UK firm wins $1bn Iraq water deal

Amec is carrying out the work with its US partner

British engineering company Amec has won a $1bn (£540m) contract to reconstruct Iraq's water supply, the biggest such deal won by a UK firm.

The FluorAmec consortium was awarded two contracts to rehabilitate existing water systems and build new treatment and distribution plants.

It comes 12 days after the Pentagon awarded the UK-US partnership a $500m deal to rebuild Iraq's power grid.

There has been criticism that most of the major deals have gone to US firms.

In early trading on the London stock market Amec's shares were up 13 pence, to 309.5 pence.

The deal is one of 10 major construction projects being funded by the US Congress to rebuild the war-ravaged country.

Commenting on the award, Brian Wilson, Prime Minister Tony Blair's special envoy in Iraq, told BBC Radio 4: "British companies have an important role to play in rebuilding Iraq.

"There is no doubt Iraq wants the involvement of British firms."

FluorAmec will also work on rebuilding municipal sewers and constructing solid waste management systems in the north and south of Iraq.