Amid protests that it is profiting from the war in Iraq, Bechtel Corp plans to start recruiting more Iraqi firms to rebuild the war-torn nation.
The San Francisco-based company, which was awarded a US$680 million contract to direct Iraq's reconstruction, announced last week it had hired its first Iraqi construction company and will hold a conference in Baghdad to invite Iraqi firms to bid for projects.
PHOTO: REUTERS
"Our goal is to ensure the maximum participation of Iraqis," said Valerie Kazanjian, a company spokeswoman. "We want to revitalize the economy. We want to make sure the money is going back to Iraq."
But a report Thursday by three watchdog groups criticized the company's record, alleging "environmental destruction, disregard for human rights and financial mismanagement" during its 100-year history building power plants, water systems and roads.
The report's sponsors -- Public Citizen, Global Exchange and CorpWatch -- want more transparency in the government's process of awarding contracts in Iraq.
"We think Bechtel should be held accountable for war profiteering and devastating many communities around the world," said Kristi Laughlin, a campaign coordinator at Global Exchange. "We're taking money from the Iraqi people and US taxpayers to line the corporate pockets of Bechtel."
About 30 protesters, denouncing Bechtel's role in Iraq, were arrested Thursday during demonstrations at the company's downtown headquarters.
In response, Bechtel officials denied allegations in the report and said the company was awarded the Iraq contract after a competitive bidding process because of its historical record, technical merit and low prices.
In April, Bechtel won the 18-month contract from the US Agency for International Development to help repair and rebuild Iraq's battered infrastructure, including its electrical grid, roads, schools and water-treatment systems. The company said it plans to farm out 90 percent of the reconstruction work to subcontractors.
So far, almost all the 16 contracts have been awarded to non-Iraqi companies, mostly from the US, Britain, Saudi Arabia and Kuwait. The initial work has focused on repairing airports and ports.
But as work shifts toward repairing and building schools, bridges and water treatment plants, Bechtel plans to rely more heavily on Iraqi firms. The company anticipates it will need to repair 50 bridges and 1,000 schools and clinics. It plans to buy 75 percent of its equipment from Iraqi suppliers and hire 90 percent of its workers from Iraq.
The Al-Bunnia Trading Company, a 93-year-old construction firm in Baghdad, is the first Iraqi subcontractor hired by Bechtel. Yesterday, it won a US$5 million contract to build 1.6km-long bypass bridge 300km west of Baghdad. The original bridge, situated on a key highway between Baghdad and Jordan, was badly damaged during the war.
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