CPA Infrastructure Reconstruction doc 35

- - - -- - ...E!\ga.Jl]- - ··- - . Coalition Provisional Authority Ministry of Transp~rtation Finance Briefing 28 January 2004 Office of Ambassador Darrell Trent Senior Advisor to the Iraqi Ministry of Transportation 11111111111 02809 Poge128 Funding Sourees Funding for Iraqi reconstruction and annual government operations is being made available ftom a number of sources--Iraqi-own source revenue particularly oil revenue, US Governments grants, grants from other donor nations, and grants and loans from international development agencies. At present, only Iraqi own-source revenues pass through the Iraqi Government annual budget; however, it is anticipated that over time an increasing proportion of other sources of funding will be reflected in the formal Iraqi budget. 2003 Iraqi Budget' The main source ofnwenue for the Iraqi budget is oU revenue (89%), which wiD be channeled through the Development Fund for Iraq (DFI). (see Appendix D for more information on DFI). Other revenue is derived from taxes. fees and charges and dividends from state-owned enterprises. For the fiscal year ending 31 December 2003, the 2003 Iraqi budget totaled $6,099.6m.2 Funding allocated for operating and capital expenditure was $2,002.lm and S3S2.7m, respectively. Ofthis, the Iraqi Ministry ofTransportation was allocated $10.8m (O.So/o) for operating and S49.7m (13.9%) for capital expenditures (see Appendix A). At 31 December 2003, operating funds had been fully expended and [ ]% 3 of <:apital funding had been completed. Details ofindividual projects are shown in Appendix A. Unspent monies from the '03 budget were allowed to be canied over with specific authorization by the Iraqi Governing Council's Ministry of Finance. Many projects are being completed in 2004. Program Review Board (PRB) Funding .. The PRB has been designated by the CPA Administrator to control the emergency allocation of certain funds under CPA control for the purpose oflmqi reconstruction. The sources of fimds are US Government appropriations, the Development Fund for Iraq (oil sale proceeds) and vested and seized Iraqi assets. Of total fimding of$373.7m approved to date, the Ministry of Transportation has been allocated $20.9m for 20 projects, details of which are shown in Appendix C. FWlding has been completed for 19 of these projeets. For the Baghdad International Ailport Security project. $8.3m has been expended from the allocation of$14.8m. 1 See www.cpa-iraq.oqfbudret and click ou 2003 Budget spreadsheet. 2 AD fiDaDciaJ sums arc stated in millions of US dollars. DFmillion. 3 We arc awaiting this figuR from tho Iraqi MOF. 4 Sec www.epa-lraq.orpfbudpetlprorram-revtew-board.btml 2 Page129 In addition. S 1Om bas been allocated to the Ministry of Oil for the rehabilitation of oil facilities at seaports and bas, therefore, been classified as transportation expenditure. To the present, there has been no use of funds for this project. 1004 Iraqi Budget' Total funding for the Ministry of Transportation (MOT) in the 2004 budget is expected to increase to $84.8m, reflecting the full year funding requirement (funding in 2003 was on a part year basis, following the establishment of the new administration at the end ofhostilities). However, in proportionate terms, Ministry of Transportation allocations will fall from 1.0% of total budget funding in 2003 to 0.62% in 2004. Details of projects which will be funded under tJJe 2004 budget are shown in Appendix A spreadsheets. 