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The Report of the Iraq Inquiry
CPA finances. What were the obstacles to funding? If there were delays, the UK
should be prepared to finance new operations in the South itself, in advance of
CPA funding.
Oil and electricity. How could progress be accelerated, and how could UK
industry be more involved?
678.  In August, the UK reviewed its force levels in Iraq in the light of the deteriorating
security situation (see Section 9.2).
679.  Mr Hoon’s Private Secretary wrote to Mr Rycroft on 4 September to report that:
“… in the light of the changing security situation in the South East of Iraq, and in
view of likely next steps by the CPA, the Defence Secretary had concluded that
there is an immediate requirement to deploy a further two infantry battalions and
certain specialist capabilities to Iraq. Furthermore, we intend to identify and put on
reduced notice to move a Brigade HQ, Infantry battalion and engineer capability
as a contingency to support the implementation of the CPA(S) plan for emergency
infrastructure work due to be delivered by Sir Hilary …”378
680.  The Essential Services Plan was submitted to the AHMGIR on 4 September, with
an implementation plan promised for the following week.379
681.  The Plan stated that CPA(South)’s intent was to improve essential services
over the short, medium and long term as part of the “overall CPA reconstruction
strategy”.380 However, “the imperative of securing rapid and visible improvements … and
forestalling erosion of Iraqi consent demands the urgent implementation of a short-term
emergency plan”.
682.  The Plan aimed to:
increase power supply, including by improving management, repairing
transmission and distribution systems, providing generators, and providing
spares and equipment;
increase fuel supply, including by improving and constructing new fuel
distribution and storage facilities, and improving gas distribution facilities; and
increase water supply, including by improving maintenance and refurbishing and
improving power supply to key water treatment plants.
683.  The Plan was costed at US$127m, comprising US$90.5m for work to
improve the power supply, US$12m for fuel supply, US$23m for water supply and
US$1.25m for general programme support. Funds were to be provided by the CPA,
DFID or other sources.
378  Letter Williams to Rycroft, 4 September 2003, ‘Iraq: UK Forces and Resources Review’.
379 Annotated Agenda, 4 September 2003, Ad Hoc Group on Iraq Rehabilitation meeting.
380  Paper [unattributed], 2 September 2003, ‘Annex B: Strategy for the Essential Services in Southern Iraq’.
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