The oil-for-food program has already spent more than $1 billion in water and sanitation projects in Iraq. Baghdad estimates that providing adequate sanitation and water resources would cost an additional $328 million. However, such an allocation is more than possible given the billions of dollars in oil revenue Baghdad receives each year under sanctions, and the additional $1 billion dollars per year it receives from transport of smuggled oil on the Syrian pipeline alone. Indeed, if Saddam Hussein's government has managed to spend more than $2 billion for new presidential palaces since the end of the Persian Gulf War, and offer to donate nearly $1 billion to support the Palestinian intifada, there is no reason to blame sanctions for any degradation in water and sanitation systems.