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4 August 2004




D
E

    PUBLIC VERSION
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A
R


     Iraq Status
T
M
E
N
          for
T


         NSC
O
F

S
T
A
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UNCLASSIFIED                                                      4 August 2004
                                     WORKING PAPERS

        Highlights
      National Conference Postponed
      • The IIG, at the request of the United Nations, postponed for two weeks the
D
        National Conference in an effort to secure broader representation from varying
E
        Iraqi political groups.
P
A     NATO Participation Agreement Reached
R
      • NATO announced an agreement on establishing a Training Implementation
T
        Mission in Iraq. NATO will begin to coordinate training for Iraqi security forces
M
        including selected Iraqi headquarters personnel inside Iraq and help identify
E
        personnel for training outside Iraq.
N
      Powell Visit to Baghdad
T
      • Secretary of State Powell traveled to Baghdad this past week visiting with IIG
O       leaders and US Mission personnel.
F
      Iraqi National Guard and Police Service
      • The Iraqi National Guard (ING) and Iraqi Police Service conducted a number of
S
        successful operations last week including the discovery of large insurgent
T
        weapons caches and a sophisticated terrorist safe house.
A
T
E

N/P                                             2                                UNCLASSIFIED
UNCLASSIFIED                                                      4 August 2004
                                     WORKING PAPERS

        Governance - Developments

      National Conference:
D
      • The IIG, at the request of the United Nations, postponed for two weeks the
E
        National Conference in an effort to secure broader representation from varying
P
        Iraqi political groups.
A
R
T
      International Cooperation:
M
E     • NATO announced an agreement on establishing a Training Implementation
N       Mission in Iraq. The mission will be working closely with the Iraqi authorities to
T       help them develop their security structures, in particular in the Ministry of Defense
        and military headquarters. NATO will also begin training selected Iraqi
O       headquarters personnel inside Iraq and help identify personnel for training outside
F       Iraq.
      • Secretary of State Colin Powell and Saudi leaders discussed the Saudi proposal
S
        for a contribution of Islamic troops to Iraq stabilization efforts.
T
      • Prime Minister Allawi concluded his visit with leaders of several Arab countries this
A
        week. Areas of discussions included security cooperation and assistance.
T
E
                                                                                 UNCLASSIFIED
N/P                                            3
UNCLASSIFIED                                                       4 August 2004
                                      WORKING PAPERS

        Governance - Developments (Cont)
      Capacity Building:
      • The State Department is promoting capacity building and democracy through a
D
        US-based program for Iraqis.
E
            − Civil Society and Civic Education (July 24-August 14): Exploring how civic
P
              education provides the the underpinnings for successful participation in a
A
              democratic form of government by developing an informed, effective and
R
              responsible citizenry. Participants include mayors, governors and civil
T
              society leaders.
M
E
      • USAID continues capacity building activities for local government:
N
            − Management training seminars for local government officials are improving
T
              the delivery of essential services.
O     • USAID continues Democracy Dialogue Activities (DDA) across Iraq
F
            – Promotes civic participation and increases Iraqis’ understanding of
              democratic principles and the political process.
S
      Polling Data:
T
A
      • Latest USG poll (mid July) indicates that the IIG is still popular with the Iraqi
T
        people, that security is the number one priority, and that the IIG’s actions get
E
        more positive than negative remarks.
                                                                                   UNCLASSIFIED
N/P                                             4
UNCLASSIFIED                                                     4 August 2004
                                     WORKING PAPERS

         Essential Services - Water and Sanitation

D
E
      • Rehabilitation of a water treatment plant in a poor area of Baghdad governorate is
P
        complete.
A
         – Nearly 1 million residents are now benefiting from the potable water.
R
T        – Before rehabilitation, the plant was operating at 55-60% of capacity of its 3000
M          m3/day, but now operates at full capacity.
E
N
      • Japan is funding an $11 million UN project to help restore the marshlands of
T
        southern Iraq, which were deliberately drained by Saddam Hussein.
O
         – Will support sustainable development through environmentally sound
F
           technologies, providing drinking water, sanitation and pilot wetland restoration
           for the Marsh Arabs.
S
         – $3.68 million of the Japanese aid package will be used to buy 26 water trucks
T
           and 304 water tanks for the al-Muthanna province’s water department.
A
T
E
                                                                                UNCLASSIFIED
N/P                                           5
UNCLASSIFIED                                                                                     4 August 2004
                                                 WORKING PAPERS

       Essential Services - Telecommunications
      • Total number of telephone subscribers in Iraq is now over 1,345,863 (including
        523,966 cell phone subscribers) - 61.6% above pre-war levels.
D
E
P
                                        Telephone Subscribers (Fixed and Cell)
A
R
              1,600,000
T             1,400,000
              1,200,000
M             1,000,000                                                                                    Cell Phones
                800,000
E               600,000                                                                                    Fixed Phones
                400,000
N               200,000
T                     0
                                                                                                 (As of
                                                                                                 18 Jul)
                                          04




                                                                                       04
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T
      • As of 18 Jul, there were 75,000 internet subscribers in Baghdad.
A
T        – Pre-war, there was limited service, with 3,000 internet and 8,000 e-mail only
E          accounts in 2002.
N/P                                                              6                                               UNCLASSIFIED
UNCLASSIFIED                                                                                        4 August 2004
                                                  WORKING PAPERS

         Essential Services - Food Security
      • Chart below shows percentage of estimated requirements for Public Distribution
        System (PDS) goods from transition on 28 Jun 04 forward.
D
E
                                                                    Public Distribution System Status
P
A
                            120%
      • The goal of the
R
        Ministry of Trade
T                           100%
        is to provide
M                            80%
E       sufficient ration    60%
N       stocks for the
                             40%
        current month
T
        plus a three-        20%
O       month buffer.        0%
F




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                                                                                                an
                                                                                             We
A
                                             Opening Stocks                             Scheduled Arrivals Under Existing Contracts (OFF)
T                                            New Procurements MOT                       New Procurements WFP
E                                            OFF Unconfirmed Contracts

                                                                                                                          UNCLASSIFIED
N/P                                                             7
UNCLASSIFIED                                                     4 August 2004
                                     WORKING PAPERS

        Essential Services - Food Security (Cont)

