18 August 2003

Weekly Update

Prioritized Food Contracts Top $1 billion for Week 

Food contracts valued at more than $1 billion have been prioritized in the past week for delivery to Iraq following consultations between the Coalition Provisional Authority, Iraqi experts and the United Nations. The World Food Programme will work directly with contractors to expedite shipments of most of the prioritized items which range from rice, and milk powder to vegetable ghee and sugar ($439.4 million). WFP will also manage food-handling items including machinery and spare parts and crop fumigation supplies ($292.4 million). Funding for these items is already covered under the Oil-for-Food Programme. Another 136 food contracts valued at $212 million and 17 food handling contracts ($13 million) which had been approved but not funded, will be paid from funds in the Programme’s escrow account.

Also in the past week, some 14 ‘orphan’ contracts for food and related equipment  ($134 million) in transit to Iraq, were prioritized for adoption by the United Nations Office of Project Services (UNOPS).

Forty two contracts for some $23.7 million worth of agricultural items have also been prioritized. The contracted items range from forklift trucks to tractor spare parts and irrigation equipment.

OIP Executive Director in Iraq

The Executive Director of the Iraq Programme, Mr. Benon V. Sevan, has been in Iraq since 6 August for discussions with UN agencies, Iraqi Ministries and the CPA, regarding closure and handover arrangements for the Oil-for-Food Programme by 21 November. During visits to the three northern governorates he focused on issues related to local operational and financial capacity to maintain services beyond 21 November. By that date, all fixed and movable assets and responsibility for the administration of any remaining activities under the Programme will be transferred to the CPA and all unencumbered funds will be transferred to the Development Fund for Iraq.

Authentication of arriving goods

In a letter to the Coalition Provisional Authority on 9 August 2003, Mr. Sevan confirmed new arrangements for the inspection and authentication of goods prioritized under resolution 1483 (2003). Subject to security assessment and clearance, the United Nations independent inspection agents (Cotecna) will be deployed to operational bases at Zakho, Umm Qasr, Basrah, Baghdad and Kirkuk. Cotecna inspectors will also travel as needed, to inspect and authenticate arriving goods at some 50 other agreed delivery locations inside the country. On 21 November the responsibility for authenticating goods will pass to the CPA.

Additional information is available from the website of the Office of the Iraq Programme. For further information please contact Ian Steele email: steelei@un.org