VZCZCXRO7891
PP RUEHBC RUEHDA RUEHDE RUEHIHL RUEHKUK
DE RUEHGB #0675/01 0670408
ZNR UUUUU ZZH
P 070408Z MAR 08
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC PRIORITY 6101
INFO RUCNRAQ/IRAQ COLLECTIVE

UNCLAS SECTION 01 OF 03 BAGHDAD 000675 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EAID PREL IZ REL UK
SUBJECT: Chalabi's Provision of Services Committee - March 4 
 
 
¶1. SUMMARY: Following a February 29 discussion at the I-ESC, Dr. 
Chalabi convened a special meeting to discuss water availability in 
Baghdad. Participants included representatives from the National 
Plastics Industry (NPI), the Ministry of Municipalities and Public 
Works (MMPW), the Baghdad Water Authority (BWA) - a division of the 
Amanat, the Ministry of Electricity (MoE) and US Embassy staff, 
including ITAO Water. Those present concluded that delivering water 
by tanker truck throughout the summer to neighborhoods suffering 
from water scarcity was the best short-term solution. No medium or 
long term solutions were discussed.  There was, however, a general 
consensus that as long as there is as much electricity for the 
summer as predicted, most of Baghdad will receive adequate water. 
The concern was for specific neighborhoods. 
 
¶2. Following the water session, the Provision of Services Committee 
met. The committee discussed transportation needs in Baghdad which 
includes planners, land for depots, buses and fuel for buses. The 
Deputy Minister for Transportation also urged that a transportation 
pricing review board be developed. The committee then reviewed 
Baghdad Clean-up Days, an ongoing initiative suggested by the Amanat 
to clean the streets of Baghdad. Concluding the meeting, the Deputy 
Minister of Health provided a brief report on health conditions in 
Sabi' al Bor. END SUMMARY. 
 
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Special Session: Water Shortages in Bagdhad 
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¶3. Appearing to stem from a tasking from the February 29 I-ESC 
meeting, Dr. Chalabi convened a special working group to address 
water shortages in Baghdad. (Note: We believe that Dr. Chalabi's 
meeting was in response to the Deputy Prime Minister's request to 
convene a special committee to discuss the quality of water in 
Bagdhad. However, when we probed Dr. Chalabi about why that issue 
was not on the agenda, he said that water quality discussions masked 
the real, larger issue - availability:  "People talk about water 
quality who don't want to answer questions about availability." End 
Note) 
 
¶4. The committee heard first from the National Plastics Industry. 
Company representatives described their limited ability to provide 
potable water, which is a by-product of their manufacturing 
processes. NPI is currently able to produce 6,000 cubic meters of 
potable water per day. Dr. Chalabi grilled NPI on their business 
plan, including their current debt levels and their plan to create 
revenue and profit, but the representatives struggled to provide 
specific answers. They maintained that capacity was limited.Dr. 
Chalabi said he would assist in "finding" a loan to replace obsolete 
pumps. Later in the discussion, Dr. Chalabi suggested that NPI water 
be sent to Nahrawan, an eastern qada of Baghdad. The MMPW said they 
were only capable of tanking 30 trucks per day to Nahrawan, so 
Chalabi suggested contractors. MMPW still seemed reluctant due to 
quality concerns. 
 
¶5. Dr. Chalabi pressed for specific details on the average potable 
water production and what people were actually getting, but the BWA 
was unable to provide that information. The General Director (GD) of 
BWA discussed at length seven ongoing projects which will produce an 
additional 2.8 million cubic meters once completed. The GD 
maintained that projects are hindered due to unreliable electricity, 
despite having their own power lines paid for by the Amanat 
supplemented by back-up generators. Back-up generators when used 
only provide 50% of capacity because they were designed for 
emergency purposes only. Also regarding the generators, fuel 
shortages limit their regular use according to the GD. Dr. Chalabi 
reminded the BWA of their authority to import their own fuel as 
granted by the Prime Minister. The GD estimated that more than 150mw 
were needed. (Note: It was not clear if he meant per project. A time 
frame i.e. 150 mw per day, per hour, was not offered. End Note) The 
GD did; however, note that power failures vary from project to 
project, but he did not offer specifics. 
 
¶6. The MoE retorted that power outages are less frequent than 
claimed. As a result, Dr. Chalabi asked for a report on the power 
outages. 
 
¶7. Approximately 260,000 cubic meters of water are lost per day to 
illegal tapping of the lines. Chalabi estimated that 500,000 
families are deprived as a result. The BWA GD complemented the 
efforts of the FPS (Facility Protection Service, a police force), 
but he said more was needed to reduce this problem. Dr. Chalabi 
requested a memo, detailing the situation, including the specific 
locations where trespassing is a problem. The memo will be sent to 
the BOC for further action.  Committee members agreed that illegal 
tapping that provides drinking water to people who need it is a 
lower policing priority than against farmers who are stealing 
drinking water from the system to irrigate crops.  Part of the 
solution to that problem is to restore the pumping system that 
irrigates fields with river water. 
 
