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USAID/Iraq 

Operational Plan 

FY 2006 

June 12, 2006 
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Please Note: 

The attached RESULTS INFORMATION is from the FY 2006 Operational Plan and was assembled 

and analyzed by the country or USAID operating unit identified on the cover page. 

The Operational Plan is a "pre-decisional" USAID document and does not reflect results stemming 

from formal USAID review(s) of this document. 

Related document information can be obtained from: 

USAID Development Experience Clearinghouse 

8403 Colesville Road, Suite 210 

Silver Spring, MD 20910 

Telephone: (301) 562-0641 

Fax: (301) 588-7787 

Email: docorder@dec.cdie.org 

Internet: http://www.dec.org 

Portions released on or after July 1, 2006 
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Program Performance Summary FY 2005: Decades of war and the end of the Ba’athist government 

resulted in the near complete collapse of Iraq’s command economy and subsidy-based social services 

driving the unemployment rate to over 30%. With a significant portion of the population facing poverty in 

addition to a wide-spread insurgency and weak transitional government, Iraq can be characterized as a 

fragile state. 

Iraq’s ability to address the root causes of fragility is constrained by numerous factors including a 

pervasive insurgency with the common goal to drive out Coalition Forces and undermine the Government 

of Iraq (GOI); longstanding religious and ethnic divides that hinder national unity and fuel the insurgency; 

a physical, political, and regulatory infrastructure that does not currently support sustained economic 

growth; under-resourced government institutions that lack coordination, have limited technical expertise, 

and are tainted by high levels of corruption, and; minimal rule of law. There are, however, positive signs 

in Iraq. In spite of daunting challenges ahead, there is overwhelming evidence that the vast majority of 

Iraqis are optimistic about the future and want a normal life where they can earn a living and support their 

families in peace. The overwhelming participation in the electoral process in early 2005 represents a giant 

step toward democracy and a powerful rejection of the former repressive regime, as also demonstrated in 

the December 15, 2005 national elections. Additionally, the economy has rebounded since the collapse of 

the Saddam Hussein regime with gross domestic product doubling from roughly $15 billion in 2003 to 

$31.7 billion in 2004, and is expected to reach an estimated $32.2 billion in 2005. The oil industry, which 

remains the bedrock of the economy, is gradually recovering from years of underinvestment, war-related 

damage, and post-war looting. Overall, the Government has had successes in the areas of fiscal 

management, World Trade Organization accession, and business registration. 

USAID’s Program supports Iraq’s efforts to become a democratic nation at peace with its neighbors, a 

representative government that respects human rights, and a nation able to maintain domestic order and 

be an ally in the War on Terror. The USAID program addresses key issues regarding Iraq’s current 

fragile state status, including governance--the need to establish democratic institutions and processes, 

the need for productive employment and stability, and the need to provide essential services to a diverse 

and fragmented population which often has competing political demands. 

Cross-Cutting Development Challenges: USAID faces a host of major challenges. Critical challenges 

include a difficult security situation, mitigating conflict, low human capacity in the Iraqi Government, 

addressing corruption, and providing equal opportunities for women in a male-dominated society. 

The security of USAID staff, program implementers, Iraqi counterparts, and aid recipients is a major 

concern. USAID has supported additional security needs for program implementers and maintains close 

hold on specific activity details to protect Iraqi recipients. U.S. military support has been crucial for the 

protection of USAID activities and personnel. 

USAID has addressed major causes of conflict through providing services and support to disenfranchised 

groups (rural populations, women, youth, Sunnis), the promotion of inter- and intra-communal and ethnic 

dialogue and peace-building activities, supporting the establishment of governance and the rule of law at 

the local level, and reducing political conflict currently associated with decentralization of state authorities 

and the control of resources. 

The temporary tenure of the interim and transitional governments has made it difficult to build government 

leaders’ capacity, however a long term government will be elected in December 2005. Human capacity 

building is the primary focus of USAID’s Strategic Plan for 2006-2008. It will be an integral and crosscutting component of all programs and activities at the national level and build the capacity of provincial 

and local governments to assume greater roles and responsibilities in addressing the demands of their 

constituents. By working with the Government of Iraq in providing assistance to restore essential 

services, USAID is fostering confidence in the government and building its role in increasing the stability 

of Iraq. 

