# Presentation: 152302

## Iraq Weekly Status Report

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**Iraq Weekly Status Report**

**April 19, 2006**

**Bureau of Near Eastern Affairs****US Department of State**

## Table of Contents

**SLIDE**

**SECTION**

- _[Highlights](slide3.xml)_**	**
**1.****  **_[Defeat the Terrorists and Neutralize the Insurgents](slide5.xml)_**	**
**2.  **_[Transition Iraq to Security Self-Reliance](slide6.xml)_ **	**
**3.****  ****	**_[Help Iraqis to Forge a National Compact for Democratic Government](slide8.xml)__[                                   ](slide8.xml)_
**4.****  **_[Help Iraq Build Government Capacity and Provide Essential Services](slide10.xml)__[                                                  ](slide10.xml)_
**5.  **_[Help Iraq Strengthen Its Economy](slide16.xml)__[                     ](slide16.xml)_
**6. **** **_[Help Iraq Strengthen the Rule of Law](slide23.xml)__** and Promote Civil Rights**__                                                  _
**7.  **_[Increase International Support for Iraq](slide24.xml)_
**8.****  **_[Strengthen Public Understanding of Coalition Efforts and Public Isolation of the Insurgents ](slide26.xml)_
_**Special Addendum: Provincial Reconstruction Teams**_
- _[Sources and Contact Information](slide27.xml)_**	**
- _[Notes ](slide34.xml)__[and Source Citations](slide29.xml)_**	**

-  This report provides weekly updates in the eight key areas identified as pillars
-  of US government policy for victory in Iraq.

**3**
**5**
**6**
**8**
**11**
**17**
**26**
**27**
**29**
**31**
**33**
**34**

## Highlights

**Defeat the Terrorists and Neutralize the Insurgents**
-       On April 13, MNF-I announced the killing of a wanted terrorist and known al-Qaeda associate, Rafid Ibrahim Fattah aka Abu Umar al Kurdi.  He died in an early morning raid in Baghdad on March 27.
**2.  Transition Iraq to Security Self-Reliance**
- 	The 3rd Battalion, 1st Brigade, 4th Iraqi Army Division, took control of an area encompassing Balad, Al Duluyah, Yethrib, and numerous smaller villages in Salah Al Din province on April 15 from the 1-8 Combined Arms Battalion of Task Force Band of Brothers.
**Help Iraqis to Forge a National Compact for Democratic Government**
-       A scheduled April 17 session of Iraq's parliament was postponed by the acting speaker on April 16, further delaying the formation of a government.
**4.** 	**Help Iraq Build Government Capacity and Provide Essential Services**
-      Construction was completed two weeks ago on the $3.44 million Hashem Electric Substation project in Jasim Al Khidr.  The Gulf Region Division - Project Contracting Office (GRD-PCO)** **project provides increased power for residents of the Wassit Province.

**Highlights**

## Highlights

-    In early April, the World Bank Social Protection Project was approved, granting $6 million to help accelerate the USAID-sponsored Social Safety Net program currently underway in Iraq.  The funds will be used to build capacity and improve efficiencies within administrative operations in Iraq’s Ministry of Labor and Social Affairs and the Ministry of Finance.
**6. Help Iraq Strengthen the Rule of Law**
-     On April 17, a criminal expert's report was read in court which said Saddam's signatures were on documents connecting him with the killing of 148 Shiite men and teenagers after an attempt on his life in the town of Dujail in 1982.
**7. Increase International Support for Iraq   **
**	**On April 14, the Director-General of the United Nations Educational, Scientific and Cultural Organization (UNESCO) appealed for international support to Iraqi academics and intellectuals and called for measures to protect them from a “heinous campaign of violence.”
**8. Strengthen Public Understanding of Coalition Efforts and Public                                  **
**    ****Isolation of the Insurgents    **
**    **In an interview with WBAP radio in Dallas on April 11, Secretary of Defense Rumsfeld said “the real battle is for the Iraqi people to fashion a government and get it in place and win the confidence of the Iraqi people so that they can proceed forward.  That ultimately will have a favorable effect in repressing the insurgency.”

**Highlights**

## [1.] Defeat the Terrorists and Neutralize the Insurgency 

- _MNF-I Announce Killing of Wanted Terrorist and Al-Qaeda Associate_:
- On April 13, MNF-I announced the killing of a wanted terrorist and known al-Qaeda associate, Rafid Ibrahim Fattah aka Abu Umar al Kurdi.  He died in an early morning raid in Baghdad on March 27.  Officials confirmed he had ties to Jaysh al-Islami, Ansar al Sunnah, Taliban members in Afghanistan, Pakistani-based extremists, and senior Al-Qaeda leaders Osama bin Laden and Ayman al-Zawahiri.  For the last six months he worked as a Jaysh al-Islami cell leader in Baquba.
- _US and Iraqi Forces Complete Operation Cowpens_:
- Soldiers from the 1-8 Combined Arms Battalion along with Iraqi soldiers from the 1st and 3rd Brigades of the 4th Division completed month-long Operation Cowpens on April 14 on the Jabouri Peninsula in Salah al Din province.  The joint force killed seven insurgents and detained 19 throughout the operation.  They captured numerous caches including the following: 44 artillery rounds, six mortars with 40 rounds, 32 57mm and 68mm rockets, one SA-8 and five SA-14 rockets, a 57mm recoilless rifle, a Soviet anti-aircraft artillery gun, AK-47s, light and heavy machine guns, hand grenades, 31 RPG launchers with 57 RPG rounds, bulk explosives, 4,500 feet of detonation cord, electrical ignition devices, cell phones, and rigged radios.

