug Webster Ministry of Transportation George Gianaris Ministry of Economic Development Mr. Ahmad Al-Samarrai Chairman, National Olympic Committee of Iraq (NOCI). The following Program Review Board Requests were presented to the Board for recommendation to the Administrator: #649 – National Olympic Committee -- $7,810,000. The Ministry of Youth and Sports (MoYS) was represented. The request is for funds included in the Revised 2004 Iraqi budget. These funds would provide Iraqi sports teams’ resources to prepare for the 2004 Olympic Games in Athens Greece. Teams must travel internationally to qualification events. Also, payments must be made to international sports organizations that sponsor Olympic events. The Iraqi MoF raised concerns about the ongoing operating costs. MoY&S and the MoF agreed to meet to put together one or two spending proposals. TABLED—Request reduced from $10,000,000 to $7,810,000, DFI #650 – Electricity Meters -- $15,000,000. The Ministry of Electricity (MoE) was represented. This request is for funds included in the Revised 2004 Revised Iraqi budget. MoE has begun to read meters and send bills to customers. However, many meters have been tampered with, destroyed or, within customer’s residences. Without rectifying this problem, it will not be possible for the MoE to conduct an effective billing and collecting process. These funds would purchase 400,000 three phase meters and 250,000 single-phase meters. The MoE has performed a needs assessment for the impacted communities and is assembling a comprehensive implementation plan. The MoE asserted that the new tamper resilient meters, installation outside of the residence, the very low cost of power (1 dinar/kilowatt hour) and the lack of payment enforcement will allow them to implement the new devices while minimizing the opportunity for vandalism. APPROVED—DFI #651 – Electricity Security Forces -- $30,000,000. The Ministry of Electricity (MoE) was represented. This request is for funds included in the Revised 2004 Revised Iraqi budget. These funds are for the expansion and equipping of the Electrical Power Security Service (EPSS). EPSS has been in existence since the early 1960’s and numbered ~1500 personnel. This proposal asks for funds to increase that number to 6,000 plus additional funds to contract out some aspects of MoE security. Concerns were expressed about the monies moving from capital investments to cover operating costs, the overall coordination with MoI, the salaries paid to the FPSS, and an understanding of the appropriate number of guards. Further the relationship between the ICDC forces and EPSS was unclear. The Iraqi MoF will take the lead on meeting with the MoI and MoE to further define a proposal. TABLED. #652 – PMO/MoPDC Business Complex-- $17,980,000 . The Program Management Office (PMO) was represented along with the Iraqi Ministry of Planning and Development Cooperation. Funds for this request are not in the original or Revised 2004 Revised Iraqi budget. This request is for funds to build a self-contained and sustaining business complex for the PMO and MoPDC. This complex is necessary to properly manage and track the relief and reconstruction program. Approximately 100 Iraqis will be working in the complex initially with a transition to Iraqi control at the end of PMO activities. The consolidation of the roughly 2000 employees will improve the coordination and efficiency of the teams working on major Iraqi reconstruction projects and reduce liabilities associated with housing employees at 5 separate facilities. CPA looks to steadily reduce its presence beginning July 2004 until it is fully transitioned out of the facility in 2006 APPROVED – DFI, 1 Abstention #653 – Ministry of Interior Logistics Distribution and Operations-- $32,000,000. The Ministry of Interior (MoI) was represented. Funds for this request are not in the original or Revised 2004 Revised Iraqi budget. This request is to resource a Logistics Distribution Operation in support of the Iraqi Police Services (IPS), Facilities Protection Service (FPS), and the Department of Borders (DBE). The distribution operation will mitigates delays in fitting and equipping Iraqi security forces, loss of property, transportation expenses, and the need to prolong military commitments to distribute and secure goods for the Iraqi security forces. The Chair expressed concerns about the timing of this request as no mention was made of the requirement at the time of the original 2004 budget formulation. The discussion was deferred until the next PRB due to time constraints. TABLED. #654 – SOE Capital Expenditure -- $27,000,000. Private Sector Development was not represented. As there wasn’t a representative available to discuss this funding request, it was tabled. TABLED. #655 – Board of Supreme Audit (BSA) Information System Infrastructure and Revitalization Program -- $2,400,000. The Board of Supreme Audit was represented. This request is for funds included in the Revised 2004 Revised Iraqi budget. This request is for the initial requirements for the BSA information network, and for development of reconstruction plans for the remaining three floor of the BSA facility in Baghdad, as well as the reconstitution of regional offices. APPROVED—DFI #656 – Police Station Survey -- $220,000 – The Ministry of Interior (MoI) was represented. Funds for this request are not in the original or Revised 2004 Revised Iraqi budget. This request if for funds to survey existing police stations to prioritize the required renovation program. Concerns were raised about this being a duplication of work already performed by the Civil Affairs group in 2003. The discussion was postponed to research if this work has already been completed and for MoI to more closely coordinate with MoF. TABLED. #657 – Border Station Survey -- $85,000 – The Ministry of Interior (MoI) was represented. Funds for this request are not in the original or Revised 2004 Revised Iraqi budget. This request if for funds to survey existing border stations and sites to prioritize the required renovation program. Concerns were raised about this being a duplication of work already performed by the Civil Affairs group in 2003. The discussion was postponed to research if this work has already been completed and for MoI to more closely coordinate with MoF. TABLED. #658 – Railway Derailment Vehicles -- $6,600,000 – The Ministry of Transportation (MoT) was represented. This request is for funds included in the Revised 2004 Revised Iraqi budget. This request if for funds to purchase 10 railway derailment vehicles for the Iraqi Republic Railway. This action is in response to a serious deterioration in the security situation for railways late last year. Discussion was postponed to the next PRB at the request of MoT as the requester was not able to attend this session. TABLED. #659 – Umm Qasr Port Management -- $5,100,000. The Ministry of Transportation (MoT) was represented. This request is for funds included in the Revised 2004 Revised Iraqi budget. This request is to extend the funding for the Stevedoring Services of America (SSA) contract at Umm Qasr port. While the period of performance for the contract will run through 30 June 04, funds on contract were expected to be exhausted ~22 March 04. This funding will fund port management until 30 June after which a new contract will be competitively awarded. During the discussion, the USAID representative stated that the current contract could continue four to six weeks using the current funding. The Iraqi MoF emphasized the need for the MoF, the MoP and the MoT to discuss the details of the capital expenditure. APPROVED – DFI, 1 Abstain: Ministry of Finance. #660 – Reconciliation of Iraqi External Debt -- $4,000,000. The Ministry of Economic Development (MED) was represented. Funds for this request are not in the original or Revised 2004 Revised Iraqi budget. This request is for additional funds required to award a contract for reconciling Iraq’s external debt. The effort will provide Iraq with a balanced account of all external Iraqi debt by 30 August 04. This audit was included in the 2004 budget at $10,000,000 but the cost to award the contract exceeds existing funding by $4,000,000. Debt reconciliation is a necessary pre-requisite to debt forgiveness by members of the international community. APPROVED—DFI #661 – ICDC Expansion -- $25,000,000. CJTF-7 was represented. Funds for this request are not in the original or Revised 2004 Revised Iraqi budget. This request would fund equipment for the expansion of the ICDC from 36 battalions to 45 battalions. The funds for the original 36 battalions are in the US supplemental. The board pointed out that the $14.1M request was for capital expenditures only and did not include the requisite salary or operating costs. The requested amount was increased to $25M to include both capital expenditures and estimated salary and operating costs. APPROVED—Increased from $14,151,800 to $25,000,000, DFI