2004 Additional Iraqi Budget The relative decline in 2004 funding will be offset by the provision of an additional $187m which is to be made available as a result ofhigher than expected oil revenues. CPA and Iraqi Ministries are at present prioritizing possible allocations of the additional funds. As of January 24, 2004, $2Sm has been eannarked for railroad improvements and $12m for spare parts at the ports, leaving $150m still available for various transportation projects. The Iraqi MOT and CPNMOT are working together to earmark these funds (see Appendix ~). 2003 US Government Supplemental Funding (to be upeuded in 2004) In late 2003, the 1 08th Congress approved President Bush's request for an $87 billion Supplemental spending bill to the fiscal2003 budget. Of this sum, $18.7 billion is for non-military reconstruction purposes. From this figure, $365m of Supplemental funding has been made for Iraqi transport reconstruction work in 2003 (see Appendix B). This represents 44.2% of total funding available to the Iraqi central government sector for transport infrastructure and services in 2004. Up to 135 small to large reconstruction projects in the aviation, rail and maritime sectors are being evaluated for funding under the Supplemental program (see Appendix A). While project planning is well advanced, there bas been no disbursement of Supplemental funding for transport projects to date. s See www.cap-lnq.orrlbudret and click on 2004 budgct. 3 f'89a130 ___ •• _ Otber Fundmg' In 2003 and 2004, USAID fandiDg of $119.9m is being made available for transport infrastructure work. To provide management senices at Baghdad International Airport and the port ofUmm Qasr, respectively, SkyLink bas received a cont:ract totaling $17.Sm and Stevedoring Services of America has received a contract totaling $14.3m. USAID also provided $59.7 million to Bechtel to rebuild the port ofUmm Qasr, and rebuild the Baghdad and Basrah airports. Rec:onstruction of the Umm Qasr-Sbouaiba railroad junction bas been undertaken at a cost of $18. 7m, and crash/fire equipment totaling $2.2m was provided to tbe Baghdad International Airport authorities. Additional funding totaling $7 .Sm wilt be allocated to aviation reconstruction projects. Department of Defense funding of transportation projects also takes place under the Commanders Emergency Response Program and is disbursed by the military authorities for urgent projects identified by military commanders. Fwuting of$0. 7m is being provided in 2004 for eighteen small-to-medium railroad rehabilitation and reconstruction projects. Following the Madrid Donon' Confenn"' the ItaUaa Government bas promised $2m for upgrading of meteorological services in 2004. Discussions will continue with other donor nations on transportation projects which they may be prepared to fund in 2004. In particular, negotiations are well advanced with the Government of Japu on a substantial contribution to Iraqi reconstruction (expected to be well in excess of$lb). CPA Ministry of Transportation January 2004 Ambassador Darren Trent, Senior Advisor to the Iraqi Mhlistry of Transportatiou 6 Por c:omprehe.asive budget line-items. see Appendix A. 4 APPENDIX A Ministry of Transportation Comprehensive Budget 03 Iraqi Progmm CAPITAL EXeENDOVRES Budget Rayfew Boarcl AVIATION Basrah International Airport 2,200,000 Mosul Airport 2, 700,000 Mosul Airport Infrastructure Mosul Airport Air Navigation S~tem (Comm. & Security) BIAP Securtty Contract BIAP ClearHJp BIAP Infrastructure SlAP Air Navigation System, Initial 11,200,000 BIAP /IJr Navigation System (Comm. & Security) Basrah, Mosul Atr Navigation Sys. Other Locations, Air Navigation S~. Air Navigation Department Italian Meteorological Donation Remaining Procurement Items Gates and Doors for Passenger Terminal Bechtel Contract for BIAP & Basrah SlcyUnk Contract for Airport Admin. BIAP crash/fire rescue Unallocated USAJO funds 14,840,000 ' 11,200 l 198,400 TOTAL AVIATION 18,100,000 CAPITAL EXPENPITURES RAILRQAPS VHF Line of Sight Radios Bal~osul Railway Hllla-Samawa