## [2.] Transition to Security Self-Reliance – Iraqi Security Forces

- _Iraqi Army Assumes More Battlespace in Salah Al Din_:
- The 3rd Battalion, 1st Brigade, 4th Iraqi Army Division, took control of an area encompassing Balad, Al Duluyah, Yethrib, and numerous smaller villages in Salah Al Din province on April 15 from the 1-8 Combined Arms Battalion of Task Force Band of Brothers.
- _Iraqi Officers Graduate from Engineer Course_:
- Fourteen Iraqi officers graduated from the seven-week Engineer Officer Basic Course at the Iraqi Army Engineer School in Taji on April 13.  They will return to their engineer units to lead and train their own soldiers in the techniques and procedures they learned in the previous weeks. In addition to engineering skills, the 214 Iraqi cadre with US assistance, focused on teaching the new officers the role and value of the professional NCO in the new Iraqi Army.

## [2.] Transition Iraq to Security Self-Reliance – Iraqi Security Forces

**     **_**Ministry of Interior Forces**_

_**Ministry of Defense Forces**_

- Data as of April 17, 2006 (updated bi-weekly by DOD)

*** Ministry of Interior Forces: Unauthorized absence personnel are included in these numbers**
**** Ministry of Defense Forces: Unauthorized absence personnel are not included in these numbers**
***** Army numbers include Special Operations Forces and Support Forces**
****** Does not include the approximately 144,000 Facilities Protection Service personnel working in 27 **
**ministries**

_**Total Trained & Equipped ISF:**_
**~250,000******

| COMPONENT | TRAINED & EQUIPPED |
| --- | --- |
| POLICE  | ~95,500 |
| HIGHWAY PATROL |  |
| OTHER MOI FORCES | ~39,400 |
| TOTAL | ~134,900* |

| COMPONENT | OPERATIONAL   |
| --- | --- |
| ARMY | ~113,700*** |
| AIR FORCE | ~600 |
| NAVY | ~800 |
| TOTAL | ~115,100** |

**Notes:**
DoD Input to Iraq Weekly Status Report April 17, 2006

## [3.] Help Iraqis to Forge a National Compact for Democratic Government– Developments

- _Shia Still Debating Prime Minister Candidate_:
- A scheduled April 17 session of Iraq's parliament was postponed by the acting speaker. Blocs are now hoping to convene the CoR April 20.  Adnan Pachachi made the decision after Iraq's Shiite Alliance proposed a new nominee for Prime Minister but said it opposed the main Sunni Arab grouping's candidate for parliamentary speaker.  The United Iraqi Alliance (UIA) is pressing for a decision on Ja’fari despite his resistance to step aside.
- _Sectarian Rifts in Government Formation_:
-  Former Premier Allawi made a bid for one of two vice president posts, angering the main Sunni grouping. Tawafuq Rassim al-Awadi, a senior leader with Allawi's group, said the Sunnis had reservations about Allawi's candidacy because "they say the two vice presidencies are meant for Shiite and Sunni candidates.”  Awadi responded by saying, "We do not agree with such sectarian sharing. Nothing in the constitution says that the posts should be shared like this.  We are Iraq, not Lebanon.”  The Sunnis are also facing stiff opposition from the Shiite alliance regarding their candidacy for the post of parliament speaker.

## [3.] Help Iraqis to Forge a National Compact for Democratic Government– Developments

_**IECI Official Announced December 15, 2005 Election Results**_**:**

| Political Entity Name | Ballot Number | Total Votes | Governorate Seats | Compensatory Seats | National Seats | Total Seats |
| --- | --- | --- | --- | --- | --- | --- |
| Unified Iraqi Coalition | 555 | 5021137 | 109 | 0 | 19 | 128 |
| Kurdistani Gathering | 730 | 2642172 | 43 | 0 | 10 | 53 |
| Tawafoq Iraqi Front | 618 | 1840216 | 37 | 0 | 7 | 44 |
| National Iraqi List | 731 | 977325 | 21 | 0 | 4 | 25 |
| Hewar National Iraqi Front | 667 | 499963 | 9 | 0 | 2 | 11 |
| Islamic Union of Kurdistan | 561 | 157688 | 4 | 0 | 1 | 5 |
| Liberation and Reconciliation Gathering | 516 | 129847 | 3 | 0 | 0 | 3 |
| Mithal Al Aloosi List for Iraqi Nation | 620 | 32245 | 1 | 0 | 0 | 1 |
| Iraqi Turkoman Front | 630 | 87993 | 1 | 0 | 0 | 1 |
| Progressives | 631 | 145028 | 1 | 0 | 1 | 2 |
| Al Ezediah Movement for Progressing and Reform | 668 | 21908 | 1 | 0 | 0 | 1 |
| Al Rafedain List | 740 | 47263 | 0 | 1 | 0 | 1 |
| Total |  |  | 230 | 1 | 44 | 275 |

