08-F-0260 Doc 25 Final Release

Fallujah Falujah Main LB 863 911 Al Shuhada (destroyed LB 853 908 Al Taoheed (destroyed LB 858 905 Al Fallujah Traffic Police LB 862 908 Highway Police Station LB 907 889 Ar Ramdi Main Station LB 418 998 Sub-Station LB 442 991 Hospital LB 408 997 Courthouse LC 427 009 Al Jazerra LC 393 030 Al Habni LB 623 957 Al Kada LB 684 938 Al Haria LB 372 997 Ar Rutbah Rutbah City PS FS 205 563 HIP Station #5 FS 264 598 HIP Station #4 FS 703 572 Trebil PS ES 009 228 Bayji Bayji PD LD 625 668 Siniyah PD LD 560 659 Hajaj PD LD 648 549 Makhul/HWY PD LD 431 971 Samarra CMOC Annex LC 956 851 Samarra Main LC 959 852 Samarra Sub LC 959 852 Samarra Central LC 969 844 Bridge Station LC 949 845 Tikrit Tikrit HQ/Main PS LD 779 300 Al Farook LD 792 269 Tikrit Hospital LD 804 274 Al Salidin Hospital LD 782 349 Courthouse LD 794 296 Al Owja LD 811 212 University Police LD 762 356 Ad Diwaniyah Ad Diwaniyah PS MA 923 389 Askary MA 920 403 Whada MA 945 400 Zawra'a MA 910 397 Jaza'ar MA 915 387 Al Balde Nanda Kamarik Rafat MA 945 381 MA 933 375 Al Hillah Public Directorate of PS MA 464 939 Patrol HQ MA 463 948 Al Fihaa MA 467 945 Haybabil MA 479 947 Al Huriya MA 474 941 Checkpoint HQ MA 459 941 Hospital Sub Station MA 456 917 Al Jibal MA 460 927 An Najaf An Najaf Main PS MA 370 405 Kufa MA 378 417 Akara PS MA 429 436 Al Ghary PS MA 429 436 Customs PS MA 503 433 Karbala Main PS MB 094 083 Al Hussein MB 088 065 Al Mukhaym MB 058 094 Al Moalomin MB 060 094 Al Abassiyah MB 090 085 Tourist Sub Station MB 098 098 Northern Iraq Qayyarah PS LE 456 621 Ash Shurah PS LE 399 847 Mahkmur PS LE 712 605 Hamman Al Alil PS LF 434 039 Al Hadr PS KE 945 392 Mos ul Mosul HQ Station 1W LF 330 227 Al Hadbaa Station 2W LF 322 225 Al Jadada Station 3W LF 300 227 Al Rabean Station 4W LF 299 255 Yarmuk Station 5W LF 277 235 Al Thakafa Station NE1 LF 334 269 Aby Tammam Station NE2 LF 372 272 Al Rashida Station NE3 LF 293 305 Al Rimah Station NE4 LF 351 287 Station S E I LF 333 240 Station SE2 LF 348 243 February 8 SE3 LF 404 255 Al Karamah Station SE4 LF 401 242 Al Razy Station SE5 LF 372 214 Baaj Station GV 448 919 Bulayj Station Sinjar Station 1 Sinjar Station 2 KF 324 057 GA 560 232 GA 573 236 Dohuk Dohuk HQ Khabat PS Nawroz PS Sarbidan PS Sawita PS lndibatia PS Kadaiya PS Sub Station Malta Azadi Sub Station Mangesh PS Summaly Summaly District HQ Batil District Khane Substation Faidah Station LF 215 816 LF 222 797 LF 242 803 LF 340 861 LF 158 809 LF 220 801 LG 304 005 LF 084 812 KF 937 930 LF 022 726 Shekhan Ayn Sifni Station Atrush Ba idharah Qasruk PS Fascek PS LF 528 628 LF 511 779 LF 440 644 LF 748 616 LF 541 488 Agrah Arah Dinarta Bijeel Rizgari Gird asin Azady Zakho Zakho HQ KG 133 941 Delal Substation LG 121 955 Carez Substation LG 141 966 Undercover Officer's Station KG 134 928 Batufa Substation LG 231 162 Dakar Ajann Substation LG 068 195 Kani Masi Bamimi Deralok LG 798 016 Qadish LG 570 069 Sarsing Am adyah LG 657 060 As Sulamaniyah As Sulamaniyah HQ NE401 351 Azady NE 308 552 Saraa NE 406 360 Kareza Wassk NE 385 373 Baksatyary NE 364 361 Riziagary NE381 351 Choman MF 902 546 Galata MF 841 521 Haji Omran MF 040 585 Simelan MF 775 599 Shaqlawa MF 402 281 Salahadin MF 285 264 Mergasur MF 373 777 Piran MF 425 826 Mazna MF 503 676 Sherwan Mazan MF 290 934 Bille MF 174 808 Barzan MF 155867 Soaran District MF 583 561 Rowandoz MF 575 525 Diyanah MF 601 579 Khalafon ME 467 518 Sida Kan MF 702 731 Traffic Police MF 570 511 13 October 2003 Iraq Releases Fiscally Responsible 2004 Budget The Iraqi Minister of Finance Mr. Kannl al-Ciailtun announced today the release of the Iraqi Budget for 2004. The budget provides authority for the commitment and expenditure of money by the Iraqi Ministries for 2004 and sets the fiscal framework for 2005 and 2006. It meets the recurrent expenditures of the Ministries, including a significant social safety net. along with some of the most pressing capital projects. and provides for the most urgent daily and social needs of thc Iraqi people. Commenting on the preparation of the budget. Minister al-Gailani said, "This budget represents an important step towards the rebuilding of Iraq by Iraqis. The Budget was prepared by a team of Iraqi experts, with a series of budget hearings attended by representatives from the various Iraqi ministries. and chaired by officials of the Ministry of Finance." Consistent with responsible fiscal policy this budget does not rely on increased borrowing, printing money, or foreign assistance. The public release of the 2004 budget further demonstrates the Governing Council's commitment to public sector transparency. On the road to modernization, it is important for Iraq's institutions to be open to public scrutiny. This ensures spending will be directed towards those areas the Iraqi people feel have the pseatest need. This transparency will also help reduce eases of corruption and strengthen the overall confidence of the Iraqi people and investors. However. Iraq has very substantial reconstruction and redevelopment needs that are not able to be funded in the 2004 budget. With this in mind, the Iraqi Governing Council plans to exert all possible efforts to finance the above mentioned needs through activating the national economy and the private sector. The Cioverning Council also plans to seek the support of the international community at the International Donors Conference in late October in Madrid. Mr. al-Gailani concluded: "Iraq is a country with enormous economic and human potential. By applying sound economic financial and monetary policies, and creating a good investment environment with international donors over the transition. Iraq will restore the economic and financial status which it previously held." Notes for editors I. The Budget for 2004 expects revenues of around MID 19.5 trillion (LISS 13 billion), with expenditures of NID 20.25 trillion (LISS 13.5 billion), meaning the Budget in 2004 will run a deficit of around NID 900 billion (LISS 600 million). This deficit will be funded through refunds from cancelled Oil-For-Food contracts, meaning there will be no need for Iraq to borrow or print money to finance its deficit. In 2005 and 2006. the Budget is in balance, with spending matching revenues. 2. The budget reflects the 5 core principles laid out by the Iraqi ministries to drive the economic agenda. The core principles include, economic openness. private sector development, international integration, transparency in Government spending. and providing a safety net for the poor. 3. Journalists can obtain copies of the Iraqi 2004 Budget at the Convention Center. Justice (note the Ministry of Justice includes prisons) Summary 2003 bn NID 2004 bn NID 2005 bn NID 2006 bn NID Expenditure Operating Expenditure Capital Projects 15.0 144.6 134.4 134.4 34.8 63.3 150.0 150.0 Total 49.8 207.9 284.4 284.4 Ministry Expenditure 2003 bn NID 2004 bn NID 2005 bn NID 2006 bn NID Ministry Capita! Projects 34.8 63.3 150 150 Staff Expenditures 44.1 44.1 44.1 Service Requirements 5.0 21.1 15.9 15.9 Goods Requirements 9.6 60.7 56.2 56.2 Assets Maintenance 0.5 6.2 6.2 6.2 Capital Expenditures 12.5 12.0 12.0 Transferred Expenditures Foreign Obligations Salaries & Retirement rewards Ministry Operating Expenditure 15.0 144.6 134.4 134.4 Total Ministry Expenditure 49.8 207.9 284.4 284.4 Memorandum Items # Employees 2003 2004 2005 2006 Tier 1 991 991 991 Tier 2 3030 3030 3030 Tier 3 7766 7766 7766 Tier 4 9646 9646 9646 Total Employees 21433 21433 21433 Total Salary Cost 44.1 44.1 44.1 Operating Expenses 2003 2004 2005 2006 Normal Ministry Operating Expenses 15.0 138.1 133.6 133.6 Office of Foreign Litigation 5.3 Securityfor Justices 1.2 0.7 0.7 Sub-total Operating Expenses 15.0 144.6 134.4 134.4 Budget Funded Capital Projects (including reconstruction) 2004 Total Project Cost Justice reconstrucion 42.0 42.0 projects 3.0 3.0 prisons reconstruction 18.3 18.3 Sub total Capital Projects 63.3 63.3 2004 Budget.. Final Ministries Arabic.xls 10:12 PM 2005 2006 2003 2004 15.0 144.6 34.8 63.3 49.8 207.9 134.4 134.4 150.0 150.0 284.4 284.4 2003 2004 2005 2006 34.8 5.0 9.6 0.5 63.3 150 150 44.1 44.1 44.1 21.1 15.9 15.9 60.7 56.2 56.2 6.2 6.2 6.2 12.5 12.0 12.0 75.0 744.6 134.4 134.4 49.8 207.9 284.4 284.4 2003 2004 2005 2006 991 991 991 3030 3030 3030 7766 7766 7766 9646 9646 9646 21433 21433 21433 44.1 44.1 44.1 2003 2004 2005 2006 15.0 138.1 133.6 133.6 5.3 - 12 0.7 0.7 15.0 144.6 734.4 134.4 2004 Budget - Final Ministries Arabic. XIS 10:12 PM 2004 42.0 3.0 18.3 63.3 42.0 3.0 18.3 63.3 Page 1 cf 1 CPT, Dept. of Prisons From: (Civ) Sent: To: Cc: Thursday, January 22, 2004 6:39 AM CPA Ministries; CPA Budget Contacts Bent, Rodney G. (SES) Subject: Jan / Feb budget process Attached are the estimated spending numbers for Ministries for January operating budget. This is the spreadsheet that was sent to govemorate treasuries, along with the attached letters (in English and Arabic) that allows treasurers to pay those civil servants who were paid in December if the estimates do not include sufficient funds for individual departments. Full details included in the letter. These are interim measures to ensure that salaries and other operating expenses are paid. The goal now is to finish up and submit to CPA — MOF (and to MOF through your Iraqi counterparts) your spending plans for February. This should include any January budget revisions (FPS, Haz Duty pay, allocation increases) that may not have been applied in the attached table. *Remember, Ministries are responsible for their own budgets and paying their civil servants' salaries. Ministry of Finance is here to supply guidance and ensure that you stay within your total amounts. For February and beyond, you need to tell us where and when you would like your budget allocations sent, using the format provided. If you want to spend money on capital projects, there has to be an additional sheet with your capital spending plan. Notes: 1) 2) 3) Includes forty percent increase for the new salary scale, but in the absence of direction on where individual ministries need this distributed, it has been added to the Baghdad allocation. Does not include additions for FPS and Hazardous Duty Pay. As you are working through your numbers and locations of guards with my colleague please be deciding where the funds for these guards must be sent. Ministries that rely on support from the Ministry of Finance to pay the salaries of SOE's must ensure they have requested the proper amount from the Ministry of Finance, Budget Department. Questions on how to do this can be forwarded to CPA — MOF or to Ministry of Electricity, which is working through this process. 1/22/2004 13 October 2003 2004 BUDGET PRESS STATEMENT AS PREPARED FOR DELIVERY I am pleased to announce the release of the Iraqi Budget for 2004. This budget represents an important step towards the rebuilding of Iraq by Iraqis. The budget was prepared by a team of Iraqi experts, with a series of budget hearings attended by representatives from the various Iraqi ministries, and chaired by officials of the Ministry of Finance. The Ministry of Finance fully discussed the proposed budget with each Ministry and, based upon available resources, agreements were made as to the required allocations for operating expenditures and capital projects. The 2004 budget is characterized by the following: . The budget was prepared by Iraqi staff. 2. Budget's expenditures were funded by available Iraqi resources. It does not rely on increased borrowing, printing money, or foreign assistance. 3. Financing the 2004 Budget: The current budget shows a deficit of about 600 million dollars (900 billion dinars) compared to the 2003 budget which showed a deficit of about 3,000 million dollars (4,500 billion dinars). This 2004 Budget Press Statement —As Prepared for Delivery deficit will be financed from the return of unspent Oil-for-Food program funds. 4. Undoubtedly the estimated needs to rebuild Iraq would exceed resources available for the 2004 budget. The Governing Council will exert all possible efforts to finance the above mentioned needs through activating the national economy and the private sector. It will also be financed through the money Iraq is requesting from the United States and through the Donors in Madrid on 23 and 24 October. The Governing Council's approval of the budget provides the authority for the commitment and expenditure of money by the Iraqi ministries for 2004 and sets the fiscal framework for 2005 and 2006. Iraq is a country with enormous economic and human potential. By applying sound economic financial and monetary policies, and creating a good investment environment with international donors over the transition, Iraq will restore the economic and financial status which it previously held. Through ambitious redeveloping programs, the people of Iraq will achieve prosperity, security, and stability. 2 PRISON DEPARTMENT MINISTRY OF JUSTICE 2004 BUDGET General Paragraph A credible prison service is a vital component in the administration of security and the administration ofjustice. The funding proposed will sustain the facilities opened in 2003, and establish further facilities around the country that meet with recognized international standards. It will ensure that Iraq will treat all prisoners with decency and fairness. Capital Projects A list of desired capital projects is shown below. At present there has not been a full assessment of all the facilities around the country by International Prison Experts. Consequently generic projects have been identified to provide a coverage of pre trail and post trial facilities for both adults and juveniles. In particular the Juvenile facilities under the old regime were concentrated in Baghdad, there is a need to have a much wider spread of facilities around the country. 1 Location Adults 1 Juveniles ' i Al Amarah, Maysan X Ninewa X Al Kut — Wasit X . Al Fulluiah Al Anbar X Karkuk — At' Tamim X X Samarra — Salah Ad Din X X Karbala X X Nasiri ah — Dhi Oar X Ad Dinawaniyah - Al Qadisiyah X X Kani Ban Sa'ad X I_ Samawah Al Muthanna i Mtaiof _ An Xlciac An Nasiriyah — Dhi Qar Salab Ad Din Baghdad Basrah 4-4 Form No (2) Estimation ófExpenditures According to the Sections Part Department Section Thousand Dinar SeCtiO. Title Actual Expenditures for 2002 (A) AdditlinaalBeguisementS First Alternative Second Alternative Third Alternative Fourth Alternative Total of Additional Requirements a Evected for 2003 Suggests d from the office A+B Agreed on Number of Employees 1 Staff Expenditures 2 Service Requirements 3 Goods Requirements 4 Assets Maintenance 5 Capital Expenditures Transferred Expenditures 7 Forep9blitions 8 Salaries & Reliremenls rewa Total A •• • Form No (2-B) Supplemental Page! Estimation of Expenditures According to the Sections Part Department Secerm Thousand Dinar Additional Requirements Section Title Alternative Alternative Alternative Alternative -- -- -- -- tun leer of Employees — 1 - 1^' -4 Expenditures 2 Servte Requirements 3 Goods Requirements 4 Assets Maintenance 5 Capital Expenditures 6 Transferred Expenditures 7 Foregn Obligations 8 9 Salaries & Retirements rewards Total --. Farm No (3-9 Supplemetal Page/Estimation of Expenditures According to the Parts Part Department Section Thousand Dinar Section Title Alternative jjAdditional Requirements Alternative Alternative I I I Alternative 1 filtnitar of EMIL; 3 Staff Ex nditures 2 Service Requirements l .3 Goods Requirements 4 Assets Maintenance 5 Capital Expenditures 5 Transferred Expenditures 7 Foreign Obligations a 9 gelato A fietimmeat§' rerant Total Form No (1) Table of Jobs According to the Post Grading Class Department Part No. Items 2003 2004 No.of the employees (EXCL SOE) No.of the employees (EXCL SOE) - proposed No.of employees agreed .... 1 Level (1) (Special dgrees) 2 Level (2) (Fest and Second Degrees) 3 Level (3) (Third. Fourth, Filth Degrees) 4 Level (4) (Sixth. Seventh. Eighth. Ninth, Tenth Degrees) Total Employees Estimated Salary Cost (000 ID) Form No (4-13) Supplemental Page /Estimation of Expenditures According to the Items Part Department Section Thousand Dinar Additional Requirefnents Item Alternative Title Alternative Alternative Alternative • 4/ Employees Expenditur Emplores Salaries Total of First Section Services requ 1 Travel E r7. OLS St_ 2 Dehegation 3 Transferred Evens Publication & Infor 4 Expenses 5 Printing Expenses Doo oo I/o 00 oP 000 o A._ b02 .)fl 1 0 'a iV1 $O DO o 0 0 II 5 -0 DOD le 0 no o f •Jo o oo SO 000 o'30 • 0 . Doe 6 Post 0 ote% 00 Q3131-111 0413-opo 0 000 00 7S- ou .) Cerr2 °° a— 1 7 ° 1:1- r 40 12.6 .0 v 0 :143 0 0.rzi 75 .000 0 0 a 7 8Cable & T Lands & Buildings rents Machines & Medlin 9 Lco bo b 80a ISO 000 boo Transportation 00 000 op, 3So 00 a OD Item Title Additional Requirements Altornativ• Alternative Aftrnative Altrprnativo — 10 Insurance ms ••••• 12 Lawyers wages fr-.70 ili 0 10 Deo Do• . 13 AccomodaLort & De 0 11/9491_319 0 /o Dso o•e titte_11_0 21._ . /4• • oo 0 Otu 19 000 orp:, 1 0 664 6*. , Conferences and ., ....., ,u 14 (seminors) 15 Celebrations . 2_ 0.9_4 0 - le -9.90-011.0_. 18 CAW Defence 1 17 Rewards & Medals or others 0 ti e • I S c1 1 1 9_ b 19 Sufasca . • • of Val course 10 Je9_ 00. /1" • 0 o O 0 0 I° 0 0 9 /Se 0i.3 -.V-- 0 Sas Ar 0 a a _ . • ‘09-2- toi.0 -1,51_.8o o or, _v 600 000 /0 000 04% 15(1 0 .4,1 eta • sr ltrati ss0----. tr On. nms 21 Sports Activity 1 22 School Activity — 5caning & Spec • • 23 kinds of lands and their 24 Money Transferring 25 votresses & arrested trans m n. - - 0 00% 001. .„__ ----. 27 Stamps seeing commis's) 28 Students Allowances 1 29 Student leave. 30 Office Clearing a o DO fa OP, 1 b _22_ 90 0 3'0 _p 00 1•• Wages tor joining the scient 31 institutions assesment of Scient ic : ,..• , A . 32 Translation 33 Advisors and Experts Loading & Offload, • or ... . r/s li 42 materials 43 Cleaning & iTs nag 44 City Planning & Organaidn ! 48 Guarding wages Q...1 1,11) cla.a... -7...00 oft pas .A.eon so -too 009 400 , s - 4... e•• I r ... se. 6., 49 Jewiery Stamping wages •--. -.... — Form No. ( -8) Supplemental Page! Estimation of Expenditures According to the Departments Part Department Section Thousand Dinar Additional Re utrements Department Alternative Alternative Alternative JUternativa Grand Total for the Expenditures Ministry of Justice (Prisons) $m 2004 200.5 gat§ Budget Funded Revenue Transfers from SOEs Taxes/Fees for Services Oil Revenue Taxes/Customs Duty Total Revenue 0 0 0 Expenditure Operating Expenditure 40 40 40 Reconstruction 122 0 0 Ministry Capital Projects 500 500 Budget funded expenditure 540 540 Unfunded needs I - Examples of items which might be includedare: Prison Modernisation Notes: Operating expenses reflect increased capacity - including food (query whether provided by MoT). Reconstruction reflects continuation of plans outlined in 2003 Budget. 31/07/200304:53 Ministry of Justice (excluding prisons) $m Budget Funded Revenue Transfers from SOEs Taxes/Fees for Services Oil Revenue Taxes/Customs Duty Total Revenue 2004 2005 2006 25 30 35 25 30 35 Expenditure Operating Expenditure 12 12 12 Reconstruction 25 0 0 Ministry Capital Projects 5 10 10 Budget funded expenditure 42 22 22 Unfunded needs Examples of items which might be included are: Institution Building Notes: 8/5/20032:30 PM All Ministries 2004 2005 21106 Budget Funded Revenue Transfers from SOEs 390 215 155 Taxes/Fees for Services 915 128 151 Oil Revenue 12069 19170 19440 Taxes/Customs Duty 360 440 480 Total Revenue 13734 19953 20226 Expenditure Operating Expenditure 5821 6166 5811 Reconstruction 249 510 510 Ministry Capital Projects 8557 13268 13896 Budget funded expenditure 14627 19944 20218 Budget Balance -893 9 8 8/5/20032:30 PM Ministry of Agriculture Sm 2004 2005 2006 Budget Funded Revenue Transfers from SOEs Taxes/Fees for Services Oil Revenue Taxes/Customs Duty Total Revenue 70 40 20 70 40 20 Expenditure Operating Expenditure 112 87 62 Reconstruction 10 0 0 Ministry Capital Projects 5 50 50 Budget funded expenditure 127 137 112 Unfunded needs Examples of items which might be included are: Agriculture (desalinationetc) Other Projects Notes: Operating expenses include $5m per annum for animal vaccinations - reflecting public good/positive externalities. Assume OFF contracts continue to provide 'profits' to Agricultural SOEs. Assume agricultural subsidies of $100m/$75m/$50m in 2004/2005/2006. 8/5/20032:30 PM Baghdad Mayoralty $m Budget Funded 2004 2005 2006 Revenue Transfers from SOEs Taxes/Fees for Services 15 25 30 Total Revenue 15 25 30 Expenditure Operating Expenditure 20 20 20 Reconstruction 4 0 0 Ministry Capital Projects 40 85 125 Budget funded expenditure 64 105 145 Unfunded needs Examples of items which might be included are: Other Projects Notes: Revenues rise over time to cover operating expenses including salaries. 8/5/20032:30 PM Board of Supreme Audit 2004 2005 2006 Budget Funded Revenue Transfers from SOEs Taxes/Fees for Services 0 0 0 Total Revenue 0 0 0 Expenditure Operating Expenditure 0.5 0.5 0.5 Reconstruction 0 0 0 Ministry Capital Projects 0 0 0 Budget funded expenditure 0.5 0.5 0.5 Unfunded needs Examples of items which might be included are: Institution Building Notes: 8/5/20032.30 PM Central Organisation for Standards $m 2004 21115 2.1106 Budget Funded Revenue Transfers from SOEs Taxes/Fees for Services 0 0 0 Total Revenue o o o Expenditure Operating Expenditure 0.2 0.2 0.2 Reconstruction 0 0 0 Ministry Capital Projects 0 0 0 Budget funded expenditure 0.2 0.2 0.2 Unfunded needs Examples of items which might be included are: Institution Building Notes: Assume that it is largely self-financed, including in relation to salaries and the degree to which the function is a public good. 8/5/20032:30 PM Ministry of Culture $m 2D04 2005 2006 Budget Funded Revenue Transfers from SOEs 50 50 50 Taxes/Fees for Services 0.5 1 1.5 Total Revenue 50.5 51 51.5 Expenditure Operating Expenditure 2.4 2.4 2.5 Reconstruction 0 0 0 Ministry Capital Projects 10 15 15 Budget funded expenditure 12.4 17.4 17.5 Unfunded needs Examples of items which might be included are: Cultural Site Restorations Notes: Assume substantial returns from SOEs, particularly hospitality sector. Require entry fees to be recognised in consolidated revenue. 