US terminates part of major Iraq hospital-building contract
by Paul Schemm
Fri May 12, 12:10 PM ET
BAGHDAD (AFP) - The US Army Corps of Engineers said it had partially terminated its contract with the second largest reconstruction contractor in Iraq due to lack of progress on its mission to rebuild hospitals.
Parsons Global Services' two-billion-dollar contract, awarded in 2004 for medical, oil and security reconstruction projects, was plagued with problems according to an April government audit.
The termination was "due to insufficient progress and associated escalating costs which are expected to exceed available funding for the renovation of eight remaining hospital projects across Iraq," a corps statement said.
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According to the audit, which was reported by the Los Angeles Times on April 28, only 12 of 20 hospitals the company was contracted to refurbish were to be completed, while only 20 of 150 health clinics were to be finished because the project was running out of money.
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http://news.yahoo.com/s/afp/20060512/pl_afp/iraqusreconstruction