## [3.] Help Iraqis to Forge a National Compact for Democratic Government - Iraqi Transitional Government

**Jalal Talabani**

**President**

**[3.] Help Iraqis to Forge a National Compact for Democratic Government** - **Iraqi Transitional Government**

- (F) = Female

## [4.] Help Iraq Build Government Capacity and Provide Essential Services –Financials from Iraq Relief and Reconstruction Fund (IRRF) 1 and IRRF 2

**[4.] Help Iraq Build Government Capacity and Provide Essential Services –****Financials from**** ****Iraq Relief and Reconstruction Fund (IRRF) 1 and IRRF 2**

**Apportioned**

## [4.] Help Iraq Build Government Capacity and Provide Essential Services – Electricity Overview 

- Electricity availability in Baghdad increased in the last week (11-17 April 2006) with an average of 4.1 hours per day.  Levels continue to be low with seasonal maintenance at area plants and higher than usual demand.
- Nationwide average electricity availability increased slightly to 10.9 hours per day.
- Electricity output for April 2006 is 6 percent higher than it was for the same period in April 2005.

**[4.] Help Iraq Build Government Capacity and Provide Essential Services – ****Electricity Overview **

**Notes:**
POC Tom Gramaglia, (202) 736-4065

The chart shows average daily power production in megawatt hours (MWh).  120,000 MWh goal equates to 20 hours at 6000 MW average supplied load or 24 hours at 5000 MW average supply load.  Currently supplies are not much improved over last year when judged by hours of power, but this is due in part to an influx of new appliances.  This has dramatically altered demand and diluted the effect of increased generation capacity on actual results.

## Electricity:
Construction was completed two weeks ago on the $3.44 million Hasheme Substation project in Jasim Al Khidr. The Gulf Region Division - Project Contracting Office (GRD-PCO) project required the design and construction of a substation and now provides increased power for residents of Wassit Province.
Construction was completed on a $2.6 million GRD-PCO project rebuilding the Asre Quarter Electrical Network in Diwaniyah on April 1.  The project required the installation of new overhead lines, steel power poles, and transformer kiosks.  The project will provide electrical power distribution to approximately 1,600 households in Qadissiyah Province.

Public Health and Healthcare:
A USAID-supported subregional coordination meeting on Avian Influenza (AI) hosted by WHO and FAO was held April 12-13 in Ankara, Turkey.  Technical, working-level delegations from Armenia, Azerbaijan, Georgia, Iran, Iraq, Syria and Turkey focused on promoting cross-border collaboration, information sharing and coordination of AI-related activities.  Follow-up coordination among neighboring countries on surveillance, sharing of samples of H5N1 and monitoring of migratory birds and cross-border trade of poultry and poultry products is anticipated.

- Construction was completed two weeks ago on the $3.44 million Hasheme Substation project in Jasim Al Khidr. The Gulf Region Division - Project Contracting Office (GRD-PCO)** **project required the design and construction of a substation and now provides increased power for residents of Wassit Province.
- Construction was completed on a $2.6 million GRD-PCO project rebuilding the Asre Quarter Electrical Network in Diwaniyah on April 1.  The project required the installation of new overhead lines, steel power poles, and transformer kiosks.  The project will provide electrical power distribution to approximately 1,600 households in Qadissiyah Province.
- _Public Health and Healthcare_:
- A USAID-supported subregional coordination meeting on Avian Influenza (AI) hosted by WHO and FAO was held April 12-13 in Ankara, Turkey.  Technical, working-level delegations from Armenia, Azerbaijan, Georgia, Iran, Iraq, Syria and Turkey focused on promoting cross-border collaboration, information sharing and coordination of AI-related activities.  Follow-up coordination among neighboring countries on surveillance, sharing of samples of H5N1 and monitoring of migratory birds and cross-border trade of poultry and poultry products is anticipated.

**[4.] Help Iraq Build Government Capacity and Provide Essential Services – ****Electricity, Public Health, and Healthcare**

**Notes:**
Electricity:
USACE PCO Weekly April 13
USACE Daily April 18

## Water and Sanitation:
Construction was completed on two GRD-PCO sewer projects in Adhamiyah, Baghdad Province, on April 7.  The Mahalla 317 project cost $537,000 and the Mahalla 351 project cost $727,000.  The Mahalla projects built two sewage conveyance pipe systems by installing a combined seven kilometers of sewer pipe. The projects will benefit more than 70,000 residents in the Adhamiyah area. 
Construction is complete on two GRD-PCO water projects in Sadr City, Baghdad Province.  The projects reconstructed the potable water network by installing 8 kilometers of pipe forming a potable water conveyance system.  Construction also included water service connections, shut-off valves, fire hydrants and associated facilities.  The completed projects will benefit more than 100,000 area residents.

- Construction was completed on two GRD-PCO sewer projects in Adhamiyah, Baghdad Province, on April 7.  The Mahalla 317 project cost $537,000 and the Mahalla 351 project cost $727,000.  The Mahalla projects built two sewage conveyance pipe systems by installing a combined seven kilometers of sewer pipe. The projects will benefit more than 70,000 residents in the Adhamiyah area.
- Construction is complete on two GRD-PCO water projects in Sadr City, Baghdad Province.  The projects reconstructed the potable water network by installing 8 kilometers of pipe forming a potable water conveyance system.  Construction also included water service connections, shut-off valves, fire hydrants and associated facilities.  The completed projects will benefit more than 100,000 area residents.

