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IRAQ and AFGHANISTAN INVESTMENT & RECONSTRUCTION OPPORTUNITIES

IRAQ and AFGHANISTAN INVESTMENT & RECONSTRUCTION OPPORTUNITIES. JAY BRANDES Director Iraq and Afghanistan Investment & Reconstruction Task Forces International Trade Administration U.S. Department of Commerce Washington, D.C. Iraq Reconstruction Task Force Background.

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IRAQ and AFGHANISTAN INVESTMENT & RECONSTRUCTION OPPORTUNITIES

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  1. IRAQ and AFGHANISTANINVESTMENT & RECONSTRUCTIONOPPORTUNITIES JAY BRANDES Director Iraq and Afghanistan Investment & Reconstruction Task Forces International Trade Administration U.S. Department of Commerce Washington, D.C.

  2. Iraq ReconstructionTask Force Background • Created in March 2003 by U.S. Secretary of Commerce Donald L. Evans to support the President’s mission to rebuild Iraq. • Purpose • Primary U.S. Government information liaison with the business community (including Coalition partner companies) on Iraq reconstruction and private sector opportunities. • Supports U.S. Embassy efforts to improve the commercial environment in Iraq. • Coordinates Commerce Department efforts with the Iraqi-American community. www.export.gov/iraq ~ www.export.gov/afghanistan

  3. Task ForceProducts and Services • Website: www.export.gov/iraq • “Business Guide for Iraq” • “Doing Business in Iraq FAQs” • “Traveling to Iraq FAQs” • Chart of awarded USG contracts/subcontracts • “Overview of Commercial Law in Pre-War Iraq” • “Overview of CPA Orders Affecting Iraqi Commercial Law” • IraqAlert e-mail service • TenderAlert e-mail service • Success Stories www.export.gov/iraq ~ www.export.gov/afghanistan

  4. USDOC TenderAlerts • Tender: Fill and Install Sandbags • Contracting Agency: Iraq Project and Contracting Office Baghdad, Iraq • Solicitation Number: FY5866-05-Q-0010 • Document type: Solicitation • Posted Date: October 03, 2004 • Close Date: December 30, 2004 • For more information, visit: • http://www.rebuilding-iraq.net/portal/page?_pageid=75,79019&_dad=portal&_schema=PORTAL&40470_RFP_DISPLAY_PORTLET_49519129.p_rfpNumber=FY5866-05-Q-0010 • Point of Contact: • Kenneth Kitahara; Phone: 703-343-9225 www.export.gov/iraq ~ www.export.gov/afghanistan

  5. Security Situation in Iraq • Where to find more information on security: • List of Security Companies Active in Iraq • http://travel.state.gov/travel/iraq_securitycompanies.html • General Security information • www.travel.state.gov/travel/warnings.html • www.export.gov/iraq Security is a Manageable Risk www.export.gov/iraq ~ www.export.gov/afghanistan

  6. Security Firms Working in Iraq • AD Consultancy • AKE Limited • ArmorGroup • Baghdad Fire & Security • Control Risks Group • Custer Battles • Diligence Middle East • DYNCORP International • Erinys Iraq Limited • Genric • Global Risk Strategies • Group 4 Falck A/S • Henderson Risk Limited • Hill and Associates, Ltd. • ICP Group • ISI • Meteoric Tactical Solutions • Meyer & Associates • NKTS Co., Ltd. • Olive Security (UK) Limited • Optimal Solution Services • Overseas Security & Strategic Information, Inc/Safenet – Iraq • RamOPS Risk Management Group • SOC-SMG, Inc • Sumer International Security • TOR International • Triple Canopy Inc. • Wade-Boyd and Associates LLC • Dehdari General Trading & Contracting Est. – Kuwait – Iraq • Unity Resources Group (Middle East) LLC Source: U.S. Department of State www.export.gov/iraq ~ www.export.gov/afghanistan

  7. 15 Aug 15 Aug Early 05 31 Dec 15 Dec 15 Oct 28 Jun 31 Jan 01 Jun 04 Jun Iraqi Governance Timeline Phase I (Interim Government) Iraqi Interim Government (IIG) Announced and Governing Council dissolved 2004 Election Commission established Transfer sovereignty from CPA to IIG National Conference convenes and selects Interim National Council 2005 Elections for the National Assembly complete Phase II (Elected Government) Iraqi Transitional Government takes power National Assembly completes draft of permanent constitution Referendum for permanent constitution Elections for government completed Elected government assumes office

