Iraq rebuilding 'hurt by attacks'

By Adam Brookes
BBC News, Washington

Oil pipeline attacks cost Iraq billions in lost revenue, the report says

The US is making progress in rebuilding Iraqi infrastructure, but its efforts are hampered by violence and will fall short of original goals, a report says.

Washington set aside $30bn (£17bn) to rebuild key parts of infrastructure, such as schools and oil pipelines.

Nearly all that money is now committed, according to the report to the US Congress by the special inspector general for Iraq reconstruction.

But many schemes originally planned have not got under way, it says.

The report's author, Stuart Bowen, calls this "the reconstruction gap".

He says it is an area of growing concern.

Security costs

Many planned projects, he says, will remain on the drawing-board - their funding uncertain.

And about a quarter of all those funds has been spent providing security for reconstruction projects, his report notes.

Oil production continues to fall short of the target set by Iraq's Oil Ministry of 2.5 million barrels per day, the report says.

A lack of security and poor infrastructure are among the reasons for the shortfall.

Production now is at 2.1 million barrels per day.

Attacks by insurgents on oil pipelines have also disrupted exports.

The report says that those attacks have cost Iraq billions of dollars in lost revenue.

On electricity, the report says supplies have not risen significantly in a year.

Once again, it blames persistent insurgent attacks.

But rising demand for electricity and fuel do suggest a growth in economic activity overall - and there are now 3.5 million mobile phone users in Iraq.

The report says the US is making steady progress in reconstruction, and it credits the US ambassador, Zalmay Khalilzad, for improving the situation.

In all, the report is a carefully-worded yet quite powerful critique of the way the reconstruction effort has progressed.

It says insurgency, corruption, uncertain funding and patchy planning are all taking their toll on the rebuilding of Iraq.