**[4.] Help Iraq Build Government Capacity and Provide Essential Services – ****Water and Sanitation**

**Notes:**
Water and Sanitation:
USACE Daily April 13 
PCO Weekly April 13

## Transportation: 
A $934,000 GRD-PCO road repair project in North Babil, Rashid, Baghdad Province was recently completed.  The project repaired 88 kilometers of road and will increase accessibility and decrease traffic problems.
Ten Iraqi air traffic controllers, who received training from DynCorp, completed testing administered by the Iraqi Civil Aviation Authority (ICAA), needed for their certification.  Medical clearances still need to be completed.

Communications:
Cell phone subscriber levels reached 6.45 million on April 15, an increase of more than 600,000 since mid-March.
The telecommunications regulator, the National Communications and Media Commission, is scheduled to conduct auctions of two national Wireless Local Loop (WLL) licenses in May.  The WLL licenses complement the three national mobile licenses, which the NCMC is currently re-competing. 

- A $934,000 GRD-PCO road repair project in North Babil, Rashid, Baghdad Province was recently completed.  The project repaired 88 kilometers of road and will increase accessibility and decrease traffic problems.
- Ten Iraqi air traffic controllers, who received training from DynCorp, completed testing administered by the Iraqi Civil Aviation Authority (ICAA), needed for their certification.  Medical clearances still need to be completed.
- _Communications_:
- Cell phone subscriber levels reached 6.45 million on April 15, an increase of more than 600,000 since mid-March.
- The telecommunications regulator, the National Communications and Media Commission, is scheduled to conduct auctions of two national Wireless Local Loop (WLL) licenses in May.  The WLL licenses complement the three national mobile licenses, which the NCMC is currently re-competing.

**[4.] Help Iraq Build Government Capacity and Provide Essential Services –****Transportation and Communications**

**Notes:**
Transportation:
USACE PCO Weekly April 13 
IRMO Weekly April 11

## Education:
Construction is complete on the GRD-PCO Mustafa primary school renovation project in Sadr City.  The $290,000 project included structural repairs to the building and the installation of a new electrical generator, wall coverings, additional lighting, and ceiling fans.  This renovation benefits approximately 300 children in grades K-6 in the Baghdad Province region.
During March, USAID provided 7,700 teachers with training in the latest teaching techniques.  USAID, in collaboration with the Ministry of Education (MOE), has provided ongoing training for 29,819 secondary school teachers, and computer skills training for 13,740 teachers aside of the 7,700 trained in new teaching techniques.

- Construction is complete on the GRD-PCO Mustafa primary school renovation project in Sadr City.  The $290,000 project included structural repairs to the building and the installation of a new electrical generator, wall coverings, additional lighting, and ceiling fans.  This renovation benefits approximately 300 children in grades K-6 in the Baghdad Province region.
- During March, USAID provided 7,700 teachers with training in the latest teaching techniques.  USAID, in collaboration with the Ministry of Education (MOE), has provided ongoing training for 29,819 secondary school teachers, and computer skills training for 13,740 teachers aside of the 7,700 trained in new teaching techniques.

**[4.] Help Iraq Build Government Capacity and Provide Essential Services – ****Education**

**Notes:**
Education:
USACE PCO Weekly April 13
USAID Weekly Update April 14

Capacity Building:
USAID Weekly Report- Emailed by Thomas Devine

## [5.] Help Iraq Strengthen Its Economy – Oil Update and Job Creation 

- _Oil Update_:
- Crude oil prices in world markets for the week ending March 31 closed with the following prices:
- Basrah Light at $62.18/barrel     	– Dated Brent at $69.61/barrel
- WTI Cushing at $68.92/barrel   	– Oman/Dubai at $63.24/barrel
- Kirkuk Crude at $63.34/barrel
- _Employment Update_:
- The following chart shows the number of Iraqis employed by USG-administered projects:

**Data as of April 17**

-   CERP numbers have not been updated recently and PCO will be reporting on a bi-weekly basis.
-   USAID continues to update weekly.

- (Project and Contracting Office)

- (Accelerated Iraqi Reconstruction Program)

- (Military Construction)

- (Commanders' Emergency Response Program)

**Notes:**
Oil Prices:
Oil Prices are sourced from Bloomberg
Employment Update:
Information regarding the Employment Update was sourced from the IRMO Weekly Report – March 21, 2006 
CERP has not reported figures for some time.  Until they report accurate data, the number will remain at 0.
PCO will be reporting on a bi-weekly basis.  

## [5.] Help Iraq Strengthen Its Economy - Banking Sector

**[5.] Help Iraq Strengthen Its Economy - ****Banking Sector**

**1474/1**

**1475/1**

- _Central Bank’s US Dollar (USD) Currency Auction_:
- The following table shows volume sold and exchange rates for USD in the Iraqi currency auction since November 15, 2005.  The dinar remained stable against the dollar this week, ending at 1,479 dinars per USD on April 17.

**1483/1**

**1477/1**

-                     The New Iraqi Dinar (NID) exchange rate line is calculated as a weekly weighted average (**NID/USD**)

**1475/1**

**1478/1**

**1476/1**

**1481/1**

**1477/1**

**1479/1**

## Trading of Iraqi Bonds on the International Secondary Bond Market:
The following table shows the daily bond resale price and yield on Iraqi bonds issued January 20.  The bonds were originally issued to about two-thirds of Iraq’s commercial creditors as part of a debt exchange arrangement at Paris Club terms.  Iraq’s commercial debt was approximately $22 billion before the debt-swap arrangement.  The bonds, which are not yet rated, will mature in 2028.  The bonds are currently trading at just under their original asking price. The drop in price and accompanying increase in yield around the end of February reflect increased concerns following the February 22 bombing of the Al Askari Mosque in Samarra.  The bonds’ current yield of 9.21 percent remains one of the highest in the world for sovereign debt instruments.