8/5/20032:30 PM Ministry of Security Affairs Sin Budget Funded Revenue Transfers from SO Es Taxes/Fees for Services =hi 2005 2nas TotalRevenue o o o Expenditure Operating Expenditure 44 280 280 Reconstruction 0 0 0 Ministry Capital Projects 0 300 300 Budget funded expenditure 44 580 580 Unfunded needs Examples cf items which might be included are: New Iraqi Army Notes: 8/5/20032.30 PM Ministry of Education Srn Budget Funded Revenue Transfers from SOEs Taxes/Fees for Services .2.11D4 .2L105 2a16 Total Revenue Expenditure Operating Expenditure 20 20 20 Reconstruction 0 0 0 Ministry Capital Projects 0 20 20 Budget funded expenditure 20 40 40 Unfunded needs Examples of items which might be included are: Education - classrooms Education - equipment Notes: Capital expenditure on education is not considered an immediate priority for Iraq. 2004 teachers salaries are $77.8 million. 815/20032:30 PM Electricity Commission $m Budget Funded Revenue Transfers from SOEs Taxes/Fees for Services 2004 201I5 2006 Total Revenue Expenditure Operating Expenditure 30.5 20.5 10.5 Reconstruction 0 500 500 Ministry Capital Projects 0 2520 2520 Budget funded expenditure 30.5 3040.5 3030.5 Unfunded needs Examples of items which might be included are: Electricity: 24/7 power to consumers Missed five year maintenance Other electricity Investment Notes. Supplemental covers maintenance and investment from budget for 2004. Assume SOE subsidies of $30m/$20rn/$1Crn in 2004/2005/2006 - reflecting rising electricity charges (40/50/60). 8/5/20032:30 PM Ministry of Foreign Affairs Sm 2004 2005 2110E Budget Funded Revenue Transfers from SO E s Taxes/Fees for Services Oil Revenue Taxes/Customs Duty Total Revenue 0.2 0.2 0.2 0.2 0.2 0.2 Expenditure Operating Expenditure 20 20 20 Reconstruction 6 0 0 Ministry Capital Projects 0 0 0 Budget funded expenditure 26 20 20 Unfunded needs Examples of items which might be included are: Institution building Notes: Revenue includes a minor amount for visa and other consular fees. 2003 included 'one-off expenses of embassy closures. Reconstruction spending was under asset maintenance in 2003 and has been shifted to capital spending in 2004. 8/5/20032:30 PM Ministry of Finance Sm .2004 90f1 2006 Budget Funded Revenue Transfers from SOEs Taxes/Fees for Services Oil Revenue 12069 19170 19440 Taxes/Customs Duty 60 110 110 Total Revenue 12129 19280 19550 Expenditure Operating Expenditure 1246.5 1625.5 1635.9 Reconstruction 3 0 0 Ministry Capital Projects 30 65 0 Budget funded expenditure 1279.5 1690.5 1635.9 Unfunded needs Examples of items which might be included are: 2 Notes: Assumed $50 million/100million/100 million in personal/corporate income taxes in 2004, 2005,2006. Operating expenditure includes: $25 million/year interest on domestic debt; $200 million/year in 2005 & 2006 servicing foreign debt; 5 % oil revenues paid for Kuwaiti war reparations;; pension & military demobilisation payments (paid at the same rate); $200/100/50 million/year in SOE loan subsidies; $8 million/year for other operating expenses. Ministry capital projects is the Trade Bank.$50 million/year fees to financial institutionsfor making payments; 8/5/20032:30 PM Ministry of Health $m Budget Funded Revenue Transfers from SOEs Taxes/Fees for Services Oil Revenue Taxes/Customs Duty Total Revenue 2004 2005 2006 10 10 I 0 10 10 10 Expenditure Operating Expenditure 450 450 450 Reconstruction 0 0 0 Ministry Capital Projects 50 100 100 Budget funded expenditure 500 550 550 Unfunded needs Examples of items which might be included are: Notes: Health operating expenditure driven by higher quality medical supplies. 8/5/20032:30 PM Ministry of Higher Education $m 21104 2005 2006 Budget Funded Revenue Transfers from SOEs Taxes/Fees for Services Oil Revenue Taxes/Customs Duty Total Revenue 5 10 10 5 /0 /0 Expenditure Operating Expenditure 45 45 45 Reconstruction 2 0 0 Ministry Capital Projects 1 5 5 Budget funded expenditure 48 50 50 Unfunded needs Examples of items which might be included are: University reconstruction (including billeting) Notes: Operating expenses driven by many contracted teachers. Traditional course fees resumed (mainly for night school). Need to pursue"twinning"/partnership relationshipswith universities in other countries. 8/5/20032:30 PM Ministry of Housing and Construction Sm 2004 2004 2006 Budget Funded Revenue Transfers from SOEs Taxes/Fees for Services Oil Revenue Taxes/Customs Duty Total Revenue 5 5 5 5 5 5 Expenditure Operating Expenditure 11 11 11 Reconstruction 5 0 0 Ministry Capital Projects 124 128 134 Budgetfunded expenditure 140 139 145 Unfunded needs Examples of items which might be included are: Housing Roads and Bridges Notes: Assume all roads and bridges expenditures under Housing and Construction. 8/5/20032:30 PM Ministry of Industry and Minerals Sin 213t4 2005 MOB Budget Funded Revenue Transfers from SOEs Taxes/Fees for Services Oil Revenue Taxes/Customs Duty Total Revenue 50 50 50 50 50 Expenditure Operating Expenditure 24 19 14 Reconstruction 0.5 0 0 Ministry Capital Projects 1 1 1 Budget funded expenditure 25.5 20 15 Unfunded needs Examples of items which might be included are: 50 will tell them to seek support through loans Notes: Assume direct support for SOEs of $20 million/$15 million/$10 million; other operating $4mi1110n/year. 8/5/20032:30 PM Ministry of Interior (includes Border Protection) $m 2004 2006 2006 Budget Funded Revenue Transfers from SOEs Taxes/Fees for Services Oil Revenue Taxes/Customs Duty Total Revenue 175 20 22.5 17.5 20 22.5 Expenditure Operating Expenditure 250 550 300 Reconstruction 10 0 0 Ministry Capital Projects 50 100 100 Budget funded expenditure 310 650 400 Unfunded needs Examples cf items which might be included are: International police force Cross-border enforcement Fire and Emergency Communications Notes: Ministry capital budgets includes equipment purchases for border security. Operating expenditure assumes international police force phases out in mid 2005. Fees relate to passport issue and vehicle registration. 8/5/20032:30 PM Ministry of Water Resources (formerly Irrigation) $m 21ILLI 20115 2006 Budget Funded Revenue Transfers from SOEs Taxes/Fees for Services Oil Revenue Taxes/Customs Duty Total Revenue 5 7.5 10 5 7.5 10 Expenditure Operating Expenditure 6 6 6 Reconstruction 10 10 10 Ministry Capital Projects 100 200 200 Budget funded expenditure 116 216 216 Unfunded needs Examples of items which might be included are: Irrigations (Marsh reclamation and water to farms) Dam & Infrastructure Rebuilding Notes: Operating expenses increased to reflect higher maintenance. Reconstruction refers to catch up maintenanceon existing pumps; maintaining structural integrityof dams. 8/5/20032:30 PM Ministry of Labour and Social Affairs Sm 2004 21105 2006 Budget Funded Revenue Transfers from SOEs Taxes/Fees for Services Oil Revenue Taxes/Customs Duty Total Revenue 2 4 6 2 4 6 Expenditure Operating Expenditure 216.5 418.5 418.5 Reconstruction 2.5 0 0 Ministry Capital Projects 1 5 5 Budget funded expenditure 220 423.5 423.5 Unfunded needs Examples of ifems which might be included are: Retraining & reskilling programs Notes: Fees are rent on buildings held by the social security fund for private pensioners Operating expenses include 40/40/40 computer training; 140/year redundancy training; 36.5/year unemployment spending. 8/5/20032:30 PM Ministry of Oil $m -21104 2005 21106 Budget Funded Revenue Transfers from SO Es Taxes/Fees for Services Oil Revenue Taxes/Customs Duty Total Revenue 10 10 10 10 10 10 Expenditure Operating Expenditure 2 2 2 Reconstruction 0 0 0 Ministry Capital Projects 860 550 1000 Budget funded expenditure 862 552 1002 Unfunded needs Examples of items which might be included are: Oil production to pre-war level Notes: Capital projects includes $60 million for oil guards. 50 dinar a barrel export fee not included excise on benzine not included. 8/5120032:30 PM Ministry of Planning Sm 2004 2005 MS Budget Funded Revenue Transfers from SOEs Taxes/Fees for Services Oil Revenue Taxes/Customs Duty Total Revenue 0.1 0.2 0.3 0.7 0.2 0.3 Expenditure Operating Expenditure 10 10 10 Reconstruction 2 0 0 Ministry Capital Projects 0 0 0 Budget funckd expenditure 72 70 70 Unfunded needs Examples cf items which might be included am: unexploded ordinance removal de-mining Census Notes: Operating expenses includes $1 million for the production of economic statistics. 8/5/20032:30 PM Ministry of Public Works $m Budget Funded Revenue Transfers from SOEs Taxes/Fees for Services Oil Revenue Taxes/Customs Duty Total Revenue 2004 2005 2005 0 0 0 Expenditure Operating Expenditure 27 22 17 Reconstruction 10 0 0 Ministry Capital Projects 160 320 480 Budget funded expenditure /97 342 497 Unfunded needs Examples of items which might be included are: Potable Water Water and Sewerage Environment Notes: Assuming total cost is $20 billion; norma14`)/0 upkeep; can only afford 1% in budget in 2004; 2% in 2005; 3% in 2006. Revenues (15/20/25) netted against operating expenses 8/5/20032:30 PM Ministry of Endowments and Religious Affairs Sm 2004 2005, .2D06 Budget Funded Revenue Transfers from SOEs Taxes/Fees for Services Oil Revenue Taxes/Customs Duty Total Revenue 0 0 0 Expenditure Operating Expenditure 1.5 1.5 1.5 Reconstruction 3.2 0 0 Ministry Capital Projects 0 0 0 Budget funded expenditure 4.7 1.5 1.5 Unfunded needs Examples of items which might be included are: Complete Baghdad Mosque Projects Notes: 8/5/20032:30 PM Science and Technology Commission $m 2004 2005 2006 Budget Funded Revenue Transfers from SOF s Taxes/Fees for Services Oil Revenue Taxes/Customs Duty Total Revenue 0 0 0 Expenditure Operating Expenditure 3.6 3.6 3.6 Reconstruction 0 0 Ministry Capital Projects 3.2 3.2 3.2 Budget funded expenditure 6.8 6.8 6.8 Unfunded needs Examples of /ferns which might be included are: Institution Building Laboratory Buildings & Equipment Notes: 8/5/20032:30 PM Ministry of Trade $m 2004 2005 200.6 Budget Funded Revenue Transfers from SOEs 200 50 5 Taxes/Fees for Services 20 Oil Revenue Taxes/Customs Duty Total Revenue 220 50 5 Expenditure Operating Expenditure 602 2 2 Reconstruction 1 0 0 Ministry Capital Projects 20 0 0 Budget funded expenditure 623 2 2 Unfunded needs Examples of items which might be included are: Notes: $600 million to purchase items for the food basket. 8/5/20032:30 PM Ministry of Transport and Communications Sm 21104 2005 201I6 Budget Funded Revenue Transfers from SOEs 5 10 15 Taxes/Fees for Services 15 20 25 Oil Revenue Taxes/Customs Duty Total Revenue 20 30 40 Expenditure Operating expenditure 16 4 4 Reconstruction 10 0 0 Ministry Capital Projects 56 292 296 Budget funded expenditure 82 296 300 Unfunded needs Examples of items which might be included are: Communications (completion of information systems) Notes: Operating expenses in 2004 includes $9 million for first half of year Airport safety contract and $3 million for SOE support. 8/5/20032:30 PM Ministry of Youth and Sport $m Budget Funded Revenue Transfers from SOEs Taxes/Fees for Services Oil Revenue Taxes/Customs Duty Total Revenue 2.004 2005 2006 0 0 0 Expenditure Operating Expenditure 5.2 5.2 5.2 Reconstruction 2.8 0 0 Ministry Capital Projects 0 50 50 Budget funded expenditure 8 55.2 55.2 Unfunded needs Examples cf items which might be included are: Elite athlete support Notes: 8/5/20032:30 PM Unallocated 2004 2005 2006 Budget Funded Revenue Transfers from SOEs Taxes/Fees for Services 800 Oil Revenue Taxes/Customs Duty Total Revenue 800 Expenditure Operating Expenditure 2153 Reconstruction 0 Ministry Capital Projects/Am ba: 6670.715 sub-total Budget funded expen. 8823.715 Supplemental Items 2028 1938 0 0 7478.645 7492.275 9506.645 9430.275 sub-total Supplemental expend 0 Items for Donor's conference sub-total donors conference e) Total Needs 8823.715 9506.645 9430.275 Notes: $800 million in OFF recovery included as taxes on fees/services. Operating expenditure line is salaries (including Northern territories). Social safety net for food is in ministerial capital expenditure. Ambassadors reserve of 5 per cent of revenue is in Ministry Capital Projects. Support for governing council estimated at $20 million/year 8/5/20032:30 PM Erbil Region $m Budget Funded =it 2005 21306 Revenue Transfers from SOEs Taxes/Fees for Services Oil Revenue Taxes/Customs Duty 200 220 250 Total Revenue 200 220 250 Expenditure Operating Expenditure 230 230 230 Reconstruction 70 0 0 Ministry Capital Projects 160 250 270 Budget funded expenditure 460 480 500 Unfunded needs Examples of items which might be included are: Notes: These figures do not include salaries, pensions and the social safety net, as these amounts have yet to be disaggregated. Notes: 8/5/20032:30 PM Sulemaniyah Region Sm 2004 2005 2006 Budget Funded Revenue Transfers from SOEs Taxes/Fees for Services Oil Revenue Taxes/Customs Duty 100 110 120 Total Revenue 100 110 120 Expenditure Operating Expenditure 220 230 250 Reconstruction 60 0 0 Ministry Capital Projects 160 220 220 Budget funded expenditure 440 450 470 Unfunded needs Examples of items which might be included are: Notes: These figures do not include salaries, pensions and the social safety net, as these amounts have yet to be disaggregated. Notes: 8/5/20032:30 PM COALITION PROVISIONAL AUTHORITY Ministry of Justice, Iraqi Correctional Services BAGHDAD, IRAQ APO AE 09302 20 February 2004 To: Ministry of Finance, Director General From: Ministry of Justice, Prisons Department Subject: Authorization for Release of 2004 Ministry Projects Capital, Section 8 Prisons (ICS) respectfully requests release of the ministry projects capital for 2004, section 8. The value is 81 billion dinar (equivalent to U.S. S54,000,000). The funds were agreed upon at the budget hearings in September of 2003. enior advisor to the Ministry of Finance, the Minister of Finance bud et advisor for Ministry o Justice. the Minister of Justice, Sarkies Seebo Sarkies, chief accountant for ICS, and CPT military advisor to ICS among other representatives were present for the hearings and the agreement. A copy o t e memorandum from budget advisor to the Ministry of Justice is attached as a reference as well as a copy of the worksheet provided by Ministry of Finance. The capital agreed upon is less than what the advisory team recommended for the reconstruction and construction efforts required to bring the ICS to minimally acceptable standards outlined by the United Nations and the team of prison experts. The funds provided by the United States Supplemental budget were intended to meet the shortfalls created by the lack of revenues in thc Iraqi economy. The shortfalls arc indicative of the needs at the time and based upon Iraqi materials, labor. design expenses. and other day to day operational expenses. However, the Supplemental funds will be spent, in large part, utilizing imported materials and designs that cannot be obtained in Iraq. therefore the increased cost will cause a shortfall in the material output of the monies. Given these facts and given that the Supplemental budget was intended to augment Iraqi budget funds as planned last year, a failure to release any of those monies will create a critical situation in the development and rehabilitation of the Iraqi Correctional Service. A schedule of anticipated capital obligations is enclosed. Further obligations will be required as the ICS exercises its authority under CPA Order #10 and the Memorandum of Agreement with Ministry of Interior. Ministry of Interior did not budget for the necessary expenses of feeding prisoners, housing prisoners, or treating prisoners using minimally acceptable standards. All the detention facilities in Iraq are woefully overcrowded. As ICS assesses centers owned by Interior and accepts responsibility for these facilities, funds must be immediately available in order to rehahilitate the structures so that overcrowding is reduced and security in Iraq is assured. We further asked that the Planning Office ensure that procedures are sufficiently streamlined so that projects will be started quickly and that contractors may be paid in a timely fashion. We thank you for your time and consideration in this matter. Point of contact for the MOJ, ICS is or CPT I/ORIGINAL SIGNED// Senior Advisor Mal, Prisons Department cc: MoJ, CPA Senior Advisor MoI, Account Department ICS File Republic of Iraq 2004 Budget Minister of Finance Minister of Planning October 2003 (a) The following definitions are used in this Budget Paper: • Budget year refers to 2004, while the forward years refer to 2005 and 2006, and the Budget period is 2004-6; and • one billion is equal to one thousand million. (b) Figures in tables and generally in the text have been rounded. Discrepancies in tables between totals and sums of components are due to rounding: • estimates are in New Iraqi Dinar (NID); • estimates are generally rounded to the nearest 100 million New Iraqi Dinar; and • estimates midway between rounding points are rounded up. (c) For the budget balance, a negative sign indicates a deficit while no sign indicates a surplus. (d) The following notations are used: NID New Iraqi Dinar Nil na not available bn billion Sm $ million Contents Budget Overview 4 Budget Financing 5 Economic and Fiscal Policy Overview 7 The decline of Iraq's economy The economic legacy of Saddam Hussein Iraq's Economic Challenge 10 Iraq's Budget Process and Framework 13 Budget Process 13 Budget Coverage 13 Budget Framework 13 The Budget Challenge 14 Risks Surrounding the Estimates 15 Revenues 16 Oil Revenue 16 Reconstruction Levy 16 Personal Income Tax 17 Company Income Tax 17 Interest Income I 7 Transfers from State Owned Enterprises (SOEs) 17 User Pays Charges 18 Other Taxes 20 Budget Expenditures 21 Expenditure Su_rnmary by Ministry 21 Staffing Levels and Expenditure Summary by Ministry Operating Expenditure Summary by Input Operating Expenditure Stmunary by Output 23 24 25 3 Budget Overview This Budget provides authority for the commitment and expenditure of money by the Interim Government of Iraq for 2004 and sets the fiscal framework for 2005 and 2006. As a consequence of over two decades of neglect by the former regime. Iraq has immediate reconstruction and redevelopment needs well in excess of available revenues. The Budget meets, to the extent possible with available revenues, the recurrent costs of the Iraqi government, some of the most pressing capital projects and around NID 940 billion ($US 625 million) in urgent nation building programs. Iraq will run a deficit in 2004 of NID 886.3 billion (SUS 590.9 million), financed by refunds of unspent Oil-for-Food funds. In 2005 and 2006, the budget is in balance (see Table 1). Table 1: Budget Aggregates for 2003 to 2006 2003(a) bn NID 2004 bn NID 2005 bn NID 2006 bn NID Revenues Oil 4,096.5 18,000.0 27,750.0 28,950.0 Customs Duty 450.0 525.0 Income Tax 45.0 120.0 240.0 Returns from State Owned Entities 337.5 562.5 142.5 150.0 User pays fees and charges 85.5 96.3 132.5 185.1 Other taxes and income 76.5 105.0 105.0 120.0 Total Revenues 4,596.0 19,258.8 28,775.0 29,645.1 Expenditures Operating Expenditure 7,362.3 19,026.7 21,119.2 21,463.8 Capital Projects 1,869.9 1,118.4 7,636.5 8,154.0 Total Expenditures 9,232.2 20,145.1 28,755.7 29,617.8 Budget Balance (Deficit) 4,636.2- 886.3- 19.3 27.3 (a) The 2003 Budget only covers July to December 2003. In 2005 and 2006, revenue growth will permit Iraq to commit increased expenditures to much needed investment projects. These investment projects will grow to around NID 8 trillion ($US 5.3 billion) in 2005 and 2006. The Budget process identified very substantial reconstruction and redevelopment needs, nearly all of which are not able to be funded in the 2004 Budget. The Iraqi Governing Council, in conjunction with the Coalition Provisional Authority, is seeking the support of the international donor and investment community to meet these unmet needs. 4 Budget Financing Consistent with responsible fiscal policy this Budget does not rely on increased borrowing or printing money. Rather, the Budget deficit of NID 886.3 billion (SUS 590.9 million) for 2004 will be financed from the return of unspent Oil-for-Food program funds. Table 2 outlines the financing of Iraq's budgets for the coming years. Table 2: Budget Financing for 2003 to 2006 2003 bn NID 2004 bn NID 2005 bn NID 2006 bn NID Opening Financial Capital Development Fund for Iraq 1,500.0 1,513.8 177.4 166.7 Vested Assets 1,350.0 Seized Assets 825.0 Total Opening Financial Capital 3,675.0 1,513.8 177.4 166.7 Plus: Capital Inflow Oil-for-Food Program Refunds 2,025.0 900.0 420.0 Transfer of Iraqi assets from abroad 450.0 Less: Capital Outflow Transfer to Central Bank Reserves 1,350.0 450.0 plus/less: Budget Surplus/deficit 4,636.2- 886.3- 19.3 27.3 Closing Financial Capital Development Fund for Iraq 1,513.8 177.4 166.7 194.0 Vested Assets Seized Assets Total Closing Financial Capital 1,513.8 177.4 166.7 194.0 Memorandum Item Cumulative Central Bank Reserves 450.0 1,800.0 2,250.0 2,250.0 The Development Fund for Iraq (DFI) was established by the United Nations Security Council Resolution 1483 to be administered by the CPA, in consultation with the interim Iraqi authority. Contributions to the DFI have included a SUSI billion (NID 1.5 trillion) transfer from Iraq's Oil-for-Food program account, proceeds from oil export sales, and funds in other countries that belonged to the previous regime. These funds may only be used for humanitarian assistance, economic reconstruction, Iraqi civil administration and other purposes benefiting the Iraqi people. Vested assets consisted of approximately $1.7 billion (NID 2.55 trillion) in Iraqi funds that previously belonged to the former regime in Iraq were frozen in US bank accounts and vested by the President of the United States in a special account of the United States Department of Treasury. These funds will be fully disbursed in paying salaries and pensions to Iraqi civil service workers and to fund other Iraq relief and reconstruction projects in 2003. Seized Assets These funds consist of state owned or regime owned cash that was captured and safeguarded by Coalition Forces in Iraq. The authority for use of these funds was delegated to the CPA Administrator to use only to assist the Iraqi people and to support reconstruction of Iraq. All of these funds will be disbursed in 2003. In addition to these funds, US Government appropriated funds are also being used to assist in the reconstruction of Iraq. Relative to the 2003 Budget that was published in July, the 2004 Budget has reclassified US Government appropriated funds to being 'off budget' sources of finance. These appropriated funds however are noted below. Iraq Relief and Reconstruction Fund (1RRF): SUS 2.475 billion (NID 3.71 trillion) Natural Resources Risk Remediation Fund (NRRRF): SUS 0.502 billion (NID 753 billion) Army Operations and Maintenance Funds for the New Iraqi Army transferred from the Iraq Freedom Fund: $US 0.101 billion (NID 151.5 billion) These funds will be fully committed against 2003 requirements. 