Iraq Oil Pipeline Behind Schedule
Key Project Has Largely Gone Unmonitored, Report SaysBy Griff Witte
Washington Post Staff Writer
Tuesday, August 1, 2006; Page A12
A project to build a critical oil pipeline in northern Iraq has fallen more than two years behind schedule, costing the Iraqi government $14.8 billion in revenue and jeopardizing the safety of local water supplies, according to a report by U.S. government auditors released yesterday.
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The project, managed by the Army Corps of Engineers, is just the latest in a series of projects that have gone awry. The U.S.-funded reconstruction program in Iraq has been plagued by cost overruns and schedule setbacks, in large part because of security concerns, but also because of flawed management and poor planning. Projects to build medical centers, prisons and power stations have all fallen short of projections. Now, the U.S.-directed portion of the reconstruction is wrapping up, and control is being transferred to the Iraqis.
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Reconstruction officials initially hired the Halliburton Co., a subsidiary Kellogg Brown and Root, to monitor the project. But auditors found that KBR did not perform daily reviews of the project's progress; instead company officials saw their role as advisers to the Iraqi firm doing the work. In June 2004, U.S. reconstruction officials cancelled the limited oversight KBR was doing in order to save money, even though KBR had found problems with the Iraqi contractor's performance.
A KBR spokeswoman released a statement defending the firm's work and saying KBR is "proud of the difficult and dangerous work performed by its employees and subcontractors."
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