Program Review Board (PRB) Minutes – May 12, 2004


Attendees:                                          Office                                                                                     

* George Wolfe                                    Chairman/Director Office of Management and Budget

* Hazim Al Said                                  Iraq Ministry of Finance

* Dr. Faik Ali Abdul-Rasool                 Iraq Ministry of Planning and Development Cooperation

* Fred Smith                                        Deputy Senior Advisor for the Office of Security Affairs

* Teddy Bryan                                     USAID

* Col Frank Boynton                            Office of Operations & Infrastructure

* Dean Pittman                         Governance

* COL William Ford                            Coalition Joint Task Force – 7, Comptroller

* Yusaf Samiullah                                 Representative of the United Kingdom Government

* Neil Mules                                         Representative of the Australian Government  

* Chris Soares                                      Economic and Development Policy

* Neil Hawkins                         Council for International Cooperation

COL Eric Engelbrektsson                     Program Coordinator

Brendan Wheeler                                  Program Review Board - Regional Programs Manager

COL Rafael Lara                                  CPA – General Counsel

Col Don Davis                          CPA Comptroller

BG Steve Seay                         CPA – HCA

Lt Col Jim Reitzel                                 Coalition Joint Task Force – 7, Comptroller

Capt. Chris McMahon                          CPA General Counsel

John Moore                                          CPA Ministry of  Finance

Sarah Horrigan                         CPA Ministry of  Finance

LTC Alan Farrier                                  CPA Ministry of  Finance

Craig Lund                                           CPA Ministry of Finance

Arda Herbert                                        CPA Ministry of Finance

Taif Sami                                              Iraqi Ministry of Finance

Jerry Martin                                          PMO  Oil

Alan Khatib                                          PMO Oil

Norm Szydlowski                                 CPA Ministry of  Oil

Joel Berwick                                        CPA Ministry of  Oil

T.A. Ghadhbaer                                   Iraq Ministry of  Oil

Nabeil N. Lammoza                             Iraq Ministry of  Oil

Stephen Myrow                                    CPA Ministry of Transportation

Peter Babb                                           CPA Ministry of Trade

Marty Lyman                                        Iraqi Forum

George Murray                         Iraqi Forum

Gene Morrison                         USACE-RIE

Chris Prinslow                                      USACE-RIE

Jim Hicks                                             CPA Ministry of Electricity

Carla Clemons                                      CPA Ministry of Electricity

Aiham Alsammarae                               Iraqi Ministry of Electricity

Bernard Carreau                                   CPA Private Sector Development

Brad Swanson                                      CPA Private Sector Development

Brian Ericksen                                      CPA Private Sector Development

Capt. Marcus Yonehiro                        Private Sector Development

Michael Ratney                         CPA Governance

MAJ Martha Boyd                               CPA Ministry of Labor and Social Affairs

Craig Davis                                          CPA Ministry of Labor and Social Affairs

Kuni Miyake                                        CPA Council for International Cooperation

Peter King                                            CPA Ministry of Agriculture

COL Neil Jagger                                  CMATT

MAJ Michael Nahas                             OSC

MAJ Michael Barkett                           OSC

1LT Josh Kuper                                   OSC

LTJG Popovich                                    CJTF-7 C-7

LT Robert McCellan                            CJTF-7 C-7

LT Greg Garnett                                   CJTF-7 C-7

Anthony Forte                          CJTF-7 Engineers

Lt Col Kevin King                                CPA Chief Operating Office

*Voting Members





The PRB approved the minutes from the 28 April 04 meeting.