- The following table shows the daily bond resale price and yield on Iraqi bonds issued January 20.  The bonds were originally issued to about two-thirds of Iraq’s commercial creditors as part of a debt exchange arrangement at Paris Club terms.  Iraq’s commercial debt was approximately $22 billion before the debt-swap arrangement.  The bonds, which are not yet rated, will mature in 2028.  The bonds are currently trading at just under their original asking price. The drop in price and accompanying increase in yield around the end of February reflect increased concerns following the February 22 bombing of the Al Askari Mosque in Samarra.  The bonds’ current yield of 9.21 percent remains one of the highest in the world for sovereign debt instruments.

**[5.] Help Iraq Strengthen Its Economy – ****Securities Markets**

- Trading High = $73.98 (January 24)
- Trading Low = $67.34 (March 28)

**Notes:**
Bond Prices:
Iraqi Bond Prices are sourced from Bloomberg

## Social Safety Net:
At the latest meeting of the Iraqi Strategic Review Board (ISRB), approval was given to proceed with a World Bank Social Protection Project to allocate funds for further improvements to the country’s Social Safety Net and pension reform programs.  The project involves a $6 million World Bank grant that will help to accelerate the USAID sponsored Social Safety Net program currently underway. The funds will be used to build capacity within the Ministry of Labor and Social Affairs and the Ministry of Finance and to improve efficiencies within administrative operations.  More specifically, this will include expanding the use of the IT system responsible for registration of claimants, calculation of benefits, and creation of payment records.
The World Bank funds will also allow further assessments and financial analyses to take place on existing pension schemes, as well as new proposals that are being developed for reforms to the pension system.  These represent major issues that need to be addressed if the full economic, financial and social impacts of current and alternative strategies are to be properly understood and managed.

- At the latest meeting of the Iraqi Strategic Review Board (ISRB), approval was given to proceed with a World Bank Social Protection Project to allocate funds for further improvements to the country’s Social Safety Net and pension reform programs.  The project involves a $6 million World Bank grant that will help to accelerate the USAID sponsored Social Safety Net program currently underway. The funds will be used to build capacity within the Ministry of Labor and Social Affairs and the Ministry of Finance and to improve efficiencies within administrative operations.  More specifically, this will include expanding the use of the IT system responsible for registration of claimants, calculation of benefits, and creation of payment records.
- The World Bank funds will also allow further assessments and financial analyses to take place on existing pension schemes, as well as new proposals that are being developed for reforms to the pension system.  These represent major issues that need to be addressed if the full economic, financial and social impacts of current and alternative strategies are to be properly understood and managed.

**[5.] Help Iraq Strengthen Its Economy – ****Poverty Reduction**

**Notes:**
USAID Iraq Weekly Update – April 14

## Agriculture Reconstruction and Development Program for Iraq:
The Agriculture Reconstruction and Development Program for Iraq (ARDI) program is implementing a Monitoring and Evaluation unit to capture, analyze and report on ARDI’s immediate and long-term impact.  Field survey teams will measure the impact as appropriate in terms of beneficiary population, impacted land area, improved infrastructure and value contributions to the agricultural economy of Iraq.
In early April, 13 Iraqi mechanics attended a training course in Turkey, as part of ARDI’s effort to increase the capability of Iraqi mechanics to repair agricultural machinery.  A shortage of properly working machinery in Iraq is one obstacle that prevents farmers from increasing their crop production and incomes.
Recent terror attacks in Iraq are not the main cause of the Iraqi Stock Exchange’s (ISX) decline.  The ISX lost 39 percent of its market capitalization prior to the Samarra mosque bombing and has fallen an additional 11 percent since then.  Many regional stock exchanges also suffered substantial declines in this period.  The ISX enjoyed a large run-up in share prices from October 19, 2005 to November 7, 2005.  On October 19, 2005, banking sector stocks increased their share of the ISX’s total market capitalization from 65 percent to 78 percent at their peak (now at 70 percent).  The ISX’s decline is most likely caused by an overheated market correcting itself.  This hypothesis is supported by the fact that total market capitalization is down only 12 percent from its level of October 17, 2005, the last trading day prior to the banking sector share infusion.

- The Agriculture Reconstruction and Development Program for Iraq (ARDI) program is implementing a Monitoring and Evaluation unit to capture, analyze and report on ARDI’s immediate and long-term impact.  Field survey teams will measure the impact as appropriate in terms of beneficiary population, impacted land area, improved infrastructure and value contributions to the agricultural economy of Iraq.
- In early April, 13 Iraqi mechanics attended a training course in Turkey, as part of ARDI’s effort to increase the capability of Iraqi mechanics to repair agricultural machinery.  A shortage of properly working machinery in Iraq is one obstacle that prevents farmers from increasing their crop production and incomes.
- Recent terror attacks in Iraq are not the main cause of the Iraqi Stock Exchange’s (ISX) decline.  The ISX lost 39 percent of its market capitalization prior to the Samarra mosque bombing and has fallen an additional 11 percent since then.  Many regional stock exchanges also suffered substantial declines in this period.  The ISX enjoyed a large run-up in share prices from October 19, 2005 to November 7, 2005.  On October 19, 2005, banking sector stocks increased their share of the ISX’s total market capitalization from 65 percent to 78 percent at their peak (now at 70 percent).  The ISX’s decline is most likely caused by an overheated market correcting itself.  This hypothesis is supported by the fact that total market capitalization is down only 12 percent from its level of October 17, 2005, the last trading day prior to the banking sector share infusion.