  8. Iraqi Interim Government • June 28 Transfer of Authority • Transitional Administrative Law (TAL) • Structure • Executive • President • Sheikh Ghazi Ajil Al-Yawar • 2 Deputy Presidents • Dr. Ibrahim Jaafari • Dr. Rowsch Shaways • Prime Minister • Dr. Ayad Allawi • Administration of Government • Council of Ministers • Judicial • Judicial Authority • Legislative • Interim National Council (100 members) • Transitional Government (election by Jan. 31 2005) • Draft Constitution • Permanent Iraqi Government • Constitutional Election www.export.gov/iraq ~ www.export.gov/afghanistan

  9. Iraqi Ministers • Ministry of Agriculture, Dr. Sawsan Ali Magid Al-Sharifi • Ministry of Communication, Dr. Mohamed Ali Alhakim • Ministry of Housing & Construction, Dr. Omar al-Farouq Salim al-Damluji • Ministry of Culture, Mr. Mufid Muhammad Juwad al-Jaza'iri • Ministry of Defense , Mr. Hazim Sha’llan • Ministry of Education, Dr. Sami al-Mudhaffar • Ministry of Electricity, Dr. Aiham Alsammarae • Ministry of Environment, Ms. Mishkat Moumin • Ministry of Displacement and Migration, Ms. Pascale Soryo Isho • Ministry of Finance, Dr. Adel Abdul Mahdi • Ministry of Foreign Affairs, Mr. Hushiyar Mahmud Muhammed al-Zibari • Ministry of Health, Dr. Ala'din Abdul Sahib Alwan • Ministry of Higher Education, Dr. Taher Khalaf Jabur al-Bakaa • Ministry of Human Rights, Dr. Bakhtiar Amin • Ministry of Industry & Minerals, Dr. Hajim M. Al-Hassani • Ministry of Interior, Mr. Falah al-Nakib • Ministry of Water Resources, Dr. Latif Rashid • Ministry of Justice, Dr. Mailk Dohan al-Hassan • Ministry of Labor & Social Affairs, Ms. Leyla Abdul Latif • Ministry of Oil, Mr. Thamir Abbas Ghadban • Ministry of Planning, Dr. Mehdi Al-Hafedh • Ministry of Public Works, Mrs. Nasreen Mustafa Sadiq Barwari • Ministry of Science & Technology, Rashad Mandan Omar • Ministry of Trade, Mr. Mohammed al-Jibouri • Ministry of Transportation, Mr. Louay Hatem Sultan al-Erris • Ministry of Youth & Sports, Ali Fa’iq al-Ghabhan www.export.gov/iraq ~ www.export.gov/afghanistan

  10. From CPA to Embassy • June 28 Transfer of Authority • Dissolution of the CPA • Establishment of the U.S. Embassy in Iraq • Structural Change • U.S. Embassy • Ambassador John Negroponte • Project and Contracting Office (PCO - formerly Program Management Office or PMO) • The PCO has taken over contracting functions of the old PMO • Foreign Commercial Service (FCS) • 2 American Officers • 6-8 Foreign Service Nationals • Representation from Departments of Agriculture, Treasury, other agencies www.export.gov/iraq ~ www.export.gov/afghanistan

  11. Business Opportunities • USG Contracts and Subcontracts • State Department • Department of Defense • Treasury, Justice, Health and Human Services • Resources • USAID (http://www.usaid.gov/iraq/activities.html) • Iraq Project & Contracting Office (www.rebuilding-iraq.net) • Federal Business Opportunities (www.fedbizopps.gov) • Iraq Investment and Reconstruction Task Force (www.export.gov/iraq/market_ops/contracts.html) • U.N. Contracts (http://www.ungm.org/) • Iraqi Ministry Tenders • World Bank/Donor Projects • Private Sector Trade and Investment • SOEs: www.iraqcoalition.org/business/industries • Ministry of Industry & Minerals SOEs: www.export.gov/iraq www.export.gov/iraq ~ www.export.gov/afghanistan

  12. Private Sector Firms • Advanced Technology Systems • Baker, Donelson, Bearman, Caldwell & Berkowitz • Business Satellite Solutions • Constellation Networks Corp. • Fargo Electronics, Inc. • Home Essentials • iDirect Technologies • The Khudairi Group • Novitech LLC • O’Shea Ltd. • PepsiCo, Inc. • Proctor & Gamble Company • The Sandi Group • Texas Armoring Corporation • Transoceanic Shipping • Unison • United Parcel Service Source: U.S. Department of Commerce www.export.gov/iraq ~ www.export.gov/afghanistan