Railway BaghdadHBaijiRaOWay Railroad Security Iraqi Railroad Security Contract (1 month) Railroad Radio System RaU and Telecom Op. Cost Funding Iraqi Republican Railroad Wall Repair Iraqi Republcan Railroad-Startup Costs Iraqi RepubUcan Raltroad Repair Railroad Passenger Car Rapalr Operations S1art·Up-Shelsla Railroad Locomotive Parts Railroad Crane Repair Parts Railroad Water Pump Computer-Basad Train Contro1 System Locomotive Repair Parts Ganger Trolle)'S Flaahbutt Welders Rail CUps Rolling Stock Rehabilitation Track laying Machines Spare Valves and Hoses LPG Tank Wagons Container Handling Equipment Container Wagons Shalschla Shop Rehabilitation and Repair APPENDIX A Ministry of Transportation Comprehensive Budget 03 lraal BUdaf!l Proararn Review Board 2,000,000 1,000,000 800,000 700,000 57,692 36,600 3 956 000 • '1-......... J> ... ~ · ·· ·:.r -· • • . t"·~'t ;.t';r''"" !ll'"'·,f ·" 416 000 ,-NI!':i(:;,.., · ~· ;IL .'-. ... 101 t A· ~~ .:~. • • .c".;. .i.:af . .r:.!' f:~ol 245,200 181,830 131,280 131,280 32,300 .~ ""-' ' <;,.:; ~ 3,770 990 600 l ~ Baghdad StaUon and Office Rehabilitation Headquarters, Local Area Network (LAN) Other Repair Shop locations Akashat Bridge Reconstruction Umm Qasr.Shou81ba Jet Reconstruc:tton Aber Optics Communication System Other Track Maintenance Turnouts Local Points Signals Rehabilitation of Other Stations SabonJa.Rabla'a Truck Reconstruction Bayjt.Mosul Track Reconstruction Baghdad-Bayjl Reeonstructlon Coaches TOTAL RAILROADS 4,500,000 APPENDIX A Ministry of Transportation Comprehensive Budget ·· ':"'1:7~;i!'r· .. l -.,c• '-'"%'!"""" • -~·· .. ,. - •• ._ . - lh =,~. ·t{'~ · ;~ : ' ' . ; _~: ~-:~ . :-A . J+:.)~-~~~!!0 _ _ .. , ._ ·~·.,....'· - • · - ~· - ~·.,...,,.... ,,, ~~ ~'(1 ~~;; .t : ~ : k ~--. 1lj'i·9P_CJA • ~:. ~ . ~ ,. . · ~. 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'"· :fl ,J; , l :·"'t ,_;. .• :lif •"<n' •i;f Ill s,31a,542 lirii,JP-i.9.!«t,E:1$.,crgg-;ogo~~ · it.12:~~.~~~'1a~§M~· ;t~ ' .~. a?!~ ~ l w w APPENDIX A Ministry of Transportation Comprehensive Budget CAPfTAL EXPENDITURES 03 •mal BudSeJ Pmaram H~aUAR[ERSANDO!HERPRCUECTS Land Transport-Trade Creditors 22,700,000 Rebuild Ministry HQ 300,000 Lsnd Transport HQ Reconstruction 1,000,000 Iraqi Delegate Transport HQ Reconstruction 250,000 AJ-Dhilel Transport HQ Reconstruction 950,000 Private Ttanspotf HQ Reconstruction 150,000 Water Tratl$p0tt HQ Reconstruction 550,000 Polf Co. HQ Redonsttuctlon 1,000,000 Passenger Transport HQ Reconstructoln 1,200,000 Project Co. HQ Reconstruction . 300,000 MeteOIOiogy HQ Reconstruction 650,000 TransportatJon Other Cepltal Projects other Funding Soun;ea Commanders Emergency Response Program Other Donors (Italy-meteorological services} TOTAL HEADQUARTERS 29,050,000 TOTAL (CAPITAL COSTS) l ~ OPEftAIJNG EXPENDrrtJRgS Salary Expencfrtures Service Requirements Goods Requirements Assets Maintenance Capital Expenditures (?) TOTAL (OPERATING COSTS) TOTAL ALL TRANSPORT APPENDIX A Ministry of Transportation Comprehensive Budget 03Jraql 8ucfgtt 9,000,000 200,000 600,000 1,000,000 l ~ I I ~ 0 a. en c l'! 1- ... .2 c: m ........ = 0 .5 ., ~ -ac ctli c 0 ~= ~c: J-o -E ca c c:~ IL ·- i .. :s Q) ........ :E c ·- E G) - a. :::s UJ Q Q N ~ ~ Pege137 r;:Nl ~ ~ 0 N A ll) CD ('t) ~ 0 ~ A 0 0 ....... co ~ APPENDIXC Mbdstry of Transportation- PRB Funding to Date ProJeet AUocatioa EspendJture 2 Airport Clean-up 11,200 11,200 45 Iraqi Republican Railroad Repair 131,280 131,280 lOS Door and Gate Repair Railroad Station 600 600 107 Railroad Crane Repair Parts 990 990 109 Security for Iraqi Republican Railroad 12,390 12,390 121 Railroad Passen~er Car Repair 131,280 131,280 126 Railroad Radio System 3,956,154 3,956,154 128 Land Transport HQ Reconstruction 195,000 195,000 129 Iraqi Transport HQ Reconstruction 