Violence in Iraq cripples $21 billion rebuilding effort

Washington is far behind in plans to pump $21 billion into Iraq's reconstruction, bogged down by an insurgency that has killed hundreds of contractors and diverted funds to security, a US official said on Saturday. "There is a long way to go. We recognise a lot of work needs to be done," said William Taylor, the US official overseeing American rebuilding work in Iraq. He told reporters it was still too early to predict when Iraqis will enjoy adequate electricity and other essential services - more than two years after the US-led invasion. Relentless guerrilla attacks have killed a 295 contractors for US projects alone since reconstruction began, said Theresa Shope, spokeswoman for the Iraq Reconstruction Management Office.
Violence has forced foreign governments and companies to pump money into security, draining budgets and delaying rebuilding ventures after years of wars, United Nations trade sanctions and a state stranglehold on the economy.
Boosting the national electricity grid would help raise the spirits of Iraqis who have spent three straight summers battling stifling heat with erratic power for air conditioners.
But bloodshed has put a US plan to improve the electricity grid on hold, Taylor said.
Trying to transport a huge turbine and 400 tonnes of equipment in a convoy to the northern city of Kirkuk proved too risky in a country where guerrillas can strike on any road, let alone a slow desert route.
"Now we are planning to get it there by September," Taylor said.
The chaos has worsened since a new government promising stability was announced last month.
Insurgents have killed more than 500 people with suicide bombings and other attacks, raising fears that the violence will erupt into a sectarian civil war.
Iraq's Interior Minister Bayan Jabor shed light on the security crisis in Iraq during a news conference on Saturday.
He said Iraqi forces had recently discovered a bomb-making factory where it only took an hour for insurgents to fit explosives in a car.
Taylor said few foreign investors will consider coming to Iraq unless they see signs of economic recovery in the major oil producer.
"Even oil companies, which usually go to dangerous places, are waiting," he said.
American efforts in Iraq have included 57 of 160 planned electricity projects and 47 of 147 planned water treatment projects, he said.
Asked why reporters seldom get access to such successful projects, he said disclosing any plans was too risky.
"I remember nine or 10 months ago we announced a ribbon cutting ceremony at a water treatment plant. The terrorists attacked and 33 children were killed in a school next door," Taylor said.