D
E
      • The WFP pipeline indicates possible shortfalls in the following commodities over
P
        the course of the next three months.
A
R        – National wheat (national harvest figures are not yet available), pulses, ghee,
T          milk, infant formula, soap and detergent.
M
      • MOT has issued tenders for commodities such as infant formula, cheese, and
E
        tomato paste into the food ration basket; cheese and tomato paste have been
N
        introduced to reduce and offset the individual ration of pulses.
T
      • WFP will stop all food shipments to Iraq in August. The pipeline will be reliant on
        Ministry of Trade procurement thereafter.
O
F
      • For the period of Jul through Sep, WFP projects 35,632 metric tons (mt) of Oil for
        Food commodity arrivals, which could be augmented by 35,000 mt of Indian
S
        wheat.
T
A
T
E
                                                                                UNCLASSIFIED
N/P                                           8
UNCLASSIFIED                                                    4 August 2004
                                    WORKING PAPERS

         Essential Services - Health Care

D
      • USAID provided $1 million worth of equipment and supplies for Iraqis to better
E
        detect, treat, and control disease nationwide.
P
A
         – 408,000 people will benefit annually.
R
         – Equipment and supplies, which replaced those looted after the recent conflict,
T
           include microscopes, freezers and refrigerators, centrifuges, lab sinks, tissue
M
           processors, slides, petri dishes, specialized testing agents, and an Amino Acid
E
           Analyzer – the first of its kind in Iraq.
N
T     • Over 5 million children between the ages of six and 12 have been immunized for
        Measles, Mumps, and Rubella.
O
      • Over 3 million children under five years of age have been vaccinated since Jun
F
        03.
S
T
A
T
E

N/P                                                                             UNCLASSIFIED
                                              9
UNCLASSIFIED                                                     4 August 2004
                                     WORKING PAPERS

        Essential Services - Education

      • More than 67,000 Iraqi school children at 90 schools in Ninawa’ Governorate will
D
        now have clean drinking water and functioning toilets when they return to school in
E
        September 04.
P
         – In cooperation with the Ninawa’ Directorate of Education, the project supplied
A
           water tanks, installed water coolers, repainted bathrooms and toilets, installed
R
           new sanitary fittings and wash basins, replaced damaged and broken doors,
T
M          fixed broken windows and tiled floors.
E
      • Over 32,000 secondary school teachers and 3,000 supervisors have been trained
N
        as part of effort to upgrade the quality of education.
T
      • Nearly 2,500 schools have been rehabilitated to date and an additional 1,200 are
        expected to be complete by the end of the year.
O
F        – In Basrah governorate, USAID is working with the MOE to inventory the
           number of schools and assess immediate rehabilitation needs.
S
T
A
T
E

N/P                                                                              UNCLASSIFIED
UNCLASSIFIED                                                     4 August 2004
                                     WORKING PAPERS

        Project and Contracting Office (PCO) Developments

D
      • To date, the PCO has issued 201 task orders, out of a total of 250 (83%)
E
P         – These task orders cover 2,083 projects nationwide, out of a total 2,300
A           (90%)
R
          – Nearly 37% of the $18.4 billion supplemental is contractually obligated
T
M         – Over 61% of apportioned funds is contractually obligated
E
      • The AIRP is meeting urgent local needs across Iraq:
N
T
          – Projects cover: water and sanitation, health, education, building, roads,
            power, telecommunications, and various other
O
F         – 196 projects are underway out of 369
          – Over 16,300 Iraqis have been directly employed on AIRP projects
S
T         – Sadr City projects continue to employ over 3,000 Iraqi workers
A
T
E
                                                                                UNCLASSIFIED
N/P                                           11
UNCLASSIFIED                                                                               4 August 2004
                                                 WORKING PAPERS

        Project and Contracting Office (PCO)
                                                                                                  Obligate
                                                                    Apportioned    Committed                  Expenditure
                                                          2207                                       d
                                                         Report         $M            $M                          $M
                                                                                                    $M
                             Sector
D
                                                          3,235          2,976         2,636         1,701             272
       Security and Law Enforcement
E
                                                          5,465          2,538         2,446         1,896             184
       Electricity Sector
P
                                                          1,701          1,701         1,598          975               25
       Oil Infrastructure
A
       Justice, Public Safety, and Civil Society (less
R
                                                          1,033              825           714        386               23
       Democracy)
T
                                                              451            451           420        309               13
       Democracy
M
                                                              259            259           238        118               14
       Education, Refugees, Human Rights, Governance
E
                                                              368            270           255        124               1
       Roads, Bridges, and Construction
N
                                                              786            577           560        376               0
       Health Care
T
                                                              500            467           418        180               4
       Transportation and Telecommunications
O                                                         4,247              892           842        632               5
       Water Resources and Sanitation
F                                                             183            135           100           47             16
       Private Sector Development
                                                              213             29           63*         60*             39*
       Admin Expense (USAID, CPA Successor)
S                                                        18,439         11,120        10,290         6,804             596
       TOTAL
T                                                        12,406          5,815         5,815         4,334
       CONSTRUCTION
A                                                         5,582          4,854         4,055         2,161
       NON-CONSTRUCTION
T
                                                              451            451           420        309
       DEMOCRACY
E
                                                         18,439         11,120        10,290         6,804             596
       Total
N/P                                                      12
      Data as of 27 Jul                                                                                       UNCLASSIFIED
UNCLASSIFIED                                                     4 August 2004
                                     WORKING PAPERS

         Economy

D
      • On 21 Jul, estimated crude oil export revenue was approximately $9.2 billion for
E
        2004.
P
A
      • At the New Iraqi Dinar (NID) auction on July 29, the settlement price was 1,460
R
        dinars per dollar, the same as the previous day and unchanged since June 16.
T
      • The Ministry of Finance offered ID 50 billion (about USD 34 million) in government
M
        securities in their second bond auction on Sunday, August 1.
E
N     • The ISX retreated during the past two sessions by roughly 16%, however, the
T       overall market’s value has increased by 51% since trading commenced a month
        ago.
O
      • Nearly 3,000 micro-credit loans totaling over $6 million have been made to Iraqi
F
        businesses.
         – Provides credit to financially viable micro and small businesses.
S
T
A
T
E