#686—Balanced Program for Rebuilding Iraq--$2,000,000,000.  Various Ministries/Sarah Horrigan.  This proposal describes a balanced spending plan for the $2.0 billion recently received from the UN Oil for Food program.  The plan is based upon a careful analysis of the security situation, and the most critical unfunded needs of Iraq in 2004 and beyond.  It provides funds for reserves to address future potential liabilities, funds for the food basket to provide sufficient food for the Iraqi people this year, and projects that have maximum impact on providing:


The projects included in the package were the subject of budget hearings by the Ministry of Finance. The Representative from the UK proposed a motion to defer and disaggregate the request to allow for greater time and scrutiny; the representative from Australia seconded the motion. The discussion on the motion included questions regarding the amount of consultation with relevant Iraqi ministries and the amount of detail included in the submissions. A vote was taken and the motion carried 6 to 5. The Chairman called for a follow up meeting on Saturday, May 15 04 to consider the programs on an individual basis, and directed that additional information be provided to Board members concerning the programs to be voted upon.

WITHDRAWN: to be reconsidered, by section, at 15 May 04 PRB


#688—Standardized Identification System for State Owned Enterprises (SOEs)--$1,600,000.  Min of Industry and Minerals(MIM)/COL Lettie Bien.  In one year of war and instabilities, most personnel records were lost or destroyed at the various ministries. There is neither a verified or accurate accounting of authentic employees nor any usual employee information on hand. This inaccuracy leads potentially to the creation of “ghost” employees (someone that does not exist, is deceased or once was an employee and no longer is one) and discrepancies in salaries. This proposal establishes a personnel identification system that can be used at the SOEs and ministries.


The Representative from CPA/Governance asked about the expected timeline for implementation of the project. CPA/MIM responded that they were prepared to accept bids and the vendors were ready. The Representative from the CPA/Office of Security Affairs asked if this project focused on only SOEs. CPA/MIM said the project is originally intended for SOEs and their respective ministry headquarters, but the project could potentially be expanded to include other ministries. The Representative from the UK asked how many employees the project targeted, including ministry headquarters. CPA/MIM responded there were approximately 350,000 to 500,000 employees in the SOEs, and probably another 10,000 in respective ministry headquarters. The Representative from the UK asked if the employees themselves had been consulted on this matter, and CPA/MIM stated they have talked to numerous individuals at factories and they seemed receptive to the proposed plan. The Representative from the UK asked who will supervise the implementation of the project, and CPA/MIM explained that the Iraqi MIM Inspector General and relevant Directors General were engaged.  A motion to approve the proposal was made and seconded.  The motion passed.

APPROVED: DFI--$1,600,000




#683Umm Qasr Port Renovation--$15,280,000.  Ministry of Trade (MoT)/Peter Babb.  MoT proposes to repair and upgrade grain offloading facilities at Iraq's port of Umm Qasr.  The renovation of the facilities is necessary to ensure the sustainable flow of the basic staple food needs of the Iraqi people.  To meet food ration needs and maintain adequate buffer stocks, Iraq requires 250,000mt (metric tons) of imported wheat be discharged every month at the port of Umm Qasr.  The current operational performance of the Umm Qasr grain facility is far below its potential capacity, allowing the importation of only 80,000 to 120,000mt per month.  The dearth of domestic receiving capacity has forced Iraq to rely upon temporary, alternative facilities neighboring foreign ports.  Use of these temporary facilities is both expensive and inefficient.  Iraq needs to establish domestic capacity to meet its grain importation requirements.  Investment in Umm Qasr is necessary to assure adequate food supply for the Iraqi people.


The Ministry of Trade returned to the PRB after having PRB #683 tabled on April 28, 2004 for consultations with the Iraqi Ministries of Finance and Planning. The Representative from Australia asked if the consultation had occurred and CPA/MoT replied it had. The Iraqi Minster of Finance concurred this was a vital project and fully supported its funding. The Iraqi MoT was asked if they had been consulted on the issue, and they stated they had and this project fits within their comprehensive plan for the ports. The Representative from the UK asked if recurring expenditures would need funding in future years, and the CPA/MoT stated that recurring expenses would be more than offset by tariffs and the avoidance of demurrage fees. The Representative from Australia brought the motion for approval, The Representative from CPA/Governance seconded, and the motion passed.

APPROVED: DFI--$15,280,000