Monday, October 08, 2007

Report: Embassy cost could rise $144 million

Above: The new embassy seen in the distance from a helicopter. Located across 21 buildings on 104 acres on the banks of the Tigris in Baghdad, the new U.S. Embassy will have its own water wells, electricity and wastewaster-treatment. There will be huge residences for the Ambassador (16,000 sf) and the Ambassador's deputy (9,500 sf), six apartments for senior officials, and two huge office blocks for 8,000 staff. Recreation includes the biggest swimming pool in Iraq, a state-of-the-art gymnasium, a cinema, restaurants, tennis courts and an 'American Club' for evening functions. Budgeted at more than one-half billion dollars, the actual construction costs will probably never be known.

The massive U.S. embassy under construction in Baghdad could cost $144 million more than projected and will open months behind schedule because of poor planning, shoddy workmanship, internal disputes and last-minute changes sought by State Department officials, according to U.S. officials and a department document provided to Congress.

The embassy, which will be the largest U.S. diplomatic mission in the world, was budgeted at $592 million. The core project was supposed to have been completed by last month, but the timetable has slipped so much that the State Department has sought and received permission from the Iraqi government to allow about 2,000 non-Iraqi construction employees to stay in the country until March...

Department officials contend that some of the delays are a result of poor workmanship by the project's primary contractor, First Kuwaiti General Trade and Contracting, a Middle Eastern firm. Apparent building and safety blunders in a facility to house embassy security guards have made it unsafe to open. Originally due to open last December, the facility is still not operational because of formaldehyde fumes in 252 prefabricated residential trailers.

First Kuwaiti denies that the formaldehyde levels are unacceptable, but Baghdad-based U.S. officials have tested the trailers and demanded that they be brought up to an acceptable standard, according to an exchange of e-mails in recent weeks between the company and State Department officials obtained by The Washington Post...

While embassy officials have blamed First Kuwaiti for many of the problems and have chafed at restrictions on access to the construction site, another arm of the State Department, Overseas Building Operations, is backing First Kuwaiti. A Sept. 18 internal report on problems with the guard facility's electrical system, prepared for Charles E. Williams, the director of building operations, suggested that KBR, the former Halliburton subsidiary hired to run the facility, was responsible for overloading the system. The facility is "electrically safe and functional," the report said.

Read the rest at the Washington Post

Related Link:
Report: Opening of new embassy delayed until next year

Related Link:
Faulty wiring, fire hazards, formaldehyde among widespread safety problems in guard base for new embassy

Related Link:
U.S. Embassy builder investigated for abusing workers

Related Link:
Report: New U.S. embassy, world's largest, may be too small

Related Link:
DOD forms task force to study Iraq fraud

Related Link:
Watchdog agency to audit 4 reconstruction firms

Related Link:
Inspector General Auditor: Iraqi government rejecting U.S.-funded projects

Related Link:
Integrity of Iraq Inspector General Bowen investigated by White House following his critical reports on Iraq reconstruction

Related Link:
Former Reconstruction Chief Bell: Iraq reconstruction 'almost impossible'

Related Link:
Report: U.S. reconstruction 'successes' experiencing major problems

Related Link:
U.S. Auditor: Corruption at $5 billion yearly; Maliki blocking probes

Related Link:
Electricity Minister: Iraq needs extra $2-$2.5 billion a year for power

Related Link:
Iraq Coordinator Satterlee: Iraq can't spend $12.5 billion in rebuilding funds unless U.S. sends $4 billion more

Related Link:
U.S.: After $4.2 billion spent, Baghdad still 6 years away from full electricity

Related Link:
Pentagon promises crackdown on Iraq fraud, profiteering

Related Link:
Auditors: Billions more may be squandered in Iraq

Related Link:
Perspective: Army opens 50 criminal probes into contractor fraud

Related Link:
Office of Auditor in Iraq ordered closed in 2007

Related Link:
Auditor's Office: Iraq corruption financing insurgents

Related Link:
Iraq says needs $100 bln to rebuild infrastructure

Related Link:
U.S. finds major flaws in another Iraqi construction project

Related Link:
Report says Iraq contractor KBR hiding data from U.S.

Related Link:
Parsons Corp. under fire for Iraq work

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

Related Link:
Audit: Iraq rebuilding far behind goals

Related Link:
Heralded Iraq police academy building a 'disaster'

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