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The Report of the Iraq Inquiry
561.  The Cabinet Office produced an update on work on the “review of policy”
requested by Mr Blair following his 22 May visit, “including in response to serious
concerns over the situation in Basra”, for the 15 June meeting of DOP(I).323
562.  On electricity, the Cabinet Office paper stated that following positive early meetings
with the new Electricity Minister, DFID was focusing on “demand issues and planning” by:
getting the World Bank and other donors including the EU and Japan engaged.
DFID was funding a World Bank adviser on energy sector management, and
part-funding the new World Bank Country Office;
leveraging World Bank loans for power projects in response to specific requests
from the Electricity Minister; and
offering a consultant to the Ministry of Electricity to advise on an electricity plan.
563.  On international support, US and UK officials were discussing options for a
compact between Iraq and the international community.
564.  The UK’s role in the development of the International Compact is described later
in this Section.
565.  On capacity building, the UK was supporting a number of key Iraqi institutions but
that effort was “dwarfed by a very large … often overambitious US programme”.
The US had offered to share work it was undertaking to map and improve its
capacity‑building effort. That would provide a basis for discussions on a complementary
approach.
566.  On Basra, officials had been undertaking a “major review of policy” in MND(SE),
in response to concerns (shared by the US) that Basra was not on track to meet the
proposed transition timelines. The “work plan for Basra” had been organised around
four strands: political framework; security; Rule of Law and governance; and economic
development and reconstruction.
567.  On the economic development and reconstruction strand, departments had been
reviewing their programmes to ensure that:
key short-term requirements were met;
plans were in place for the Iraqi Government and the wider donor community
to tackle Basra’s medium- and long-term requirements; and
all projects were delivering a visible dividend to Baswaris.
568.  Funding had been found from existing resources for a number of new initiatives,
but departments were still scoping the cost of further short-term measures. An initial
estimate was that an additional £85m might be required.
323  Paper Cabinet Office, 13 June 2006, ‘Follow-up to the Prime Minister’s Visit, Including Delivering
a Step-Change in Basra’.
290
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