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10.3  |  Reconstruction: oil, commercial interests, debt relief, asylum and stabilisation policy
companies (in the interests of effectiveness and value for money) remains negligible.
Nevertheless, without participating in some form in the PMO, we may lose a point
of influence.”
674.  Mr Lusty provided advice to Mr O’Brien on 25 September on how TPUK would
ensure that procurement for Iraq’s reconstruction was transparent and created a
level playing field for UK companies.402 Mr Lusty advised that, although the CPA’s
procurement rules were “generally fair”, UK business remained concerned about the
lack of transparency and that the dominance of US personnel in the CPA resulted in
a bias towards US contractors.
675.  Mr Lusty continued:
“It has been clear from our contacts with the Americans at all levels that there will
be no special favours for British business in bidding for reconstruction work in Iraq.
We have made it clear to UK firms that there is no inside track …
“To maximise UK business involvement in Iraq reconstruction, we must ensure a
level playing field for international businesses bidding for reconstruction work from
the CPA and from the US Government; and give British business a competitive
advantage through our [TPUK’s] own bilateral trade promotion efforts.”
676.  To achieve that, TPUK was:
“Sending a … procurement expert back to the CPA asap.” The BTI official
seconded to ORHA/CPA in March (who had left at the end of June) had
focused on improving procurement by the Iraqi Ministries; President Bush’s
announcement of further, substantial funding for Iraq’s reconstruction and the
creation of the PMO had shifted the priority back to the CPA.
Identifying public and private sector secondees for the PMO, in response to
a request from Rear Admiral (retired) David Nash, the Director of the PMO.
677.  Mr Lusty recommended that Mr O’Brien press the US for greater transparency
in procurement by the CPA and the US Government (especially the Department of
Defense).
678.  The UK Government seconded two consultants to the PMO; the first arrived in
March 2004.
402 Minute Lusty to PS/Mr O’Brien, 25 September 2003, ‘Iraq Reconstruction: UK Company Involvement’.
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