6 Economic and Fiscal Policy Overview This section provides an overview of the fiscal and economic policy issues and challenges confronting Iraq. It starts with an analysis of Iraq's economy over the past three decades. An assessment of the current state of Iraq's economy and the challenges confronting it follows. This is followed by an outline of the fiscal and economic policy framework proposed to re-develop Iraq's economy to improve the living standards of the population, drawing on the lessons from other transition economies. The decline of Iraq's economy It is very difficult to get reliable economic and fiscal data for Iraq over the past two decades. Since 1979 the Iraqi national Budget was prepared in secret, and very closely held by the highest levels of the regime. Similarly, releasing core economic information about Iraq (Gross Domestic Product, unemployment and inflation rates) to the wrong hands carried the death penalty. Nevertheless, the devastating economic effect of the previous regime's policies is undeniable. Saddam Hussein and his Ba'ath party presided over a very significant fall in living standards in Iraq, both in absolute and relative terms. Chart 1 Iraqi per capita GOP: 1968-2001 ($US 2002) Constant (2002) US Dollars 3000 2500 - 2000 1500 '- 1000 1 1 1 11 500 0 1 III 1 1liii 1111 Ii 1968 1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 Source: Ministry of Planning, CPA estimates. Thirty years ago, Iraq was an economic leader in the Arab world. Iraq had a strong workforce, modern infrastructure, and an effective public administration. Today, while incomes of the rest of the world have gone forwards, per capita income in Iraq is a fraction of what it was 20 years ago (Chart 1). The scale of this economic tragedy is difficult to overstate. The result is that Iraq today is an impoverished country, having once been a middle income country. This decline in income co-incided with a collapse in infrastructure investment (Chart 2). This long tenn neglect of Iraq's vital infrastructure has left a legacy of a decrepit and fragile public infrastructure, and a capital stock a fraction of what it was two decades ago. Chart 2: Gross Capital Formation in Iraq: 1980-2001 Millions of 1998 Inigi Dinar 9000.0 8000.0 7000.0 6000.0 5000.0 4000.0 3000.0 2000.0 1000.0 0.0 Social r[ r Private I t -L--1— Ca mr. N 10 10 40 CO OS CO c0 CO CO CO CO CO CO CO 02 OS CD Vs 47s 47S CO 01 ci Crs 01 4r• Pt el .17 441 40 co ao 01 01 01 01 a) co al CO 01 ci ci 0 476 CA CIS 01 GI 01 CD 01 171 0.1 Source: WinistrydPiannirig The economic legacy of Saddam Hussein The source of Iraq's current problems stems from decades of economic mismanagement and corruption at the hands of Saddam Hussein and Iraq's Ba'ath party. War, Opulence and isolation To some extent, this mismanagement is well known and broadly accepted. For example, the former regime: • Started wars of aggression that cost untold Iraqi lives and tens of billions of dollars; 8 • Squandered Iraq's oil wealth on an opulent lifestyle for favoured officials of the previous regime, while ordinary Iraqis suffered a sustained decline in living standards; and • Chose to isolate Iraq from the international community rather than dismantle its capacity for further military aggression against its neighbours and demonstrate that it had done so. Some of the consequences of these policies are obvious. The previous regime's wars and opulence diverted scarce resources away from social infrastructure and economic development. Its self-imposed isolation from the international business community has seen two decades of technological development pass it by. making state-owned enterprises increasingly inefficient. This is particularly evident in the crippled state of the banking and payments system. Other consequences are less obvious. The population policy of the previous regime was based on actively encouraging rapid growth in population to provide additional soldiers for its wars. However investment in education and housing declined, rather than increase in line with demand — in part reflecting the increased number of people seeking their share of Iraq's oil wealth. In the first part of the 1990s, the previous regime's response to the international isolation it chose was to finance its spending by printing additional currency. The inevitable resultant hyperinflation created massive distortions throughout the economy, including the destruction of the real value of households saving deposits in the banks. In the second part of the 1990s, the previous regime systematically and corruptly manipulated the humanitarian Oil-for-Food program instituted by Security Council resolution 986 and monitored by the United Nations. The previous regime required that 10 per cent of the face value of contracts they submitted under the Oil-for-Food program be paid directly to the regime. These bribes were a key part in financing the palaces of the previous regime and maintaining and developing its military capability. In return, companies received inflated prices more than covering this additional cost. In addition, a significant proportion of the goods imported under the Oil-for-Food program were on-sold by the State-owned enterprises at very significant discounts (over 50 per cent) in either local markets or smuggled out of the country to be sold in regional markets. The proceeds - much less than the oil exports used to purchase the goods - were then shared by the employees of the State-owned enterprises as 'profit' bonuses and the Iraqi budget (which in turn mainly funded the presidency and the military). 9 The result of this manipulation and corruption was that the humanitarian object of the Oil-for-Food program was undermined to a very significant degree. The extent of corruption under this program warrants further investigation. State-Run Economy Perhaps less obvious was the damage that the previous regime inflicted on Iraq through centralised command style economic policies. The previous regime nationalised by force many industries from the 1970s. The consequence was a sustained reduction in the private sector's share of an already declining economy, as the private sector lost its incentive to save, invest and innovate. The model of the State, rather than capital and product markets, determining the allocation of scarce financial capital has proven a failure across the world, as demonstrated by the collapse of the former Soviet Union. The experience of Iraq over the past two decades is yet another example, albeit among the most extreme, to add to this list. Leaving aside the manner in which they were acquired, the enterprises run by the State have, almost without exception, been destroyers not creators of value, surviving only with subsidies from oil production. Iraq's Economic Challenge Iraq is a country with enormous economic potential. With sound policies, significant investments and assistance from international donors over the next several years, Iraq has the human and natural resources to return to the position of economic leadership it once held. Fiscal and Economic Policy Approach Iraq has significant resen.'es of natural resources. However ultimately, Iraq's economic future will depend on the adoption of sound fiscal aud economic policies. The objective of Iraq's fiscal and economic policy is to raise the living standards of all Iraqis as rapidly as possible through sustained economic growth. Responsible fiscal policy is a key component of Iraq's economic strategy. The 2004 Budget was prepared on the basis that Iraq needs to demonstrate that it can operate with the resources available to it. The 2004 Budget does not rely on increased borrowing or printing money. More generally, there are five core principles guiding Iraq's economic policy agenda: 10 I. Economic openness 2. Private sector development 3. International integration 4. Public sector transparency 5. A safety net for the poor. Economic Openness Economic openness is essential for markets to function properly, for business and job creation to occur, for ideas and entrepreneurship to flourish, and for Iraq to realise its full potential. The public sector has an important. but limited, role to play in everyday economic life. Private Sector Development The private sector, especially small and medium-sized companies that are often the most flexible and growth-oriented sector, will be strongly encouraged. International Integration Iraq is eager to full rejoin the community of nations — practically and economically. Iraq will seek new and open trade relationships, financial links and other ties to the outside world to facilitate economic urowth. Public Sector Transparency Iraq's institutions will be open to public scrutiny. Iraq's institutions will operate be clearly defined rules and will be held strictly accountable for their performance. This will help to reduce room for corruption and strengthen the confidence of investors and the Iraqi people alike. A Safety Net for the Poor Iraq must also help those suffering hardship now during this difficult economic transition. All Iraqis must share in Iraq's economic wealth. This will be done in a way that leaves people free to make their own choices but will also build a strong foundation for a market economy. II Lessons From Transition Economies From the experience of other countries, we know that economic transitions are not easy and take time. The three decades of economic destruction wrought by the previous regime will not be undone overnight. The history and stark facts of the twenty-odd transition economies during the last twenty years is that all of them suffered severe depressions and none of them started to grow in less than two years from the date they made the decision to change. Iraq is in a much more difficult situation than other transitional economies since, unlike the transitional economies in the former Soviet Union. there is a significant security problem and a grossly inadequate infrastructure. Given the years of neglect and war, the economy can't get into full gear unless the security problem is solved and the basic infrastructure which will facilitate economic development is repaired — electricity, water, sewage, transportation, communications and health. The 2004 Iraqi Budget is the bare minimum necessary to keep Iraq going. It is nowhere near enough to kick-start the economy and create an enabling environment for future growth and prosperity. Iraq will need international assistance to help it through this transition period, and enable it to take large strides back on the path to economic prosperity. If started now, the security situation could be improved significantly within a year. the communications and electrical situation well on its way to being workable and the water, sewage, health and transportation problems demonstrably on their way to success, completely changing the environment for investment. These projects will of course significantly improve the employment situation and provide positive feedback on the security side. Without this crucial investment there is little chance that the depressed private sector will recover in the short to medium term. 12 Iraq's Budget Process and Framework Budget Process The 2004 Budget process began in July 2004. Officials from the Ministries of Finance and Planning, in conjunction with the Coalition Provisional Authority (CPA), prepared and circulated guidance to Ministries, including "top line" provisional budget figures against which they needed to bid. It included guidance on key assumptions to be used in the preparation of submissions, including a single exchange rate — 1500NID to the US dollar. In keeping with the principle of public sector transparency, this guidance was published on the internee at the same time it was provided to Ministries. Ministries budget submissions were received by the end of August. The Ministries of Finance and Planning conducted joint hearings in the first week of September in which each 'Ministry had the opportunity to explain and expound on the expenditure priorities they identified. These hearings were chaired by the Ministry of Finance and conducted in Arabic, with technical assistance provided by CPA officials. The outcome of these hearings was then consolidated, and presented to the Governing Council and the CPA Administrator for approval. 5udget Coverage Geographically, Iraq's budget was previously only for the Center and South of the country. This Budget covers all 18 governorates of Iraq, including the northern regions of Dohuk, Erbil and Suleymaniah. In the 2004 Budget, the northern regions of Iraq are treated as regional governments, with revenues flowing into the central Treasury consolidated revenue account and expenditures centrally funded by tied grants. Budget Framework Iraq's budget framework is characterized by a dichotomy between public entities that are 'on-budget' (all Ministries and their agencies that perform a public function) and 'off-budget' entities (also known as 'self-financing' entities). All revenues of 'on-budget' entities are required to be put into consolidated revenue, controlled by the Ministry of Finance. Expenses of 'on-budget' entities are made against Budget appropriation lines. 13 Support for 'off-budget' entities is regarded as a transferred expenditure. Revenues of 'off-budget' entities are not required to be paid directly into consolidated revenue. Profits of State-owned enterprises are generally required to be transferred to the Ministry of Finance. To avoid confusion, residual receipt of goods under the Oil-for-Food program are not recognised in the 2004 Budget. The Budget Challenge A key challenge in preparing the 2004 Budget was the lack of a clear base on where funds were spent by the previous regime. Of the appropriations 'on-budget', a variety of exchange rates were used, as a means of providing subsidies, and little detail exists on how or where military or Presidency appropriations were spent. Further, the vast bulk of public expenditure under the previous regime was 'off-budget', reflecting goods received under the Oil-for-Food program. The manipulation of this program by the former regime presented a significant challenge in preparing the 2004 Budget. Chart 3: Iraq's budget challenge • 40 SUS bn - 35 30 25 20 15 Unmet Off Budget Needs Expenditure More than (Clikfor Food) $20 billion 2002 Budget South: $1.0 billion North: $0.3 billion 10 2004 Budget $13 billion -.200 - 4 Budget Process 2002 2003 2004 14 Risks Surrounding the Estimates The estimates of revenue and expenditure in this Budget incorporate best information available at the time of publication. A range of factors may influence the actual budget outcome in future years. The disclosure of these factors in this statement increases the transparency of the fiscal projections and ensures they remain 'on-balance' estimates. Events that could affect fiscal outcomes include changes in economic and other parameters and matters not included in the fiscal forecasts because of uncertainty about their timing, magnitude and/or likelihood. In particular, there are upside and downside risks to the oil price and export volume forecasts. Similarly, there is a possibility that tax revenues will be higher or lower than expected. Should anticipated revenues be lower than expected, either expenditures would need to be reduced, or other revenue sources identified. 15 Revenues An important element of the Budget fiscal strategy is the resumption of existing, and the creation of new, revenue sources. This is balanced against the impact on the development of the private sector. While the oil sector will provide the substantial majority of revenues in the near term, in 2004 Iraq will begin to diversify its revenue sources. Total revenue for 2004 is forecast at MD 19.3 trillion (SUS 12.8 billion), increasing to NID 28.8 trillion (SUS 19.2 billion) in 2005 and nearly NID 30 trillion (SUS 19.8 billion) in 2006 as oil production increases (see Table 3). Table 3: Revenues 2003 2004 2005 bn NID bn NID bn NID 2006 bn NID Oil Revenue 4,096.5 18,000.0 27,750.0 28,950.0 Reconstruction Levy 450.0 525.0 Personal Income Tax 15.0 45.0 90.0 Corporate Income Tax 30.0 75.0 150.0 Interest Income 76.5 15.0 Transfers from SOEs 337.5 562.5 142.5 150.0 'liter Pay Charges 85.5 96.3 132.5 185.1 Other Taxes and Charges 90.0 105.0 120.0 Total 4.696.0 19.268.8 28.775.0 29,646.1 Oil Revenue The Budget assumes that the level of oil exports will rise over the forecast period to reach pre-war level of 2.5 million barrels per day in 2005 -rather than the production target of the end of 2004. It also assumes a decline in the oil price from current levels to SUS 21 per barrel over the Budget period. These assumptions reflect the need for Budget revenues to prudently balance risks. 2004 2005 2006 Oil Revenue (NID bn) 18,000 27,750 28,950 Oil Exports (mb/d) 1.6 2.4 / 5 . Oil Price (SUS) 21 ',I 21 Reconstruction Levy A 5 per cent reconstruction levy will be levied on all goods, except humanitarian goods, imported into Iraq from 1 January 2004. The revenues from the Reconstruction levy shall 16 be used only to assist the Iraqi people and support the reconstruction of Iraq. It shall expire on 1 January 2006. NID billion 2004 2005 2006 Reconstruction Levy 450 525 Personal Income Tax From 1 January 2004, personal income tax will recommence, with a maximum rate of 15 per cent. It will be levied on the income of individuals, as defined under existing Iraqi income tax law. This lower rate, compared to the 75 per cent top rate that existed previously, will encourage compliance and reward effort. ND billion 2004 2005 2006 Personal Income Tax 15 45 90 Company income Tax From 1 January 2004, company income tax will recommence at a flat rate of 15 per cent. It will be levied on the income of companies, including on the profits of foreign companies operating in Iraq. NID billion 2004 2005 2006 Company Income Tax 30 75 150 Interest income The funds invested in the Development Fund for Iraq earn interest income. ND billion 2004 2005 2006 Interest Income 15 _ - Transfers from State Owned Enterprises (SOEs) The following transfers are expected from SOEs in the forward estimates period. 17 Table 4: Revenue from State Owned Enterprises 2003 2004 2005 bn NID bn NID bn NID 2006 bn NlD Central Bank of Iraq 75.0 90.0 105.0 Shopping Centers Company 75.0 7.5 Automobiles Company 150.0 7.5 Construction Materials Company 150.0 7.5 Agriculture Supplies Company 135.0 105.0 7.5 AI-Rasheed Hotel 7.5 7.5 22.5 45.0 Other enterprises 195.0 Total 337.5 562.5 142.5 150.0 Transfers are only expected from several of the nearly two hundred State Owned Enterprises (SOEs) in 2004. The bulk of the transfers anticipated in 2004 reflect the proceeds from the resale of goods imported under the Oil-for-Food program by companies overseen by the Ministries of Trade and Agriculture. The transfer from the Central Bank of Iraq reflects interest earned on Treasury notes less operating expenses, approved capital projects and some retained earnings. User Pays Charges One of the general principles underpinning this Budget is that Iraqis must contribute to the recovery of their economy. This includes paying for services used — at least to the extent this was done under the previous regime. By 2004 user pay arrangements will be re-implemented for: • Vehicle registration; • Other fees from emergency services; • Passport Fees; • Higher Education Course Fees: • Court Fees: and • Social Security Rental Income. The revenue expected from these charges is displayed in the table below. 18 Table 5: Revenues from User Charges 2003 bn MD 2004 bn NID 2005 bn NID 2006 bn NID Passport Fees 0.8 0.8 0.8 Pharmaceutical scrip charge 15.00 30.0 37.5 45.0 Entry Fees to Cultural Institutions 0.15 0.8 0.8 0.8 Consultancy Charges 0.2 0.3 0.5 Sale of Statistical Publicaitons 0.2 0.2 0.2 Court Fees 3.00 7.5 7.5 7.5 Social Security Rental Income 1.50 3.0 3.0 3.0 Vehicle Registration 30.0 45.0 60.0 Higher Education Course Fees 1.50 1.5 7.5 30.0 Other fees from emergency services 7.5 15.0 22.5 Flight overpass fees 7.50 15.0 15.0 15.0 Other fees and chames 56.85 Total 85.5 96.3 132.5 185.1 The structure of each of these fee arrangements will be reviewed by the responsible Minister, in consultation with the Minister of Finance, to assess its adequacy relative to the service provided. The details of this review for each of these fees and charges will be published no later than 31 December 2003. In addition, there are several new fees and charges applicable in 2004: • Flight overpass fees • Pharmaceutical scrip charge (for non-exempt) • Entry Fees to Cultural Institutions • Consultancy Charges • Sale of Statistical Publications Flight overpass fees are charges for the use of Iraqi airspace by commercial airlines. A pharmaceutical scrip charge of NID 1500 per scrip will apply to help defray the large cost of pharmaceuticals. Exemptions will apply to this charge where its application would result in significant hardship. Entry fees will be charged at cultural institutions such as Baghdad Museum. The Ministry of Planning will charge for consultancy services and statistical publications provided to commercial interests (domestic and foreign) investigating investing in Iraq. There are also some significant examples of other user pays arrangements in place that do not appear as budget revenue. For example, electricity charges are paid to State Owned Enterprises monitored by the Electricity Commission, rather than directly into consolidated revenue. Similarly, municipal water rates and charges are paid to the municipality directly. 