N/P                                                                             UNCLASSIFIED
                                              13
UNCLASSIFIED                                                    4 August 2004
                                    WORKING PAPERS

        Economy (Cont)

D
      • Since the Iraq Stock Exchange opened on 24 Jun, trading volume has grown
E
        significantly.
P
A
         – The exchange is open two days a week for two hours per day.
R
         – There are now 27 listed companies traded and officials are hoping this
T
           number will grow to 120 in the next 45 days.
M
E     • USAID is assisting the Iraqi Ministry of Labor and Social Affairs (MOLSA) to
N       develop a vocational training program that will help the Iraqi government address
T       Iraq’s high unemployment rate.
      • USAID is currently supporting the development of business skills among Iraq’s
O
        small and medium sized businesses.
F
         – By Fall 04, USAID will expand outreach and the number of existing Iraqi
           Business Centers, which provide training, consulting, and business
S
           entrepreneurship services.
T
A
T
E

N/P                                                                            UNCLASSIFIED
                                             14
UNCLASSIFIED                                                   4 August 2004
                                   WORKING PAPERS

        Electricity Overview
                             Mega Watt Hour Production

            140000
D
E           120000
P           100000
A            80000
R
             60000                                             June Goal MWH
T
                                                               MW Hrs Actual
             40000
M
                                                               MW Hrs 7 Day Av.
             20000
E
N                   0
T




                       ul
               29 n


                       ul
                     un
                     un
              30 y
              20 y


                     ay
              11 r



              31 r
              21 r



              10 r

              20 r



              10 r
                     pr
                      a



                      a
                      a



                      a




                     u
                     a
                     a
                     p



                     p




                    -J
                    -J
                  -M



                  -M
                 -M



                 -M




                   -J
                 -M




                   -J
                 -M



                 -M

                   -J
                  -A



                  -A
                 -A




                19
                09
               19
               09
              01




              30

O
F
      • Summer maintenance program continues resulting in about 465 MW of
        generation capacity currently offline for scheduled and 603 MW for unscheduled
S
        maintenance
T
A
T
E

N/P Data as of 29 Jul 04                                                       UNCLASSIFIED
                                           15
UNCLASSIFIED                                                                                    4 August 2004
                                              WORKING PAPERS

               Power Production
                                                 Generation By Region
                                      North   South   Central        Off Grid Gen   Syria   Turkey
D
E              6000


P              5000

A              4000
R
     MW Peak




               3000
T
M              2000


E              1000

N
                 0
T
                      10


                      10


                      10


                      11


                      11


                      12


                      12


                      01


                      01


                      02


                      02


                      03


                      03


                      03


                      04


                      04


                      05


                      05


                      06


                      06


                      07


                      07
                        /01




                        /29


                        /12




                        /10




                        /04




                        /17




                        /14




                        /12




                        /09




                        /07
                        /07




                        /03




                        /31
                        /15




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                        /24




                        /21




                        /18




                        /28




                        /26




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                               03




                               03


                               03




                               03




                               04




                               04




                               04




                               04




                               04




                               04
                               04




                               04




                               04
                               03




                               03




                               03




                               04




                               04




                               04




                               04




                               04




                               04
O
F
               • Record Production: 13 Jul reached Peak Generation of 5,063 MW or 109,177
                 MWH
S
T
A
T
E

N/P Data as of 29 Jul 04                                                                                     UNCLASSIFIED
                                                                16
UNCLASSIFIED                           4 August 2004
                           WORKING PAPERS

        Hours of Power

D
E
P
A
R
T
M
E
N
T

O
F

S
T
A
T
E

N/P Data as of 29 Jul 04                            UNCLASSIFIED
                                 17
UNCLASSIFIED                                                                                                             4 August 2004
                                                                            WORKING PAPERS

                  Crude Oil Production
                                      3.00

                                                                                                  MOO Goal: 2.5 MBPD
D                                     2.50
E
P
                                      2.00
A
        Millions of Barrels Per Day




R
T                                     1.50
M
E
N                                     1.00

T
                                      0.50
O
F
                                      0.00
                                             4-10 June   11-17 June   18-24 June   25 June - 1 July     2-8 July   9-15 July   16-22 July   23-29 July
S
                                                                                           Production    Target
T
      • Weekly Average of 2.303 MBPD Is Below Target of 2.5 MBPD
A
      • Long Term Ministry of Oil (MOO) Target (Dec 04): 2.8 - 3.0 MBPD (Pre-War Capacity)
T
      • Pre-War Peak: 2.5 MBPD in Mar 03
E
      • Post-War Peak: 2.595 MBPD on 16 Apr 04
                                                                                                                                            UNCLASSIFIED
N/P                                                                                        18
UNCLASSIFIED                                                                                                                                 4 August 2004
                                                                                         WORKING PAPERS

                                    Monthly Export: Volume & Revenue
                                                                                          Revenue ($B)           Iraqi Export (MBPD)


D
E
P                                   2.000                                                                                                                                    $2.00
                                                                                                                                 1.825   1.804
A                                   1.800                                                                                                                                    $1.80

R                                                                                                  1.541      1.537
                                                                                          1.524
                                    1.600                                                                                                                                    $1.60
T                                                                                                                                                                   1.403
                                                                                                                                                  1.380
M                                   1.400                                                                                                                                    $1.40
      Millions of Barrels Per Day




                                                                                                                       1.382




                                                                                                                                                                                     Revenue ($Billions)
E                                                                               1.149
                                    1.200                                                                                                                                    $1.20

N                                                                      0.983                                                                               1.148
                                    1.000                                                                                                                                    $1.00
T
                                    0.800                                                                                                                                    $0.80
                                                                                                                                 $1.61
                                                                                                                                         $1.50
                                                              0.646
                                                                                                                                                  $1.36
O                                                                                                                                                          $1.28
                                                                                                  $1.26       $1.26
                                    0.600                                                                                                                                    $0.60
                                                                                          $1.21
                                                                                                                                                                    $1.13
                                                                                                                       $1.10
F                                                                               $0.89
                                                     0.322
                                    0.400                                                                                                                                    $0.40
                                                                       $0.73
                                            0.200
                                                              $0.44
                                    0.200                                                                                                                                    $0.20
S                                                    $0.36
                                            $0.20
T                                   0.000                                                                                                                                    $0.00
                                            Jun-03   Jul-03   Aug-03   Sep-03   Oct-03   Nov-03   Dec-03      Jan-04   Feb-04   Mar-04   Apr-04   May-04   Jun-04   Jul-04
A
                                    • Current Monthly Average: 1.403 MBPD
T
E                                   • Current Monthly Revenue: $1.13B
N/P                                                                                                                                                                 UNCLASSIFIED
                                                                                                         19
UNCLASSIFIED                                                                                                       4 August 2004
                                                                          WORKING PAPERS