Corruption is a major problem in Iraq. All USAID activities are designed to ensure transparency and 

accountability by the government and the private sector. Continued capacity-building at all levels and 
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with all stakeholders is vital to combating corruption. Activities such as the development of the Ministry of 

Finance’s financial management system, developing the legal framework for economic growth, 

establishing a transparent electoral system, and training civil society organizations are important anticorruption accomplishments. 

USAID has incorporated gender throughout its development portfolio. Women’s rights and the low 

percentage of women serving as leaders in both the private and public sectors are particular concerns. 

The Mission is developing the capacity, through training and seminars, of women government officials 

and women’s non-governmental organizations (NGOs) to ensure gender considerations are included in 

legislation and the constitution, and that women take on greater leadership roles. USAID provided a 

$500,000 grant to a coalition of more than 30 women’s organizations to promote women’s rights in a 

constitutional democracy; provided a $10,000 grant to a minority rights organization to lobby for the 

inclusion of minority rights in the constitution, and established the Iraq Without Violence network of NGOs 

to monitor violence and mitigate election-related conflict. USAID will build on these successes to help 

gain further access for women and minorities in the political arena and to advocate for women’s and 

minority rights and social sector reforms. 

Key Achievements: 

Infrastructure: USAID’s infrastructure program continued to achieve significant results in electric power 

generation and distribution, potable water and wastewater treatment, and access to transportation and 

communications networks. USAID has added/restored 1,182 megawatts (MW) of generation capacity; 

increased treatment of potable water to serve an additional 3.5 million Iraqis; and restored wastewater 

treatment capacity to serve an additional 3.2 million Iraqis. 

Significant progress has been made in improving electricity service in Baghdad, the most populous area 

of Iraq which also experiences the greatest power shortages. Maintenance, upgrades, and new 

construction at power stations throughout the city have improved electricity services for more than 1.5 

million residents. In addition to this rehabilitation work, USAID provided training for hundreds of power 

sector staff in operations and maintenance (O&M). USAID also provided more than $30 million in critical 

spare parts for Ministry of Electricity generation plants. The provision of these critical spares, as well as 

the O&M training, is essential to sustain the reliability and availability of power to Iraq. 

In the transportation sector, USAID completed work on the rehabilitation of 72 kilometers of railroad track 

between Umm Qasr and Shuiaba Junction in southern Iraq and completed installation of the emergency 

generator park, which will provide up to 30MW of backup emergency power at Baghdad International 

Airport. In the telecommunications sector, USAID installed two kilometers of fiber in Southern Iraq, for the 

Consolidated Fiber Network project which will connect the electricity and communications sectors across 

Iraq to ensure more reliable communications among the Ministry of Electricity’s power plants. 

In the potable water sector, USAID added treatment capacity to serve an additional 3.5 million Iraqis. This 

included the expansion and rehabilitation of water treatment plants in Baghdad, Kirkuk, Karbala, Dujayl, 

Najaf and Basrah. USAID also completed 15,685 house connections, a near 31% increase over the 

original plan, which resulted in restored or improved service to approximately 180,000 Sadr City residents 

in Baghdad. USAID has begun construction of 48 potable water systems in rural areas of Iraq and will 

expand to 70 systems, providing access to potable water for over 700,000 rural Iraqis. USAID promoted 

sustainable waste management through rehabilitation of five wastewater plants, serving 3.2 million Iraqis. 

USAID also commenced construction at the Karbala Wastewater Treatment Plant, which will eventually 

serve 740,000 Iraqis, and the Zafraniyah Sewage Trunk Line, which will serve approximately one million 

residents of Baghdad. 

Education: USAID is supporting Iraq in developing a population of innovative and critical thinkers who will 

form the basis of a democratic society and a strong economy. Since the conclusion of the 2003 war, 

USAID has supported the Ministry of Education (MOE) by rehabilitating, in full or in part, some 2,949 

primary and secondary schools. At the systems level, USAID began development of a comprehensive 

Educational Management Information System to enable the MOE to improve resource allocation within 
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the education system, forecast future needs and priorities, increase transparency, and promote 

decentralization. USAID provided financial management and budgeting training to 59 MOE Directors of 

Finance, Budgeting, and Accounting, and ensured that 735 MOE staff are now computer literate. To 

improve the quality of classroom instruction, USAID provided training to 53,000 primary and secondary 

school teachers as part of a program to train 100,000 primary and secondary school teachers from 2003 

to 2006. More than 580 “master trainers” were trained to provide pedagogical instruction for secondary 

school teachers. 