¶8. Dr. Chalabi asserted that there would be an immediate need for 
potable water as the summer approaches. He suggested that tankers be 
used to truck water into severely deprived muhallas or 
 
BAGHDAD 00000675  002 OF 003 
 
 
neighborhoods. Based upon some quick math, Dr. Chalabi noted that 
500 tankers could provide only 10,000 cubic meters of water - 
meeting only 10% of need. Nonetheless, meeting attendees noted that 
it would be logistically challenging to tank more water because of 
the probable shortage of trucks and fuel. UNICEF successfully tanked 
1,000 trucks per day in the past, but they are no longer providing 
this service according to the GD. The BWA volunteered to do a quick 
study conducted by each municipal office on their local water needs. 
The study is to be presented next week. (Note: It was not clear who 
will be briefing the study or when and where the briefing will 
occur. Embassy staff is working to answer these questions. End Note) 
Funding to tank water was briefly mentioned, but no source was 
identified. 
 
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The Provision of Services Committee Follows 
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¶9. Chalabi commenced the meeting by sharing the outcome of the 
previous water session with attendees which included the Ministries 
of Trade, Health, Transportation, Defense and Oil. The Iraqi Red 
Crescent (IRC) was also present. While not in attendance at the 
special water meeting, the IRC added that they are installing 50 
purifying units, or compact units, in various locations across Iraq. 
When questioned by Chalabi, the IRC maintains that the units will be 
powered by already purchased generators and the IRC has the fuel to 
operate the generators. The IRC representative, Dr. Saaid Hakkiasked 
for money from the committee to support its project, but Dr. Chalabi 
did not respond to that request. 
 
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Transportation Drives Topic of Conversation 
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¶10. The Ministry of Transportation (MoTrans) discussed their need 
for additional bus depots, at least one in each province. To date, 
Najaf has given 10 acres of land for a depot and reportedly the 
Prime Minister has allocated emergency, contingency funding for a 
depot in Karbala. The Ministry requests other provinces cooperation, 
particularly Baghdad. Chalabi suggested that the MoTrans draft a 
memo to the Amanat requesting specific pieces of land. Chalabi's 
staff went one step further and suggested a subcommittee to work 
with the Amanat and the MoTrans. (Note: According to the MoTrans 
representative, under the former regime, the MoTrans reined a 
significant amount of authority to claim property as needed. This 
concept sounded like eminent domain, but in terms of seizing 
government property, not private property. End Note) 
 
¶11. The MoTrans also discussed the need to review transportation 
costs, i.e. bus ticket prices, airfare, etc. He noted that Iraqi 
Airways is facing significant difficulties due to jet fuel shortage. 
The MoTrans sought the authority from Dr. Chalabi to confiscate 
vehicles from drivers who were charging illegal fares. Chalabi said 
he could not help with this issue and suggested that the MoTrans 
approach parliament about it. However, he was pessimistic about its 
passage, noting that government confiscation of private property was 
reminiscent of the Saddam era. The MoTrans then suggested that the 
Government of Iraq import cars and provide loans because the 
existing banking system in Iraq is not car loan friendly. There are 
few loans to be had and the ones that do exist charge exorbitant 
interest rates, somewhere between 17-20 percent. Dr. Chalabi acted 
as though he was appalled by the rates (Note: He knows very well 
what they are.  End note.)  and offered to send a memo to the Prime 
Minister informing him that the current banking system in Iraq does 
not facilitate reconstruction and development due to high interest 
rates and bureaucracy. He said that he is seeking a study of the 
current banking system. 
 
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Baghdad Clean-Up Days: A Bigger Mess for the Amanat? 
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¶12. An idea proposed by the Amanat, "Baghdad Clean-Up Days," is 
reportedly lacking assistance from the Amanat's own staff. The 
MoTrans, Ministry of Trade (MoT) and the Ministry of Construction 
and Housing (MoCH) all complained that the Amanat was absent during 
these monthly neighborhood cleanings. The committee will send a 
letter to the Prime Minister asking him and/or the respective 
ministries and the Amanat to appoint General Directors to serve on 
an executive planning board to ensure equitable participation. 
 
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Health Check Up 
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¶13. The remaining time of the meeting were devoted to a quick update 
from the Deputy Minister of Health. Because of claims that the 
Mahmoudiya public health clinic (PHC) is sub-par, the committee will 
visit to survey the situation. A report is expected for next week's 
meeting. The Deputy Minister said that an internal committee has 
been created to specifically address the health needs in Sabi' al 
Bor. The ministry also intends to meet with the Karkh Director to 
discuss Sabi' al Bor's health care needs. 
 
BAGHDAD 00000675  003.2 OF 003 
 
 
 
 
Crocker