Reuters, 31 October 2006
KUWAIT - Iraq needs around $100 billion over the next four to five years to rebuild its shattered infrastructure, a government spokesman said on Tuesday.
"The situation in Iraq surpasses Iraq's ability to finance development projects," Ali al-Dabbagh told a news conference in Kuwait, during a meeting of officials from donor nations and the United Nations to discuss Iraqi reconstruction and economic reform.
"The Iraqi economy is a one-crop economy built on oil only and there are no other revenue sources in Iraq, therefore oil exports are being spent on operational expenditure," he said.
"Until the oil sector can rise and assume its full role ... we need this sum for the infrastructure and for investment expenditure."
Iraq's infrastructure was ravaged by decades of sanctions and war during the rule of deposed President Saddam Hussein, and by the U.S.-led invasion in 2003 and the violence that followed.
Reconstruction has been hampered by insurgent violence which forced many projects to be halted and diverted funds away from rebuilding and into increased security.
The oil industry has been hit by frequent sabotage.
The meeting in Kuwait is the last set of discussions on the International Compact for Iraq, a roadmap for economic reform.
Dabbagh said the compact also included planned measures to build dialogue in Iraq and disband militias to try to halt the violence.
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Citation: "Iraq says needs $100 bln to rebuild infrastructure," Reuters, 31 October 2006.
Original URL: http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2006-10-31T105735Z_01_L31558758_RTRIDST_0_ECONOMY-IRAQ-UPDATE-2.XML
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