To improve access to educational opportunities for out-of-school youth, USAID began an “accelerated 

learning” program allowing children to study an MOE-endorsed curriculum which enables students to 

complete the six-year course of primary school in just three years. Approximately 16,000 students aged 

12 to 18 have been enrolled in the program during the 2005/2006 academic year. USAID programs also 

increased access to education for primary school children in rural areas by improving school infrastructure 

facilities in 368 of 400 targeted primary schools throughout Iraq, benefiting approximately 180,000 

primary school students. In 2005, USAID built or rehabilitated 37 primary schools in rural areas benefiting 

10,449 students. In higher education, USAID provided support to academic faculties at 10 of Iraq’s 21 

public universities. Workshops, conferences, refresher courses, and educational exchanges within Iraq, 

third countries, and the U.S were provided. USAID rehabilitated and equipped 23 specialist libraries, 23 

computer labs, 20 specialist science labs, and 17 auditoriums or classrooms, benefiting approximately 

50,000 university students. 

Health: USAID’s program has strengthened Ministry of Health’s (MOH) human and institutional capacity 

to improve the availability, quality, and effectiveness of essential primary health care services; enhance 

the systems and strategies used to develop and deliver these services, and; strengthen leadership at all 

levels of the sector. 

USAID programs have expanded access to key maternal and child health services such as immunization 

and nutrition, providing families with the means to better protect their children’s health, and increase 

immunity to childhood diseases. USAID collaborated with the World Health Organization to train 89 

physician and nurse trainers in the Integrated Management of Childhood Illness curricula. Trainers use 

these curricula with physician and nurse providers for 142 primary health care centers being constructed 

and equipped around the country with U.S. Government funding. USAID has also contributed to an 

improvement in routine immunization coverage, which increased from 60% in 2003 to 74% in 2005. In its 

2005 national polio, measles, mumps, and rubella campaigns, the MOH vaccinated 98% of the target 

population of children under five. As a result of the reinstatement of national immunization campaigns in 

both 2004 and 2005, a 90% reduction was seen in laboratory-confirmed cases between 2004 and 2005 

USAID’s programs continued to support a broad range of activities to reduce the prevalence of 

underweight children and improve maternal nutritional status through assistance to the MOH’s Targeted 

Nutrition Program. USAID supported the development of a national strategy to address infant and young 

children’s nutrition. USAID has also established 14 new nutrition rehabilitation units, training of trainers of 

pediatricians on targeted nutrition program approaches, and the delivery of essential program supplies 

including anthropometric scales, vitamin A, therapeutic food and milk, oral re-hydration solution, and iron 

supplements for pregnant and nursing mothers. USAID has also been supporting the development of a 

national program to fortify wheat flour with iron and folic acid, procurement of 215 feeders for 180 

operational flour mills, training of technicians in the installation and maintenance of these feeders, and 

training of program managers from the MOH/Nutrition Research Institute, the Ministry of Trade, and the 

Iraqi Bureau of Standards and Specifications on fortification. 

Economic Growth: USAID's activities aimed at creating an enabling environment for the private sector 

are designed to create a more transparent, efficient, and responsive public sector; promote more effective 

legal and regulatory reform, and; increase the depth of private sector growth. 

To create a framework for economic growth, USAID has supported the drafting and amending of various 

laws, including the Commercial Agency Law, Competition and Consumer Protection Law, Civil 

Society/Non-Profit Organization Law, and Insurance Law. USAID drafted legal assessments on real 
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estate and housing, contracts and sales, bankruptcy, insolvency, collateral lending and secured 

transactions, competition and consumer protection, foreign direct investment, international trade, 

intellectual property, and labor and employment. USAID is playing an integral role in developing the 

capacity of key Iraqi ministries to strengthen their ability to deliver public services. USAID has embedded 

advisors at 10 ministries and the Central Bank of Iraq to help implementation of reforms. USAID assisted 

with the establishment of Iraq’s National Development Strategy, the setup of a donor coordination unit, 

and development of national statistics. USAID advisors work with the Ministry of Finance (MOF) to 

manage the national budget, to address International Monetary Fund requirements in the Emergency 

Post-conflict Agreement, and to conduct negotiations with foreign creditors. USAID is supporting the 

implementation of the Iraqi Financial Management Information System, which gives the MOF a 

transparent budget execution system covering over 85% of the government’s budget. Assistance was 

given to the Ministry of Industry and Minerals, resulting in the development of a framework to 

commercialize state-owned enterprises. USAID provided significant assistance to the GOI with its 

accession to the World Trade Organization by drafting and ensuring timely submission of the 

Memorandum on the Foreign Trade Regime to Geneva. USAID helped establish the Iraqi Trade 

Information Center, in which eight of the original 17 staff and mangers are women, and the Investment 

Promotion Agency, which is managed and staffed by a team of eight women. 

