U.S. officials say soaring security costs have consumed $1 billion earmarked for needed water, power and sanitation projects
Skyrocketing security costs have forced American officials here to slash about $1 billion from projects intended to rebuild Iraq's shattered infrastructure, dealing another blow to U.S. plans to pacify Iraq by improving basic services. William Taylor, a U.S. diplomat who oversees Iraqi reconstruction efforts, said the country's violent insurgency had created a "security premium," gobbling up money that otherwise would have been spent to provide clean water, electricity and sanitation for Iraqis. The slow pace in rebuilding Iraq has raised protests from Iraqis, who continue to suffer from a lack of services. Many Iraqi homes and businesses have electricity only a few hours a day. Raw sewage still streams straight into the Tigris River, just as it did under former dictator Saddam Hussein. Iraqi officials expressed frustration with the latest cutbacks, saying fewer water, sewer and electricity projects could further alienate Iraqis and bolster the insurgency. Already, one top Iraqi official said she had to cut back on plans to deliver clean water to residents of the often-restive cities of Fallouja and Mosul. "I'm amazed at how a program meant for reconstruction that could have provided more services and could have effected stabilization could be cut so drastically," said interim Iraqi Public Works Minister Nasreen Mustapha Berwari. When Congress initially approved $18.4 billion in November 2003 to help rebuild Iraq, the majority of the money was intended to improve electrical and water systems, which had suffered from years of neglect during United Nations-imposed sanctions. But the reconstruction program has struggled to take off in the face of violent attacks, intimidation of workers and allegations of fraud. In the face of spiraling violence, reconstruction officials have shifted funds during the last few months to improve security. Now, the largest chunk of money, about $5 billion, pays for weapons, uniforms and other equipment to help Iraqi forces quell the insurgency. [more]