**[5.] Help Iraq Strengthen Its Economy – ****Market Economy Transition**

**Notes:**
USAID Iraq Weekly Update – April 14

## [5.0] Help Iraq Build Government Capacity and Provide Essential Services – Crude Oil Production

-  Weekly Average (Apr 10-16) of 2.05 Million Barrels Per Day (MBPD)

**[5.0] Help Iraq Build Government Capacity and Provide Essential Services –**** ****Crude Oil Production**

**Iraqi Oil Ministry Goal:  2.5 MBPD**

**Notes:**
POC Matthew Amitrano, (202) 647-5690

Iraq Petroleum Sector Facts
There are three main refineries in Iraq: Bayji (North), Daura (Baghdad), and Basra (South).
There are several minor refineries (known as topping plants) dotted through the country: Kisik (Mosul), Qarrayah, Haditha, Tikrit, Nassiriyah, Maysan (Amarah), and Samawah.  These primarily produce asphalt and low grade kerosene and diesel.
The majority of Iraq’s oil infrastructure is antiquated and in need of modernization.
Domestically produced refined products (gasoline/benzene, diesel, kerosene, LPG) currently do not meet domestic demand because of sabotage to the pipeline infrastructure.  Iraq will be dependent upon imports until the insurgents cease operations against oil pipelines.

## [5.0] Help Iraq Build Government Capacity and Provide Essential Services – Crude Oil Export

- 2005 Revenue Estimate:                 $23.5 Billion
- 2006 Revenue Estimate:	                 $7.6 Billion (Year to Date)

**Notes:**
2003 = $5.08 billion
2004 = $17.5 billion

Projected revenue implies if the current export rate held for the entire month.

Al-Faw Terminals: Al-Basra Oil Terminal (ABOT) and Khor al-Amaya Oil Terminal (KAOT)
Production and export are at normal rates.
Iraq-Turkey Pipeline (IT)
The IT line works intermittently since the Iraqis sell the crude oil in lumps.
Iraq-Syria-Lebanon Pipeline (ISLP)
This line has been closed since 2003.
Discussions were held between Iraqi and Syrian government officials, but no timetable has been set up to reopen this line.
In the meantime, Iraq has set up a barter arrangement in which it exports 14KBPD from the Ayn Zalah field to Syria for refined products and electrical production.
Iraq Pipeline through Saudi Arabia (IPSA)
This line has been closed since 1991.  There are no plans to reopen this line.

## [5.0] Help Iraq Build Government Capacity and Provide Essential Services – Total Critical Refined Product Supplies

**Note: This is a daily average for the week of April 10-16**

**[5.0] Help Iraq Build Government Capacity and Provide Essential Services ****– ****Total Critical Refined Product Supplies**

**Notes:**
POC Matthew Amitrano, (202) 647-5690

Goals set by the State Oil Marketing Organization (SOMO), a company owned by the Ministry of Oil (MOO).

## [5.0] Help Iraq Build Government Capacity and Provide Essential Services – National Stock Levels

**[5.0] Help Iraq Build Government Capacity and Provide Essential Services ****– ****National Stock Levels**

**Notes:**
POC Matthew Amitrano, (202) 647-5690

## [6.0] Help Iraq Strengthen the Rule of Law and Promote Civil Rights– Iraqi Judicial System

- _Saddam's Handwriting Scrutinized In Court_:
- Saddam Hussein and seven co-defendants returned to court on April 17 and proceedings focused on attempts to prove the ousted Iraqi president signed documents implicating him in crimes against humanity.  A handwriting expert's report was read in court which said Saddam's signatures were on documents connecting him with the killing of 148 Shiite men and teenagers after an attempt on his life in the town of Dujail in 1982.  Saddam has said he ordered the trial which led to the execution of the men, saying that any president who escaped an assassination attempt was entitled to crack down.

**Notes:**
Mussab al-Khairalla, Saddam's handwriting scrutinized in court, Reuters News April 17, 2006

## [7.] Increase International Support for Iraq – Developments

- _UNESCO Director Pleas for Academics’ Protection_:
- On April 14, the Director-General of the United Nations Educational, Scientific and Cultural Organization (UNESCO) appealed for international support to Iraqi academics and intellectuals and called for measures to protect them from a “heinous campaign of violence.”  He stated many academics are prevented from carrying out their work and are considering leaving the country at a time when their contribution to the reconstruction of Iraq is badly needed.
- _Mubarak Clarifies Previous Week’s Statement_:
- Egyptian President Hosni Mubarak said in an interview that he did not mean to  insult Shiite Muslims nor doubt their national allegiance when he accused them      last week of being more loyal to Iran than to Iraq. Mubarak told the leading Cairo weekly  newspaper that he only wanted to warn of threats to Iraq's unity and sovereignty.  He said Egypt does not differentiate between Sunnis, Shiites or Kurds in Iraq.  "All are Iraqis and all are our brothers," he said.

