Program Review Board (PRB) Summary of Minutes – February 8, 2004

Attendees:
* Rodney Bent Chairman/Director Office of Management and Budget
* Frederick C. Smith Deputy Senior Advisor for the Office of Security Affairs
* Chris Milligan USAID
* Andy Bearpark Director, Office of Operations & Infrastructure
* H. Dean Pittman Governance
* Michael Toner Coalition Joint Task Force – 7, Comptroller
* Dr. Saladin Hadithee Iraq Ministry of Finance Representative
* Yusaf Samiullah Representative of the United Kingdom Government
* Heidi Venamore Representative of the Australian Government
COL Kay Sommerkamp CPA – General Counsel
Jesse Pruett Program Review Board - Regional Programs Manager
Gilbert Reed Comptroller’s Office
COL Tony Bell CPA – HCA
Reed Werner CPA – Office of Management and Budget
Eric Pelofski CPA General Counsel
Taif Sami Ministry of Finance
COL Eric Engelbrektsson CPA – Office of Management and Budget
Thomas S. Kinton Oil for Food
Brad W. Jackson CPA – Ministry of Minerals
Faisal Murad CPA – Ministry of Minerals
Dr. Waleed Khidder Ministry of Industry
Joseph L. Morgan CPA – Ministry of Housing and Construction
Carl R. Clay Jr. CPA – Ministry of Housing and Construction
MAJ Philip Hicks CPA Facilities Manager
Sandy Hodgkinson CPA – Ministry of Human Rights
David Hodgkinson CPA – Ministry of Human Rights
Derek Gilman CPA – Office of the General Counsel
Mark Huang CPA – Private Sector Development
Lettie J. Bien CPA – Private Sector Development / MIM
Muhammad Hutasuhut CPA – Ministry of Transportation
Todd Gondeck CJTF-7 C8
Darrell Trent CPA – Ministry of Transportation

*Voting Members


The minutes from the PRB meetings of January 31, 2004 were approved.


The following Program Review Board Requests were presented to the Board for recommendation to the Administrator:

#636 – National Assembly Building – CPA Governance, through the contracting execution of MOHC, requested the above amount for the rapid rehabilitation of the National Assembly Building in preparation for the hand-over of sovereignty to the Iraqi Transitional National Assembly on 1 July 2004. The building not only requires complete renovation, interior furnishing, and various upgrades, but also improved security structures surrounding the buildings. Further activity is required to identify which ministry will assume the recurrent operating and maintenance costs associated with managing this building beyond July 1, 2004. APPROVED – DFI.

#633 – Independent Power Producers – The Ministry of Industry and Minerals (MIM) has requested the above amount to be used as collateral for a Stand by Letter of Credit to provide a performance guarantee for the Ministry of Industry with its Independent Power Producers (IPP). MIM has negotiated contracts with IPP to provide platforms to the more lucrative companies within the MIM portfolio (e.g., cement, phosphate, and petrochemical). This collateral will be used if payments are not received from the IPP’s in return for the delivery of electricity. The representative from the Ministry of Finance (MOF) was curious of the possibility of foreign direct investment for this project but was unsure of the foreign investment regulations. Moreover, the representative was not confident that the MOF has legal authority for collateral assurances of this sort. Lastly, the issues of security and tax exemption were discussed, and in response, assurances were given by a representative from the Ministry of Industry and Minerals that security concerns have been accounted for and tax exemptions would not be permissible under the current arrangement. MOF wished to have the request tabled until next week so that MOF could discuss the issues listed above.

#638 – Oil-for-Food Authentication of Invoices – $1,657,823 – Oil-for-Food (OFF) requested the above amount as an advance of moneys from the yet approved Contract Liability Contingency Fund, to pay an invoice for services provided between 11/22/03 and 12/31/03 by the independent inspection agency, Cotecna. These invoices are for authorized services provided under the aegis of the UN Oil-for-Food Program. The request was approved under the provision that the appropriate budget line under OFF’s 2004 Revised Budget allocations be debited for this advance. APPROVED – DFI.

#640 – Rapid Pipeline Repair – $34,400,000 – The Ministry of Oil has requested the above amount to establish an Emergency Response Pipeline Repair Operation (ERPRO) for quick response and restoration of pipeline service for all pipelines in the Central and Northern regions of Iraq. This project has been deemed necessary to combat the occurrences of sabotage and thus help maximize Iraq’s exportation of crude oil. APPROVED – DFI.

#582 A – State Oil Marketing Organization Audit (Amendment) – $60,000 – The Ministry of Oil has requested the above amount to be amended as an addition onto the previously approved PRB #582 for $120,000. The additional amount has been requested to cover unforeseen costs associated with the scope of work obtained after the original PRB request. APPROVED – DFI.

#635 – Ministry of Planning / PMO Site Renovation – PMO requested funding for renovation of facilities to be used by the PMO for work and living accommodations. The facilities will accommodate an end state of over 600 personnel, including support service contractors and staff from the Ministry of Planning (perhaps even the Ministry of Finance). The need for PMO to execute the contract immediately has precluded the possibilities of using US Supplemental funding for the project, which would likely delay execution by a matter of months. The representative from Australia abstained. APPROVED – SEIZED.

#637 – Iraq Property Claims Commission - $1,526,000 – The Office of Human Rights (OHRTS) requested funding to establish and begin operations for an Iraq Property Claims Commission (IPCC) which will begin the process of resolving property claims disputes throughout Iraq. It was mentioned that the Ministry of Displacement and Migration has agreed to assume responsibility and costs associated with this Commission and will coordinate their efforts with the Ministry of Justice. APPROVED – SEIZED.

#521 A – Government of Iraq Building Security (Amendment) – $48,025 – The Ministry of Housing and Construction requested funding to cover the contractual balance for already-delivered services enhancing the security around the Government of Iraq Building. The above amount is to be amended as an addition onto the previously approved PRB #521 for $420,045. APPROVED – DFI.

#624 – Kuwaiti Airways Corporation vs. Iraqi Airways Company – Funding has been request to cover future defense litigation costs associated with the case of Kuwaiti Airways Corporation (KAC) vs. Iraqi Airways Company (IAC). The Office of the General Counsel (OGC) expects that the provision of legal services paid with these moneys could lead to a greatly reduced settlement. A vote was tabled for approval of the request with seized funds, with the contingency that the CPA Administrator could exercise his authority to decline if so decided. The representative from the Office of Operations and Infrastructure opposed and the representatives from the UK and Australia abstained. APPROVED – SEIZED.

#632 – Detainee Family Information – $250,000 – The Office of the Administrator has requested for enhanced detainee family information system to provide more accessible information to the family and friends of those Iraqis detained by the CPA. This plan will help in the dissemination and transliteration of detainee information throughout all 18 Governorates. 27 General Information Centers nation-wide will be staffed specifically with personnel devoted to this purpose. It was proposed that CJTF-7 pay for this program since they are the persons detaining and accounting for the prisoners. A vote was tabled to currently fund the request with seized moneys under the proviso that CJFT-7 determine the feasibility of paying this program’s ongoing operations and cover, retroactively, those debits materialized from the seized funds. APPROVED – SEIZED.