                                   Diesel Production & Imports
                                                                          Production      Import      Target   Stocks

                                   25.0                                                                                                           20
D
                                                                                                                                                  18
E
P                                  20.0                                                                                                           16

A                                                                                                                                                 14




                                                                                                                                                       Days of Stocks (National)
      Millions of Liters Per Day




R
                                   15.0
T                                                                                                                                                 12
                                                                 Ministry of Oil (MOO)
M                                                                 Goal: 18.0 M Liters                                                             10
E
                                   10.0                                                                                                           8
N
T                                                                                                                                                 6


                                    5.0                                                                                                           4
O
                                                                                                                                                  2
F
                                    0.0                                                                                                           0
S                                   4-10 June   11-17 June   18-24 June      25 June - 1 July      2-8 July      9-15 July   16-22 July     23-29 July

T
                                   • This week’s average production and imports are 110% of goal
A
T                                  • National diesel stock is 18 days
E
                                                                                                                                          UNCLASSIFIED
N/P                                                                                       20
UNCLASSIFIED                                                                                                        4 August 2004
                                                                           WORKING PAPERS

                                    Kerosene Production & Imports
                                                                          Production      Import     Target   Stocks

                                    9.0                                                                                                          40
D
E                                   8.0                                                                                                          35
P
                                    7.0
A                                                                                                                                                30

R                                   6.0
      Millions of Liters Per Day




                                                                                                                                                      Days of Stock (National)
                                                                                                                                                 25
T
                                    5.0
M
                                                                                                                                                 20
E                                   4.0
N                                                                                                                                                15
                                    3.0
T
                                                                                                      Ministry of Oil (MOO)                      10
                                    2.0                                                                Goal: 5.0 M Liters
O
                                                                                                                                                 5
F                                   1.0

                                    0.0                                                                                                          0
S                                   4-10 June   11-17 June   18-24 June       25 June - 1 July     2-8 July     9-15 July   16-22 July     23-29 July
T
A                                  • This week’s average production and imports are 168% of goal
T
                                   • National kerosene stock is 33 days
E
                                                                                                                                         UNCLASSIFIED
N/P                                                                                       21
UNCLASSIFIED                                                                                                      4 August 2004
                                                                          WORKING PAPERS

                                   Gasoline / Benzene Production & Imports
                                                                      Production       Import     Target   Stocks

                                   30.0                                                                                                      25
D
E                                                             Ministry of Oil (MOO) Goal:
P                                  25.0                              22.0 M Liters                                                           20
A
R
      Millions of Liters Per Day




                                   20.0




                                                                                                                                                  Days of Stock (National)
T                                                                                                                                            15
M
                                   15.0
E
N                                                                                                                                            10

T                                  10.0


O                                                                                                                                            5
                                    5.0
F

S                                   0.0                                                                                                      0
                                    4-10 June   11-17 June   18-24 June    25 June - 1 July     2-8 July    9-15 July   16-22 July     23-29 July
T
A                              • This week’s average production and imports are 111% of goal
T
                               • National benzene stock is 15 days
E
                                                                                                                                     UNCLASSIFIED
N/P                                                                                    22
UNCLASSIFIED                                                                                             4 August 2004
                                                            WORKING PAPERS

                      Liquefied Petroleum Gas Production & Imports
                                                            Production     Import    Target    Stocks

                     5000                                                                                                            50
D                                                   Ministry of Oil (MOO)
E                    4500                                                                                                            45
                                                     Goal: 4,000 Tons
P                    4000                                                                                                            40
A
                     3500                                                                                                            35
R




                                                                                                                                          Days of Stock (National)
T                    3000                                                                                                            30
      Tons Per Day




M
                     2500                                                                                                            25
E
N                    2000                                                                                                            20

T
                     1500                                                                                                            15


O                    1000                                                                                                            10

F
                      500                                                                                                            5


S                       0                                                                                                            0
                      4-10 June   11-17 June   18-24 June      25 June - 1 July     2-8 July        9-15 July   16-22 July     23-29 July
T
A                    • This week’s average production and imports are 117% of goal
T
                     • National LPG stock is 35 days
E
N/P                                                                                                                          UNCLASSIFIED
                                                                            23
UNCLASSIFIED                                                   4 August 2004
                                    WORKING PAPERS

         Security - Developments
      • The Iraqi National Guard (ING) and Iraqi Police Service conducted a number of
        successful operations last week including the discovery of large insurgent
D       weapons caches and a sophisticated terrorist safe house.
E
         – One haul included MIG-21 engines, 120mm BM-21 rockets, 60mm mortar
P
           rounds, land mines, 120mm artillery shells, mortar charges, a truck and
A
           5,000 boxes of 14.55mm rounds.
R
T
         – Another other haul yielded 10 type-63 107mm rockets, two 120mm mortar
M
           rounds, a rocket propelled grenade launcher, two rocket propelled grenades,
E
           various fuses and 26 improvised explosive devise switches.
N
      • The Iraqi Intervention Forces’ 4th Battalion deployed to a southern Baghdad
T
        base this week for stability and support operations as part of the Iraqi
        government’s continued effort to provide security to the nation.
O
F
         – This is one of three Iraqi battalions being employed in the Baghdad area of
           operations.
S
      • Lead elements of the Iraqi army’s 5th Battalion deployed to a base in Western
T
        Baghdad this week for force protection operations at the base as part of the
A
        Iraqi government’s continued effort to provide security to the nation.
T
E
                                                                              UNCLASSIFIED
N/P                                          24
UNCLASSIFIED                                                            4 August 2004
                                                  WORKING PAPERS

        Security - Developments (Cont.)
      • Chart below shows significant insurgent activities in Iraq to 24 July 2004.