USAID strengthened vocational training and job placement services provided by the Ministry of Labor and 

Social Affairs (MOLSA). Over 12,000 Iraqis received training, 34% of whom were women, and 7,000 

people obtained short-term employment as a result of USAID’s assistance. In Baghdad, four training 

centers were rehabilitated enabling the MOLSA to provide training to an additional 2,500 students per 

month. USAID has delivered business skills training to over 1,100 Iraqi small business representatives, 

including 545 women, and provided grants to more than 350 businesses, resulting in increased 

employment and greater productivity. Substantial one-on-one technical assistance has been provided to 

10 business associations, including two women’s associations, focusing on business plan development, 

skills training, adoption of model by-laws and codes of ethics, and developing advocacy strategies. 

USAID is rehabilitating the publicly-traded debt and equities markets by improving the structures, rules, 

procedures, and operations of the Iraqi Stock Commission, the Iraqi Stock Exchange, the Iraq Central 

Securities Depository and the Iraqi Association of Securities Dealers. New lending capacity is being 

introduced by direct involvement with private banks, illustrated by four private banks formalizing their 

commitment to begin cash flow-based lending to small- and medium-sized enterprises. USAID also 

established four new microfinance institutions and began developing access to credit for the agricultural 

sector. 

USAID is providing broad assistance to the agriculture sector to increase land utilization and productivity, 

and to rehabilitate Iraq’s second largest contributor to the gross domestic product. Wheat production has 

increased by 6.25% due to the introduction of improved seeds and modern production techniques. 

USAID sponsored the distribution of 169 seed cleaners, which directly benefited 32,800 farm families, 

and they are expected to increase farm yields by 30% in the next year. More than 470 crop 

demonstrations introduced over 26,000 farmers, Ministry of Agriculture staff, and university staff and 

students to new technologies, which will increase yields of six crops. USAID is also assisting with the 

restoration of the Iraqi marshlands by developing a restoration strategy for the GOI, and imbedding teams 

in the marshlands to monitor and report on the bio-diversity recovery of plants and animals in the 

marshes. To improve the efficiency of water distribution and use, USAID has rehabilitated 183 miles of 

tertiary canals, serving 15,182 acres of farm land and 6,899 Iraqis farm families. USAID also assisted 

with the vaccination of two million sheep against brucellosis, and introduced modern practices in animal 

breeding and handling techniques in 240 villages, encompassing 4,800 Iraqi women, to further reduce the 

risk of spreading diseases from animals to human populations. 

Democracy and Governance: USAID has played a key role in rebuilding Iraqi institutions while honoring 

democratic principles and procedures. In spite of the lack of experience with democratic governance at 

all levels of Iraqi society, important progress was made in several arenas including the legislature, 

electoral administration, decentralization, and the media. Additionally, NGOs supported by USAID have 

played significant roles in the preparation of the constitution, promoting free, fair, and transparent 

elections, managing conflict, and providing government oversight. 
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In elections support, USAID was instrumental in supporting the transitional process, including the 

establishment of the Independent Electoral Commission of Iraq (IECI) and the successful conduct of three 

election events. USAID supported voter registration; ensured delivery of election-related public 

information and commodity procurements; embedded 14 technical experts within the IECI in full 

partnership with the UN; and implemented a comprehensive, country-wide voter education campaign with 

essential outreach to Sunni Arab voters. USAID also trained 35,000 election observers; produced and 

distributed 1.35 million pamphlets and other informational supplements on the constitution; and 

conducted more than 1,861 sessions on the constitution, reaching 68,300 individuals across Iraq, 

including women and 25,000 Sunni Arabs. During the January 2005 elections 68 women were elected to 

the new assembly, 40% of whom had attended the Women’s Candidate Training seminars offered by 

USAID. 