19 Other Taxes Several other taxes will be raised in 2004. These are outlined in the table below. Table 6: Other Taxes 2003 bn NED 2004 bn NED 2005 bn NED 2006 bn NED Excise Tax 15.0 15.0 15.0 Had and Restaurant Service Tax 7.5 7.5 7.5 Land Tax 15.0 30.0 45.0 Other 52.5 52.5 52.5 Total 90.0 105.0 120.0 A 15 per cent excise tax will apply to alcohol and tobacco products and other items to be determined. Collection of the 10 per cent tax on 4 and 5 star hotel accommodation and restaurants and the real estate transfer tax resumed on 19 September 2003. A range of other smaller existing taxes will continue to be collected. It includes taxes collected by regional governments. In order to fund an indigenous effort to search for and recover funds stolen from Iraq under the previous regime, a luxury tax of ten per cent will be placed on the profits of businesses delivering remote television access. 20 Budget Expenditures This Budget provides authority for around NID 20 trillion (SUS 13.4 billion) in expenditure in 2004. increasing to NID 28.8 trillion (SUS 19.2 billion) in 2005 and NID 29.6 trillion (SUS 19.7 billion) in 2006, in line with increased revenues. Table 7: Expenditure Aggregates Expenditures Operating Expenditure Capital Projects Total Expenditures 2003 bn NID 2004 bn NID 2005 bn NID 2006 bn NID 7,362.3 19,026.7 21,119.2 21,463.8 1,869.9 1,118.4 7,636.5 8,154.0 9,232.2 20,145.1 28,756.7 29,617.8 Expenditure information is presented in several different forms. First, operating expenditure and capital projects are presented for each Ministry and Statutory Authority. along with employment levels and staffing costs. Operating expenditures are then broken down into the eight headings of the existing Iraqi budget system: staffing expenditures, service requirements, goods requirements, asset maintenance, capital expenditures, transferred expenditures, foreign obligations and staff and retirement rewards. However, this presentation does not provide satisfactory guidance on what is being achieved by this spending. To correct for this gap, operating expenditures are also broken down into major initiatives in the Budget. along with normal ministry operating expenses. Capital projects funded by the budget are listed, along with their estimated cost in 2004 and total project cost. Finally, for each Ministry and statutory authority a summary of all expenditure items is presented. Expenditure Summary by Ministry Table 8 provides a summary of' operating expenditure, capital projects and total expenditure approved in the 2004 Budget by Ministry and Statutory Authority. 21 Table 8 2004 2005 2006 Operating bn NID Capital bn NID Total bn NID Operating bn NID Capital bn NID Total bn NID Operating bn NID Capital bn NID Total bn NID Agriculture 35.4 17.7 53.2 42.2 75.0 117.2 45.5 75.0 120.5 Communications 1.8 7.5 9.3 6.3 225.0 231.3 6.3 225.0 231.3 Culture 12.3 1.5 13.8 9.3 22.5 31.8 9.3 22.5 31.8 Displacementand Migration 0.9 1.5 2.4 0.9 7.5 8.4 0.9 15.0 15.9 Education 805.9 10.0 815.9 806.2 30.0 836.2 806.2 30.0 836.2 Electricity Commission 2.2 2.2 2.2 2,250.0 2,252.2 2.2 2,475.0 2,477.2 Environment 0.9 1.5 2.4 0.9 30.0 30.9 0.9 60.0 60.9 Finance 15,683.8 132.9 15,816.7 17,441.4 240.0 17,681.4 17,545.4 240.0 17,785.4 Foreign Affairs 57.6 90 66.6 56.9 15.0 71.9 56.9 15.0 71.9 Governing Council 9.6 9.6 12.0 12.0 15.0 15.0 Health 1.345.5 75.0 1,420.5 1,592.9 150.0 1,742.9 1,790.5 150.0 1,940.5 Higher Education 171.1 12.0 183.1 171.1 7.5 178.6 171.1 7.5 178.6 Housing 55.2 200.1 255.3 46.7 450.0 496.7 46.7 450.0 496.7 Human Rights 0.9 1.5 2.4 0.9 7.5 8.4 0.9 15.0 15.9 Industryand Minerals 12.0 - 12.0 9.0 1.5 10.5 9.0 1.5 10.5 Interior 187.3 187.3 200.0 150.0 350.0 215.0 150.0 365.0 Justice 144.6 63.3 207.9 134.4 150.0 284.4 134.4 150.0 284.4 Labour and Social Affairs 49.2 3.1 52.3 52.2 7.5 59.7 67.2 7.5 74.7 Municipalities and Public Works 60.0 249.0 309.0 84.5 727.5 812.0 84.5 975.0 1,059.5 Oil 2.7 - 2.7 1.9 1,500.0 1,501.9 1.9 1,500.0 1,501.9 Planning 45.0 22.5 67.5 54.9 - 54.9 61.6 61.6 Science and Technology 28.6 7.7 36.4 31.0 15.0 46.0 31.0 15.0 46.0 Trade 10.8 4.5 15.3 6.3 6.3 6.3 6.3 Transport 34.2 93.0 127.2 8.1 750.0 758.1 8.1 750.0 758.1 Water Resources 25.2 192.3 217.5 29.3 750.0 779.3 29.3 750.0 779.3 Youth and Sport 18.2 4.2 22.4 18.2 75.0 93.2 18.2 75.0 93.2 Statutory Authorities Board of Supreme Audit 4.1 0.5 4.5 3.8 3.8 3.8 3.8 Central Organisation for Standards 2.7 2.7 1.7 1.7 1.7 1.7 Awqaf (Religious Endowments) 2.1 8.1 10.2 2.3 - 2.3 2.3 2.3 Iraqi Media Network 2.2 2.2 2.2 2.2 2.2 2.2 New Iraqi Army 34.8 34.8 109.8 109.8 109.8 109.8 Unallocated 180.0 180.0 180.0 180.0 180.0 180.0 Total 19,026.7 1,118.4 20,145.1 21,119.2 7,636.5 28,755.7 21,463.8 8,154.0 29,617.8 Staffing Levels and Expenditure Summary by Ministry This table provides a swnmary of the number of employees on the direct Government payroll by Ministry. An allocation of salaries has been provided to each Ministry to meet salary costs for these employees, using the interim four tier salary scale. The new 13 tier salary scale will increase the overall public sector wage bill. The budget allocation to fund this increase is only transferred to a Ministry when the proposed aggregate plan for allocating all of the Ministry's staff into the new tiers has been approved. Table 9: Ministry Staffing Levels 2004 Employees 2004 bn N1D Agriculture 8,166 19.7 Communications 174 0.3 Culture 3,213 5.1 Displacement and Migration 34 01 Education 324,532 655.9 Electricity Commission 846 1.4 Environment 34 0.1 Finance 6,633 14.4 Foreign Affairs 1,410 2.7 Health 105,481 220.5 Higher Education 50,055 107.3 Housing 16,409 30.2 Human Rights 34 0.1 Industry and Minerals 584 1.3 Interior 65,105 155.0 Justice 21,433 44.1 Labour and Social Affairs 5,413 11.7 Municipalities and Public Works 22,874 39.5 Oil 770 1.9 Planning 1,050 2.4 Science and Technology 10,041 16.0 Trade 1,419 3.0 Transport 1,888 4.1 Water Resources 6,958 14.3 Youth and Sport 2,427 3.2 Statutory Authorities Board of Supreme Audit 1,216 3.0 Central Organisation for Standards 500 1.0 New Iraqi Army 26,500 34.8 Iraqi Media Network 1,322 2.2 Governing Council 125 1.2 Centrally Funded Employees 353,578 1,762.5 Total 1,047,718 3,159.0 Operating Expenditure Summary by Input This table provides a summary of operating expenditure broken down into the eight headings of the existing Iraqi budget system. Table 10: Operating Expenditure Summary by Input 2003 2004 2005 2006 bn MID bn MID bn bn MID Staff Expenditures 1,467.6 3,159.0 3,153.0 3,148.5 Service Requirements 277.2 544.8 544.2 584.0 Goods Requirements 419.7 1,101.1 1,354.0 1,528.9 Assets Maintenance 99.4 154.4 193.0 204.1 Capital Expenditures 154.1 159.4 179.3 192.8 Transferred Expenditures 4.173.1 11,182.8 12,406.2 12,223.7 Foreign Obligations 205.7 925.2 1,414.3 1,631.8 Salaries& Retirement rewards 565.5 1,800.0 1,875.0 1,950.0 Total Budget Inputs 7,362.3 19,026.7 21,119.2 21,463.8 Capital expenditures are regarded as operating expenditures if they represent the regular purchase of capital items necessary for the operation of a ministry, rather than representing a capital project or investment. New vehicle expenditures, for example, are recorded under this expenditure line. Transferred expenditures include, amongst other things. the cost of the public distribution system and support for State Owned Enterprises. The Foreign obligations category includes the war reparations to Kuwait required under Security Council resolution 1483 (discussed further below). 24 Operating Expenditure Summary by Output Table 11 below provides a summary of operating expenditure by program initiatives. A brief description of each item follows. Table 11: Operating Expenditure Summary by Output 2003 bn NID 2004 bn NID 2005 bn NID 2006 bn NID Public Distribution System 5,250.0 7,350.0 7,350.0 Oil product imports 2,287.5 Normal Ministry Operating Expenditure 869.2 2,192.7 2,353.4 2,430.5 Contingency Reserve 1,125.0 1,500.0 1,500.0 Local/Regional Government Grants 294.0 1,117.5 1,117.5 1,117.5 Reserve for New Salary Scale 1,065.0 1,065.0 1,065.0 Regional Development Projects 340.5 1,116.0 450.0 450.0 Nation Building Projects 466.5 937.5 75.0 75.0 Pharmaceuticals 930.0 1,125.0 1,275.0 Kuwait War Reparations 205.5 900.0 1,380.0 1,447.5 Support for SOEs 558.0 750.0 675.0 600.0 Economic Restructuring Programs 160.5 750.0 750.0 750.0 Centrally funded salaries 1,467.0 697.5 697.5 697.5 Pensions and other Transfer Payments 225.0 675.0 750.0 825.0 Stipends to Demobilised Military 180.0 375.0 375.0 375.0 Agricultural Subsidies 300.0 300.0 300.0 Interest on Foreign Debt 300.0 300.0 Interest on Treasury Notes 210.0 210.0 210.0 Payment System Fees 135.0 135.0 135.0 Oil Export Production Fee 109.5 146.0 182.5 Consultancies 75.0 75.0 75.0 Haj subsidies 56.3 56.3 56.3 New Office for Landmine Removal 30.0 37.5 45.0 On the job training initiative 7.5 9.0 15.0 Recovery of Iraqi Assets from Abroad 5.4 Office of Foreign Litigation 5.3 lba Agricultural Research Institute 3.0 3.0 3.0 Privatisation Consultants - 3.0 Economic Policy Consultancy 3.0 3,0 3.0 Transition Management Assistance 3.0 Other Measures 308.5 199.6 181.0 181.0 Total Operating) Expenditures 7.362.3 19,026.7 21.119.2 21,463.8 Public Distribution System A central element of the Oil-for-Food program under Security Council Resolution 986 was the monthly provision of a ration of food to each Iraqi citizen in return for a nominal 25 fee. This ration represents the principal income of many Iraqi households. The estimated full year total cost of this program is NID 7.4 trillion. A reduced level of funding is necessary in 2004, reflecting the residual provision of food items under the Oil-for-Food program. This amount is included under transferred expenditures. Estimated cost (bn NID) 2003 2004 2005 2006 Public Distribution _ 5,250 7,350 7,350 System Normal Ministry Operating Expenses Ministries require a level of funding to meet the normal (or base case) operating expenses (including salaries — except in 2003, where they were centrally financed). Estimated cost (bn NiD) I 2003 2004 /005 2006 Normal Ministry 869.2 2,192.7 2,353.4 2.430.5 Operating Expenses Contingency Reserve Given the uncertainty surrounding Iraq's situation, it is prudent to set aside a contingency reserve to cover the level of currently unidentified needs likely expected to arise over the Budget period. This amount is included under transferred expenditures. Estimated cost (bn NID) 2003 2004 2005 2006 Contingency Reserve 1,125 1,500 1,500 Local and Regional Government Grants Local and Regional governments provide services direct to their communities. Grants will be provided to these governments to supplement, not replace, their traditional financing sources - fees and charges for the services provided. This amount is included under transferred expenditures. Estimated cost (bn NID) 2003 2004 2005 2006 294.0 1,117.5 1,117.5 1,117.5 Local/Regional Government Grants 26 Reserve for New Salary Scale A new thirteen tier salary scale takes effect in October 2003. This reserve reflects the estimated additional cost of the new salary scale. The amount allocated to Ministries for salary expenses in this Budget reflect the previous four tier scale. As each Ministry has its allocations across the thirteen tiers approved, the additional cost will be transferred from this reserve to the Ministry's budget appropriation. This amount is included under salary expenditures. Estimated cost (bn NID) 2003 2004 2005 2006 Reserve for New Salary _ 1,065 1,065 1,065 Scale Nation Building Projects With the fall of the previous regime. Iraq is in the transition to becoming a free and democratic society. This transition process requires many of the traditional democratic institutions and structures to be built, or at least significantly reconstructed. This measure provides funding of around NID 938 billion in 2004 and NID 75 billion in 2005 and 2006 for nation and institution building projects. The projects that are expected to be funded under this measure are listed below. The Ministers of Finance and Planning have joint responsibility for assessing these proposals for submission to the Governing Council. This amount is included under transferred expenditures. Table 12: Nation Building Projects 2003 bn NID 2004 bn NID 2005 bn NID 2006 bn NID National Census 150.0 ElectionsAssistance 75.0 Constitutional Development 45.0 Civil Society and Community Dvmt 30.0 WMD Scientist Retention 90.0 30.0 30.0 Legal claim s/debt negotiation 15.0 Modernize banking system 30.0 15.0 15.0 Tax administration modernization 15.0 15.0 15.0 Stock Exchange modernization 7.5 Economic indices development 22.5 Labourforce survey development 22.5 Other projects 466.5 435.0 15.0 15.0 Total Nation Building Projects 466.5 937.5 75.0 75.0 27 Kuwait War Reparations United Nations Security Council resolution 1483 requires Iraq to pay 5 per cent of gross oil export revenues to meet reparation claims from the first Gulf war. This amount is included under foreign obligations. Estimated cost (bn NID) 2003 2004 2005 2006 Kuwait War Reparations 205.5 900.0 1,380.0 1,447.5 Support for State Owned Enterprises (SOEs) Iraq's State Owned Enterprises (SOEs) employ nearly 500,000 people. From 1 January 2004, salaries of SOEs employees will no longer be centrally funded directly from the Budget, but will need to paid from SOEs revenues. With the greater consumer choice and lower prices associated with open borders many of these enterprises will be unprofitable as currently structured. This budget provides NID 750 billion in 2004 in support for SOEs to enable them to resume and maintain operations as options for their future are assessed — it does not allow for significant reconstruction of destroyed facilities or significant new investment. Lesser amounts are set aside for 2005 and 2006 reflecting both an expected improvement in the profitability of these enterprises and the expectation that some less profitable enterprises would be closed. This support has yet to be allocated to each SOE, as sufficient information is not yet available. Through their responsible monitoring Ministry. SOEs will apply to the Ministry of Finance for access to this support on a case by case basis as information on their needs becomes clearer. Updated lists of allocations to individual SOEs will be published at regular intervals. This amount is included under transferred expenditures. Estimated cost Om NID) 2003 2004 2005 2006 Support for SOEs 750 675 600 Economic Restructuring Programs The transition of Iraq's economy from centrally managed to one driven by market forces will involve significant restructuring of the economy. Economic restructuring programs are necessary to assist this transition process. Payments to workers made redundant through the closure or restructuring of State Owned Enterprises will reduce the hardship associated with this necessary but difficult process. Similarly training programs will assist in providing a closer match of the skills of the workforce with the changing demands of the labour market. This amount is included under transferred expenditures. 28 Estimated cost (bn NID) 2003 r 2004 2005 2006 Economic Restructuring 160.5 750 750 750 Proarams Pensions and Other Transfer Payments There is a range of pension and transfer payments in Iraq, including: pensions to retired public servants, military and their dependents; 'private' pension arrangements previously financed through the social security fund, and the 'family social bonus' paid to those in greatest need. The number of beneficiaries is expected in increase over the Budget period, as previous restrictions (eg, caps) are lifted. This amount is included under salaries and retirement rewards. Estimated cost (bn N1D) 2003 2004 2005 2006 Pensions and Other 225 675 750 825 Transfer Payments Stipends to Demobilised Military With the dissolution of the old Iraqi Army, the Coalition Provisional Authority decided to pay, for an indefinite period, stipends to the demobilised military. A future Iraqi government will need to decide whether or not to continue paying these stipends. This amount is included under salaries and retirement rewards. Estimated cost (bn N1D) 2003 2004 2005 2006 Stipends to Demobilized 180 375 375 375 Military Agricultural Subsidies Iraq's agricultural sector has a long history of state support and control. On the one hand this has involved the subsidized provision of agricultural inputs, while on the other hand price controls discouraged and distorted the pattern of agricultural production. The strategy in this Budget has two pillars — increasing agricultural output prices to market prices and delivering subsidies in a more efficient manner. This amount is included under transferred expenditures. 29 Interest on Treasury Notes Iraq has around NID 3.5 trillion in Treasury notes on issue, with a coupon of 6 per cent per annum. The vast majority of these notes are held by the Central Bank of Iraq and the State owned commercial banks. Meeting the interest obligations on these notes will cost ND 210 billion per annum. This amount is included under transferred expenditures. Estimated cost (bn NID) 2003 2004 2005 2006 Interest on Treasury - 210 210 210 notes Interest on Foreign Debt Iraq has very substantial levels of foreign debt. Security Council resolution 1483 provides a moratorium on interest and principal repayments until the end of 2004. The level of interest and principal payments on foreign debt beyond 2004 is a matter for future negotiations. In this budget. NID 300 billion is set aside for interest payments in 2005 and 2006. This amount is included under transferred expenditures. Estimated cost (bn NID) 2003 2004 2005 Interest on Foreten debt - _ 2006 . 300 300 Payment System Fees The execution of this budget requires the movement and payment of significant amounts of currency. In 2003 many of these services have been provided by Coalition forces. In 2004, these services will need to be purchased by the Government of Iraq — usually, but not necessarily by SOEs (in particular the banks). The budget sets aside NID 135 billion per annum for fees and charges associated with payment system services provided to the Government. The amount paid for particular services is a matter for competitive commercial negotiations. This amount is included under service expenditures. Estimated cost (bn NID) 2003 2004 2005 2006 Payment System Fees L - 135 135 135 Oil Export Production Fee Gross oil export revenue is recognized directly on the budget. in accordance with Security Council resolution 1483. It follows that expenses associated with the production of oil exports also need to be funded through the budget. This budget provides for NID 200 per barrel of oil exported to be paid to companies monitored by the Ministry of Oil. This amount is included under transferred expenditures. 30 Estimated cost (bn NI D) 2003 2004 ' 2005 2006 Oil Export Prod'n Fee - 109.5 146 182.5 Consultancies Iraq's Ministries will be confronted with a range of new issues and challenges over the period ahead, outside their recent institutional experience and expertise. To meet this challenge. Ministries will need to engage independent external consultants to advise on these issues and more generally to assist in building institutional capacity. The range and type of these issues is not yet known with certainty, so it is not yet possible to allocate these amounts by Ministry and/or project. Rather, this funding provides a capped general allocation of NID 75 billion per annum that Ministries can apply to the Minister of Finance for access on a case by case basis as needs emerge. The Minister of Finance will publish details on consultancies approved at regular intervals. This amount is included under service requirements. Estimated cost (bn NID) 2003 2004 2005 2006 Consultancies - 75 75 75 Economic Policy Consultancy The Minister of Finance will engage independent consultants to advise him on a range of economic policy issues. This amount is included under service requirements. Estimated cost (bn NID) 2003 2004 2005 2006 Economic Policy _ 3 3 3 Consultancy 31 Salary Progression Chart Monthlysalaries in Iraqi Dinar (000) Grade Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Step ". 0 SUPER A 2250 2233 2316 2400 2483 2566 2650 2733 2817 3000 SUPERB 1500 1583 1666 1750 1833 1916 1999 2083 2166 2249 1 740 760 780 800 820 840 860 880 900 920 2 574 589 605 620 636 651 667 682 698 713 3 444 456 468 480 492 504 516 528 540 552 4 342 352 361 370 379 389 398 407 416 426 5 264 271 278 285 292 299 306 314 321 328 6 204 209 215 220 /26 231 237 242 248 /53 7 157 162 166 170 174 179 183 187 1 91 196 8 125 128 132 135 138 142 145 149 152 155 9 102 105 107 110 113 116 118 121 124 127 10 83 86 88 90 92 95 97 99 101 104 11 69 71 73 75 77 79 81 83 84 86 CORRELATION OF RANKS BY PAY GRADES NIA / ICDC enlisted NIA / ICDC commissioned IPS BORDER GUARD FPS GRADE , , . SUPER A I SUPERB I I I I 1 LG National Director of Border Commissioner Enforcement 2 MG Cornmissioner Deputy Director , 3 13G Dep Commissioner Bureau Chief 4 COL Superintendent Region Chief Colonel 5 LTC _Inspector Asst Chief 6 SGM / CWO CPT / MAJ Lieutenant / Captain Lieutenant / Ca tain Major 10 / PFC _Agent (Probation) Guard Constable (Probation) 11 R rCT I Trainee Trainee COMPARISON OF RANKS (SHOW:NG INITIAL STEP INCREMENT) NIA / ICDC I enlisted NIA / ICDC commissioned I IPS BORDER FPS GRADE I ;UPER AI SUPER BI I I LG National Commissioner 2 MG 1 1 Commissioner 1 3 BG DeP Commissioner I 4 I COL !Superintendent i 1 5 LTC . 6 SGM / CWO 1 2 7 SFC/MSG/WO 4 7 8 8 SGT 6 9 CPL 7 10 PVT / PFC 4 8 I I CAPTIMAJ 1 6 2LT / 1 LT 6 7 OFC 8 1 1 Inspector 1 Lieut / Captain 1 6 Sergeant 6 Sill.) Constable' 6 (Constable I 5 onstable (Probation l 4 11 ir ecruit !Trainee 1 4 ,_ Dir of Border Enforcement 1 Deputy Director 1 Bureau Chief 1 i legion Chief Ii I . sst Chief 1 ,ieut / Captain 1 6 ;ergeant 6 Snr) Agent 6 Major 1 1 "captain gent 5 Agent (Probation) 4 1 Sergeant 1 Guard 1 Trainee , _ ENTRY LEVEL SALARIES FOR NEW IRAQI ARMY/ IRAQI CIVIL DEFENCE CORPS STEPS - Salaries listed 'n New Iraqi Dinars 1 2 3 4 5 6 r 8 9 Enlisted Commission 1 LG 739,500 760,500 780,000 799,500 820.500 840,000 859,500 880,500 2 MG 573,000 589,500 604,500 619.500 636,000 651,000 666,000 3 BG 41 14,000 456,000 468,000 480.000 492,000 504,000 516,000 - -,1-.