D
      • Includes attacks using improvised explosive devices (IED), vehicle-borne IED,
E
        mortars, rocket propelled grenades (RPG), and improvised rockets.
P
A
R
                                                    Significant Acts
T                           70

M                                                            Fallujah
                            60   Operation Iron                          Transition to
                                                           and al-Sadr
E                                  Hammer                                   Interim
                                                             Sedition
                                  Announced                              Government
N                           50
            Total SIGACTS




T                           40
                                                        Anniversary
                                                         of Invasion
                            30
O
F                           20
                                                                                   Interim
                                                                                 Government
                            10                                                   Announced
S
T                           0

A
                       04




                       04




                       04
             2/2 04
                      03




             1/2 4

                        4




                        4




                        4




             5/2 4

             6/1 4

             6/2 4

             7/1 4

             7/2 4

                       4
                      03

                      03

                      03


             1/1 3




                       4
             11 3




                     00

                     00




                     00




                     00




                     00

                     00

                     00

                     00

                     00

                     00
                      0




                     00
                      0




                    20




                    20




                    20
                   /20
                   20

                  /20

                  /20

                  /20

                  /20
                  /20




T
                 0/2

                 4/2




                 0/2




                 7/2




                 5/2

                 9/2

                 2/2

                 6/2

                 0/2

                 4/2
                 1/2

                  6/




                  3/




                  1/
                /1/




               2/7
              /15

              /29

              /13

              /27
              /18




               3/




               4/




               5/
             3/2




             4/1




             5/1
            11

            11

            12

            12
            10




                                                              Date
E
                                                                                              UNCLASSIFIED
N/P                                                      25
UNCLASSIFIED                                                  4 August 2004
                                   WORKING PAPERS

      Stability Contributors - OIF
           Countries with forces in Iraq            Countries committed to
                                                    provide forces for Iraq
D
                            TOTAL ~23K
                  30
E
P                                                                1
                            Lithuania
           Albania
A                           Macedonia
           Australia
R
                            Mongolia
           Azerbaijan
T
                            Netherlands
           Bulgaria
M
                            New Zealand
           Czech Rep
E
                            Norway
           Denmark
                                                       31 Countries
N
                            Poland
           El Salvador
T
                                                       Potentially Supporting
                            Portugal
           Estonia
                                                         Iraqi Stability and
                            Romania
           Georgia
O                                                       Humanitarian Relief
                            Singapore
           Hungary
F
                            Slovakia
           Italy
S                           Thailand
           Japan
T                           Tonga
           Kazakhstan
A                           Ukraine
           Korea
T                           UK
           Latvia
E

     Data as of 30 Jul 04
P                                                                         UNCLASSIFIED
                                           26
UNCLASSIFIED                                                     4 August 2004
                                   WORKING PAPERS

      Iraq Weekly Status – General Information
        • Development, coordination and distribution responsibilities for the Iraq Weekly
          Status Report have been transferred from the Department of Defense to the
D
          Department of State.
E
P       • This brief draws from multiple sources. References are often cited in the
A         “Notes Page” section (View  Notes Page) of this brief.
R
        • Please forward all inquiries to NEA-I-IPOG-DL@state.sgov.gov
T
M
E
N
T

