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Friday, July 28, 2006

Your tax dollars at work watch for Friday, July 28, 2006
Posted by Jill | 7:03 AM
Remember all those much-touted hospitals and schools in Iraq so beloved of wingnut radio gasbags as they try vainly to justify the Administration's war? Remember all the wonderful projects to improve the lives of Iraqis?

Not so fast. Just as with Hurricane Katrina reconstruction, these projects are rife with delays and cost overruns:

The United States is dropping Bechtel, the American construction giant, from a project to build a high-tech children’s hospital in the southern Iraqi city of Basra after the project fell nearly a year behind schedule and exceeded its expected cost by as much as 150 percent.

Called the Basra Children’s Hospital, the project has been consistently championed by the first lady, Laura Bush, and Secretary of State Condoleezza Rice, and was designed to house sophisticated equipment for treating childhood cancer.

Now it becomes the latest in a series of American taxpayer-financed health projects in Iraq to face overruns, delays and cancellations. Earlier this year, the Army Corps of Engineers canceled more than $300 million in contracts held by Parsons, another American contractor, to build and refurbish hospitals and clinics across Iraq.

American and Iraqi government officials described the move to drop Bechtel in interviews on Thursday, and Ammar al-Saffar, a deputy health minister in Baghdad, allowed a reporter to take notes on briefing papers on the subject he said he had recently been given by the State Department.

The United States will “disengage Bechtel and transfer program and project management” to the Army Corps of Engineers, the papers say. Bechtel, the State Department agency in charge of the work and the Health Department in Basra all confirmed that the company would be leaving the project, but the reasons are a matter of deep disagreement.

The Iraqis assert that management blunders by the company have caused the project to teeter on the verge of collapse; the American government says Bechtel did the best it could as it faced everything from worsening security to difficult soil conditions.

A senior company official said Thursday that for its part Bechtel recommended that the work be mothballed and in essence volunteered to leave the project because the security problems had become intolerable. He also disputed the American government’s calculation of cost overruns, saying that accounting rules had recently been changed in a way that inflated the figures.

The official, Cliff Mumm, who is president of the Bechtel infrastructure division, predicted that the project would fail if the government pressed ahead, as the briefing papers indicate that it would. Because of the rise of sectarian militias in southern Iraq, Mr. Mumm said, “it is not a good use of the government’s money” to try to finish the project.

“And we do not think it can be finished,” he said.

Beyond the consequences for health care in southern Iraq, abandoning the project could be tricky politically because of the high-profile support from Mrs. Bush and Ms Rice. Congress allocated $50 million to the Basra Children’s Hospital in late 2003 as part of an $18.4 billion reconstruction package for Iraq. Now the government estimates that the cost overruns are so great that the project will cost as much as $120 million to complete and will not be finished before September 2007, nearly a year later than planned. Some other estimates put the overruns even higher.


This debacle is a question of "name your poison." Either Bechtel is guilty of colossal mismanagement of the project, and therefore wasting the huge amounts of government cash it was given without any accountability required, or the situation on the ground in Iraq is so completely FUBAR that nothing can be accomplished in terms of rebuilding. Either way, it's time, particularly now that George Bush is reviving his Social Security privatization plan, to ask how much money we want to continue to shovel into the black hole that he has created in Iraq.
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