USAID has worked to strengthen the capacity of the legislative branch of the Iraqi interim and transitional 

governments and their staff to include lawmaking, representation, and executive oversight. USAID also 

worked with the Executive Branch to develop governing processes, rules, procedures, regulations and 

directives necessary to enforce the laws as well as mechanisms to implement government programs and 

policies. Critical assistance was provided to women leaders in the Iraqi National Assembly (including 

members of the Constitutional Committee), Provincial Councils, and civil society organizations to ensure 

that fundamental rights of women are included in the Constitution. 

 

In local governance, USAID provided a variety of technical assistance and training to establish the 

structure of governments and build their capacity in delivering basic services. Through its Local 

Governance Program (LGP), USAID has helped establish 16 of Iraq’s 18 governorates, as well as 96 

districts, 195 city/sub-districts, and 437 neighborhood councils. The LGP has trained and mentored more 

than 2,000 local council members, 15 governors, 42 deputy governors, and 420 department heads and 

staff on local government administration and service delivery. To encourage citizens to engage with their 

governments, 22,000 democracy dialogues were conducted wherein more than 750,000 Iraqis 

participated. Rapid resource grants were also provided for the improvement of the delivery of basic 

services to over 21 million people throughout Iraq for small community projects such as water, sewage, 

electricity and solid-waste management. Over the last year USAID has worked to develop civil society 

groups and the media to encourage the active participation of Iraqi citizens at all levels of Iraq’s emerging 

democracy. 

USAID/IRAQ WEBSITE: http://www.usaid.gov/iraq 
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FY 2006 Program 

SO: 267-006 Program Support and Development of the Gulf Region 

Program Support 

Program Support: The MEPP II and its database system is providing data on all USAID activities in Iraq. 

The database is being continuously upgraded to provide greater analysis of data required for program 

management as well as for reporting. Evaluations are being conducted to provide important analysis and 

lessons learned from ongoing programs, which will be applied to the implementation of USAID’s new 

strategic plan. Additional program support costs, such as applicable personnel, temporary support 

assignments, and public outreach costs are included. Principal Implementer: International Business and 

Technical Consultants Inc. (IBTCI). 

FY 2007 Program 

SO: 267-006 Program Support and Development of the Gulf Region 

Program Support 

Program Support: The MEPP II and its database system will continue to provide data on USAID activities 

and archive data on closed-out activities. Principal Implementer: IBTCI. 

FY 2006 Program 

SO: 267-007 Focused Stabilization: Reduce the Incentives for Participation in Violent Conflict 

Support Populations at Risk 

Support Populations at Risk ($30,000,000 IRRF). USAID is working closely with the U.S. military and the 

Government of Iraq (GOI) to identify strategic cities and areas where focused stabilization programs will 

reduce insurgent activities. Working through community groups and local non-governmental organizations 

(NGOs), the $30 million program is supporting community revitalization efforts in Baghdad and at least 

four other cities in FY 2006. Illustrative targets for the selected areas include the provision of at least 

2,500 person years of employment and skills development; the expansion of 40 small and medium 

enterprises; the creation of 200 micro-enterprises; providing informal education to 5,000 young people; 

and supporting local NGOs in managing conflict situations in their communities. Principal Implementer: To 

Be Determined. 

FY 2007 Program 

SO: 267-008 Expand Private Sector Opportunities 

Improve Economic Policy and the Business Environment 

Improve Economic Policy and the Business Environment ($90,000,000 ESF). Funds will be used to 

improve economic governance and private sector development programs, and to help the GOI make the 

politically difficult economic reforms needed to build a solid base for supporting and sustaining basic, 

essential services to the Iraqi people. These funds would support programs to help reform the subsidy 

system costing Iraqis billions of dollars a year in revenues, particularly fuel subsidies. This request would 

also support an overhaul of the trade investment regime and encourage foreign direct investment in Iraq, 

including in the oil sector. About $10 million would also be used to help Iraq continue the legal process of 

World Trade Organization (WTO) accession. Principal Implementers: BearingPoint and another To Be 

Determined (TBD). 

Improve Private Sector Competitiveness 

Improve Private Sector Competitiveness ($38,500,000 ESF). USAID will support a variety of programs to 

improve Iraq's financial sector. Approximately, $18.5 million will support microenterprise and small-
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medium enterprise loans to help the Iraqi business sector grow, particularly new microfinance institutions 

and a loan guarantee corporation. Through provincial economic development tied with national 

commercial, legal, and institutional reforms, USAID will provide firm-level assistance to at least 1,500 

Iraqi-owned businesses. Approximately $20 million of this funding is specifically focused on facilitating 

investment and private sector growth by building the capacity of the Ministry of Industry, local government 

and business organizations, and Iraqi microfinance organizations. Principal Implementers: Louis Berger 

and another TBD. 