O
F

S
T
A
T
E

                                            27

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Iraq Weekly Update

  • 1. 4 August 2004 D E PUBLIC VERSION P A R Iraq Status T M E N for T NSC O F S T A T E
  • 2. UNCLASSIFIED 4 August 2004 WORKING PAPERS Highlights National Conference Postponed • The IIG, at the request of the United Nations, postponed for two weeks the D National Conference in an effort to secure broader representation from varying E Iraqi political groups. P A NATO Participation Agreement Reached R • NATO announced an agreement on establishing a Training Implementation T Mission in Iraq. NATO will begin to coordinate training for Iraqi security forces M including selected Iraqi headquarters personnel inside Iraq and help identify E personnel for training outside Iraq. N Powell Visit to Baghdad T • Secretary of State Powell traveled to Baghdad this past week visiting with IIG O leaders and US Mission personnel. F Iraqi National Guard and Police Service • The Iraqi National Guard (ING) and Iraqi Police Service conducted a number of S successful operations last week including the discovery of large insurgent T weapons caches and a sophisticated terrorist safe house. A T E N/P 2 UNCLASSIFIED
  • 3. UNCLASSIFIED 4 August 2004 WORKING PAPERS Governance - Developments National Conference: D • The IIG, at the request of the United Nations, postponed for two weeks the E National Conference in an effort to secure broader representation from varying P Iraqi political groups. A R T International Cooperation: M E • NATO announced an agreement on establishing a Training Implementation N Mission in Iraq. The mission will be working closely with the Iraqi authorities to T help them develop their security structures, in particular in the Ministry of Defense and military headquarters. NATO will also begin training selected Iraqi O headquarters personnel inside Iraq and help identify personnel for training outside F Iraq. • Secretary of State Colin Powell and Saudi leaders discussed the Saudi proposal S for a contribution of Islamic troops to Iraq stabilization efforts. T • Prime Minister Allawi concluded his visit with leaders of several Arab countries this A week. Areas of discussions included security cooperation and assistance. T E UNCLASSIFIED N/P 3
  • 4. UNCLASSIFIED 4 August 2004 WORKING PAPERS Governance - Developments (Cont) Capacity Building: • The State Department is promoting capacity building and democracy through a D US-based program for Iraqis. E − Civil Society and Civic Education (July 24-August 14): Exploring how civic P education provides the the underpinnings for successful participation in a A democratic form of government by developing an informed, effective and R responsible citizenry. Participants include mayors, governors and civil T society leaders. M E • USAID continues capacity building activities for local government: N − Management training seminars for local government officials are improving T the delivery of essential services. O • USAID continues Democracy Dialogue Activities (DDA) across Iraq F – Promotes civic participation and increases Iraqis’ understanding of democratic principles and the political process. S Polling Data: T A • Latest USG poll (mid July) indicates that the IIG is still popular with the Iraqi T people, that security is the number one priority, and that the IIG’s actions get E more positive than negative remarks. UNCLASSIFIED N/P 4
  • 5. UNCLASSIFIED 4 August 2004 WORKING PAPERS Essential Services - Water and Sanitation D E • Rehabilitation of a water treatment plant in a poor area of Baghdad governorate is P complete. A – Nearly 1 million residents are now benefiting from the potable water. R T – Before rehabilitation, the plant was operating at 55-60% of capacity of its 3000 M m3/day, but now operates at full capacity. E N • Japan is funding an $11 million UN project to help restore the marshlands of T southern Iraq, which were deliberately drained by Saddam Hussein. O – Will support sustainable development through environmentally sound F technologies, providing drinking water, sanitation and pilot wetland restoration for the Marsh Arabs. S – $3.68 million of the Japanese aid package will be used to buy 26 water trucks T and 304 water tanks for the al-Muthanna province’s water department. A T E UNCLASSIFIED N/P 5
  • 6. UNCLASSIFIED 4 August 2004 WORKING PAPERS Essential Services - Telecommunications • Total number of telephone subscribers in Iraq is now over 1,345,863 (including 523,966 cell phone subscribers) - 61.6% above pre-war levels. D E P Telephone Subscribers (Fixed and Cell) A R 1,600,000 T 1,400,000 1,200,000 M 1,000,000 Cell Phones 800,000 E 600,000 Fixed Phones 400,000 N 200,000 T 0 (As of 18 Jul) 04 04 03 04 04 04 4 4 O r_0 r_0 n_ n_ y_ c_ ly_ b_ ar) Ap Ma Ma De Ja Ju Fe Ju W F re- (P 3 r_0 S Ma T • As of 18 Jul, there were 75,000 internet subscribers in Baghdad. A T – Pre-war, there was limited service, with 3,000 internet and 8,000 e-mail only E accounts in 2002. N/P 6 UNCLASSIFIED
  • 7. UNCLASSIFIED 4 August 2004 WORKING PAPERS Essential Services - Food Security • Chart below shows percentage of estimated requirements for Public Distribution System (PDS) goods from transition on 28 Jun 04 forward. D E Public Distribution System Status P A 120% • The goal of the R Ministry of Trade T 100% is to provide M 80% E sufficient ration 60% N stocks for the 40% current month T plus a three- 20% O month buffer. 0% F lt a k ap e tal r Mil Sa Te s ga Ric lse So nt To il /O Su ge Pu t S ee ula ea at ter ls he Gh rea Wh orm De al W Ce tF gn T tion an rei ing Inf Fo Na an We A Opening Stocks Scheduled Arrivals Under Existing Contracts (OFF) T New Procurements MOT New Procurements WFP E OFF Unconfirmed Contracts UNCLASSIFIED N/P 7
  • 8. UNCLASSIFIED 4 August 2004 WORKING PAPERS Essential Services - Food Security (Cont) D E • The WFP pipeline indicates possible shortfalls in the following commodities over P the course of the next three months. A R – National wheat (national harvest figures are not yet available), pulses, ghee, T milk, infant formula, soap and detergent. M • MOT has issued tenders for commodities such as infant formula, cheese, and E tomato paste into the food ration basket; cheese and tomato paste have been N introduced to reduce and offset the individual ration of pulses. T • WFP will stop all food shipments to Iraq in August. The pipeline will be reliant on Ministry of Trade procurement thereafter. O F • For the period of Jul through Sep, WFP projects 35,632 metric tons (mt) of Oil for Food commodity arrivals, which could be augmented by 35,000 mt of Indian S wheat. T A T E UNCLASSIFIED N/P 8
