The Report of the Iraq Inquiry

251. While he waited for approval of the point power generation project, he had ordered

MND(SE) to search for additional sources of energy and funding. They had identified

131 generators across the region, of which only 22 were working. Most of the inoperable

generators had never been installed. MND(SE) had completed the installation of 32 of

those generators.

252. Mr Quarrey passed Gen Riley’s update to Mr Blair on 18 March, with the comment:

“The situation is bleak, with generation levels this summer unlikely on current

predictions to be significantly higher than last year – and almost certainly matched

by higher demand.” 148

253. Mr Quarrey advised that funding for the point power generation project (which

would become Operation AMPERE) had now been approved.

254. The funding was provided by DFID.149

255. Mr Quarrey also advised that officials were working on a new strategy paper on

electricity, but it focused too much on the medium term and not enough on what the

UK could do to improve the situation over the summer. He recommended that the next

AHMGIR should focus on producing a short-term action plan.

256. Mr Blair indicated that he agreed with Mr Quarrey’s proposal, and that he would

raise the issue of power generation with President Bush.150

257. A report on a visit to Iraq by senior DFID officials alerted other departments to

pressures on DFID’s budget.

258. Mr Dinham and Mr Anderson visited Iraq from 14 to 19 March.151

259. Mr Dinham’s report to Dr Nemat Shafik, DFID Director General Programmes,

characterised the DFID programme as “a balance of capacity building and visible,

quick impact reconstruction activity, particularly in the South”. There was “accelerated

progress” on both capacity building and reconstruction, helped by “excellent

collaboration” with the FCO and MOD.

260. Mr Dinham warned that:

“One side effect of the good progress we are making … is that our Iraq budget

allocation for 2005/06 is under extreme pressure. If activities to which we are already

committed plus extensions of existing high priority capacity building programmes

proceed at the current pace, we will exceed our existing budget ceiling, without any

new proposals already in the pipeline being taken into account.”

148 Minute Quarrey to Prime Minister, 18 March 2005, ‘Iraq Update’ attaching Report Riley, 16 March 2005,

‘GOC MND(SE) – southern Iraq Update – 16 March 2005’.

149 Paper FCO/DFID, 22 March 2005, ‘Iraq: Electricity’.

150 Manuscript comment Blair on Minute Quarrey to Prime Minister, 18 March 2005, ‘Iraq Update’.

151 Minute Dinham to Shafik, 21 March 2005, ‘Visit to Iraq’.

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