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The Report of the Iraq Inquiry
UK funding for reconstruction
DFID provided £297m for reconstruction and a further £209m for humanitarian assistance
in Iraq between 2002/03 and 2009/10. Iraq was DFID’s largest bilateral programme in
2003/04, when DFID spent a total of £220m. That included a £110m contribution to the
humanitarian relief effort following the invasion and a £70m contribution to the World Bank
and UN Trust Funds (which would be spent by the World Bank and UN in subsequent
years). The size of DFID’s programme decreased over the following years.
In addition, UK forces in MND(SE) spent £38m from UK funds on Quick Impact Projects
(QIPs).
It is not possible, from the information available to the Inquiry, to produce a definitive
breakdown of the allocation of DFID funding between national programmes and
programmes in the South. The Inquiry calculates that, from 2003/04 to 2007/08, between
76 percent and 52 percent of DFID funding was allocated to programmes in the South.25
DFID’s expenditure in the South peaked in 2005/06.
UK forces also had access to significant amounts of US funding from the Commander’s
Emergency Response Program (CERPs) to spend on urgent relief and reconstruction
needs. The Government has not been able to provide a full breakdown of the amount of
CERPs funding used by UK military commanders, but it appears to have been greater
than the total amount provided by the UK for reconstruction. The US allocated US$66m
from CERPs to MND(SE) in the US fiscal year 2005/06. In the same year, in MND(SE),
DFID spent some £35m on infrastructure and job creation and the MOD spent £3m from
UK funds on QIPs.
By April 2009, the US had spent or allocated to ongoing projects US$351m from CERPs in
MND(SE), and spent or allocated to ongoing projects some US$3.3bn from all sources in
MND(SE). Over the same period, in MND(SE), DFID spent at least £100m and the MOD
spent £38m from UK funds on QIPs.
UK funding was also available for Iraq from the Global Conflict Prevention Pool (and
subsequently the Stabilisation Aid Fund and the Conflict Pool). Most of that funding was
allocated to Security Sector Reform (see Section 12).
Preparation for withdrawal
84.  From June 2005, the Government considered a series of papers on the transfer
of security responsibilities for southern provinces to Iraqi Security Forces (leading to
withdrawal of UK forces from Iraq).
85.  DFID assessed that it could not operate effectively in the South without UK military
support and, in October, indicated its intention to refocus on building the capacity of
the Iraqi Government in Baghdad. Existing projects in the South would continue to
completion but, given the security situation, no new projects would be started.
25  Calculation excludes DFID funding for humanitarian assistance, the World Bank and UN Trust Funds,
and programme support costs such as security, accommodation and communications. It is not possible
to produce a reliable estimate of the proportion of the funding provided for those purposes that related
to the South.
540
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