  13. Supplemental Appropriation • Approved by Congress in October 2003 • Subcontracts: Open to companies from all countries, except: • Cuba, Iran, Libya, North Korea, Sudan, Syria • $9 Billion for Infrastructure, including: • Electricity • Water Resources and Sanitation • Public Works • Oil Infrastructure • Health Care • Transportation and Telecommunications • $6 Billion for Non-Construction Projects • Including law enforcement, public safety infrastructure, justice, and civil society. • $4 Billion Hold-Back Funds www.export.gov/iraq ~ www.export.gov/afghanistan

  14. US Reconstruction Contracts $5 Billion - 2004 • Program Management Services • 7 contracts (Awarded March 10) • PCO Support: 1 contract • Program Sectors: 6 contracts • Public Works and Water • Transportation/Communications • Security/Justice • Buildings/Education/Health • Electrical Services • Oil • Design/Build construction RFPs falling under the 6 Program Sectors • 10 contracts (Awarded March 10-26) www.export.gov/iraq ~ www.export.gov/afghanistan

  15. Acquisition Strategy - Construction - $5B Capacity Program Management Office (PMO) Services (Up to $50M) $21,610,501 toAECOM Electrical Sector (Up to $55M ) $43,361,340 to Iraq Power Alliance JV Public Works/Water (Up to $55M ) $28,494,672 to CH2M Hill and PWI JV Oil (Up to $30M ) $8,416,985 to Foster Wheeler Comm/Transp (Up to $15M ) $8,458,350.05 to Berger/URS JV Security/Justice (Up to $30M) $8,458,350.05 to Berger/URS JV Bldgs/Edu/Health (Up to $15M) $10,754,664.07 to Berger/URS JV USAID Capacity Contract (up to $2B) – $1.8b max AWARDED TO Bechtel-USA, Parsons-USA, Horne Engineering-USA Electrical $500K Minimum Up to $1,500M Bldgs/Educ/ Health $500K Minimum Up to $500M Comm/Transp $500K Minimum Up to $ 400M Public Works/Water $500K Minimum Up to $1,700M Oil $500K Minimum Up to $827M Security/Justice $500K Minimum Up to $900M Generation $500M Ceiling Fluor-AMEC JV NORTH $600M Ceiling Fluor-AMEC JV Communications $75M Ceiling Lucent Technologies World Services, Inc. NORTH Max $800m CPAF Awarded: 16 Jan 04 Parsons Iraq JV Bldgs/Educ/Health $500M Ceiling Parsons Delaware Inc. Security/Justice $900M Ceiling Parsons Delaware Inc. Transmission & Distribution NORTH $500M Ceiling Washington Intl Inc SOUTH $500M Ceiling Fluor-AMEC JV Transportation $325M Ceiling Contrack/AICI/OCI/ Archirodon JV SOUTH Max $1.6B CPAF KBR Inc. Water Resources $600M Ceiling Wash Intl & Black & Veatch JV Transmission & Distribution SOUTH $500M Ceiling Perini Corp C O N S T R U C T I O N C O N T R A C T S Contracting Agency: PenRen Army Navy USAID

  16. Iraq Relief and Reconstruction Fund $3.4 Billion Reallocation From • $1.94 Billion Water and Sewerage • $1.07 Billion Electricity • $450 Million Oil (refined oil purchases) To • $1.8 Billion Security and Law Enforcement • $450 Million Oil Infrastructure Enhancements/Improved Export Capacity • $380 Million Economic Development • $360 Million Debt Forgiveness ($4 Billion Owed to U.S.) • $286 Million Iraqi Employment • $180 Million Democracy and Governance www.export.gov/iraq ~ www.export.gov/afghanistan

  17. Subcontracting Strategies • Prime contractors responsible for choosing subcontractors • U.S. Small Business: 10% minimum; 23% goal. • Register on prime contractor websites and meet with them. • Iraqi Participation (prime contractor incentives) • Look for Iraqi partners at: • www.iraqibusinesscenter.org OR www.ibcguide.org (not vetted) • Factor cost of insurance (Defense Base Act) and security • Review Federal Acquisition Regulation (FAR) • http://farsite.hill.af.mil/ • Review “About the PCO” • PCO website: www.rebuilding-iraq.net/ www.export.gov/iraq ~ www.export.gov/afghanistan

  18. Private Sector Developments • Foreign investors can wholly own Iraqi entities in most industry sectors • Foreign companies receive equal treatment • Foreigners can lease real property for 40 years • Corporate and personal income taxes limited to 15% • Reconstruction Levy, or flat import tariff, of 5% • Intellectual Property Rights (IPR) Laws Updated • New Iraqi Dinar (NID) freely exchanged and stable since mid-February • Trade Bank of Iraq established • Local business centers operating in Baghdad, Kirkuk, Basra, & Mosul • Company Commercial Law 21 amended by CPA to facilitate registration of companies (CPA Order No. 64) • Iraq Stock Exchange (ISX) open. www.export.gov/iraq ~ www.export.gov/afghanistan