  • 9. UNCLASSIFIED 4 August 2004 WORKING PAPERS Essential Services - Health Care D • USAID provided $1 million worth of equipment and supplies for Iraqis to better E detect, treat, and control disease nationwide. P A – 408,000 people will benefit annually. R – Equipment and supplies, which replaced those looted after the recent conflict, T include microscopes, freezers and refrigerators, centrifuges, lab sinks, tissue M processors, slides, petri dishes, specialized testing agents, and an Amino Acid E Analyzer – the first of its kind in Iraq. N T • Over 5 million children between the ages of six and 12 have been immunized for Measles, Mumps, and Rubella. O • Over 3 million children under five years of age have been vaccinated since Jun F 03. S T A T E N/P UNCLASSIFIED 9
  • 10. UNCLASSIFIED 4 August 2004 WORKING PAPERS Essential Services - Education • More than 67,000 Iraqi school children at 90 schools in Ninawa’ Governorate will D now have clean drinking water and functioning toilets when they return to school in E September 04. P – In cooperation with the Ninawa’ Directorate of Education, the project supplied A water tanks, installed water coolers, repainted bathrooms and toilets, installed R new sanitary fittings and wash basins, replaced damaged and broken doors, T M fixed broken windows and tiled floors. E • Over 32,000 secondary school teachers and 3,000 supervisors have been trained N as part of effort to upgrade the quality of education. T • Nearly 2,500 schools have been rehabilitated to date and an additional 1,200 are expected to be complete by the end of the year. O F – In Basrah governorate, USAID is working with the MOE to inventory the number of schools and assess immediate rehabilitation needs. S T A T E N/P UNCLASSIFIED
  • 11. UNCLASSIFIED 4 August 2004 WORKING PAPERS Project and Contracting Office (PCO) Developments D • To date, the PCO has issued 201 task orders, out of a total of 250 (83%) E P – These task orders cover 2,083 projects nationwide, out of a total 2,300 A (90%) R – Nearly 37% of the $18.4 billion supplemental is contractually obligated T M – Over 61% of apportioned funds is contractually obligated E • The AIRP is meeting urgent local needs across Iraq: N T – Projects cover: water and sanitation, health, education, building, roads, power, telecommunications, and various other O F – 196 projects are underway out of 369 – Over 16,300 Iraqis have been directly employed on AIRP projects S T – Sadr City projects continue to employ over 3,000 Iraqi workers A T E UNCLASSIFIED N/P 11
  • 12. UNCLASSIFIED 4 August 2004 WORKING PAPERS Project and Contracting Office (PCO) Obligate Apportioned Committed Expenditure 2207 d Report $M $M $M $M Sector D 3,235 2,976 2,636 1,701 272 Security and Law Enforcement E 5,465 2,538 2,446 1,896 184 Electricity Sector P 1,701 1,701 1,598 975 25 Oil Infrastructure A Justice, Public Safety, and Civil Society (less R 1,033 825 714 386 23 Democracy) T 451 451 420 309 13 Democracy M 259 259 238 118 14 Education, Refugees, Human Rights, Governance E 368 270 255 124 1 Roads, Bridges, and Construction N 786 577 560 376 0 Health Care T 500 467 418 180 4 Transportation and Telecommunications O 4,247 892 842 632 5 Water Resources and Sanitation F 183 135 100 47 16 Private Sector Development 213 29 63* 60* 39* Admin Expense (USAID, CPA Successor) S 18,439 11,120 10,290 6,804 596 TOTAL T 12,406 5,815 5,815 4,334 CONSTRUCTION A 5,582 4,854 4,055 2,161 NON-CONSTRUCTION T 451 451 420 309 DEMOCRACY E 18,439 11,120 10,290 6,804 596 Total N/P 12 Data as of 27 Jul UNCLASSIFIED
  • 13. UNCLASSIFIED 4 August 2004 WORKING PAPERS Economy D • On 21 Jul, estimated crude oil export revenue was approximately $9.2 billion for E 2004. P A • At the New Iraqi Dinar (NID) auction on July 29, the settlement price was 1,460 R dinars per dollar, the same as the previous day and unchanged since June 16. T • The Ministry of Finance offered ID 50 billion (about USD 34 million) in government M securities in their second bond auction on Sunday, August 1. E N • The ISX retreated during the past two sessions by roughly 16%, however, the T overall market’s value has increased by 51% since trading commenced a month ago. O • Nearly 3,000 micro-credit loans totaling over $6 million have been made to Iraqi F businesses. – Provides credit to financially viable micro and small businesses. S T A T E N/P UNCLASSIFIED 13
  • 14. UNCLASSIFIED 4 August 2004 WORKING PAPERS Economy (Cont) D • Since the Iraq Stock Exchange opened on 24 Jun, trading volume has grown E significantly. P A – The exchange is open two days a week for two hours per day. R – There are now 27 listed companies traded and officials are hoping this T number will grow to 120 in the next 45 days. M E • USAID is assisting the Iraqi Ministry of Labor and Social Affairs (MOLSA) to N develop a vocational training program that will help the Iraqi government address T Iraq’s high unemployment rate. • USAID is currently supporting the development of business skills among Iraq’s O small and medium sized businesses. F – By Fall 04, USAID will expand outreach and the number of existing Iraqi Business Centers, which provide training, consulting, and business S entrepreneurship services. T A T E N/P UNCLASSIFIED 14
  • 15. UNCLASSIFIED 4 August 2004 WORKING PAPERS Electricity Overview Mega Watt Hour Production 140000 D E 120000 P 100000 A 80000 R 60000 June Goal MWH T MW Hrs Actual 40000 M MW Hrs 7 Day Av. 20000 E N 0 T ul 29 n ul un un 30 y 20 y ay 11 r 31 r 21 r 10 r 20 r 10 r pr a a a a u a a p p -J -J -M -M -M -M -J -M -J -M -M -J -A -A -A 19 09 19 09 01 30 O F • Summer maintenance program continues resulting in about 465 MW of generation capacity currently offline for scheduled and 603 MW for unscheduled S maintenance T A T E N/P Data as of 29 Jul 04 UNCLASSIFIED 15
  • 16. UNCLASSIFIED 4 August 2004 WORKING PAPERS Power Production Generation By Region North South Central Off Grid Gen Syria Turkey D E 6000 P 5000 A 4000 R MW Peak 3000 T M 2000 E 1000 N 0 T 10 10 10 11 11 12 12 01 01 02 02 03 03 03 04 04 05 05 06 06 07 07 /01 /29 /12 /10 /04 /17 /14 /12 /09 /07 /07 /03 /31 /15 /26 /24 /21 /18 /28 /26 /23 /21 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 03 03 03 03 04 04 04 04 04 04 04 04 04 03 03 03 04 04 04 04 04 04 O F • Record Production: 13 Jul reached Peak Generation of 5,063 MW or 109,177 MWH S T A T E N/P Data as of 29 Jul 04 UNCLASSIFIED 16