Increase Agricultural Sector Productivity 

Increase Agricultural Sector Productivity ($84,000,000 ESF). Through provincial economic development 

tied with national commercial, legal, and institutional reforms, USAID will integrate agriculture sector 

development and value-added processing with agricultural lending and firm-level assistance. Continued 

support will be provided to rural farmers to introduce modern and affordable technologies and practices. 

New assistance will be provided to the Ministry of Agriculture to introduce policy reforms and shift the 

agriculture sector to a market-based structure. Through capacity building efforts and country-wide 

monitoring, USAID will continue to support the Ministries of Water Resources and Agriculture to develop a 

water and land resource management strategy. USAID will continue to lead the implementation effort to 

prevent the spread of disease to the human population through vaccination campaigns and creating 

awareness among rural farmers. Principal Implementers: TBD. 

FY 2006 Program 

SO: 267-009 Democratic Governance: Develop Effective Local Government and Civil Society 

Support Democratic Local Government & Decentralization 

Support Democratic Local Government and Decentralization ($30,000,000 IRRF; $5,000,000 ESF). The 

local governance program forms the heart of U.S. Government efforts in helping Iraq become more selfreliant. Work is being carried out in consultation with PRTs. Under the PRTs, USAID is promoting 

decentralization through building the capacity of Provincial Councils (PCs) to address citizens’ needs at 

the provincial, district, and sub-district level. USAID is providing technical experts to enable PCs and their 

staff to carry out legislative and oversight responsibilities in a democratic and transparent manner. 

Activities are being linked with the National Council of Representatives and key provincial ministries to 

adopt new local government codes and to form a local government caucus in the National Council. 

USAID is carrying out pilot decentralization projects under the “learning by doing” component of the 

program and capacity is being strengthened on rules and procedures, subcommittee formation, meeting 

management systems, ethics and accountability codes, community-based activities, and locally-managed 

services. Assistance is being provided through the community action program to identify and prioritize 

community development projects in coordination with PRTs and the Provincial Reconstruction and 

Development Council, including rehabilitating water systems, roads, schools, and clinics. In addition, this 

program is promoting income generation/job creation in order to help minimize conflicts, particularly those 

brought on by insurgency or from ethnic/religious tensions. USAID is targeting civil society organizations 

as well as non-traditional partners such as cooperatives, labor unions, professional associations, and 

producer organizations to strengthen their capacity. In collaboration with local government outreach 

efforts, civil society organizations are working to address corruption, the needs of women and other 

minorities, and overall human rights issues within the province in which they work. Principal 

Implementers: Research Triangle Institute, America’s Development Foundation, and others To Be 

Determined. 

FY 2006 Program 

SO: 267-010 Improve Capacity of National Government Institutions 

Improve Economic Policy and the Business Environment 

Improve Economic Policy and the Business Environment ($5,000,000 IRRF). USAID is supporting the 
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implementation of the Iraq Financial Management Information System and providing technical advisors to 

the Ministry of Finance, Central Bank of Iraq, and Prime Minister’s Office to promote economic reforms 

and meet International Monetary Fund conditions. USAID will begin to close-out of these activities in May 

2006 and will fully expend all funding by September 2006. Principal Implementer: BearingPoint. 

Strengthen Public Sector Executive Function 

Strengthen Public Sector Executive Function ($20,000,000 IRRF). USAID is helping the new GOI to 

strengthen the core public administration functions of its key ministries in the areas of fiscal and 

personnel management, strategic planning and policy development, leadership, information technology, 

communications, and technical skills. Technical assistance is being provided to institutionalize public 

administration “best practices” of these core functions by developing standard public administration 

training modules and processes across the key ministries. In the area of public sector development, 

USAID, in partnership with the U.S. Department of Treasury, is spearheading the GOI initiative to 

implement the Iraqi Financial Management Information System linking all GOI ministries and all 

governorates under real-time government accounting system. Working with the Ministry of Finance, 

USAID and the U.S. Department of Treasury are assisting the GOI to revamp the budgeting process to 

increase efficiency and transparency. Economic policy advisors are assisting both the Ministry of Finance 

and the Prime Minister’s Office to support continued economic reform efforts. Additionally, assistance is 

being provided to the Central Bank of Iraq to continue bank supervision and regulatory oversight capacity 

building. Principal Implementers: BearingPoint and another To Be Determined (TBD). 

