U.S.-U.K. companies eye rebuilding the shambles they have caused

LONDON, March 29 (IslamOnline.net & News Agencies) – U.K. British construction companies are lobbying with their government to secure contracts in a post-war Iraq reconstruction.

According to a report published by the Financial Times on Saturday, March 29, more than 80 British companies plan to meet under the umbrella of the British Consultants and Construction Bureau with U.K. government officials early next month in the strongest attempt yet to ensure that non-U.S. contractors win a share of the $1.9bn (£1.2bn) earmarked for rebuilding Iraq.

The paper said that initial contracts were expected to be awarded to a shortlist of U.S. firms.

"This appears to have been delayed by the slow progress of fighting and controversy over links between U.S. companies and members of the Bush administration," the paper said.

It added that British companies "expect to play a bigger role in infrastructure work" but that "concerns are likely to be raised by the possibility of the Pentagon attempting to ban international companies who are investing in Iran's energy sector from participating in the reconstruction of Iraq."

In another article, the paper quoted private-sector sources closes to the U.S. Defense Department as saying that the Pentagon is "drawing up a blacklist of non-U.S. companies investing in Iran's energy sector with a possible view to barring them from U.S.-awarded contracts in the reconstruction of neighboring Iraq."

"The companies on the draft list include several from countries within the U.S.-led 'coalition of the willing', such as oil companies Shell of the U.K. and Italy's Eni. TotalFinaElf of France is also listed," reported the paper, adding that a Pentagon spokesman declined to comment on the blacklist.

To do that, the Pentagon is planning to apply, for the first time, the Iran-Libya Sanctions Act, passed in 1996 and renewed in 2001, to list the companies breaching this act.

This means that sanctions will be imposed on the non-U.S. companies investing more than $20m a year in the energy sectors of the two countries, designated by the U.S. as sponsors of terrorism, the paper said.

"The European Union says the act, passed in 1996 and renewed in 2001, is in breach of international trade rules. To date, the law has not been applied," said the paper.

The Financial Times quoted an analyst of Iran-U.S. relations saying that the putting the Act in action would "kill two birds with one stone", by putting pressure on Iran and helping U.S. companies.

It quoted Stuart Doughty, chief executive of U.K. construction group Costain, as saying: "Someone somewhere will have to rebuild the country. It is only natural that those countries who have played a part in bringing Iraq back to normality should take the lead."

The paper also quoted a U.K. company as asserting that if the U.N. is involved in the post war reconstruction of Iraq, then contracts will be won by low-cost bidders from countries outside the coalition of the willing.

"It complained that French and German companies secured most of the infrastructure contracts in Kosovo despite heavier military commitment from the UK," the paper said.