195,000 195,000 130 A1 Dhilal Transport HQ Reconstruction 176,000 176,000 152 Locomotive Parts 3,765 3,765 ISJ Gates and Doors for Passen~er Terminal 198,400 198,400 158 Railroad Security 57,692 57,692 222 Operations Start-up.Shelsia Railroad 32,294 32,294 Maintenance Workshop 260 Iraqi Republican Railroad Start-up Costs 181,830 181,830 319 Iraqi Republican Railroad WalJ Repair 245,200 245,200 328 Rail and Telecom Operational Fundin~ 416,000 416,000 411 Ba¢1dad International Airport Security 14,840,000 8,288,000 413 Iraqi Railroad Security (1-montb contract) 36,667 36,667 Akashat Brid~e Reconstruction 125,000 125,000 TOTAL 10,946,742 14.]49,742 I I Mialstry or Oil- For Transport 461 Repair Seaports for Fuel Allocation I Expeaditure 10,000,000 0 12 I Page139 APPENDIXD THE DEVELOPMENT FUND FOR IRAQ Background. United Nations Security Cowtcil Resolution 1483, dated 21 May 2003, sanctioned the establishment of the Development Fund for Iraq. Resolution 1483 and the laws and usages of war, authorized the Coalition Provisional Authority as the administrator of the Fund. At the request of the CPA Administrator in May, 2003, the U.S. Federal Reserve Bank ofNew York established the "Central Bank of Iraq- Development Fwtd for Iraq" account. The DFI is held on the books of the Central Bank of Iraq. The corpus of the DFI is held in the account at FRBNY for the Central Bank of Iraq. A portion of the fimd has been transferred to Baghdad, Iraq and used to establish a DFI-Baghdad account at the Central Bank of Iraq, for the purpose of meeting cash payment requirements in country, for the benefit of~e Iraqi people. Disbursements. To date, disbursements from the DFI have been in support of the wheat purchase pro~ the currency exchange program, the electricity and oil infrastructure programs, equipment for Iraqis security forces, and for Iraqi civil service salaries and ministry budget operations. 13 f'o9e140 Ministry of Transport & Communications 37 This funding: $US1 :101500 Provides for essential communication services which should faclllltate foreign Investment $USm Reestablishes Civil Aviation Program Actual2002 Jut-Dec Jul-Dec 0:1111 !url erJDOaal ADoro!!SI2003 Number of Employees 244 244 244 Expenditures Operating Expenditures 10.8 10.8 Capital Expenditures 279.1 138.7 Revenues Landing fees/overflights 5.7 5.7 SOEdMdends 0.0 15.0 Total 5.7 20.7 Operating Expenditures 1 Staff Expenditures 2 Service Requirements 9.0 9.0 3 Goods Requirements 0.2 0.2 4 Assets Maintenance 0.6 0.6 5 capital Expenditures 1.0 1.0 6 Transferred Expenditures 0.0 0.0 7 Foreign Obligations 0.0 8 Special Programs 9 Salaries & Retirements' rewards Total (excluding salaries) 0.0 10.8 10.8 Capital Expenditures Land Transport - trade creditors 26.6 22.7 ITPC - operating expenses support 3.9 2.0 Operating expense support - other companies 6.5 0.0 Initial recovery of Baghdad telecommunications 45.8 45.8 Telephone restoration 83.0 40.0 Internet reconstruction 1.7 1.7 Baghdad Airport 43.1 National ATC System 14.9 14.9 Rebuild Ministry HQ 0.3 0.3 Restoration of Postal Services 3.0 CompanyHQs 14.0 Optical fibre cable 2.0 2.0 VHF line of sight radios 2.0 2.0 Baijl- Mosul 1.0 1.0 HUla - Samawa 0.8 0.8 Baghdad - Baljl 0.7 0.7 Reconst. Of Signaling and Tel systems 1.7 Malnt of stations and workshops 1.3 Bridge reconstruction Fatha & Acashat 1.0 PageHl Reconstruction Workshops In Baghdad Concrete Sleeper Factory Reconstruction of Special machines Basrah International Airport Central & others stations recons. Reconstruction 4 workshops HQ buDding Mo&ul Airport Rolling atoek reconst Government data network Expanding Internet network Sabonia - Rabiaa Ghablshla • Basra - Umm Qasr total incl. f9COnStructlon 2.7 0.5 0.4 8.8 2.7 0.5 0.1 2.7 0.5 0.8 4.0 0.7 1.3 279.1 2.2 2.7 138.7 45.8