Friday, November 03, 2006
Bechtel pulling out of Iraq
Reconstruction
One of the biggest US companies involved in reconstruction projects in Iraq has said it is leaving the country after three years of work there. Bechtel Corp - which has finished its last contract - says the security situation in Iraq has made it too difficult to continue operating. Cliff Mumm, Bechtel's president for infrastructure work, said the firm had not expected to be operating in a conflict situation. Fifty-two Bechtel employees have been killed and 49 wounded since 2003. The engineering giant was hired by the US government. Its services cost Washington $2.3bn (£1.2bn). Bechtel said it would not seek any more work in the country after company's last contract expired earlier this week. The San-Francisco-based firm was asked to rebuild Iraq's roads and bridges after the US-led invasion. Bechtel was also involved in building water treatment plants and hospitals and expanding Iraq's power grid. The company said it had completed all but two of nearly 100 projects in Iraq. Bechtel employed more than 40,000 workers, mostly Iraqis, at the height of its activity in the country.
COMMENT: A very odd statement to make - that Bechtel hadn't expected to operate in a conflict situation - what exactly did they expect? It is possible that more companies involved in Iraq's reconstruction will start pulling out as the security situation worsens and more of their employees are injured or killed. In the event of this, the reconstruction could grind to a halt as the Iraqis do not have the capability and resources at the moment to complete it. It will also lead to further unemployment among Iraqis which could lead to further instability and economic hardship. COMMENT ENDS.