## 29 Countries and NATO*

- (including US)
**Support Iraqi Stability Operations**

**26 Countries with forces in Iraq (in addition to US)**

**TOTAL ~ 20,000 Forces**

- Data as of April 17, 2006

**[7.] Increase International Support for Iraq – ****Contributors to Iraqi Stability Operations**

**Albania**
**Armenia**
**Australia**
**Azerbaijan**
**Bosnia-Herzegovina**
**Czech Republic**
**Denmark**

**Romania**
**Slovakia**
**South Korea**
**Ukraine**
**UK**

**El Salvador**
**Estonia**
**Georgia**
**Italy**
**Japan**
**Kazakhstan**
**Latvia**

**Lithuania**
**Macedonia**
**Moldova**
**Mongolia**
**Netherlands**
**Poland**
**Portugal**

***Note: Fiji participating as a part of the UN mission in Iraq.  **

- *29 includes the 26 countries listed above, the US, Fiji, and Singapore.

**Notes:**
Source:  DOD Input to Weekly Status Report Report April 17,  updated bi-weekly.

## [8.0] Strengthen Public Understanding of Coalition Efforts and Public Isolation of the Insurgents – Developments

- _Strategic Communications_:

**[8.0] Strengthen Public Understanding of Coalition Efforts and Public Isolation of the Insurgents – ****Developments**

- In a press release given by Secretary of State Rice and Iraq’s Ambassador to the US on April 11, Ambassador Saudmaid’ie said “I am honored and delighted to be here today as the first ambassador for the state of Iraq in 15 years and the first ambassador since we got rid of the regime of Saddam Hussein with your help.  I am looking forward enormously to work with you, to work with the American Administration and all branches of government and the public opinion in the United States to bring a better understanding of the aspirations of the people of Iraq for democracy, freedom, and a better life, which we are determined we will achieve with the help of our friends.”
- The top United Nations envoy in Iraq, Special Representative Ashraf Qazi called for the speediest possible formation of a government of national unity to prevent rising sectarian tensions after yesterday’s prolonged violence in the Adhamiya quarter of Baghdad.  In a statement issued by the UN Assistance Mission in Iraq (UNAMI), Qazi called on all religious, political and community leaders to ensure restraint by their followers and to refrain from sheltering those who have engaged in criminal behavior.  ”The incident [in Adhamiya] again underscored the importance of forming a government of national unity as quickly as possible,” he said. “The protracted negotiations between the political parties required a resolution at the earliest opportunity.”** **

**Notes:**
Secretary Rice and Ambassador Saudmaid’ie, Press Release, April 11, Daily Iraq Message, April 12
“Iraq: UN envoy urges formation of national unity government to end violence,” United Nations News Service, April 18

## [8.0] Strengthen Public Understanding of Coalition Efforts and Public Isolation of the Insurgents – Developments

- _Strategic Communications_:

- In an interview with WBAP radio in Dallas on April 11, Secretary of Defense Rumsfeld said “the real battle is for the Iraqi people to fashion a government and get it in place and win the confidence of the Iraqi people so that they can proceed forward.  That ultimately will have a favorable effect in repressing the insurgency.” ** **When asked later in the interview about the possible consequences of troop withdrawal now, Rumsfeld said “I think the consequences would be dire.  The dangers to the free world and to free people would be just enormous.”** **

**[8.0] Strengthen Public Understanding of Coalition Efforts and Public Isolation of the Insurgents – ****Developments**

**Notes:**
“Nations Must Continue Security in Iraq, Diplomacy in Iran,” Department of State Washington File, April 14

## Special Addendum: Provincial Reconstruction Teams

- To assist Iraq’s provincial governments with developing a transparent and sustained capability to govern, promoting increased security and rule of law, promoting political and economic development, and providing provincial administration necessary to meet the basic needs of the population.
- _Provincial Reconstruction Team Concept_:
- The PRT concept was developed to improve on Regional Embassy Office (REO) and Provincial Support Team (PST) programs.  The PRTs are a civil-military operation led by the civilians with extensive support from U.S. and Coalition Forces.  The PRTs are an integrated capacity-building effort built around Local Governance Program (LGP) and include support from other agencies to cover all key capacity development needs.

**Special Addendum: Provincial Reconstruction Teams**

## Special Addendum: Provincial Reconstruction Teams 

- _PRT Operations Update_:
- PRTs have been established in Ninawa, Babil and Kirkuk.  The Baghdad PRT was inaugurated on March 26. The teams are comprised of representatives from the U.S. Department of State, United States Agency for International Development, Multi-National Force – Iraq, Department of Justice, Gulf Regional Division of the Army Corps of Engineers, Multi-National Corps – Iraq and Coalition partners.  All have strong training, mentoring and developmental capability, and they become even more effective by working together.  The proposed roll-out plan will have an eventual eight US-led PRTs, four Coalition-led PRTs and six Iraqi teams.  “The improvement of the provincial governments’ capacity to improve the lives of the Iraqi people is not only important to the United States and to the Iraqis, but to the world, as well,” said U.S. Ambassador to Iraq Zalmay Khalilzad.  “A successful Iraq will reshape the future of the Middle East, and the future of the Middle East will reshape the future of the world.  This is why the PRTs are not strictly an American venture.”
- Interested in working in Iraq?
-  Please visit _[http://](http://careers.state.gov/opportunities/iraq/index.html)__[careers.state.gov/opportunities/iraq/index.html](http://careers.state.gov/opportunities/iraq/index.html)_ for a list of available positions