-. k ' . 4 ' , J 4 I COL 342,000 351,000 361,500 370,500 379,500 388,500 397,500 11 5 LTC 264.000 271,500 277,500 285,000 292,500 300,000 _ ,i, ,,. A 6 MAJ 231,000 237,000 *41 247,500 6 CWO 208,500 214,500 ,..:. , i ' If ? I. i ' ` . 241,500 ' . - D 6 CPT 204,000 208500 214,500 . ' ' .0T - - ' ' - ... ,, .. i , - , ., E 6 SGM 204,000 208,500 ' e- - , , ,. .„.2. --:4 ' vt!= 7 WO 187,500 192,000 7 1LT 183,000 187,500 192,000 7 MSG 183,000 187,500 192,000 7 2LT 174,000 178,500 183,000 110, 7 SFC 169,500 174.000 178,500 " V.,., ';': - - •, 1- :.:' .:14‘ .. 1 8 OFC 148,500 8 SGT 142,500 145,500 148,500 151,500 9 CPL 118,500 121,500 124,500 10 PFC 99,000 102,000 10 PVT 90,000 93,000 94500 97,500 99,000 ... .:i5 :: -,*- ;i:Ff.t 11 RCT 75,000 1.. , .- 'op' :iiit:_,Acr.07 ie-:-/Yii:i4.f4k National Commissioner R 3 2 Commissioner 7 8 9 10 Dep Commissioner Superintendent Inspector Captain L,eutenant Sergeant Constable Senior Constable Constable (Probation Trainee ENTRY LEVEL SALARIES FOR IRA01 POLICE SERVICE STEPS- Sabine& Listed in New Ira ii Dinars 1 2 3 4 5 6 7 8 9 10 739,500 760,500 780 000 799.500 820,500 840,000 859,500 880,500 900,000 919,500 573,000 589,500 604,500 619,500 636,000 651,000 666,000 682,500 697,500 712,500 444.000 456.000 468,000 480,000 492,000 504,000 516,000 528,000 540,000 552,000 342,000 351.000 361.500 370.500 379,500 388,500 397,500 406,500 417,000 426,000 . 264.000 271,500 277,500 285,000 292,500 300,000 306.000 313,500 321,000 328,500 231,000 237,000 241,500 747,500 253,500 - •• • •,• •••! ik 'ill:- 204,000 208,500 214,500 220.500 225,000 ... • , , _ 169,500 174,000 178,500 183,000 187,500 192.000 195,000 142,500 145,500 148,500 151,500 156.000 112,500 115,500 118,500 121,500 124,500 126,000 90,000 93,000 94,500 97,500 99,000 102,000 103,500 75.000 ' , .' ' , ENTRY LEVEL SALARIES FOR FACILITIES PROTECTION SERVICE Salaries listed in New Iraqi Dinars Step 10 Grades (below) , : 4 Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step I Step 8 Step 9 FPS Colonel 342,000 351,000 361,500 370,500 379,500 388,500 , 6 FPS Major 204.000 208,500 214,500 220,500 225,000 231 000 .- FPS 8 Captain 124,500 129,000 132,000 135,000 138000 142,500 t Guard 9 Sergeant 102,000 105,000108,000 109,500 112,500 10 Guard 84,000 85,500 88,500 90,000 _ Ministry of Justice Department of Prisons Office of Coalition Provisional Authority Baghdad, Iraq APO AE 09302 22 October 2003 MEMORANDUM FOR: Minister of Justice THRU: COL Senior Advisor, Ministry of Justice THR.U: Senior Advisor, Iraqi Correctional Services (ICS) SUBJECT: ICS Management Team ICS administrative functions are not being conducted in any recognizable manner. Immediate action is imperative to correct the problems within ICS management and provide leadership with direction, due to the dire situations facing ICS. The problems facing the department are: • Inadequate leadership by decision-makers • Lack of action by appropriate employees • Failure to make timely payment of contractual obligations • Failure to make timely and accurate payment of employee salaries • Failure to properly coordinate with other ministries regarding local and national: o Disbursement of funds o Acquisition of property and facilities as per CPA Order Number 10 and directives given by the CPA prisons team o Identification of employees throughout Iraq o Development of provincial prison departments o Operations of ICS detention centers and prisons • Failure to manage current construction projects • Failure to actively pursue new construction projects as per CPA advisory team guidance and priorities • Failure to plan for the use and management of 2003 budget funds, given guidance for 2003 operations and as directed by the CPA advisory team Although Iraq's Governing Council and several other ministries are making great strides toward the goal of operating freely as sovereign government and without the aid of CPA or others, the ICS remains stagnant. Failure to operate in a proactive or even in a reactive fashion will require an unduly extended presence of CPA or U.N. representatives. The opportunities available to the department are being squandered as experts and advisors are wasting precious time and resources in order to maintain the most basic of operations. Immediate personnel changes are required and suggestions are as follows: • ICS Director. The interim director, Salm Kareem Hussein has indicated that he has no interest in a permanent assignment as ICS director. The Ministry of Justice candidate should be installed immediately. The new director should be responsible for ensuring that the entire national system is coordinated, that communication is maintained, and that all aspects of the system operate in a consistent manner. • Deputy Director, Adult Corrections (including Females). Khazi Yaseen Al-Any Taha was suspended pending investigation of improprieties. The director or Ministry of Justice should fill this vacancy as soon as possible. • Deputy Director, Juveniles. Hammed Jaber Aboud displays no leadership ability and indicates that he has no fear of being removed from his post and welcomes the prospect. • Assistant Deputy, Juvenile Legal Affairs. Mona Mandi Idrees has no desire to work in a position of responsibility and also indicated that she welcomes removal from her post. • Regional Directors. Official appointments for regional directors or provincial directors do not exist. These positions must be identified, authorized, recruited, and assigned as soon as possible. • Facility Managers or Wardens. Individual facility wardens and deputies need to be identified for all facilities throughout Iraq. The individuals must be responsible for maintaining proper operation of the facility and must be responsible for the reconstruction projects or new construction projects. The individuals must be supported by the provincial management, regional management, and national management teams. Failure to address these issues immediately will result in an absolute collapse and failure of the correctional system. The ICS will revert to operations as observed under the former regime. A return to old practices is not acceptable and cannot be tolerated. CPT. MP, USA Military Advisor Finance and Administration Dept of Prisons, MoJ G12003 Prisons Budget InfolICS Emergency Funding Regi:ler Aso( 40CT IRAQI CORRECTIONAL SERVICES 10/5/2003 7:58 AM Opening Balance: Payee RECEIPTS CREDIT( rach nal 1 :1 $24,639 $ , 24.6.39 <—Opening Cash Balance From Safe Audit PRB CASH DRAWDOWN $93,000 $117,639 Bus Payment:2 w/o screens + 15K down $45.000 $72.639 .PRB CASH DRAWDOWN $3,125.754 $3.198.393 Switch Movement $3,193,393 Chain Link $3,178,393 Generator $3,159,993 Bunks $3,109,993 $3,125,754 <---Major Drawdown $24,639 <---Cash in the Safe $93,000 <---Bus Draw $326,953 <---Remainder of PRs $3,570,346 Wall Around Death House $3,097,993 $105,500 Swamp Coolers: Al Tasferat $3,092,893 Bunks $3,088,893 Raid: samples, chair and stool $3,088,886 Kitchen: Al-Tasferat $3,063,086 $363,851 <---On Hand $363,451 <---Should have $400 <--- + or (-) Final payment: uniforms $3,061,636 OPN Supplies for Tasferat, Rusafa and Salhya $3,061,186 stools for Abu and Tasferat $3,059,611 $2,025 Electrical supplies for Dowoodie $3,059,556 Paper goods from Tamirni for Tasferat, etc. $3,059,176 fadded Huffman change $3,059,180 Final payment: buses $2,981,180 $1,420,346 Net Through Safe $1,056,895 Net Receipts $363,451 <---Result $363,851 <---Cash Inventory: Safe Audit $400 <--- + or (-) Electrical supplies $2,980,980 paper goods for Tasferat, etc. $2,980,780 Final Payment for Al Hillah $2,914,157 Variance indicates missing receipt entry of change back into the safe. Handcuffs from the UK $2,894,157 paper goods for Tasferat, etc. $2,893,157 catering payment withdrawal $2,878,747 applications printing $2,878,557 Abu Kitchen $2,698,557 Refund back from Harith $2,698,697 Refund back from Thair $2,698,723 Ward for Abu $2,526,723 Ward for Karkh $2,446,723 Ward for Eisenbaret $2,408,723 Bed Payment $2,404,723 f Rafidain Bank catering payment withdrawal $2,399,996 J Account Balance BANK DEPOSIT $249,996 $2,150,000 Added from Grant/Huffman(160+140) $250,296 <--bunk contract to Harith for Tasferat supplies $249,996 <--20% of Abu Contracts Prepared by: CPT Military Advisor, Finance Administratia of 3 :0 ,742 -0 Major drawdown Re G2003 Prisons Budget InfoNICS Emergency Funding Register as of 40C T IRAQI CORRECTIONAL SERVICES 10/5/2003 7:58 AM refund from Harith bunks from Sami Abdulla catering payment withdrawal return of unneeded catering funds return $100 each to Huffman/Grant (40/60 owed) petty cash for Tasferat badging system for prisons refund from badging catering payment withdrawal Eisenbaret Funds returned by CW4 Ward Eisenbaret Project Funds to CPT Rich Spencer op fund for Tasferat per Gary OeLand Graduation Food via Thair Massarf air conditioning per Ken Grant Rusafa Kitchen Final Payment graduation food via Their Massarf: change rem' printer cartridges , Handcuffs from the UK: refund of change $100 to Huffman/Grant (40/60 paid to return float catering payment withdrawal op fund for Saihya, Rusafa, Tasferat (400th)per C catering payment withdrawal badging material for prisons refund from AJ for badging material catering payment withdrawal catering payment withdrawal PRB CASH DRAWDOWN catering payment withdrawal Khan Bani Sa'ad Site Guards catering payment withdrawal Khan Bani Sa'ad Site Guards: final pymt $250,000 $1,860,720 $210,000 $180,000- $187,600 $187,400 $185,400 $183,400 $183,600 $171,600 $209,600 $171,600 $169,600 $169,500 $169,200 $147,000 $147,050 $146,940 $153,190 $153,090 $135,790 $130,790 $113,390 $112,990 $113,170 $94,370 $74,766 $326,953 $401,719 $383,537 $382,788 $366,233 $363,451 $363,451 $363,451 $1,056,895 $1,420,346 Prepared by: CPT Military Advisor, Finance Administratiai of 3 Major drawdown Re PRB No. Amount Drawn by Date DRAWN: 15 $60,000 May $60,000 370 $93,000 15-Jul $93,000 135 $159,350 16-Jul 136 $158,000 16-Jul 137 $169,380 16-Jul 198 $101,970 16-Jul 223 $1,755,500 16-Jul 336 $38,000 16-Jul 353 $25,800 16-Jul 370 $717,754 16-Jul 83,125,754 15 $66,623 16-Sep 47 $172,000 16-Sep 50 $66,140 16-Sep 199 $22.190 16-Sep $326.953 135 $10,000 16-Jun 136 $10,000 16-Jun 137 $10,000 16-Jun 135 $30,000 6-Jul 136 $30,000 6-Jul 137 $20,000 7-Jul 48 $92,909 186 $1,400,000 $1,602,909 S5.206 616 S5.208.616 NOT DRAWN: 174 $22,500 NONE 120 $48,000 NONE The Ministry of Justice respectfully requests that the Ministry of Housing and Construction carry out an assessment of the below identified facility in concert with our CPA-MOJ Prisons Office. The point of contact representative for this project is John J. Armstrong, who is coordinating Prison and Detention Center reconstruction and construction activities. I understand that you have met him at your office on ------ The facility was previously known as "AI Katool", and served as a Detention Facility in the Rusaffa area of Baghdad. The facility is located across the street from the Police Academy at (Grid Coordinates). Our needs are pressing, and require expedited action to execute the assessment quickly in order to begin and complete reconstruction activities as soon as possible. It is our intent to be able to occupy this location in 120days or less. Special Requirements, in addition to the standard items generally included in such assessments are: 1) The Complete Rehabilitation of Utility Services for continuous operation as a holding facility for criminal detainees (Electric. Water and Sewage) 2) Rehabilitation of existing Kitchen. Toilet and Shower facilities. 3) Upgrade of Holding Cells, where possible, to opening of windows to allow natural light to enter in sufficient quantity. 4) Addition of toilet and hygiene fixtures to Holding Cells, where possible.. 5) Installation of Security Hardware at all gates, door and window locations to prevent escapes. 6) Wall and Perimeter evaluation to secure the compound from escape as well as unauthorized intrusion. Following the completion of this assessment, a decision will be made by the Ministry of Justice as to the required work to be done at this site. The Ministry of Housing and Construction will be tasked with the preparation of any pre-award documents for such proposed projects. and with preparing and advertising the requests for bids, contract award and execution of the actual contract. During the life of the contract, the Ministry of Housing and Construction will act as the agent of the Ministry of Justice to administer the contract. Funds are available for this project. Funding for this project will be provided by transfer of funds from the Ministry of Justice to the Ministry of Housing and Construction. CC: o---- A--.:) , - Request for Exception to a National Policy Order CN 1302 Rev 2/5/03 Iraqi Corrections Service ‘lational Policy Order No. Title 1 ] I request approval of the following exception to the above referenced National Policy Order provide detailed explanation) 7 Please see attached Signed Facility Date kpproved Denied Unit Administrator/Director signature I Date I • Deputy Director General's signature I Date i 4 This request is Approved Denied This exception is valid through DIRECTOR GENERAL'S APPROVAL Effective date of exception , by which the exception must be re-requested. Date This exception is valid until such time as the National Policy Order is updated. This exception shall be added immediately to the National Policy Order. Director General's Signature Date National Policy Order Iraqi Corrections Service Transmittal Memorandum # National Policy Order No. Title Signed Facility Date APPROVALS Approved Denied Unit Administrator/Director signature 1 Date • fl Deputy Director General's signature 1 Date This request is D Approved E Denied This exception is valid through DIRECTOR GENERAL'S APPROVAL Effective date of exception ,by which the exception must be re-requested. Date LII This exception is valid until such time as the National Policy Order is updated. LII This exception shall be added immediately to the National Policy Order. Director General's Signature Date 1 To: Subject: Treasury Offices in the Governorates Transitioning to New Iraqi Dinar Financing Transitioning to New Iraqi Dinar Financing 1. From October 15, 2003 Ministry funding will be provided in new Iraqi dinar with the exception of settling dollar contracts entered into before October 15,2003. 2. Alternatively, if ministries or departments want to buy dollars because their current dollar balance is not enough to cover domestic contracts entered into before October 15,2003, they can purchase these from the Central Bank at the previous day's exchange rate 3. Ministries will be expected to make domestic expenditures with new Iraqi dinar. 4. Till December 31, 2003, when requesting transfers from the Treasury account to their own accounts, centrally financed departments should not request funds that will be used to finance large purchases of imports in dollars. These should be left in the Treasury account and the Ministry of Finance will exchange them for dollars, which it will transfer to the Iraq DFI account at the Central Bank. DFI New York will issue a dollar payment for the imports against receipt of these funds. Departments must register this as expenditure in their records at the budget exchange rate of 1:1500 5. Five private banks are now able to provide international banking service which will normalize transfers of money into and out of Iraq and make available standard Letters of Credit to finance imports into Iraq. 6. Local Treasury Offices and other departments are to run down the remaining dollar balances in their accounts until December 31, 2003. This dollar expenditure will be scored against departments' allocations at a rate of 1:1500, which was the rate used to convert the dollar budget to New Iraqi Dinars. All positive balances remaining in department's accounts, including any dollar amounts remaining at that time will be transferred back to the central Treasury Account at the end of the year 7. After meeting existing dollar obligations, local Treasury offices and departments can sell dollars to the Treasury Account at the Central Bank at a rate of 1:1500. This is the same the rate used to convert the dollar budget amounts to New Iraqi Dinars. The MOF will credit the local Treasury or department's account in Dinars for the amount exchanged 8. Unless specifically authorized by the Ministry of Finance, all dollar accounts of Ministries will be closed on January 1, 2004 t • .4 . . • • . • . : , • \ ,„ • i •• . . ' • 0 • - • -•-t•-•:t • • • • • • • • '• • Il •••• • .• • • 1••• • /l• • ••• • ' • • k. ...3....i••••• ie. • • ":1•1 I • 1 • 1 • :*!.,%, • ; r C :6 • , • •• 1.- r-- ;,‘•.:(-- • ......•• • .... ... 1 i ‘ • .„ \-- T 1. \ 1 ,....:- . , 4 ..2.1 .. 1 .: '',. ?.. .:,': . ••:-.. - • ./ • ‘ . • _ l'--." . .. 1 1 , ‘., t.. ..-1. ; t - — ' ":-. - t '... • • ,• t :7;4 : ... ;!.......% .....1 •", ,.. .? ...,.......i:, ..-__1.. ! •.`t; ..... • f.'k l t. I •-• • ,. 1 .... • V t • -• ....N.. •...i..*N '' c: ... I ._. • : . • ,. ••• • • 1 • ' ---- : • : \ N.: . „ , ... ...1 . ± .. ..... • • _ .. .... • k 1 , -.,•'-l- , ... .__'„ -...-_____.--_,;. 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L''' ..\ ..;.• . ... ) N.., ‘ l. 1 1' i - :i "/-••••* A - ' • I. • l. - •• t • , • - •••••;,,.. - 1 %-1,,, ,Idtt-f;• : --: . • . .• 4,0. . ..r........a.....,......., • ••••••,........ . a ...• , ....$- *. . * ,•••• --• . t ', .... • ‘•,..-. r" . .J...t.. \ l '. ••• '. \ , .t. ,•••• l , • . ... • i ••. ' 1 I • , •-•-- •! ' k S 1, 000 5,000 argil 4Cik17110.1 r3 .1 r til 'bank IF II t t :P C: ta t . 14 I . Iraqi Currency Exchange Overview 10,000 25,000 ItilL. r • • A. I Litt 17 November 2003 44 . `fr - '...uumnrorarranair Dn. L -id' %/gib/1w sik, Ntsg f emme , • I • 4 077 • Accomplishments Hired more than 700 personnel Established ICE Project Management Office Established 3 Distribution hubs with storage and security elements Established 8 currency convoys comprised of 64 vehicles 17 of 24 currency flights completed from England One of three currency flights completed from Spain Received 5.1 Trillion in new Iraqi Dinar Trained 905 Iraqi bank personnel Each of 243 Banks loaded with an initial 4.6 Billion new Dinar ($2.3 mil) Each Bank has been emptied of old currency at least 2 times Established Verification and Destruction site Page 2 Map of Iraq • aniyah Q siyah ON Page 3 Mission Phases First Phase: Provide each exchange site with 4.6 billion new Iraqi Dinar Provide each exchange site with supplies to conduct the exchange Second Phase Start collections of old currency Provide each bank branch holding Treasury accounts with October government salaries and jobs program funds Third Phase Provide each site with an additional 4.6 billion new Iraqi Dinar Continue collection of all old currency from each exchange site Provide each bank branch holding Treasury accounts with November government salaries and jobs program funds Provide 50 selected banks with currency for the military stipend payment Fourth Phase Transition bank delivery responsibility back to the Iraqi banking system (banks in Baghdad are operating using normal banking procedures) Provide deliveries to a bank outside of Baghdad only after the bank has provided the Central Bank of Iraq with a check for new currency Continue collection from the exchange sites Page 4 Planned Total Value of Deliveries 7,000,000 6.000,000 16 November 2003 Cum m ulative Total (6.36 TrillionNID) _ _ 5,000,000 (5.1 Trillion ND) E 4,000.000 — c 3 3,000,000 25,000 (2.33Trilion , (2.30 Trillion ND) 2,000,000 1,000,000 , 101000 (1.77Trillion ( 1.09 Trillion (1.07 Talon MD) 5,000 (1.31Trillion NI)) 1.000 (.734 Trllon (.381 - Million ND) 250 (.212 TrIlion (.104 Trillion SO Date Page 5 Convoy Dinar Distribution By Region (Plan v. Actual Distribution as of 16 NOV 03) Total Southern Northern ,U Value To Date] 10 Planned Value Kurdish Central 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 * Based on a total of 4.364 Trillion NID Value (Billion NID) Page 6 Number of Notes by Denomination 900,000,000 800,000,000 700,000,000 600,000,000 500,000,000 400,000,000 300,000,000 200,000,000 100,000,000 - 50 250 1000 5000 10000 25000 Page 7 In-Country Delivery of Iraqi Dinars by Percent of Flight Plan* -- As of 16 NOV 03-- 99.8% 50 250 1000 5000 10000 25000 Based on a total of 6.364 Trillion NID Denomination Page 8 Anticipated v. Actual Currency Exchange Totals as of 16 Nov 03 4.36 Trillion ND Distributedto banks 4,231,000,000,000 3.17 Trillion NIP Percent *changed 100% 90% 80% 70% 60% .... 50% 40% 30% 20% 10% 0% ,ch e „CY Cr Cr Miiount in crrettattlbo ......0.