  19. Accomplishments • Commercial banks are operating • New Iraqi Dinar (NID) • Port of Umm Qasr opened to commercial cargo • Oil • Electricity • Telecommunications • 1,000’s of infrastructure projects completed • Employment • Education • Thousands of schools re-supplied and re-opened • Company Registration • WTO Observer Status • Foreign investors arriving • Pepsico, Mitsubishi, John Deere, IBM • Trade is increasing • Home Essentials, O’Shea Ltd., Proctor & Gamble, Transoceanic, Advance Tech Systems, Unison, Eagle Global, Sandi Group • Iraqi Ministries Launching Websites www.export.gov/iraq ~ www.export.gov/afghanistan

  20. Next Steps • Prime contractors and subcontractors implement thousands of Iraq reconstruction projects, funded by the $18.4 billion appropriation • U.S. Embassy ramps up in Baghdad • Interim Government prepares for elections of the Transitional Government • Drafting of permanent constitution by Transitional Government • Referendum on constitution and elections for the new government • New democratically elected government takes power www.export.gov/iraq ~ www.export.gov/afghanistan

  21. Iraq Reconstruction Task Force: Web site: http://www.export.gov/iraq Telephone: 1-866-352-IRAQU.S. Embassy Baghdad http://iraq.usembassy.gov Department of State http://www.state.gov/iraq Iraq Project and Contracting Office http://www.rebuilding-iraq.net Coalition Provisional Authority (CPA) http://www.iraqcoalition.org USAID http://www.usaid.gov/iraqDepartment of Defense http://www.usace.army.mil Department of Treasury http://www.treas.gov Department of Agriculture http://www.fas.usda.gov Department of Health and Human Services http://www.hhs.gov Export-Import Bank http://www.exim.gov Overseas Private Investment Corporation http://www.opic.gov U.S. Trade and Development Agency http://www.ustda.gov Key Contacts (US)

  22. Iraqi Embassy, Washington, DC http://consul.iraqiembassy.org Baghdad Municipal Government http://www.baghdadmayoralty.com Ministry of Water Resources http://www.iraqi-mwr.org Ministry of Agriculture http://www.iraqmoa.com Ministry of Communication http://www.uruklink.net/moc Ministry of Construction and Housing http://www.uruklink.net/moch Ministry of Displacement and Migration http://www.modm-iraq.com Ministry of Education http://www.moeiraq.info Ministry of Electricity http://www.uruklink.net/electric Ministry of Foreign Affairs http://www.iraqmofa.net Ministry of Health http://www.mohiraq.org Ministry of Higher Education http://www.iraquniversities.org Ministry of Industry and Minerals http://www.iraqiindustry.com Ministry of Oil http://www.uruklink.net/oil Ministry of Trade http://www.motiraq.org Ministry of Transportation http://www.iraqitransport.com Key Contacts (Iraq)

  23. Central Bank of Iraq http://www.uruklink.net/cbi Iraq Stock Exchange (ISX) http://www.isx-iq.net Trade Bank of Iraq http://www.tbiraq.com Iraqi Business Center http://www.iraqibusinesscenter.org Kirkuk Business Center http://kirkuk-business-center.org Mosul Business Center http://www.ninevehbusinesscenter.org Basra Business Centre http://www.basrabusinesscentre.com Iraqi Company Registry http://www.ibcguide.org (not vetted) Key Contacts (Iraq)

  24. Afghanistan Investment and Reconstruction Task Force • Counsels U.S. companies interested in rebuilding and investing in Afghanistan • Website http://www.export.gov/afghanistan • “Doing Business in Afghanistan FAQs” • “Afghanistan Business Primer: Practical Tips for Successful Business Operations” • AfghanInfo e-mail alert service www.export.gov/iraq ~ www.export.gov/afghanistan

  25. Opportunities in Afghanistan • Business Opportunities • U.S. Government Procurement • Federal Business Opportunities: www.fedbizopps.gov • Afghan Government Procurement • www.afghanistangov.org/aaca/procurement • World Bank and Asian Development Bank • Investment • Allows 100% foreign ownership • Afghan Investment Support Agency (AISA) • one-stop shop for investment (www.aisa.org.af) www.export.gov/iraq ~ www.export.gov/afghanistan

  26. Thank You!Questions Welcome JAY BRANDES Director Iraq and Afghanistan Investment & Reconstruction Task Forces International Trade Administration U.S. Department of Commerce Washington, D.C. www.export.gov/iraq ~ www.export.gov/afghanistan

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