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7 January
2003
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Oil-for-Food Background Information
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Weekly
Update – 7 January 2003
Secretary-General
Approves Iraq Distribution Plan for phase Xlll of Oil-for-food Programme The
Secretary-General has approved the
phase Xlll distribution plan
submitted by the
Government of Iraq for the delivery of food and other humanitarian supplies
through the UN oil-for-food programme. The
approved plan forwarded to the President of the Security Council on 6 January,
totals US$4.93 billion. Although less than Iraq's submission for phase Xll ($5
billion), the plan maintains the food sector's share at almost $1.27 billion.
The balance, covering 24 other sectors, includes: $359.5 million for the
rehabilitation of water supply and sanitation systems, more than $272 million
for electrical power supply, $143 million for the medical sector, and a special
allocation of almost $344 million for especially vulnerable groups. Oil exports
Iraqi
exports under the United Nations oil-for-food programme totaled 13.1 million
barrels for the week ending 3 January – an average of about 1.9 million
barrels per day. There
were 10 loadings for the week (28 December 2002 – 3 January 2003) from the
authorized terminals: five from the Iraqi port of Mina al-Bakr (8.0 million
barrels) and five from the Turkish Mediterranean port of Ceyhan (5.1 million
barrels). These are the only outlets for Iraqi oil exports allowed under the
oil-for-food programme. Total
exports for the week
(13.1 million barrels) generated estimated revenue
of €355 million (euros) or $369 million, at current prices and rates of
exchange. The average price of Iraqi crude for the reporting period was
approximately €25.75 or $26.90 per barrel. Six
new contracts were approved by the oil overseers for the week (28 December – 3
January), bringing the current total to 80, covering 214 million barrels of oil.
Estimated revenue generated from the beginning of phase Xlll (5 December – 3
June 2003) at the current rate of exchange, stands at $1.3 billion. Contract
Approvals
Of
a total 4,715 contracts for humanitarian supplies worth about $8.8 billion
processed by the United Nations Secretariat under the Goods Review List (GRL)
and new procedures under Security Council resolution 1409 (2002), the Office of
the Iraq Programme has approved 3,351 contracts worth about $4.5 billion (51.5
per cent in terms of value) after assessment by the United Nations Monitoring,
Verification and Inspection Commission (UNMOVIC) and the International Atomic
Energy Agency (IAEA) that they do not contain items on the Goods Review List. Approvals
include 991 contracts worth more than $1.6 billion that had previously been on
hold by the Security Council’s 661 Sanctions Committee. These have now been
reviewed by UNMOVIC/IAEA under para 18 of the procedures of resolution
1409 (2002).
Goods
Review List
Of
the total contracts, 1,133 worth about $3.6 billion (41.7 per cent in terms of
value) are on GRL Non Compliant status. UNMOVIC and IAEA will require additional
technical information from suppliers to enable final assessments. So far,
201 contracts worth $605.4 million have been found by UNMOVIC/IAEA to contain
one or more GRL items. Of these, 100 contracts worth $223.3 million have been
reviewed by the 661 Sanctions Committee, of which, 20 contracts worth $7.9
million have been approved. Eleven have lapsed because the suppliers have not
submitted a petition within 30 working days of the denial.
Eight of the 84 contracts, worth $20.6 million, have been rejected
because of a “high risk of diversion to military use.” An additional 52
contracts worth $176.7 million have been denied approval by the 661 Committee,
pending appeal. Contracts containing GRL items represent 6.9 per cent, in terms of value, of all applications processed by the UN experts so far.
Humanitarian
revenue shortfall
Due to a cumulative oil revenue shortfall dating from phase VIII (9 June - 5 December 2000) through phase Xll of the programme, 2,298 UN-approved humanitarian supply contracts worth some $4.4 billion, currently lack funds. The sectors affected by the revenue shortfall are: agriculture ($776 million); food handling ($629 million); electricity ($471 million); health ($522 million); water and sanitation ($450 million); housing ($429 million); food ($384 million); telecommunications and transportation ($351 million); education ($345 million).
Oil-for-food programmeThe
oil-for-food programme was established by the Security Council on 14
April 1995. Some 3.3 billion barrels of
Iraqi oil valued at about $61.1 billion have been exported under the programme
since December 1996. Of this amount, 72 per cent of the total has been allocated
towards humanitarian needs nationwide since December 2000. The balance goes to:
Gulf War reparations through a Compensation Fund (25 per cent since December
2000); UN administrative and operational costs for the programme (2.2 per cent)
and costs for the weapons inspection programme (0.8 per cent). Since
December 1996 about $40.9 billion worth of humanitarian supplies, including $3.6
billion worth of oil spare parts, have been approved by the 661 Sanctions
Committee and the Office of the Iraq Programme. Of this amount, some $25.9
billion worth of humanitarian supplies and equipment have been delivered to Iraq
under the oil-for-food programme, including $1.6 billion worth of oil industry
spare parts and equipment. An additional $10.4 billion worth of supplies are
currently in the production and delivery pipeline. |
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Produced for media and public
information – not an official United Nations Document |