## Iraq Weekly Status – General Information

- This brief draws from multiple sources.  References are cited on the following pages.
- Please forward all questions and/or comments to _[NEA-I-IPOG-DL@state.gov](mailto:NEA-I-IPOG-DL@state.gov)_

## Notes and Source Citations (1 of 4)

**Slide 5:**
- Press Release - MNF-I: April 14, 2006-Release A060414 (http://www.mnf-iraq.com/Daily/Apr/060414.htm)
- Press Release - MNF-I: April 16, 2006-Release A060416g
- (http://www.mnf-iraq.com/Releases/Apr/060416g.htm)
**Slide 6**
- Press Release – Department of Defense, Defend America: April 18, 2006-Release  A041806tj2 (http://www.defendamerica.mil/articles/apr2006/a041806tj2.html)
- The Advisor – MNSTC-I: April 15, 2006
**Slide 7:**
- DoD Input to Iraq Weekly Status Report 17 April 06
**Slide 8:**
- http://today.reuters.com/news/articlenews.aspx?type=topNews&storyid=2006-04-16T160522Z_01_GEO222768_RTRUKOC_0_US-IRAQ.xmlhttp://hosted.ap.org/dynamic/stories/I/IRAQ?SITE=KLIF&SECTION=HOME&TEMPLATE=DEFAULT
- http://news.yahoo.com/s/afp/20060418/wl_mideast_afp/iraqpolitics_060418123042
**Slide 9:**
- IECI Website http://www.ieciraq.org/English/Frameset_english.htm
**Slide 10**
- NEA Political Section, NEA-I-POL-DL@state.gov
**Slide 11:**
- The IRRF Financial Chart is sourced from the April 18, 2006 IRMO Weekly Status Report
**Slide 12:**
- The chart shows average daily power production in megawatt hours (MWh).  120,000 MWh goal equates to 20 hours at 6000 MW average supplied load or 24 hours at 5000 MW average supply load.  Currently supplies are not much improved over last year when judged by hours of power, but this is due in part to an influx of new appliances.  This has dramatically altered demand and diluted the effect of increased generation capacity on actual results.

## Notes and Source Citations (2 of 4)

**Slide 13:**
- _Electricity_:
- USACE PCO Weekly April 13
- USACE Daily April 18
- _Healthcare_:
- NEA-I-ECON@state.gov
**Slide 14:**
- _Water and Sanitation:_
- USACE Daily April 13
- PCO Weekly April 13
**Slide 15:**
- _Transportation_:
- USACE PCO Weekly April 13
- IRMO Weekly April 11
- _Communications_:
- NEA-I-ECON@state.gov
**Slide 16:**
- _Education_:
- USACE PCO Weekly April 13
- USAID Weekly Update April 14
**Slide 17:**
- _Oil Prices_:
- Oil Prices are sourced from Bloomberg
- _Employment Update_:
- Information regarding the Employment Update was sourced from the IRMO Weekly Report – April 18, 2006
- CERP has not reported figures for some time.  Until they report accurate data, the number will remain at 0.
- PCO will be reporting on a bi-weekly basis.

## Notes and Source Citations (3 of 4)

**Slide 18:**
- Information regarding the NID auction was gathered from the Central Bank of Iraq’s website: http://www.cbiraq.org
**Slide 19:**
- _Bond Prices_:
- Iraqi Bond Prices are sourced from Bloomberg
**Slide 20:**
- USAID Iraq Weekly Update – April 14
**Slide 21:**
- USAID Iraq Weekly Update- April 14
**Slide 22:**
- Department of State, NEA-I-ECON, 202-647-9885
**Slide 23:**
- Department of State, NEA-I-ECON, 202-647-9885
**Slide 24:**
- Department of State, NEA-I-ECON, 202-647-9885
**Slide 25:**
- Department of State, NEA-I-ECON, 202-647-9885

## Notes and Source Citations (4 of 4)

**Slide 26:**
- Mussab al-Khairalla, _Saddam's handwriting scrutinized in court_, Reuters News April 17, 2006
**Slide 27:**
- http://www.un.org/apps/news/story.asp?NewsID=18152&Cr=Iraq&Cr1=
- http://hosted.ap.org/dynamic/stories/E/EGYPT_MUBARAK?SITE=MAHYC&SECTION=HOME&TEMPLATE=DEFAULT
**Slide 28:**
- DOD Input to Weekly Status Report 17 April 06-Report is updated bi-weekly.
**Slide 29:**
- Secretary Rice and Ambassador Saudmaid’ie, Press Release, April 11, Daily Iraq Message, April 12
- “Iraq: UN envoy urges formation of national unity government to end violence,” United Nations News Service, April 18
**Slide 30:**
- Nations Must Continue Security in Iraq, Diplomacy in Iran,” Department of State Washington File, April 14
**Slide 31:**
- US State Department Iraq Desk, NEA-I-POL-DL@state.gov
**Slide 32**:
- US State Department Iraq Desk, NEA-I-POL-DL@state.gov