The Report of the Iraq Inquiry

725. Mr Blair wrote to President Bush on 5 March, identifying some of the UK

companies bidding for PMO contracts and highlighting in general terms the expertise

of UK companies.426

726. The US Department of Defense awarded the major remaining IRRF2 contracts

during March, comprising seven project management contracts and 10 design and build

construction contracts.427

727. The Annotated Agenda for the 18 March meeting of the AHMGIR stated that,

following a campaign of high-level lobbying, UK companies had “achieved success” in

the latest round of US reconstruction contracting.428 Three of the project management

contracts, with a total value of up to US$80m, had been awarded to consortia with a

significant UK content, and two of the design and build construction contracts with a total

value of up to US$1.1bn had been awarded to consortia with a significant UK content.

It was not possible at this stage to calculate the exact value to the UK of those contracts.

728. Ministers were advised on 2 April that consortia with significant UK content had

secured three further design and build construction contracts.429 The total value of the

contracts was capped at US$1.6bn.

729. Following Admiral Nash’s request for UK help in staffing the PMO, UKTI contracted

two consultants to work in the PMO, initially for three months. The first deployed in early

March 2004, the second in early April.430

730. A UKTI official told ISOG that:

“Their [the consultants] role would be one of intelligence, to enable UKTI to help UK

companies frame their bids [for PMO contracts] …”431

731. The security situation in Iraq deteriorated significantly in March and April, leading

to the withdrawal of many aid agency personnel and contractors.

732. The FCO tightened its travel advice on 8 April to read: “Even the most essential

travel to Iraq should be delayed, if possible.”432 Companies involved in reconstruction

were encouraged to “ensure that they have made the appropriate security

arrangements”.

733. The UK company Foster Wheeler Energy Ltd, which had been contracted by the

PMO to provide oil and gas project management services, informed the PMO on

426 Letter Blair to Bush, 5 March 2004, [untitled].

427 Bowen SW Jr. Hard Lessons: The Iraq Reconstruction Experience. U.S. Government Printing Office,

2009.

428 Annotated Agenda, 17 March 2004, Ad Hoc Group on Iraq Rehabilitation meeting.

429 Letter Dodd to Owen, 2 April 2004, ‘Iraq: Update’ attaching Paper Cabinet Office, 2 April 2004,

‘Iraq: update’.

430 Minute UKTI [junior official] to PS/O’Brien, 21 June 2004, [untitled].

431 Minutes, 3 February 2004, Iraq Senior Officials Group meeting.

432 FCO Travel Advice for Iraq, 8 April 2004.

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