-1,703,000,000,000 4621 /4,i •• / 2..111;1 1 1Pa 10.11. -•-- Demand Actual Supply 1.09 Trillion P410 c c3 O rb Ci b 1 Z \ Ps 41' 0,-P° rb sp,0 N O\`' bt \ `1 4 \ • Based on a total of 4.364 Trillion NID Page 9 Disposition of Old Dinar (as of 16 NOV 03) 9000 9000 8000 7000 6000 o Old Dinar Expected 2493 •, Total Collected Verified Destroyed Page 10 Collection, Verification, and Destruction Capacities of Old Dinar 14000 12000 PlannecCummulatiw Tons that can be venfied Planned Cummulative Tons that Conwys can collect Actual Cummulatiw Tons that Conwys Collected Planned Destruction 10000 Actuarrons Destroyed 8000 6 Planed Destruction to date: 1130 Tons 6000 Actual Destruction to date: 696 Tons 4000 2000 s A .t• • • • if : i• P • 41( 9> (P \ // (f39) /ev,,, ,• \ N6 1\ 6 '4 k PO Pagel 1 U) C o = a Policy on Payment of Public Sector Pensions and Benefits for the Fourth Quarter of 2003 This policy applies to public sector pensioners registered with the Pension Administration of the Ministry of Finance, to the public sector pensioners registered since 1990 in the Kurdish administrations, to the "private sector" or contributory pensioners and family benefit recipients of the Ministry of Labour and Social Affairs, and to the recipients of the benefits for Anfal victims, disabled and families of martyrs in the Kurdish areas. Emergency Payments. Following the two emergency payments of S40 to support pensioners which were made in the period April —June, Ambassador Bremer approved a flat rate pension payment of S60 to all public sector pensioners, to all private sector pensioners and family benefit recipients, and to all benefit recipients in the Kurdish areas for the period July-September. Fourth Quarter Pension Payment. The Minister of Finance has now announced a further flat rate pension payment for the period October-December to be paid in new Iraqi dinar at the rate of 90000 new Iraqi dinar to all public sector pensioners, private sector pensioners. family benefit recipients and benefit recipients in the Kurdish areas. In addition the Minister of Finance has announced the payment of a Ramadan bonus of 30000 dinars to all pensioners and other recipients to be paid together with the fourth quarter pension payment. Payment will take place from November 1 in accordance with local arrangements, and in the denominations determined by the local director of the pension administration. In Baghdad civil pensioners will be paid in November and military pensioners will be paid in December. Type of Pensioners More than 30 years service More than 15 years service One dependent More than one dependent Monthly pension under previous Third quarter pension payment, USD Fourth quarter pension payment, ID regime, 1D 8000 S60 90000 plus Ramadan bonus of 30000 5000 $60 90000 plus Ramadan bonus of 30000 5000 560 90000 plus Ramadan bonus of 30000 7500 $60 90000 plus Ramadan bonus of 30000 Procedure for payment of pensions and benefit Financing. Provision of funds to pay pensions and benefits will be the responsibility of Ministry of Finance officials, acting in accordance with the established policy, through the Treasury account. Payment. Payments will be executed through the banking system where possible. In these cases the funds will be sent to the relevant bank and the bank will make the payments to the pensioners against an official list o f pensioners provided by the Pensions Administration. If is it not possible, pensions will be paid through pay sites staffed by the Pensions Administration of the Ministry of Finance and benefits will be paid through pay sites staffed by the Ministry of Labour and Social Affairs. The pay site should be designed to be secure, convenient and efficient, and minimise the time that customers spend in queues. The Director General of Pensions, Ministry of Finance will issue a circular to all Pensions offices settine out details of the payment of pensions. Verification of identity. Each pensioner and benefit recipient shall be expected to show three forms of identification to qualify for payment, including the pension ID card and the ID card. In exceptional cases, the director of the pension administration or the director of the MOLSA office may authorise payment on the basis of two forms of identification, providing proper records are kept of such cases. Any person caught using false ID to obtain a pension or benefit by fraudulent means shall be subject to criminal charges. Verification of payment. Upon receipt of the pension, each pensioner should sign the official list of pensioners against their name in order to provide verification that payment has been made. Payment of Backpayments and Recovery of Excess Pensions Employees who have not received their full pension or benefit payment for the third quarter of 2003 shall be entitled to payment of the balance. Any double payment of the previous quarter's pension or benefit shall be deducted from the fourth quarter's pension or benefit payments. For the purpose of calculating payments and deductions for back payment of previous quarters' payment in dollars. a conversion rate of 2000ID : 11.3SD should be used. Accounting for previous quarter payment. The Pension Administration of the Ministry of Finance and the local office of the MOLSA shall provide information to the local Treasury Office on the number of pensioners and benefit recipients paid in the previous quarter. Information should include funds received, funds paid out, number of pensioners/benefit recipients paid and the balance remaining. Unused funds will be redeposited in the bank from which they were withdrawn and a receipt filed with the local Treasurer. This information should be sent to the Director General of Account in Baghdad to allow a full accounting of all payments made. New Pension Arrangements. A committee established by Ambassador Bremer, with representation from various Iraqi ministries, is currently considering new pension arrangements that may be introduced at the beginning of 2004. Points of Contact for Further Information: Adviser, Ministry of Finance Adviser, Ministry of Financei SALARY IMPLEMENTING INSTRUCTIONS Page 1 o f2 SALARY IMPLEMENTING INSTRUCTIONS The Iraqi Governing Council and the CPA Administrator have approved new salary scales to Iraqi civil servants and other Iraqi government employees. These instructions will explain the new structure and provide implementing instructions for the transition from the current four grade structure. The new salary scale is the result of extensive study and interaction of a Salary Task Force composed of representatives of the Iraqi Ministries and government and out side pay experts brought in for the project. The Iraqi working group studied the issue for over a month and made valuable recommendations that form the basis for the plan. The plan takes into consideration all those who are currently receiving salary payments under the four grade program. Their salaries will remain at their current levels unless their experience, productivity and peilonnance will cause them to be slotted at a higher grade. Those grand-fathered under this save pay formula will remain at their pay level until promotions and longevity increases catch up to them. Thus all current Iraqi government employees will receive the same or greater pay under this system compared to the current system. The new system is based on pay for work. No one will receive special bonuses or stipends. The workers pay will be based entirely on the base salary in the scale and not/not on other supplementary pays. The workers will be expected to work a normal Iraqi work week of at least 35 hours in order to be paid. Shift workers, those working overtime, and other similar issues will be compensated within salary scale limits by management decisions. Transition to the new pay scale will take place over the next few months starting in most cases on 1 October 2003. The Iraqi task force is working on bench-mark job positions to aid managers in their decision about where an individual is placed on the scale. As Ministries and commissions and State owned industries complete their slate of employee assignments, the Ministry of Finance and Ministry of Planning will work together to ensure worker distribution conforms to the affordability percentage per arade. If they do not, then the situation will be considered by the Iraqi Salary Working group to resolve the distribution either by reclassification of some workers or a nation-wide cross-leveling. Once these classifications are finalized then the new salary scale will enter into effect the next month for that particular organization. No one can be paid under the new scale and job classification until the end of October pay dates, as the salaries will be paid in the new Iraqi dinar. All wages will be paid in Iraqi Dinars. Those payments taking place after October !Swill be paid with the new Iraqi dinar on a one-for- one basis. Workers receiving their first month's pay under the new salary system will be required to provide recognizable photo identification. In subsequent payments, a bank account number where workers would like future wages to be deposited will be required. Ministries will provide workers' names, identification numbers to both the Ministry of Planning and the Ministry of Finance, and a new grade/step classification for each employee. Once it is ascertained that the Ministry or Agency's list and grade structure is completed and approved by the Ministry of Finance, the salary funds will be included in the Ministry or Agency's operating budget for each remaining month in 2003 and will be the basis for a salary budget line in the 2004 budget. TIMELINES http://www.cpa-iraq.orgibudget/salary_implementing_instructions.htrni 11/16/2003 SALARY IMPLEMENTING INSTRUCTIONS Page 2 of 2 A. Wednesday 3 September — The Iraqi Salaries working group finalizes benchmark jobs. B. Thursday 4 September - A CPA Administrator order will be issued making the salary scale official. These instructions, the Administrator's order, and the salary scale will be released to CPA Senior Advisors at the weekly CPA economic meeting. C. Sunday 7 September — A press conference will take place at 1000 announcing the order and providing details on the new system. It will launch a broader strategic information plan that will disperse more information in coming weeks. D. Saturday 6 September — 1 October - Ministries, Agencies, and commissions should be instructed to start the classification of employees into the new scale. Upon completion, they will provide copies to the Ministry of Planning and the Iraqi Salary working group for examination. This will ensure proper adherence to national-wide grade dispersion and affordability. Once approved, a copy will be provided to the Ministry of Finance for a final financial review. E. 1 October- 1 January. Upon approval of the above ministries and working group, the employees may be informed of their new salary. Employees can appeal their salary assignment in writing through their management as outlined in the Administrator's order, but they will continue to be paid at their initial classification until their appeal is adjudicated. Those employees who do not continue/come to work at the new scale will be free to leave the civil service. Military, Police, firefighters, security guards and essential medical personnel will only be allowed to leave their duties with permission of their respective ministers. Employees of the CTF-7, such as security guards and municipal workers will be integrated into the new scale starting 1 October. Short term contract workers will continue to be paid according to their contracts by the contractor. F. 1 October — 1 January. Salaries for approved Ministry/Commission salary classification plans will be implemented no later than the first day of the month following approval. Employees will be paid their new salary on the last work day of the month. Employees paid under the four grade pay system will be paid at that rate or the new scale whichever is higher. Employees who are paid under the four grade scale will remain at that rate until promotion or longevity/productivity allow for movement to a higher step or grade. G. 30 October- 30 January. The first few payments will be in cash. Subsequent payments will be by direct deposit to an Iraqi bank account of the employees choosing. A full month's pay will be issued for a full month's work. Overtime may be paid by individual ministries or handled through compensatory time off Their anticipated additional costs should be reflected in their 2004 budget proposals as a separate line under salaries and compensation. G. I October — indefinite. New hires after the date of the CPA implementing order will be paid at the new salary rate as of I October. USAID (and their contractors) and CTF-7 will use the new scales for new hiring after I October. NG0s, independent contractors and international organizations will be encouraged to use the rates. Accordingly, somejobs will start at a lower rate than under the current four grade scale. http://wt.cpa-iraq.org/utiget/salaiy—implementing—instructionshtml 11/16/2003 Justice (note: the fvfinishy of Justice includes prisons) Summary 2003 2004 2005 2006 bn NID bn NID bn NID km NED Expenditure Operating Expenditure Capital Projects Total 15.0 144.6 134.4 134.4 34.8 63.3 150.0 150.0 49.8 207.9 284.4 284.4 Ministry Expenditure 2003 bri NID 2004 bn NID 2005 bn NID 2006 bn NID Ministry Capital Projects 34.8 63.3 150 150 Staff Expenditures 44.1 44.1 44.1 Service Requirements 5.0 21.1 15.9 15.9 Goods Requirements 9.6 60.7 56.2 56.2 Assets Maintenance 0.5 6.2 6.2 6.2 Capital Expenditures 12.5 12.0 12.0 Transferred Expenditures Foreign Obligations Salaries & Retirement rewards Ministry Operating Expenditure 15.0 144.6 134.4 134.4 Total Ministry Expenditure 49.8 207.9 284.4 284.4 Memorandum Items # Employees 2003 2004 2005 2006 Tier 1 991 991 991 Tier 2 3030 3030 3030 Tier 3 7766 7766 7766 Tier 4 9646 9646 9646 Total Employees 21433 21433 21433 Total Salary Cost 44.1 44. I 44.1 Operating Expenses 2003 2004 2005 2006 Normal Ministry Operating Expenses 15.0 138.1 133.6 133.6 Office of Foreign Litigation 5.3 Security for Justices 1.2 0.7 0.7 Sub-total Operating Expenses 15.0 144.6 134.4 134.4 Budget Funded Capital Projects (including reconstruction) 2004 Total Project Cost Justice reconstruction 42.0 42.0 projects 3.0 3.0 prisons reconstruction 18.3 18.3 Sub total Capifal Projects 63.3 63.3 13 October 2003 Iraq Releases Fiscally Responsible 2004 Budget The Iraqi Minister of Finance Mr. Kamil al-Gailani announced today the release of the Iraqi Budget for 2004. The budget provides authority for the commitment and expenditure of money by the Iraqi Ministries for 2004 and sets the fiscal framework for 2005 and 2006. It meets the recurrent expenditures of the Ministries, including a significant social safety net, along with some of the most pressing capital projects, and provides for the most urgent daily and social needs of the Iraqi people. Commenting on the preparation of the budget. Minister al-Gailani said, "This budget represents an important step towards the rebuilding of Iraq by Iraqis. The Budget was prepared by a team of Iraqi experts, with a series of budget hearings attended by representatives from the various Iraqi ministries, and chaired by officials of the Ministry of Finance." Consistent with responsible fiscal policy this budget does not rely on increased borrowing. printing money, or foreign assistance. The public release of the 2004 budget ffirther demonstrates the Governing Council's commitment to public sector transparency. On the road to modernization, it is important for Iraq's institutions to be open to public scrutiny. This ensures spending will he directed towards those areas time Iraqi people feel have the greatest need. This transparency will also help reduce cases of corruption and strengthen the overall confidence of the Iraqi people and investors. However, Iraq has very substantial reconstruction and redevelopment needs that are not able to be funded in the 2004 budget. With this in mind. the Iraqi Governing Council plans to exert all possible efforts to finance the above mentioned needs through activating the national economy and the private sector. The Governing Council also plans to seek the support of the international community at the International Donors Conference in late October in Madrid. Mr. al-Gailani concluded: "Iraq is a country with enormous economic and human potential. By applying sound economic financial and monetary policies, and creating a good investment environment with international donors over the transition. Iraq will restore the economic and financial status which it previously held.- Notes for editors 1 The Budget for 2004 expects revenues of around NIL) 19.5 trillion cuss 13 billion), with expenditures of NID 20.25 trillion (USS 13.5 billion), meaning the Budget in 2004 will num a deficit of around NID 900 billion (LISS 600 million). This deficit will he funded through refunds from cancelled Oil-For-Food contracts, meaning there will be no need for Iraq to borrow or print money to finance its deficit. In 2005 and 2006. the Budget is in balance, with spending matching revenues. 2. The budget reflects the 5 core principles laid out by the Iraqi ministries to drive the economic agenda. The core principles include: economic openness, private sector development, international integration. transparency in Government spending. and providing a safety net for the poor. 3. Journalists can obtain copies of the Iraqi 2004 Bucket at the Convention Center. i t U.S. DOLLARS Current Budget Estimation Forms For The Year 2004 1 Ministry of Finance Budget Office Current Budget Preparation Department Ministry of Justice Class Code Office of Iraqi Correctional Services Department Code JUVENILES Prepared by: 1 of 10 Prisons cover Form No (1) Table of Jobs According to the Post Grading !Class repartment risons Part JUVENILES No. Items 2003 2004 No.of the employees (EXCL SOE) No.of the employees (EXCL SOE) - proposed No.of employees agreed 1 Level (1) (Special dgrees) 1 41 2 Level (2) (First and Second Degrees) I 3 Level (3) (Third, Fourth, Fifth Degrees) 41Level (4) (Sixth, Seventh, Eighth, Ninth, Tenth Degrees) 24 115 396 163 301 792 Total Employees 5091 1307 Estimated Salary Cost ('000 ID) I 1 183,538,7001 Prepared by 2 c'10 Prisons employees Form No (2) Estimation of Expenditures According to the Parts Part Department Section _ 2004 2005 2006 Section Title Yearly Expenditures for 2002 Expenditures for 2003 (Jul- Dec) Ministry Ministry Spending proposal proposal Total Expenditure Total Agreed Total Total Proposed for 2004 $1,546,131 1 Staff Expenditures N/A $31,643 $1,546,131 $1.546131 $191.870 2 Service Requirements N/A $ 191,870 $191,870 3 Goods Requirements 1N/A $8.978,886 $8,978,886 $8.978,886 4 Assets Maintenance N/A $675,000 $675,000 $675,000 5 Capital Expenditures N/A $1,500,000 $1.500,000 $1,500,000 6 Transferred Expenditures N/A 7 Foreign Obligations NIA $1,012,197 8 Special Programsfor Building N/A $1,012,197 $1,012,197 9 !Salaries & Retirements' rewards N/A 'Total $31,643 $13,904,084 $13,904,084 $13,904,084 Prepared by 3 of 10 Prisons operating - summary pg Form No (3) Estimation of Expenditures According to the Items 1Part Department Section Prisons asc 4 m ,, 1 Section 1 2004 Item Title Yearly Expenditures for 2002 Expenditures for 2003 (Jul- Dec) Ministry Savings proposal Ministry Spending Proposal Total Expenditure Proposed for 2004 Total Agreed Total Agreed Total Total Total I Employees Expenditures 1 Employees Salaries NIA $31,643 $1.546,131 $1,546,131 $1,546,131 $1,546,131 Total of First Section NIA $31,643 S1,546,131 $1,546,131 $1,546,131 $1,546,131 2 Services reauirements 1 Travel Expenses & Allowances N/A I I $490 $490 $490 $490 2 Delegation Expellees & Allowances N/A $490 $490 $490 $490 $490 $490 3 $490 $490 Transferred Expenses & Allowances N/A I Publication& Information (Media) 4 Expenses N/A $490 $490 $490 $490 5 Printing Expenses N/A $3,000 $3,000 $3,000 $3,000 6 Post N/A $490 $4943 $490 $490 $42,690 7 Cable & Telephone N/A $0 $42,690 $42,690 $42,690 8 Lands & Buildinas rents N/A i Prepared by 4 of 10 Prisons operating - detail Section Item Title Yearly Expenditures for 2002 Expenditures for 2003 (Jul- Dec) Ministry Savings proposal Ministry Spending Proposal 21 04 2005 2006 Total I Expenditure Total Agreed Total Total Proposed for 2004 1 9 Machines& Machinery Rents & Transportation N/A $52.590 $52,590 1 $52,590 I $52,590 $ 333 $333 10 Insuranceoremiums N/A $333 S333 12 Lawyers wages N/A $8,000 $8,000 $8,000 $8,000 $757 $757 13 Accomodation & Delegations NIA $757 $757 Conferences and symosn.:ms 14 (seminors) N/A $490 $490 $490 $490 $490 $490 15 Celebrations N/A $ 490 $490 16 Civil Defence N/A $545 $545 $545 5545 $545 $545 17 Rewards & Medals for others NIA $545 $545 18 Verities $490 $490 19 Subscription of training courses N/A $490 $490 21 Sports Activity N/A 22 School Activity N/A Scaning & Specifying & Correcting 23 kinds of lands and their registrations N/A 24 Money Transferring N/A 25 witnesses & arrested transferring N/A $7,000 $7,000 $7,000 $7,000 27 Stamps selling commission N/A 28 StudentsAllowances N/A Prepared by 5 of 10 Prisons operating - detail cn to a o a Item Title Yearly Expenditures for 2002 Expenditures for 2003 (Jul- Dec) Ministry Savings proposal Ministry Spending Proposal 2004 2005 2006 Total Expenditure Total Agreed Total Total Proposed for 2004 29 Student leave. NIA 30 Office Cleaning NIA $50,000 $50,000 $50.000 $50,000 Wages for joining the scientific 31 institutions NIA assesment of Scientific Research& 32 Translation NIA 33 Advisors and Experts wages NIA Loading& Off-loading of Goods & 42 materials NIA $490 $490 $490 $490 43 Cleaning & it's requirements NIA $20,000 $20,000 $20,000 $20,000 44 City Planning& Organaizing NIA S2,000 $2,000 $2,000 $2,000 4% Guarding wages NIA , 49 Jewlery Stamping wages N/A Total of the Second Section NIA $0 $191,870 $191,870 $191,870 $191,870 3 Goods Requirements 1 Stationary and printed materials NIA $15,119 $15,119 $15,119 $15,119 2 Water & Sewerage fees NIA $118,860 S118,860 $118,860 $118,860 3 Electricity Fees N/A $118,860 $118,860 $118,860 $118,860 4 Delegation expenses NIA $144,000 $144,000 $144,000 $144,000 5 Clothes NIA $268,814 $268,814 $268,814 $268,814 Prepared by:IMM 6 of 10 Prisons operating - detail Section 4 i 200.4 i 2005 2006 Item Title Yearly Expenditures for 2002 Expenditures for 2003 (Jul- Dec) . _ Ministry Savings proposal Ministry Spending Proposal Total Expenditure Proposed for 2004 Total Agreed Total Total 6 Food N/A $5,880,717 $5,880,717 $5,880,717 $5,880,717 7 Medicine N/A $1,426.320 $1,426,320 $1,426,320 $1,426,320 8 Cleanisina Materials N/A $65,006 $65,006 $65,006 $65,006 9 Materials & Reauirements N/A $933,266 $933,266 $933,266 $933,266 10 Sick Equipments N/A 11 Sports Equipments N/A $7,924 $7,924 $7,924 $7,924 12 Forage (Feed) for Animals N/A $8.978 6116 £8.978,886 Total for the Third Section $0 $8,978,886 $8,978,886 Assets Maintenance N/A 1 Maintenance of furniture N/A $45,000 $45,000 $45,000 $45,000 2 Maintenance of buildings N/A $222,000 $222,000 $222,000 5222,000 3 Maintenance of roads & bridges N/A Maintenance of water & Electricity 4 installations N/A $111,000 5111,000 $111,000 $111,000 Maintenance of Machines & 5 apparatuuses N/A $111,000 5111.000 $111,000 $111,000 6 Maintenance of means of transport N/A $111,000 $111,000 $111,000 $111,000 7 Maintenance of Books & Records N/A 8 Maintenance of Irregation projects N/A 9 Maintenace of Dams establishments N/A 10 Maintenance crf weapons N/A $10,000 $10,000 $10,000 $10,000 11 Maintenance of Gardens and Parks N/A $15,000 $15,000 $15,000 $15,000 12 Mainlenance of Factories N/A $50,000 $50,000 $50,000 $50,000 Maintenance of City Planning & 13 Oraanizina N/A 14 Maintenance of Radio & TV stations N/A 16 Maintenance of Slaughterhouses N/A Total of the Fourth Section $0 $675,000 $675,000 $675,000 $675,000 Prepared by111=1111 Item Title Yearly Expenditures for 2002 Expenditures for 2003 (Jul- Dec) Ministry Savings proposal 2004 2005 2006 Total Ministry Spending Expenditure Proposed tor Total Agreed Total Total Proposal 2004 , Capital Expenditures N/A Furniture NIA $300,000 S300.000 $300,000 $300,000 4 Vehicles INIA $400,000 $400,000 $400,000 $400,000 5 Other transportations means INIA 6 Machines, apsaratues & machineries INIA $800,000 $800,000 $800,000 $800,000 7 Lands INIA 8 Buildin3s N/A 9 Books & Magazines NIA 10 Movies & documental films NIA 11 Weapons & ammunition NIA 12 Theatres & their reauirements NIA 14 Animals NIA 15 Other reauirements& equipments N/A 19 Wells & Mines N/A Total of the Fifth Section $0 $1,500,000 $1,500,000 $1,500,000 $1,500,000 Transferred Expenditures N/A Returns-up N/A 2 Compensations N/A 3 Elimination of ungained debts N/A 20 Other Rewards N/A Total of The Sixth Section Foreign Obligations N/A 1 Total of The Seventh Section NM Retirement Salaries N/A 1 Civilian retirment salaries N/A 2 Military retirement salaries N/A 3 Family care salaries N/A Total of the Ninth Section N/A TOTAL CE' ALL THE SECTIONS: $31,643 $12,891,887 $12,891,887 12,891,887 $12,891, Prepared b 8 of 10 Prisons operating - detail 571812003 6 26 PM 2004 Buoget- ..ust4.414/ - CS JUVENILES feeds ampler I Chewed Espana Prts 9,1011105m t: ha . e- 4 ENpsysou C 3 pitni Equtpmatit 110151 Sot Up Costs Eamon Otri- ttWation ttiouse - 4neete 112 000 043.707 I S22,546 37 . 