Iraq says needs $100 bln to rebuild infrastructure

KUWAIT, Oct 31 (Reuters) - Iraq needs around $100 billion over the next four to five years to rebuild its shattered infrastructure, a government spokesman said on Tuesday.

"The situation in Iraq surpasses Iraq's ability to finance development projects," Ali al-Dabbagh told a news conference in Kuwait during a meeting of officials from donor nations and the United Nations on Iraqi reconstruction and economic reform.

Iraq's infrastructure was ravaged by decades of sanctions and war during the rule of deposed President Saddam Hussein, and by the U.S.-led invasion in 2003 and the violence that followed.

Reconstruction has been hampered by insurgent attacks which forced many projects to be halted and diverted funds away from rebuilding and into increased security.

The oil industry has been hit by frequent sabotage.

"The Iraqi economy is a one-crop economy built on oil only and there are no other revenue sources... therefore oil exports are being spent on operational expenditure," Dabbagh said.

"Until the oil sector can rise and assume its full role ... we need this sum for the infrastructure and for investment expenditure."

The meeting was the last set of talks on the International Compact for Iraq, a roadmap for economic reform, which is expected to be adopted by a ministerial meeting in December.

Dabbagh said the compact also included plans to build dialogue in Iraq and disband militias to try to halt violence.

NEW U.S. PLEDGE

U.S. Deputy Treasury Secretary Robert Kimmitt said Washington will commit to new pledges of aid to Iraq again.

"I think the size of the pledges will be announced by the ministers at the ministerial meeting ...," Kimmitt added.

Read the rest at Reuters/Alternet

Related Link:
Report: Iraq oil industry in $16 billion shortfall over last 2 years

Related Link:
Analysis: Much of Iraq still in ruin as U.S. builders leave

Related Link:
Audit: Iraq rebuilding far behind goals

Related Link:
Inspector General: much reconstruction work sub-standard

Related Link:
Ties to GOP Trumped Know-How Among Staff Sent to Rebuild Iraq