VZCZCXRO7831
PP RUEHBC RUEHDA RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #0162/01 0221515
ZNR UUUUU ZZH
P 221515Z JAN 08
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC PRIORITY 5304
INFO RUCNRAQ/IRAQ COLLECTIVE

UNCLAS SECTION 01 OF 02 BAGHDAD 000162 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAID PREL IZ REL UK
SUBJECT: Chalabi's Provision of Services Committee - January 17 & 
January 20 
 
 
¶1. SUMMARY: The Provision of Services Committee met for the first 
time in slightly more than a month on Tuesday, January 15. The 
Ministries of Oil, Trade, Health, Education and Defense attended. 
The National Security Advisor was represented as was the Joint 
Planning Commission, Iraqi Ground Forces, the Amanat, FAQ (Baghdad 
Security Plan) spokesperson, MNF-I, MNC-I and the US Embassy. Topics 
included oil, highlighting kerosene and jet fuel shortages; 
inadequate schools; health; and significant service shortages in 
Ghazaliya. A special session was called on January 20 to address 
pharmaceutical procurement. END SUMMARY. 
 
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Not Unlike Previous Meetings: Ministries Detail Issues 
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¶2. The Ministry of Oil (MoO) suggested that "some" entity be 
responsible for monitoring crude shipments to factories.  It was 
previously reported that factories are selling the crude rather than 
using it to operate their facilities because it is more profitable. 
A committee member suggested that the local council be responsible 
for this issue, but no final decision was made. MoO reported that 
fuel had been provided to Sabi' Al Bor, a suburb of Baghdad, also a 
previous committee recommendation. The representative also asked 
MNF-I why repair to the 14" pipeline to Doura was postponed on 
January 15. MNF-I responded that the work will commence on January 
24, but wasn't certain of the cause for delay. Finally, the MoO 
warned of continued jet fuel and kerosene shortages due to 
unreliable electricity at refineries. The MoO suggested purchasing 
generators to operate refineries when necessary. Fuel for the 
generators would still need to be supplied. 
 
¶3. Representatives from the Ministry of Health (MoH) claimed that 
there was a nation-wide shortage of medical equipment like CT scans 
and MRIs. They also complained that there has been no resolution to 
the ongoing shortage of life saving medications. This procurement 
delay was attributed to Khamidiya, the MoH's internal procurement 
process, and the rules and regulations more generally governing 
prescription drug procurement. Chalabi called a special health 
session to be held on Sunday, January 20 to address this issue. The 
committee agreed. The MoH announced that the transfer of the Al 
Karkh Hospital was complete and it will open this week for military 
personnel. 
 
¶4. Dr. Chalabi again rattled out numbers of schools needed 
nation-wide. He said that Baghdad alone needs 1,000 more. Previously 
land rights were an issue, but according to several committee 
members the Amanat, the Provincial Council and the Ministry of 
Education (MoEd) has come to an agreement. Chalabi requested a 
report on the schools throughout Baghdad, highlighting which schools 
need to be rehabilitated and where new schools can be built. ITAO 
Director Tokola reminded the committee that Prime Minister Maliki 
had suggested renting space for schools if construction would take 
long. The committee did not favor the idea of renting, but another 
member suggested the use of trailers. 
 
¶5. The committee reviewed decisions taken to alleviate the potable 
water shortage in Nahrawan, including the use of trucks to deliver 
water to the province. The Amanat said that tankers were not an 
efficient solution to the problem. They questioned who would be 
responsible for the tankers and they pointedly stated that the 
Baghdad Water Authority really should solve this problem. 
 
¶6. Chairman of the Joint Planning Commission, Mr. Riyadh Filaheh 
discussed the inadequate services in Ghazaliya, due largely to 
militia influence. He reported that the JPC was reviewing service 
sector areas by security districts, as designated in the Baghdad 
Security Plan (BSP). The JPC will now review projects by political 
districts to ensure all areas are completely reviewed. Riyadh also 
noted that local councils have significant vacancies which continue 
to hinder local service delivery and infrastructure improvements. He 
said that individuals have volunteered, but were unqualified, 
lacking formal educations or having criminal records. Dr. Chalabi 
encouraged them to appoint local council members as quickly as 
possible. 
 
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Special Session on Health Issues - Sunday, January 20 
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¶7. Dr. Chalabi, Dr. Adel, the Deputy Minister of Finance, the US 
Embassy Health Attach, Dr. Tahseen (the FAQ spokesperson), and two 
other representatives from MoH attended the special session on life 
saving drugs procurement. The DG of pharmaceutical safety joined the 
group at the very end of the meeting. 
 
¶8. The first discussion revolved around the committee's previous 
recommendation to pay doctors overtime for on-call services. The 
Ministry of Finance (MoF) is still holding up this funding. Another 
letter will be sent to the PM urging his interference in this 
matter. 
 
¶9. The group then discussed the best way to purchase 75 life saving 
 
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drugs. They concluded that the current process is too cumbersome and 
will not allow for an immediate resolution to the ongoing shortage. 
The recommendation was adopted to send a letter to DPM Barham Saleh 
to authorize the MoH to purchase life saving drugs from the private 
sector directly, similar to the agreement the Ministry of Trade has 
regarding food purchases. It is not clear how many vendors are 
available to purchase drugs directly from in Iraq, but the IG 
estimated 14 vendors. Chalabi questioned whether or not the MoH's 
reputation with these vendors was strong enough for direct purchase. 
The IG insisted it would work. Chalabi also suggested that the 
current mandatory bidding process could be avoided if the MoH set a 
fixed price and then allowed any vendors to sell the product if they 
meet the MoH set price. 
 
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Comment 
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¶10. After the lengthy holiday, the Services Committee seems to be 
back in the swing of things, business as usual. The Ministry of 
Electricity and the Baghdad Operations Command both were absent from 
the meeting, which Chalabi expressly noted, promising to send a 
letter to General Abhoud and Dr. Karim. An interesting observation 
was Dr. Chalabi's remark that the work of the Services Committee is 
not long-term, as that was the function of the ministries as well as 
the Amanat and Provincial Council.  He emphasized short-term, 
immediate fixes. 
 
 
Crocker