1493 543 ' ' 1 47 0154. 1•01001 1 1 . 7 7: :. tAt;lit:f ' ' asp o oo $11111111/1110LØ4 IV, ';'' -:' tf"4100 - 116 .040:541 50 $127.541 NEW TORE 70WIEC • Beg80e0 350 035 0136,584 0126,000 111, $1,1541 1251,770 . -",•-,- ;isliorti sgewscsecifikowssossonv.., - x-U 350 0 35 ' 50 1 1111 04 1 4'. ::: ; ' ''t 4010100 , -: 116 - ' 'AVMs $251 260 0170 761 NEW TO BE NAAIEC - Baugh 2 150 035 0136584 51211036 116 11,611 $261220 '' -eiliii:.- A$#42: OEWT1 :1 4/0•241jEc'-111Silgt3S1'.';i•: ',A 350 035 r' ' '` , ,".1:8130.5014,c' 1 ' Sr. st26.04‹...* 4i ' ;,--, 18 6 1,4 •*:•40441 $251720 0375.761 NEW 10 86 NANILD - At' 140 ,8 350 035 0136.5134 5126,000 I 116 11,641 5251 229 -,'.,!lik. - 1,3T0B1- ifeWtitCBASMSErg.0451 1Vii.-:',V,,,, 350 0 35 . :.. .3134.564:: .1 - ......_ Adtra00.14nic ?i:;ailk141...:77. -Vr.:- -i -4634i 1251220 5370 761 _ 000 1 SO SOA____ . 0 1 so i . ........, so .:, - ..1,. . . so . . NEW TO BE NAMED Itareas a NEW TO BZ NAMED A/ Ogala ys5 NEW TO BE NAMED • All N14111 NEW TO BE W 6 D A1010105618 350 350 350 350 : 236 0136 584 $126,000 I 116 I $1.541 1251,220 3378,751 0 35 . 4131064" ' ,. a'- ' , -stn.= '';'.'" . " -*1 .: ' ;011,1-1- :r; -7 iiia 15- o - AVai 0251 220 ' ; ,,- ;?.7. :34760. 0 33 0106,584 3126 000 116 01.541 0351 270 53/8.7E1 035 11118)306 .. .• .. , _ 8170000 A...! ! 11t'-. 7.: 1, V.841 0251.720 r 020,761: 036 3.., , SO DI SO Al' SO , i . ....4 , 4t;;:, - ,e 0 00 lir , • • : - :LIA1123' ,' :, ,k; - 10' - . ;:lite.*: ,1114. :, • So so : 000 so i so o so so so ,i, ../i-JME(siitiagatitAlt -tAt 000 ;!:iiiiii.':: - "7,74e, - f ' ' .19':::::,l1ks41:44..:If.a..:o.' ' to 30 :. . SO 0 00 SO I 00 0 I SO SO SO - ' .*:PeWeleffigrAtgrirAgiViitl' 200 , r -'...74- "tif . 40 . ' 3r.01-::s'.. . ' : - 0 1 154 - - - ,-- ' - ;i • 41- so so 1 ..fi4a . 4 so 700 SO SO 0' SO SO SO - . :"-,,M1 ,,t ' °7-7.1M: ' '' , Alidi-l''• 0008' ' :- =:-V1sb - ' so • -• 00 ,rtk- •••••11 ,5;•tr: so so ' • ,''',. so 0.00 SC 50 0 ! 50 SO 00 t.t.ti.9.. :tASEct -k.44..1 74 5,00 02 , - ..4119„ 2 $o " r1S- ,‘. '7..7. -min - SO SO : • $4: 000 so so o so so so ' ,,Islic!. ..a. ' ,q0Sfe4-1 0 5 , 000 to' 4.t.• ••• * it* . - '4 0 . 30 ' •VIVIlagt I 3 ,662 1 $1,548,838 01 40614$ 1,007 $1T,4_48 $t 12 102 Si OM NO AI H310015 • 8 11 1014 10 KM tlem$31111NeN Ea43500e• 20% 01 reeerrtrgt cools INCLUOEU IN ADULTS BUDGET -.1 alga COWS f0004). UM/4001500 . -1 0001,500 1002,113,272,0113 I 128167.023 ICil) N766,218,667 630 5,1107,?34316 Ea. pain .rd.( aptor pill '608086 510. equip of a least =Ma The Mel midis CM per pillow, and St apsr pawn Meow Praition Is feeds fere% 1110 op ants on Vie ratablilonerits Woody In opeallon Pilsen °trews on 33% of Meows HO 886306666 Itesfid en office component of Neon Geneva Ecapreent Lyda Mowers Oar Frilry FUMY Par 1000 prisoners er Mae For pleeni with terser oop there yell be a preporbonete Increase 7 .____ 863 062 1717.771 lie --Wetice - Flpir - es 33% 0737 570 e--Floatteg Flood Coat. { .000 Inmate bolo) 02,000 4_-Shawl Coats tor 1,000 Inmates M.111 043 <-reett Cest/IneiMe/Mooth IIMMINIMI 100 e-Opard Coetilnarste/Morgh — _ --' MIN Prepared by 9 of 10 2004 ICS Juvendes 0.adge1 Smr-nry 9/18/2001926 PM 2004 Budgel - Juve1919 - ICS 00.on44,on NEW TO Al . . . NEW TO 91 NEW TO 131 betifillat NEW 7085 t46V70.81 NEW TO RE tilliftial I.... 1"4. :_• . i- kr-Croill Jan-03 Mar-03I r..03/ Jul-01 Aug-0 031 00103 Nov-031 04•903, Total Ciwter 3 Total Cnoptail 2.3. Montt.). .C.4313 4 and 5 LOVI MI N.M.' 141.461 $19.690 $19,701 $19766 $19701 322143 I $19916 119739 $19,760 1 119904 i $19760 1 $15738 1261.740 3295.091 9195 • "' S r5S' 4433 ,&34 . 51.041•. :f$Ataftiiiiit$66.41111210111M-V eine.ir-P; c ,!Iiittraost1 4 3a!m iaPirs* -: .44104ssAM4r1V$000.4...::', ''(5454OGROMa. 40144wwfroFkiwistr. 40!r: ..4 ;',eitrAw , ,ziwiv..4.1itakir* RUC 1127.441 159.407 1 359,442 1 1511.613 159,442 1 1119,261 I 7159.793 : 659.559 1 $59.593 1 359,763 1 560.612 9595.78 1792 487 21 171 228 2150 ' ' ' ..- sottal44..4 'W.'g • i' ..e. . . -•.- NOWttalrelliellti)9',..flY/ 6 ISSIMIW:1• 001411110.11/ IIKAltalle. 111 4 ,1frafilOOK, f' ,1100111:01 0t,1841M0,211 3127.441 ' 159,407 309.442 359.613 339.442 1 960.201 I 059,790! 859.13e I 059,913 1 9.59.753 fiall1014',411filleffr.:.i.:r. 339.093 359.559 • ,', .;x112Mirrikt , .I.'.. ,:ts',01128.1fElM 3792467 3189 ,..tigtAket,•. .!- $ . e•gliaigarnat00 1 $.14WX:r47.44W.'! , $127441 1 569407 059,442 -,:i, iii 059.613 4svioompowl-- • jazi 31,171,220 -="4111:8- AVM) !LItth Isiks10.0' - . 'fltir.16141LISNIN 11V.J ---, 40,•01 -421111114064* -- -'111MICtrtj. ': 1Lft.VetilirtiP 189261 $59 798 1 $69.369 359593 1 11107133 1 . $50.533 359559 9792497 $1.171221 3189 cootlikumes.,:tsimorq.;m1;;...loode„-r.: ,;....s44,gedig3147, 14nOW-f5,::i, X100414 10104t444110410.19ftitilibli,..:.:10524k ,, _';• ..413W VI $O 1 $0 T- $3 3-0 SO t 30 1 SO SO $O SC -9127.441 399.407 1 159.442 159.613 359.442 . 359 2T311 959.798 $59659 355593 i $513.763,1 $59593 180366 " 1 $79248/ 51.171.228 156 f 4,1741016(441 .174.1 11400/4411ININgt; ::-.:..::.. : Abalgtr''. .f..tliNaWL :174.1401010c•- •;;V-j .'r-Vit .;:l•Mileftf4 1,--4A.M. Wit - ' . I 51/$1/13tg 0127441 359.407 1 $50442 1 $66613 • 159142 PA'. itaft*Miftio, .o4Intaatgat. elltfiAg i 180.261 1 859754 1 $65358 ' $59893 1 $59 793! 359993 159556 8792687 '•• ';'.treO/Pla 51 171,220 • :1 30a, 8• 85 thoormormie:401W4r-,IMo- . .. ANSIIMV.:, • -.'i iiMOkrAtilL4rvaillii.wi Al:- , .: i... Vise14 4 :0 •-, -T:r ,A$ . 030 : VagVekr -M ," ,ASETWALTAQIIV 4/317,. : I , -- •;•- - 01- 900 •1" .,114" 4 $024`-` 41" $o- so ,.-- ...' .titallgta,t 4 1 . filOW-4 Z - r.#:."!:44.:*:;: ,6§i.i' - " ';., dgiti.4 i.:1Pf..ii:15iteltiz..1;•, Mel:.2304 ,Fli;-.- .4,kilif... L i;m.:s iiipigmlliggr: ,,, othyrIvgaff2;7 - 1 ., ,_ . •., - . -. tie. I. . so , ;-,:it;:t'. .,; ' -':,7 , '. .•.:.7ifre*C. - :.::- ;, .,:, ,-, F,; ,,..,. "ritr.4.4 111tairVZSMEAgtiVe • :. ''.4.AC•4 atrani:. WA r:Otfain..Y+ ..:,•:-V•t; qi - -'' . ••••lia L sIO*41110S14 i I 1 - .4 . 0.f1•:•:- : ' '1.4. , :iitS.'Y.,.. "•• • ••• • 44"..,T4-4.W,a 1 .44.41•17:4!.'ilt.;17;:• .1. '1 •ffallitISIK.4e'rt.Ig4V3 5 44.16silt ,- .-77•_FIT ,;,-rag::.:•'..mitr;:- - : ..:043. , ,, . 2113E111FolVin , 41:6.virtgO.:• l ,.I so so .:-.- ;.:=, - ;- -,Titi(e.t.Ifi.:•;41f..;e:Mitis? - 1C--:,.- - . . --r .44441,414N14,7-,-, ..,";':•.-i.V.L .0%2-,?.:7,a5fX,T•f. IAgoAgratrlwjP',,zsrx-kv,:gxt:g .i--.!•:.- kil,rtni-f1 1 1.4.71Ac $o so - . ritii1r. 1 N44/MtgiiiillkikrzAtine57:-. '.:ncr:r714- AV1M. .i::.*rj.-st1 •••,114P07,1.I.ktat-,:.Ai• .: 1 so so li'scfsiiii" - ai ,---iili',4 -.•7.17 , -- .!,-Aktrattatraftr.c.416floctiMitp4M-?IfiNAf.31W-.v..;•...4,,?111sfrisi, sr;,.k :q1W:115 , , :1.144: ..' • . •:44.. •iIiiiiI,WI'- ' ,,1 4 ;;WiiotiC - ..t.' - !, ..i:fl.Alvirci140\ticr,t7. :;:' , •..-Wii411%i• -ii:7;%.:2/411111iraFfii1 1 so so $ o so 1, ss,441,1so - iffs.sos 5,73.991 --•- --- •- • • --- Ultra $677.88$ .. 1874672 5679261 11677202 1876269 - - ' • - ' • -- -. - -- oss.1141,37o eon. ,-.. so ' so -- 11,443,910 1473 163 $873,567 $8794114 1673.031 $764,713 3677598 9574672 3675.269 5977.202 moat 2974072 18,970663 512917576 1000 .1 44 .046565 %0D1,$05)47040 420 1.010 341 740 4201513 241 624 100 1610541 340 9201.177.009.333 1001.010397.257 1001,012.300473 100 1612,902773 1001.0152832.557 4001,072,902,773 10: - 11:0- 1 -2,308.473 CO 13.498520.743 10019.37906309 'total Roure,ng °total In0a79.3 Cods aac•pl lianovallons ,-.- 70% A5ee890ns: A1881•169 • 9806446 932.360 357,0111 . _ .--- .. . Al WO. Daman $134,493 9184,001 Al TaaforM • Bagdhad $156493 $234249 Russea . Pighdad $150491 $734.74C- A1111146 -136311 $169493 $534946 -.... Badua6 -416.44. Nintram 0141,494 . $234 144 -. _ A11(9.57116 • Baghdad $1$9423 5234,246 36319190 C461381 (666 0/391174 -1390944 $159,493 182311.244 Alliskinla• Bashded HQ@ $0 $0 1 Bawer, Cen1nd • MU SOMICkl - 1341,98 $153,4311 5234.244 AI Amarall • 1499949 . $1641,4115 $234.748 1717.1116... $169493 - $234,244 AI Kul - Wiszt $O $O Ai F SWISS • A 1 AMIN SO $1 KorSui Ar lam. { $O 00 Senarri • Salah Ad 131n $O SO . . ..- Karbala - Karbila _t° $1 1 Nisilysli - C41109,1 $o $o Ad 016415148 - AS 08010160 so so _,.._ . _..._ 1(09 SW 34•41. Ovals 34 so 777 • Al AluManna $o $o Nur • An NHS ft $1,637,384 $2 345.230 - 100i 10 2004 ICS Juvondos Budgol Smmry COALITION PROVISIONAL AUTHORITY ACTION MEMO 14 September 2003 To: Ministry Senior Advisors From:1 Senior Advisor, Office of Management and Budget Please find attached your preliminary 2004 Budget allocation as at 14 September. These numbers are based on the information the Iraqi Ministry of Finance has received from your Ministry. Can you please check this information with your Iraqi Ministry, and respond within the next 48 Hours — ie by 5pm Tuesday 16 September. A checklist is provided in this Memo to guide you. The key thing to focus on is how your Ministry intends to spend its Capital Projects budget for 2004. List in as much detail as you can. This is your last chance to consider your budget for 2004 — it is being published on 24 September. Please direct all questions and responses to either: in my office. Or Senior Advisor CPA Office of Management and Budget Additional Information The checklist for you is outlined below: O Have you listed all capital projects that you can undertake using your Budget allocation? O Is the operating expenditure aggregate correct, and allocated correctly across expenditure categories? • Please fill in a brief description of what the Budget will do for the Ministry (please no wisecracks, we know it's austere..) ,i(I'k/mun‘ • Please provide — in priority order - the 'top 5' largest unmet needs for your Ministry. You can provide the remainder by cob 18 September. o Do you have any State Companies that what are their names (and how much are Lying budgetary support? If so, y getting)? Gweto • Are the number of employees correct? O tcrt i N(.,t,L,c.v Iraqi State Owned Enterprises Company Information Questionnaire - Please provide answers on se arate sheets with the .uestion # referen 2 3 6 7 8 9 ;o ii 12 13 14 ' 5 6 English.. Arabic . - What is the name of your Company? Provide a brief description of your Company (in 200 words or less). Include description of your products, facilities, customers and number of employees. Name of contact person and position held at Cornian Phone # and email address for contact person How much money in US $ are you requesting? What exactly will the money be spent on? Be specific, and account for 100% of the loan amount. Describe the products or services, quantity to be purchased, unit pricing and names of suppliers. How does this loan and its uses address your long term goals for your Company? Describe why you need the products or services you intend to purchase. What will it allow you to produce? Do you have a customer for the products you will produce? If yes, name the customers. How much cash do you currently have in the bank? Provide the bank name and branch. How much money is currently owed to you by customers? Provide names of the customers that owe you money. What is the market value of inventory you currently have? Include both raw material and finished goods. Describe the inventory. Identify any assets that you can use as collateral for the loan. For example, finished inventory, accounts receivable or property. Provide the market value of these assets. How much money do you currently owe to suppliers? Identify the suppliers by name and amount for each supplier. How much money do you currently owe to banks? Identify the banks by name and amount for each bank. How much revenue does your Company expect to generate in the next 3, 6 and 12 months? a Iraqi State Owned Enterprises • Company Information Questionnaire - Please provide answers on se arate she ts with the .uestion # referen 17 18 io 20 21 22 23 When will you repay the money? Will you repay 100% of the loan at one time, or repay in installments. If in installment, provide repayment dates and percentages repaid on each date. What are the competitive strenghts of your Company? Who are your biggest competitors? Include both Iraqi (companiesand imports from other countries. What is your market share in Iraq for the products this loan will help you produce? Describe the risks to your Company's projections. What could potentially prevent you from meeting these goals? Provide brief description of the top three executives at Company, including years at Company and relevant experience. Provide CV's on separate sheet, if available. Provide a copy of your most recent (unaudited is acceptable) historical balance sheet, income statement and cash flow statement. 24 I 25 Provide a copy of your last audited historical balance sheet income statement and cash flow statement. Provide a copy of your projected balance sheet, income statements and cash flows for the next 3, 6 and 12 months. CAPITAL (INVESTMENT OR RECONSTRUCTION) PROJECTS Project information Project Name: Location (City/Governate/Region): Date of Submission: Project description. Project type (Ongoing/New/Reconstruction): Industry Sector: Implementing Ministry & Representative: Beneficiary Ministry & Representative: Who will undertake the investment? Project Description: Project JustificAtion: . Project Costs ('000 Dinars) Preparation Designing and Studies Consultation Services Investigation Property Compensation Other Preparation Costs Total Project Budget Year (2004) Civil and Engineering Works Housing_ , Non-Residential Construction Other Utilities Machinery and Equipment -r Transportation Installation Other Civil and Engineering Costs Operating Capital Production Inputs Wages and Salaries Other Operating Costs Other Costs Total 1 Project Tinting Project commencement date: Project start date: Project completion date: Project Schedule I Pre-2004 I 2004 I 2005 I 2006 I 2007 I 2008 Work done • (%) Payment I WO 2004 2005 2006 Staf 1 Expenditures Service Requirements Assets Maintenance Capital Expenditures Transferred Expenditures . Foreign Obligations Salaries & Retirements' rewards Name and signature of the Director General for submitting department Name and signature of the person who filled in the Questionnaire General Instructions 1. The Questionnaire is to be filled in by the Govemate or the general trust or commission or department, then send to the Ministry headquarters concerned for approval. All questionnaires for all projects with consolidated tables are to be sent by the Ministry, listed in priority order, to the Ministry of Finance as part of their 2(104 Budget submission. 2. Transfer all the foreign currency amounts to thousands Iraq Dinar using the exchange rate of 1500 IQD = 1 USD. 3 Provide whatever additional information you have to support the project. Industry Sectors I. Agricultural a. Dams and Storage Projects b. Irrigation Projects c. Projects for Agricultural Products d Projects for Agricultural Services 7. Industrial 3. Transportation and Communication e. Land Road Net f. Land Transportation g. Railways h. Water Transportation 1. Transportation Airway j. Communication k. T V . Radio Broadcasting 1. Grain Storage Projects 4. Construction and Services S. Education. Higher Education, and Scientific Research 6. Other Investment Expenditure ea. Ministry of Finance Budget Office To: All Ministries and directorates not connected to a ministry Subj.: Instructions of preparing the budget for year 2004 Ministry of Finance would like to refer to the preparation for budget estimations of 2004 (Current & Investment), and the ministries have to present the estimation of their budgets according to the budget forms which are already used in recent years according and also to the estimation bases of the past years. Priorities should be given to security, services and a good standard of living. Infrastructures and reconstruction should also receive priority in order to enable all economic projects to operate again as soon as possible. The 2004 budget necessitates that vital needs of people should be studied objectively to provide allocations for them, taking into consideration the limited revenues we can raise during the next year. This means that all official ministries and directorates should start collecting fees from people in exchange for the services these directorate offers. The Ministry of Finance asks all ministries to adhere to the attached time table and submit their budget to this ministry before 8/15/2004. Discussions with a various line ministries are to be carried from 8/15 to 9/5, the following procedures should be taking into consideration during budget preparation: I- Budgets of centrallyfinanced directorates: a) Each ministry should have a high committee at ministry HQ or the directorate not connected to a ministry HQs to carry out discussions concerning the budget operational and investment according to budget forms and regulations. A total budget according to the ministries (Part) is required. b) Each directorate within the line ministries and every department within directorates not connected to a ministry should have sub-committees to discuss their budgets. c) This ministry will discuss the total budget of every ministry, so all members of these committees and sub-committees should be well informed about the details of their budget to ensure accuracy and speed. 2- Budget of self financed directorates: a) The followings should be taken into consideration: First : Production should be increased according to qty. & quality. Second: Human & financial resources should be used perfectly. Third : All directorates and companies should be restructured to increase administrative efficiency to fulfill production objectives of the annual budget. Fourth : To reduce expenditures as much as possible. b) The directorate of Accounting/MOF should be provided with the planning budgets starting from human and financial resources ending with financial plan, all tables and enclosures data that explain the number of production units should be mentioned together witb the difference services. All details concerning production operations should be mentioned like quantity, quality, and costs. c) The above mentioned budget committees should be responsible to prepare the plan budget estimations before submitting them to MOF. 3- The Investment Budget: The investment budget should be prepared according to regulations previously followed; taking into consideration the following items: a) When asking for estimations, priorities are to be given to basic services like electricity, water.. .etc. which have direct contact with the life of people; we must ensure the continual operations of these projects. b) New suggested projects to support the Iraqi economy and reform the infrastructure to achieve the required development. c) Reconstruction projects are to be implemented only when they are proved to be of economic benefit to the country. d) Previous consultation with other ministries like the ministry of planning is required before submitting the final estimations to the MOF. With regards Deputy of the MOF Message Pave 1 of 1 UK Ministry of Justice From: Sent: To: (GS-15 Justice Dept.) Friday, August 29,2003 11:08 AM UK Ministry of Justice Subject: FW: 2004 BUDGET HEARINGS SCHEDULE The grid is in the attachement ---Original Message---- From: Sent: Friday, August 29, 2003 10:55 AM To: Cc: Subject: 04 BUDGE1HEARJNGS scH Please note that these hearings will be at the Iraqi Ministry of Finance (grid coordinates in the attachment). You are going to need security escorts to get there for your hearings, and ill be there throughout. Your senior CPA advisor should attend with whichever Iraqi from your Ministry in ends to defend your budget to the interim Iraqi Minister of Finance. 96 and ensure we have at least three interpreters for the entire period (one for nit = ne for and one for the CPA Senior Advisor, so the CPA reps can have simu aneous ranslations). . ----On inal Message--- From: Australia Treasury Sent: Thursday, August 28. 2003 8:37 ANI To: CPA Ministries Cc: 1111.11.111 CUE SAD Subject: 2 HEARINGS SCHEDULE Attached is a memo on the 2004 Budget hearings schedule. Regards 8/29/2003 2004 BUDGET HEARINGS SCHEDULE Venue: Objective: CPA role: Ministry of Finance Computer Centre Building (MB 4535 9108) One hour has been provided for each Iraqi Ministry to discuss their Budget submission to the Iraqi Ministry of Finance. 