Picking up the pieces in ruined Iraq

LONDON - European and Asian firms have turned out in force to press their case for Iraq rebuilding work at a meeting called by US construction giant Bechtel.

More than a thousand hopefuls crammed inside a London hotel, forcing organisers to enlarge the conference room to accommodate them all.

Outside between 20 and 30 opponents of the US-led war in Iraq chanted: "Vultures, vultures."

Friday's meeting came hard on the heels of a similar gathering in the United States.

The roadshow next moves to Kuwait as Bechtel carves up millions of dollars worth of contracts.

The US Agency for International Development chose Bechtel as the prime contractor to rebuild Iraq in a deal that could be worth up to $US680 million ($1.2 billion) over 18 months. The company said it expected to farm out at least 90 per cent of the work.

British companies argue they should be favoured for contracts after Britain fought alongside the Americans to topple Saddam Hussein.

British delegates were joined by firms from across Europe and Asia, and a sizeable group of Iraqi exiles hoping to return home and set up business.

The Iraq Reconstruction Group, which says it numbers about 500 Iraqi professionals, urged Bechtel to work with the people of Iraq.

"We don't want Bechtel to be a centre of hate. Please don't do it for the Iraqi people but with the Iraqi people," group representative Abbas al-Hussaini said.

The meeting set out guidelines for submitting a tender. But companies looking to work with Bechtel may well want to take a careful look before they sign up.

The average contract size will be less than $1 million, and by the end of this week Bechtel expects 10,000 firms to be fighting over them.

"Look around - these are your competitors," said Tom Elkins, the executive in charge of procurement for Bechtel.

Violence, lawlessness, the threat of disease, and uncertainty over Iraq's future government could make work in the region less attractive than first thought.

"Your security is your responsibility. It is not provided for you," Elkins said.

Insurance premiums for companies looking to do work in Iraq will be high, but subcontractors will most likely have to cover the costs of insuring their workers.

- REUTERS

Herald Feature: Iraq