  • 17. UNCLASSIFIED 4 August 2004 WORKING PAPERS Hours of Power D E P A R T M E N T O F S T A T E N/P Data as of 29 Jul 04 UNCLASSIFIED 17
  • 18. UNCLASSIFIED 4 August 2004 WORKING PAPERS Crude Oil Production 3.00 MOO Goal: 2.5 MBPD D 2.50 E P 2.00 A Millions of Barrels Per Day R T 1.50 M E N 1.00 T 0.50 O F 0.00 4-10 June 11-17 June 18-24 June 25 June - 1 July 2-8 July 9-15 July 16-22 July 23-29 July S Production Target T • Weekly Average of 2.303 MBPD Is Below Target of 2.5 MBPD A • Long Term Ministry of Oil (MOO) Target (Dec 04): 2.8 - 3.0 MBPD (Pre-War Capacity) T • Pre-War Peak: 2.5 MBPD in Mar 03 E • Post-War Peak: 2.595 MBPD on 16 Apr 04 UNCLASSIFIED N/P 18
  • 19. UNCLASSIFIED 4 August 2004 WORKING PAPERS Monthly Export: Volume & Revenue Revenue ($B) Iraqi Export (MBPD) D E P 2.000 $2.00 1.825 1.804 A 1.800 $1.80 R 1.541 1.537 1.524 1.600 $1.60 T 1.403 1.380 M 1.400 $1.40 Millions of Barrels Per Day 1.382 Revenue ($Billions) E 1.149 1.200 $1.20 N 0.983 1.148 1.000 $1.00 T 0.800 $0.80 $1.61 $1.50 0.646 $1.36 O $1.28 $1.26 $1.26 0.600 $0.60 $1.21 $1.13 $1.10 F $0.89 0.322 0.400 $0.40 $0.73 0.200 $0.44 0.200 $0.20 S $0.36 $0.20 T 0.000 $0.00 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04 Jul-04 A • Current Monthly Average: 1.403 MBPD T E • Current Monthly Revenue: $1.13B N/P UNCLASSIFIED 19
  • 20. UNCLASSIFIED 4 August 2004 WORKING PAPERS Diesel Production & Imports Production Import Target Stocks 25.0 20 D 18 E P 20.0 16 A 14 Days of Stocks (National) Millions of Liters Per Day R 15.0 T 12 Ministry of Oil (MOO) M Goal: 18.0 M Liters 10 E 10.0 8 N T 6 5.0 4 O 2 F 0.0 0 S 4-10 June 11-17 June 18-24 June 25 June - 1 July 2-8 July 9-15 July 16-22 July 23-29 July T • This week’s average production and imports are 110% of goal A T • National diesel stock is 18 days E UNCLASSIFIED N/P 20
  • 21. UNCLASSIFIED 4 August 2004 WORKING PAPERS Kerosene Production & Imports Production Import Target Stocks 9.0 40 D E 8.0 35 P 7.0 A 30 R 6.0 Millions of Liters Per Day Days of Stock (National) 25 T 5.0 M 20 E 4.0 N 15 3.0 T Ministry of Oil (MOO) 10 2.0 Goal: 5.0 M Liters O 5 F 1.0 0.0 0 S 4-10 June 11-17 June 18-24 June 25 June - 1 July 2-8 July 9-15 July 16-22 July 23-29 July T A • This week’s average production and imports are 168% of goal T • National kerosene stock is 33 days E UNCLASSIFIED N/P 21
  • 22. UNCLASSIFIED 4 August 2004 WORKING PAPERS Gasoline / Benzene Production & Imports Production Import Target Stocks 30.0 25 D E Ministry of Oil (MOO) Goal: P 25.0 22.0 M Liters 20 A R Millions of Liters Per Day 20.0 Days of Stock (National) T 15 M 15.0 E N 10 T 10.0 O 5 5.0 F S 0.0 0 4-10 June 11-17 June 18-24 June 25 June - 1 July 2-8 July 9-15 July 16-22 July 23-29 July T A • This week’s average production and imports are 111% of goal T • National benzene stock is 15 days E UNCLASSIFIED N/P 22
  • 23. UNCLASSIFIED 4 August 2004 WORKING PAPERS Liquefied Petroleum Gas Production & Imports Production Import Target Stocks 5000 50 D Ministry of Oil (MOO) E 4500 45 Goal: 4,000 Tons P 4000 40 A 3500 35 R Days of Stock (National) T 3000 30 Tons Per Day M 2500 25 E N 2000 20 T 1500 15 O 1000 10 F 500 5 S 0 0 4-10 June 11-17 June 18-24 June 25 June - 1 July 2-8 July 9-15 July 16-22 July 23-29 July T A • This week’s average production and imports are 117% of goal T • National LPG stock is 35 days E N/P UNCLASSIFIED 23
  • 24. UNCLASSIFIED 4 August 2004 WORKING PAPERS Security - Developments • The Iraqi National Guard (ING) and Iraqi Police Service conducted a number of successful operations last week including the discovery of large insurgent D weapons caches and a sophisticated terrorist safe house. E – One haul included MIG-21 engines, 120mm BM-21 rockets, 60mm mortar P rounds, land mines, 120mm artillery shells, mortar charges, a truck and A 5,000 boxes of 14.55mm rounds. R T – Another other haul yielded 10 type-63 107mm rockets, two 120mm mortar M rounds, a rocket propelled grenade launcher, two rocket propelled grenades, E various fuses and 26 improvised explosive devise switches. N • The Iraqi Intervention Forces’ 4th Battalion deployed to a southern Baghdad T base this week for stability and support operations as part of the Iraqi government’s continued effort to provide security to the nation. O F – This is one of three Iraqi battalions being employed in the Baghdad area of operations. S • Lead elements of the Iraqi army’s 5th Battalion deployed to a base in Western T Baghdad this week for force protection operations at the base as part of the A Iraqi government’s continued effort to provide security to the nation. T E UNCLASSIFIED N/P 24
  • 25. UNCLASSIFIED 4 August 2004 WORKING PAPERS Security - Developments (Cont.) • Chart below shows significant insurgent activities in Iraq to 24 July 2004. D • Includes attacks using improvised explosive devices (IED), vehicle-borne IED, E mortars, rocket propelled grenades (RPG), and improvised rockets. P A R Significant Acts T 70 M Fallujah 60 Operation Iron Transition to and al-Sadr E Hammer Interim Sedition Announced Government N 50 Total SIGACTS T 40 Anniversary of Invasion 30 O F 20 Interim Government 10 Announced S T 0 A 04 04 04 2/2 04 03 1/2 4 4 4 4 5/2 4 6/1 4 6/2 4 7/1 4 7/2 4 4 03 03 03 1/1 3 4 11 3 00 00 00 00 00 00 00 00 00 00 0 00 0 20 20 20 /20 20 /20 /20 /20 /20 /20 T 0/2 4/2 0/2 7/2 5/2 9/2 2/2 6/2 0/2 4/2 1/2 6/ 3/ 1/ /1/ 2/7 /15 /29 /13 /27 /18 3/ 4/ 5/ 3/2 4/1 5/1 11 11 12 12 10 Date E UNCLASSIFIED N/P 25
  • 26. UNCLASSIFIED 4 August 2004 WORKING PAPERS Stability Contributors - OIF Countries with forces in Iraq Countries committed to provide forces for Iraq D TOTAL ~23K 30 E P 1 Lithuania Albania A Macedonia Australia R Mongolia Azerbaijan T Netherlands Bulgaria M New Zealand Czech Rep E Norway Denmark 31 Countries N Poland El Salvador T Potentially Supporting Portugal Estonia Iraqi Stability and Romania Georgia O Humanitarian Relief Singapore Hungary F Slovakia Italy S Thailand Japan T Tonga Kazakhstan A Ukraine Korea T UK Latvia E Data as of 30 Jul 04 P UNCLASSIFIED 26
  • 27. UNCLASSIFIED 4 August 2004 WORKING PAPERS Iraq Weekly Status – General Information • Development, coordination and distribution responsibilities for the Iraq Weekly Status Report have been transferred from the Department of Defense to the D Department of State. E P • This brief draws from multiple sources. References are often cited in the A “Notes Page” section (View  Notes Page) of this brief. R • Please forward all inquiries to NEA-I-IPOG-DL@state.sgov.gov T M E N T O F S T A T E 27