FY 2007 Program 

SO: 267-010 Improve Capacity of National Government Institutions 

Strengthen Public Sector Executive Function 

Strengthen Public Sector Executive Function ($25,000,000 ESF). This funding will provide technical 

assistance to Iraqi banks, the stock exchange, and the securities commission. Approximately, $20 million 

will specifically focus on building the capacity of the Ministry of Finance and the Central Bank of Iraq, 

particularly in their capacity to develop and execute budgets, manage financial system, and support the 

Iraqi payment system. USAID and the U.S. Department of Treasury will work in partnership on this 

program. Principal Implementers: TBD. 
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Results Framework 

267-001 Restore Economically Critical Infrastructure 

Program Title: Infrastructure 

 1.1: Improved electrical power production and distribution capacity 

 1.2: Improved roadway and bridge networks 

 1.3: Improved railway networks 

 1.4: Improved water resource management Capacity 

 1.5: Improved telecommunications range and capacity 

 1.6: Improved port navigation, berthing capacity and cargo/bulk transportation access 

 1.7: Improved airport facilities and capacity to support safe and regular international passenger and 

cargo air transport service 

267-002 Support Essential Education, Health and Other Social Services 

Program Title: Education and Health 

 2.1: Expanded Access to Public Health Center Services 

 2.2: Improved Effectiveness of Public Health Center Services 

 2.3: Enhanced Sustainability of Public Health Center Services 

 2.4: Essential primary and secondary education programs restored 

 2.5: Primary and secondary students encouraged to return to and stay in school 

 2.6: More interactive and participatory teaching methods employed in primary and secondary school 

instruction 

 2.7: Increased or established institutional capacity to manage national education reform process and 

standards 

 2.8: Increased national, regional, and international partnerships for exchanging best practices in higher 

education 

267-003 Expand Economic Opportunity 

Program Title: Expand Economic Opportunity 

 3.1: Strengthened financial sector through Central Bank, commercial banking and inter-bank payment 

improvements 

 3.2: Improved fiscal capacity in budget planning and execution, tax administration and modernization, 

and intergovenmental planning 

 3.3: Expanded private sector development through jobs creation, commercial law reform, SME/micro 

credit, SOE reform 

 3.4: Improved utilities and regulatory capacity in electricity by deter-mining cost structure, strenthening 

SOE capacity and developing a master plan 

 3.5: Key special projects conducted including currency exchange, Oil for Food transition 

 3.6: Increased capacity of institutions supporting Iraq's agricultural economy 

 3.7: Improved market-led environment operating in agricultural sector 

 3.8: Enhanced food security for Iraqi population 

 3.9: Improved Sustainability practices for resource use 

267-004 Improve Efficiency and Accountability of Government 

Program Title: Efficiency and Accountability of Government 

 4.1: More Effective and Efficient Local Service Delivery 

 4.2: More Transparent Participatory and Representative Identification of Local Needs and Resource 

Allocation 

 4.3: Strengthened Civil Society Advocacy Groups to Represent Civil Interests 

 4.4: Increased Income and Job Opportunities, Especially for Youth 

267-006 Program Support and Development of the Gulf Region 
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Program Title: Program Support and Development 

267-007 Focused Stabilization: Reduce the Incentives for Participation in Violent Conflict 

Program Title: Focused Stabilization 

 a.1: Establish Rapid-Response Mechanisms for Employment Generation and Youth Programs 

 a.2: Assist Municipal Government to Provide Essential Services 

 a.3: Reduce Ethnic/Religious Conflict 

267-008 Expand Private Sector Opportunities 

Program Title: Economic Growth 

 b.1: Increase Access to Financial Services 

 b.2: Promote Trade and Investment 

 b.3: Strengthen Capacity and Productivity of the Private Sector 

267-009 Democratic Governance: Develop Effective Local Government and Civil Society 

Program Title: Local Governance 

 c.1: Improve Effectiveness and Legitimacy of Local Governments 

 c.2: Build Capacity of Civil Society to Advocate for Their Interests 

267-010 Improve Capacity of National Government Institutions 

Program Title: National Capacity Development 

 d.1: Develop Core Functions of National Level Institutions 

 d.2: Improve Capacity of Government of Iraq to Operate and Maintain Key Infrastructure 

 d.3: Improve Policy, Legal and Regulatory Environment