FOR IMMEDIATE RELEASE January 11, 2004

Karbala Province, Iraq. Today, the Coalition Provisional Authority gave more than $841,600 (1.43 billion Iraqi Dinars *) in progress payments for contracts awarded during the past months.

After the terrible bombings, CPA rushed through the process in order to assist the people of Karbala as quickly as possible. Terrorists attacked the Coalition, Iraqi Police, and innocent Iraqi citizens who were working to rebuild Iraq. The terrorists are trying to strike discord in the holy city of Karbala and against stability in Iraq. They only want to undermine Iraq as the country moves towards democracy and full sovereignty. The Coalition Provisional Authority will not be swayed by the terrorists. CPA will continue to work closely with the people of Karbala to assist them in building a better life in a new democratic Iraq. Less than 24 hours after the bombings, CPA provided $50,000 (85 million Iraqi Dinar *) to assist with emergency services. Less than two weeks after the bombings, CPA provided more than $837,000 (1.42 billion Iraqi Dinars *) to help the people of Karbala with community projects and to repair bomb damage to the Governorate Building.

Progress payments being funded today include money for the following projects:
Two sports stadiums, two youth centers, three telephone networks, nine Municipal Buildings, four Irrigation Offices, the Karbala Solid Waste Program, the Karbala Sewage Treatment Plant, the Karbala LPG Plant, and the Al Hussain Hospital.

An effective police force is important for the people of Karbala. CPA will also give progress payments for the following: Facilities Protection Service Buildings, eight Police Stations, police checkpoints, and uniforms.

The projects are employing local people from Karbala Province. The local Iraqi contractors were chosen from a competitive bidding process. All the money is given in increments, and as the work is properly completed, more money will be given to the Iraqi contractors. Seized from the former regime assets, the money is now being used for the Iraqi people.

Since the summer, CPA has awarded $7 million (12 billion Iraqi Dinars *) in contracts for Karbala community projects, which CPA, the Polish Governance Support Team, and local Iraqis have identified. Assisting the people in Karbala Province is an important goal for CPA. It is part of a larger initiative to support Iraqis as they move toward democracy and a sovereign government. Additional projects to help Karbala recover from the recent bombings will be announced in coming days.

* Assuming $1 equal 1,700 Iraqi Dinars.