0fv1B staff will be on hand to assist the process and the Ministry of Finance in particular. We expect CPA advisors to perform a similar role. The proposed schedule is attached. Office of Management and Budget Schedule: Sunday 31 August 0900 _ 1000 Ministry of Water Resources (formerly Irrigation) 1000— 1100 Ministry of Agriculture 1100— 1200 Ministry of Education 1200— 1300 Ministry of Security Affairs 1300— 1400 Ministry of Housing and Construction Monday 1 September 0900 — 1000 Ministry of Health 1000— 1100 Ministry of Higher Education 1100— 1200 Electricity Commission 1200 1300 Iraq Science and Technology Commission 1300— 1400 Ministry of Trade Tuesday 2 September 0900 — 1000 Ministry of Industry and Minerals 1000— 1100 Ministry of Oil 1100— 1200 Ministry of Justice (including prisons) 1200— 1300 Ministry of Foreign Affairs 1300— 1400 Ministry of Interior Wednesday 3 September 0900 — 1000 Ministry of Culture 1000— 1030 Ministry of Transport 1030— 1100 Ministry of Communications 1100— 1200 Ministry of Planning 1200 — 1230 Ministry of Vvraqf 1230— 1300 Ministry of Labor and Social Affairs 1300.-. 1400 Board of Supreme Audit Thursday 4 September 0900 — 1000 Ministry of Public Works (Municipalities and Local Authorities) 1000— 1100 Ministry of Youth and Sport 1100— 1200 Ministry of Finance 1200— 1300 Baghdad Mayoralty 1300— 1400 Central Organisation for Standards Saturday 6 September 0900— 1400 Suleymania Region Sunday 7 September 0900— 1400 Erbil Region PRISONS In the limited time available the following comments should be made:- It is very difficult to provide building specifications when a full survey of all prison facilities has not been carried out. The figures in the Supplemental provide a generic solution to the best available information at the time. The original estimate is that the prison population for the size of Iraq will be 30,000. The budgets have been drawn up with this figure in mind. On the original plan was to stand up institutions with 11,000 beds by the end of this year. This has been revised to 8.000. The supplemental aims to add an extra 18,000 beds. A worst case scenario predicts a 38,000 prison population by the end of 2004 (straight line average incarceration rate). There will be a shortfall of prison beds in 2004. Any savings in capital costs can be used to expand or build new facilities. The security situation may well add considerable numbers to the prisoner population depending on the level of violence. There is an urgent need to bring prisons into action to deal with the continuing security situation and to relieve US military from prison and escort duties. Consequently a premium may have to be paid in order to stand up facilities quickly and bring in the necessary machinery, material and expertise to do so. The volatility of prices that can be obtained locally will also impact on the total price of the contract. The initial costs were based on estimates by US experts. For example the capital cost in 2001 of Tucson Prison in Arizona was estimated at $195 million. This was for a 4800 bed facility. The best prison facility in Iraq is Abu Ghraib. It was foreign built. It would be intended that local quality build would be used if it was thought adequate. More likely there would be a blend of Iraqi and International standards, with some international supervision. The amounts given in the supplemental refer to bringing prisons up to the minimum standards promulgated in OCPA Memorandum No 2 regarding the Management of Detention Centres and Prisons. This means that the overall operating cost of the prison service will be much higher than the old regime. There will be an incremental capital costs in improving old facilities. Some of the facilities have been badly damaged and can be restored, others have been completely destroyed (Kan Bani Sa'ad and Baquba prisons) They will have to be rebuilt. The problem is that our picture of the prisons is incomplete. The start up costs are for fully equipping prisons. Among other things it includes bedding. uniforms for prisoners and officers, furniture, fixtures, and equipment. Also equipment for administration. transport, communications and for security. Initial operating costs relates to the average cost of operating each facility for a year. We do not have enough data to work out the actual average cost per inmate in comparison to the states. The annualiLed operating costs is estimated at S12,0(X) per inmate per year. The budget does not include the Kurdish region. Ministry of Finance Budget Office U.S. DOLLARS Current Budget Preparation Department Current Budget Estimation Forms For The Year 2004 Ministry of Justice Class Code Office of Iraqi Correctional Services Department Code ADULTS Prepared by: 1 of 10 Prisons cover Form No (1) Table of Jobs According to the Post Grading (Class Department ;Prisons Part 2003 2004 ,.•., No. Items No.of the employees (EXCL SOE) No.of the employees (EXCL SOE)- proposed 1 liLevel (1) (Special dgrees) 2 38 2 21Level (2) (First and Second Degrees) 293 18251 3 3 Level (3) (Third, Fourth, Fifth Degrees) 1096 7449 4 "'Level (4) (Sixth, Seventh. Eighth, Ninth, Tenth Degrees) 8250 3104 Total Employees 9641 12415 'Estimated Salary Cost ('000 ID) 26,182,560,120 No.of employees agreed Prepared by: 2 of 10 Prisons employees Form No (2) Estimation of Expenditures According to the Parts iPart 2004 2005 2006 Section Title Yearly Expenditures for 2002 Expenditures for 2003 (Jul- Dec) Ministry Savings proposal Ministry Spending proposal Total Expenditure Proposed for 2004 Total Agreed Total Total 1 1 Staff Expenditures N/A $93,156 $11,758,099 $17,082,600 $17,082,600 2 Service Requirements N/A $841,657 $866,907 $856,607 3 Goods Requirements N/A $6,253,166 $62.969,149 $64,858.223 $64,718,298 4 Assets Maintenance N/A $1,955,535 $2,014,201 $2,014,201 5 Capital Expenditures NIA $9,173,044 $6,020,287 $6,200,896 $5,464,994 6 Transferred Expenditures NIA 1 7 Foreign Obligations N/A 8 Special Programs for Building NIA $225,016,287 $115.000,000 $115,000,000 9 Salaries& Retirements' rewards N/A Total $15,519,366 $308,561,014 $206,022,826 $205,136,699 _ Prepared by: 3 o10 Prisons operating - summary pg Form No (3) Estimation of Expenditures According to the Items :Part IDenartment I ;Section IPrisons Thousand Dinar r a g Item Title Yearly Expenditures for 2002 Expenditures for 2003 (Jul. Dec) Ministry Savings proposal Ministry Spending proposal 2004 2005 2006 Total Expenditure Total Agreed Total Total Proposed for 2004 1 Employees Expenditures 1 Employees Salaries NIA $93,156 $12,014,453 $11,758,099 $17,082,600 $17,455,040 Total of First Section MA $93,156 $12,014,453 $11,758,099 $17,082,600 $17,455,040 Services reauirements 1 Travel Expenses & Allowances NIA $9,713 $9,713 $10,004 $10,004 2 Delegation Expences & Allowances NIA $9,713 $9,713 $10,004 $10,004 3 Transferred Expenses & Allowances N/A $9,713 $9,713 $10,004 $10,004 Publication& Information (Media) 4 Expenses tkl/A $9,713 $9,713 $10,004 $10,004 5 Printing Expenses NiA $33,333 $33,333 $34,333 , 6 Post N/A $9,713 $9,713 $10,004 $10,004 7 Cable & Telephone N/A $0 $100,000 $100,000 $103,000 $103,000 8 Lands & Buildings rents N/A SO $0 _ Prepared by: 4 of 10 Prisons operating - detail co to a o = Item Title Yearly Expenditures for 2002 2004 2005 2006 Expenditures Total for 2003 (Jul. Dec) Ministry Savings Ministry Spending Expenditure Total Agreed Total Total Proposed for proposal proposal 2004 Machines & Machinery Rents & , $137,333 9 Transportation INIA $133,333 $133,333 $137,333 10 Insurance premiums NIA $333 $333 $343 $343 12 Lawyers wages NIA $13,333 $13,333 $13,733 $13,733 13 mccom )d & Delegations N/A $13,333 $13,333 $13.733 $13,733 Conferences and un 14 (seminors) NIA $9,713 $9,713 $10,004 $10,004 15 Celebrations NIA $6,667 $6,667 $6,867 $6,867 16 Civil Defence NIA $66,667 $66,667 $68,667 $68,667 $13,733 17 Rewards & Medals for others NIA $13,333 $13,333 $13,733 18 1Varities 18 Varities 19 Subscription of training courses 19 Subscriptionof training courses 21 Sports Activity 21 Sports Activity 1NIA $33,333 $34,333 $33.333 $34,333 NIA 22 ISchool Activity NIA Scaning -& Specifying & Correcting 23 kinds of lands and their registrations NIA 24 Money Transferring NIA 25 witnesses & arrested transferring NIA $16,667 $16,667 $17, 167 $17,167 27 Stamps selling commission NIA 28 Students Allowances N/A Prepared by: 5 of 10 Prisons operating - detail I Se ction Item Title Yearly Expenditures for 2002 Expenditure fer2003 (Jul Dec) Min Ministry Savings proposal Ministry Spending proposal 2004 2005 2006 Total Expenditure Total Agreed Total Total Proposed for 2004 29 Student leave, NIA 30 Office Cleaning MA $200,000 $200,000 $206,000 $206,000 Wages for joining the scientific 31 institutions NIA assesment of Scientific Research & 32 Translation NIA , 33 Advisors and Experts wages MA Loading & Off-loading of Goods& 42 matenals NIA $9,713 $9,713 $10,004 $10,004 43 Cleaning & its requirements NIA $133,333 $133,333 $137,333 $137,333 44 City Planning & Orgenaizing MA 48 Guarding wages MA $10,000 $10,000 $10,300 $10,300 49 Jewlery Stampingwages NIA Total of the Second Section NIA $0 $841,657 $841,657 $866,907 $866,907 3 Goods Reauirements 1 Stationary and_printed materials NIA $200,000 $200,000 $206,000 $206,000 2 Water & Sewerage fees MA $775,949 $775,949 $799,228 $799,228 3 Electricity Fees N/A $775,949 $775,949 $799,228 $799,228 4 Delegationexpenses NIA $252,148 $252,148 $259,712 $259,712 _ 5 Clothes NIA $1.737.058 $1.737.058_ $1.789.170 $1.789.170 Prepared by 6 of 10 Prisons operating - detail , 1 Se ctbn Item Title Yearly Expenditures for 2002 Expenditures for 2003 (Jul. Dec) Ministry Savings proposal Ministry Spending proposal 2004 2005 2006 Total Expenditure Total Agreed Total Total Proposed for 2004 6 Food NIA $42,967,314 $42,967,314 $44,256,333 $44,256,333 7 Medicine N/A $9,311,394 $9,311,394 $9,590,736 $9,590,736 8 3leanising Materials N/A $166,148 $166,148 $171,133 $171,133 9 Materials& Requirements N/A $6,733,498 $6.733,498 $6,935.503 $6,935,503 10 Sick Equipments N/A Sports Equipments N/A $49,690 $49,690 $51,181 $51,181 I Forage (Feed) for Animals N/A Total for the Third Section $6,253,166 $62,969,149 $62,969,149 $64,858,223 $64,858,223 _ Assets Maintenance N/A Maintenance of furniture N/A $133,333 $133,333 $137,333 $137,333 Maintenance of buildings N/A $666,667 $666,667 $686,667 $686,667 Maintenance of roads & bridges N/A Maintenance of water & Electricity 4 instaHations N/A $333,333 $333,333 $343,333 $343,333 Maintenance of Machines & 5 apparatuuses NM $333,333 $333,333 $343,333 $343,333 6 Maintenance of means of transport N/A $333,333 $333,333 $343.333 $343,333 7 Maintenance of Books & Records N/A 8 Maintenance of IrregatIon pnjects N/A 9 Maintenace of Dams establishments N/A 10 Maintenance of weapons N/A $22,201 $22,201 $22,867 $22,867 11 Maintenance of Gardens and Parks N/A $33,333 $33,333 $34,333 $34,333 12 Maintenance of Factories N/A $100,000 $100,000 $103,000 $103,000 Maintenance of City Planning & 13 Organizing NIA 14 !Maintenance of Radio & N stations NIA 16 !Maintenance of Slaughterhouses N/A Total of the Fourth Section $0 $1,955,535 $1,955,535 $2,014,201 $2,014,201 Prepared by: 7of 10 Prisons operating - detail = Item Title Yearly Expenditure for 2002 2004 2005 2006 Expenditures ministry Total Ministry for 2003 (Jul- Expenditure Savings Spending Total Agreed Total Total Dec) Proposed for proposal proposal 2004 Capital Expenditures N/A 1 Furniture N/A $1,000,000 $1,000,000 $1,030,000 $1,030,000 4 Vehicles NIA $1,550,360 $1,550,360 $1,596,871 $1,596,871 5 Other transportations means N/A 6 Machines, apparatues & machineries N/A $3,469,927 $3,469,927 $3,574,025 $3,574,025 7 Lands NIA 8 Buildings N/A 9 Books & Magazines N/A 10 Movies & documental films N/A 11 Weapons & ammunition N/A 12 Theatres & their requirements N/A 14 Animals N/A 15 Other requirements & equipments N/A 19 Wells & Mines N/A Total of the Fifth Section $9,173,044 $6,020,287 $6,020,287 $6,200,896 $6,200,896 Transferred Expenditures N/A 1 Returns -up N/A 2 Compensations NIA 3 Elimination of ungained debts N/A 20 Other Rewards N/A Total of The Sixth Section Foreign Obligations N/A _. Total of The Seventh Section N/A Retirement Salaries N/A 1 Civilian retirment salaries N/A 2 Military retirement salaries N/A 3 Family care salaries N/A Total of the Ninth Section N/A TOTAL OF ALL THE SECTIONS: $15,519,366 $83,801,081 $83,544,727 $91,022,826 $91,395,267 Prepared by: 8ot 10 Prisons operating - detail 01I0/0003 626 PM 2004 Budget Adults • :CS A01,2. cfl • !Chapel' I Chapler 2 Expense) Pisan Olfeets iChapne4 Emenses iCe0191 0413/104961 rrotal Set Up Costs Reese. I Chaplet 5 1 I I 1 . . AI r..hy., 81 9901e 100 145.408 I 120,400 11 1- 3440 la ' .'41'''' .4)611 44. /C410414112. Week . ' s. , ' .-.•..... ' 350 • $556,428 - ' $71400 11a ..$i sit. $o . 322.941 6, 'aslest • 84913ies 350 3105.926 i 371.400' 110 1 3134! 30 .--.... ROA441 ,4 , 1363beld ...•'' : , '26) . 416 it.... $101,507 ' w.' $$4,004s' - : , 407 :91,812 SO 106,696 Al 1111411 . 64041 750 3340.560 1 353000 1 24e : 33 312 SO --. ...#9',' . 11/0.01 44 0464617,4614:, Memo . . .• - ' .r2"- t . 1.750 ..;.,-... 31.1021(04. ,. .... $10,1394"4-', . 1.23/ek- • - ''', 416.5ty, 30 $781611 hi KaCImryi - Baghdad 400 1101.632 1 001.600 1 132 31 761 049 111060-00 colliM.Mtver030), 841 00 ' 3.100 11.- ....119.40E0411'i ' 1637.,400 1.300 ' 613,04f, $o 10 46.049 04W001:111 ADAM SlAFF WAGES 0 0/2,653 I ¶64) . Se 30 L ". 11;. - Anima EAAnha re! . 14491904d 600 . — 5777,441 , 5774130 190 37 447 SO 1125.642 !aim 40061- lAtiMitaesrmSilstals•4......0 1200 7.. ' • 6,644,600 - . 3244,000 . ' ' -103 . ', 1,5.254 30 I .15.°` NEW Al Mures - varan 2.600 3471,000 572.500 125 III 008 52,403,700 02.627.200 fickir . N010..- ' .' - • • ::•4;,:.°,'!.- ,101 2.600 ,-:. Orkooc , :!, Q, - • .uszgo :. -.. , 324 . ' 4911,006, 32.403.100 ' ..,.1.1xeme8 NEW AJ Ke - Wed 1,600 32631500 3127.500 495 30 605 31.442.000 51.576,325 NOW 0 0 Fi0:4 ak: AY Ktilpi& -- .7, .:SRA.:: ..'; 2600 ..7 ).44 1 :676B003-: 4340,000 025 .- 911006 02.401,700 • i.: . $2;154.7011 NEW X arkek - At TarrAn1 2.600 1158.400' 0340.000 325 511 oa 32.403.700 12154 1)8 WY.4.0.00600 , 8616h Aildlit.C. • Vila 1.600 +4... ', ... 5 6417,600 . .... .. , . $,2/6" ! ,,,, sp. -• f 12.055, . 31.442220 i, ,,;;.' 41,624320 NEW 4405e0s . 15054 1,200 01014)33 981600 396 05.244 5193299 1279 inn rityrponiti7ify0,4 air .-7,..7,k;lata:193 700 Ali 43.(1e00 . , ' ' . $144000 .."' •.', 231 13062 $073026 41,4::-' ; , 1616616 roEW 64 09416y4/1 'A! Cedisteels 2.500 11.135290 1510,000 526 5ii.000 32.403,700 12024.708 NEW 14enEiere Sep3:)ffstrV.74WK: 2000 . Zna,, '. 10/51613 - ' ' 1440,060 pea • ,,. . • .1 .512.66U 12.769.062 . '0=69 MEW Sarrawah • Al Metenna 2000 0567603 ' 0255,000 t 525 311 316 12.401.700 32.669.705 NOW MOW' Ni f•iiiit - :1-1111,Sga 2.500 got got Apo . • . 11.16.00 - . 025 :-,'." .-, . -..511.6* 12403.700 NEW 4.000 . Arl Nacirlyah 4.000 1151 360 i 960000 1 320, 31/ 012 1103.645.920 3103 931.539 NoWsktio , fsitrt 04 qtter4 4. 000 ''''', '- . - ...,01 4i)tel0 -'-' .$$,$: ' - ..., 1.320 '112402 3103,645,920 eL IZ.5%96033931334. 44 204 *61.750.008 $424/1,901 12 415 5109 011 0721 074 574 S734. 090.04$ Al • . - 20% al moorino owe Hahn% e1s0000 MOO twidqurses Evenmos • . 'lane Imp Oman 92004 ussi-iontsno 120.1 500 1 light Vella* we Data Enlryne1011 PeetirtelsesSe Oporeng Cods The reed 0000 55. month ay 52240000 , 00000 $2374170 4-Fleat8*g ForedCoels (1.000 emit. Neel $1,000 . -Fixed Coats for 1.000 Inmates 203 <-9004 Cosleneelendone $20 4-09s84 ConftmosiMonth PeParea 6 EI 2004!CS Adult. 1 itedge/ Summery 9118,2003626 PM 2 004 Budget -Adults - ICS Chapter 3 Espana.. Jan 03 7.5.01 15,0,031 Apr-01 May-03 J.-03 Jut 01 Aug-03 1 • S80-031 06.03 hiov-00 13861133901 Chiapas, 3 tROCSIM316 metal 7611 Chapatis 2. 3. Monthly- 4. iimil 5 1 • cost par P6sorIN i • Al Sainyan $37.128 4 ,6:6 4 St 7.595 i $17,745 , 517.698 • $26503 017.600 117.731 $17,741 $17,790 $1 -511i- 117,731 - 1234951 - 3255 031 -4 919 -- ii- .L : ••:. . .. "SeitXsafilV1 ..1 .N-fisMs leoPeli.'.. 01 ,0 :.- .-.••:•.- IMS*4' .:-... ,,,,f- , •400, 107- ' ,,.: 1, 3 .1; ' . • ,•- •'..W; 7 'litiatinigUleea$Witr7ifttgard; Al 741 - lenn $127,441 !, $59,407 L 959.442 556613 1 059,442 1 569.261 159.71 30 359,558 659.593 I 059.763 S59.593 . 159,558 I 1792,407 $865 408 3159 1 1*830 - !i •T -,-4•2 1133i41 . 5. A21 r- ' • -•- - . - - •' .- 03 1 Yirt-atil 180.40:6.V‘e ! ,;:••;-1 ,. LI MM. ;. '.- ..,, -...t1Ati4 - • ....i.wrimetefir .e4#moargiwy, ;.:: - . . • vogy,24, - ,aksz. wsssr4,45 ,T;,w; 3 , - ,4045 14sisswsjawww: .. . ;7,, ,vtioscigo :. ,.. i, It:i ll- 04m ,-,,,, ;.4 . 06_, Ai Nash r• $27; 6 15 $1213,157 ! 3125,232 1126595 1 1126,252 1 8 747.273 , $120,367 L $126401 3126.556 I 1126.922 1 $120556 I $128,451 j $1,684,429 31.840,731 $187 ._ R18331* • ••' k. .,f Xtritilf ,,, ..2540101 :, ••• - •'...:1.i4eAte2 lE;'-' , '107.8.3g0t2-ra7;:.'Ittitrien.- .:1. 4t3t3o 1 .4- ,.. • .:...Alt3lotlissi,'.:".'t.-li_;,..:Yilse;00.. ;.,:;;.•.•., .F...seiriiiiv:: ... ...,..041 6101:u-to...:.. 41420:rvel'ASZ,A0141 *&3Y4 06$ •:!": : :•••1 2 32 A1.63t '•'• ik ! •318Ar AI KadOVY 1145,304 I $67,751 j 367.791 C 567,908 L 367.791 $78.012 1 168195 307.923 *67.9631 108,156 r 567 9054 367,923 3903.962 9197 323 $186 glegi/A03, • • !.!!=' sugs.G.,-,„gostrAut,.. -. .:1$44)ile , F.,,,, ,7tisittat,..}441104446407ref="4-74601ariggril -,104716464..g .'*V114 4 0 4- - AggiNC:Tia:ig,8100 . igr- Ait it- 1602a....14fitligaig . g:- .):. -7;$71444,14.• 'j,, ielttattslilli 21"404 SO OD 30 SO 50 SO SO . SO SO SO SO SO 30 $77.653 SO Feentranst $217,755 , $101,126 1 $101,156 1 $101.479 I $101.160 5115,0 ;4 $101,797 1101.355 $101,445 I $101,737 I $101449 0701,385 I 91.349 943 31.474.985 1157 •• I' • 48• 14. 1131 .!•'• :f..3. • - ,M23k,r;41.1 ..:! •L'. 120W/2.1riltanNtir.- 45.: (1.410alikri : ''' ..‘.:512 094 0 . itig i " 001 ,005*;' '1 *40 ,102 l 'i'Vf. f.: - .:ka0 . 1 ;111t0;1 C'''':* AtO2gors;;..V:.'1 ° 40SsissW*R. - 1" ;--7."6 Q'614 '43,is0,o13p, : i*, ',711$41.6 8 i , •:'tl.in SIEW M so I so I so I $o 1 SO • 301 SO . SO • 0397.860 j sots.ess 1 5397 660 $307.460 51.591 418 14.215.624 553 FON. 7.7.1.iik ,V, 10j,C2,3, '..,,evolokogrip, , - 7i tcupsr,,,,,, :.40.7. 4r...1,paaw: -..••... iv.,,,..... ) : -..ti o ''..:; '.--- . -- ;-",''......, At - ',.r.7011Wie,:- ..'K'.7 IfsNoNas" .z•f:,:. 411741 1 k, -- .4,543XST . .,. •:•'.'...- $tAsiAtt,ts, klEW /8 K Sol $o ,, so 7 SO ; . SO SO ! 13 SO 6424,105 i 5230,741 1 5230 251 1 S233.153 01,115 250 '.c.tlIgitIPAtt $3,661,576 .•:.r.trS3 $62 .•1 • -,•: .;;.-!! ... -- 2 1- 11tH.L aillelti1Yeill 2 g•• •• - :71(1 ,- .410161Fis:= 4:- -'4 iflo ,•V;.,.!, - ,,-:-.19.trA:--.- ...$ ' , . . " .-,-.:1:::•: ,tiessillifIIKVISCti..:ABSOfte.o;',.e-5 .7:r.gatit6*-.!: • -*TAMA" f.'-."1. - ' ItiissiO. , ' • !..ft.i'lAahr - - -- . , 1!::'. toy . - niv .. - .1- 00(0 _ 40W1041, $3 1 $0] $0! 8 . 0 1 , $10 $786364 1396636 $397,460 $397,660_, soss,o3o I $397 GOO 6397.460 I 33173 070 55927,704 1106 , r • r. • - 41 • • : :•- 1 1 4.•• • •- : 74 - •...- .... .».401" .14:1%.• :,...., .APV40: 2 .i.i,...., _,-.4 : 1( Pg.:-:.: -..Agrat+.W.:0,-f4 .i.:,:..- • 60' .: l', ..Ai:' '' ...AZ ' - : -ii,;;, . - -; .10:Stiicf, 0.104415 W',•,'.; ....4010.Virt„MitooAsti, , .1 7 141:4"Ja.jo;sstp. 1 -,..„ii;4444,* ..,-, : e.;.'.tgooteRg v, 14,.$03 Neer . . $0 , SC ' SO SO 1 $0 1 SO I 10 • SO 1 $0 1 $196142 I 9158.172 1155,152 5513 265 $792.441 $30 wows ,..;. ,:• ::$1t-A04 , 2, - ,wit.ltinsigN4,14, 4-,:r;1Jionc..;;U:::::,..iitss415Y01 .',stit.024.AhoAtft. , , -:• -ki's,414tifr..4W-, "-•.:1141X1 ' , 1:! - V4itiblW ,:g.':.'-ORMIlineFP!.:f..:;;."0140,114.- ... : , • liisSilt* • ;.::U.. Ai2,39tga, I..: 'On 97W Ad • $785.354 $396 598 3396.796 I $397.774 L j L 5365,798 I $452.907 I 1398.836 I 1397.460 L $397,860 $395,636 1 $397 660 , $397400 55,213 951 30 135.659 $174 Rt zW108 1 , -L'. • ';' ! ! !IR, sc.-•:',••. t.- ,.4N1110 ; '- 4 ,. . to -;:c .:'..itioNtstit'Al: ";:' ,.5 -1031.0W7, 4,.04Wt3f4;- . '''' ,ctifie$41::::r. . . ifNiiiiiie •.r .f;f: 0,170)4As- - ,'2;':444szies4ti9r, . A03640. ..,4 ,. ,;‘,4 : -- ,,sssks,eu ...'4350 , . SEW So 1 13 $O i $o I $o '°I $O $765.3134 3397.860 3.398.836 1397 880 $307.46C , 17,378 703 55.046,463 67 Me1V.448f NA,A, 4,600 •APP! .1 '••-.. 10 SO '•• •'!;$61W '.• • •'i*,7:3 1 1 ! ;A.! ; • .,*e 16 " 3: • ' .-4' -'•:40'.T.t". • ,:.--'. Af4fri, i, 'Is. ;, . ; :ssr?...A ts42; • 1, . .7•;-‘,SItattieitfe,Atakk '• . • ", ttiAZ45* ,, ,•.•g; .e-s4uwwt:,7.$20, 33 IC SO SO 1 SO I 601 SO 50 SO 301 SO SO ! 90 3303.931,512 SO is .-;n4=_r , .: ..to • os• -- -•wox .l:M.hititifACK::.,;:i . , ..210fe. """ - .? " .901' ', .I. -,, -,' , so;„ ,.‘'-': , ' ,41Airlot- - , ' -f!' $01 ,1trx.- ":""ttle''''A_ 301 k.-:-..slElsk-;•:.'-i- ' , .4A1.46' W.- 'itottost3-12- 75 084,64 s 305.614 52 8511 12 394 549 53 411 283 tog on 63605,335 .,.497 3$3"l $4 144 420 *5870.530 $5,117,689 55.415.933 393. 381,862 SUM (MAP Kigi TA , $1-010.728 ‘477.e92 • 407171 $470,310 6686.267 1901,614 1733265 3801,506 91,228.884 $1,17/,186 61.163552 $1,183,058 00.472211 3 610.472216 30 05 5571 666 151 522 $2 575 859 $4 117 540 15 ON 002 $4 423 590 65.349.030 57 3 3 304 .- , _ $7 045 110 50 991 353 038 1021309 149 $299 3 365 - •30 ii.cos,365,105 300 4396274333 40 4301,740.213 1004.313798.146 10130176.304722 100453023010 Q) 6.I30.356.372 ill3 6,023,585,702 01311.056,955.00 63010 987.F24.684 100 10.472.330,018 IC IT:r1 - 0 - 137.066,738 100 64453 223,276 8304,9 265.048,00S a40 Recurring Ida) Intarffid Costa cast Stormy* 12 • . F .--=‘ Al -8.. • $48595 $51156 44 5 • tiawah MMIIII=1111:1= AlIasSerol • EtagdMod IMINKIIIMIUMILID;EI Russata . ElPanded 1 AI 1 -6111511 - B , EM IlliEliii Mite/ 90300 - Masa - Roam IEBUral - Al Kadlmly. • Baghdad Mai l l.1.1132=1 03 Central AM, Graft - i_.=M111=11111..17.20.-.11 ainlrneL :"rMMIMIMEMMMMIMICO a 111.11.2=11 04,44415 COWS' - im &weeks - &YAM MIIIM S37 - 77 11:=II Al Arnaran • Ma $315•253 IIMINI=1 ???7 • Sanwa 091 293 IMMEMII Al Kul • 11 1 /901 Al Fills, • AI Noir . - - . _ MagMiLe Mir3;riZRIZF 7 1 Sarum • Satoh Ad 110 =IMLEZEM11.11.1.:=1:1 ICaltale -Keibals 111111.22=111.1111.11: =MIIMIZMI IMIIIMMEM1=11CMIIMI -‘11.,.....A., - • 07 LIMIIM11.11111.111.3..V 24:.:1 11 • flanl Saad • 01 772 - Al Mcahanna 11111aa MBE /MAI • An Najaf $2115,09/ 111 10833 $10,20238 $99842620 _ _. - - -I - - 10 ce 10 aiNICS Adults lkidget Summary