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Ministry of Industry and Minerals
OCT 03
DEC '03
NOV '03
JAN. 04
MAR 04
-Ministry of Industry MIM.
- Deadline
Sign IPP. contracts to
•Recelve SOE co.
330 MW of electricit
for Lease
financlats, and:
•Lease Pgm tenters
projections
Pg. I bid
stage 2.- request add.
submission launch ethics
9118 SOES.
Co. into. and detalled
anticorruption
proposals
le 35 plants
campaign.
Review IG candidates
m
-update FPS security
Prepare loan :
strategy for SOEs
applications for viabl
•Lease Pom l-open
initials bids
Iplants
pgm for MIM
APR: 04
JUN '04
AUG '04
SEP. $04
MAY '04
JUL'04
OCT '04
LEMM
-Review status of:
Ministry sets course
•Begin 2005
-Ministry
for July-December:
•Achieve end state for
sudget Planning
Ministry operating
orepares 2005.
Evaluate all SOE
security plan under
units and all SOE
gbals and ob ectives
Budget:
plants::
Strategic Plans
2004 budget
or each operating
-constraints:
1 •Electrical power to
plante
#Identify tech
consulting
select SOE for.
-Lease pgm 11 - 2nd
Sign Lease
Phase a
a reaulred for
I greater capacity.
Agreements for Lease
IPP. up and
•Discuss plan to
Pgm Il
leasing pgm
transition MIM to
running, providing
Ministry of Industrial
330 mw of power to
Development and:
SOES
New Tragi
government
-Lease Pgm lI
Investment Promotion
revise & evaluaté
takes power.
bids:
CPA dissolves*
-Office of
Compliance Initial
report
NOV *04
FEB :05
DEC '04
JAN $05
MAR :05
YAPR '05
I MAY 105
:Companies to
prepare -
financial:
statements and
reconcillations
fy 2004-
Dated 03.09.04

Ministry of Industry and Minerals
FEB 104
MAR 104
DEC :03
JAN 04
OCT 03,
NOV 03
Ministry of Industry MIM
NFTE Training •Review
- Deadline:
-Receive SOE co.
Training for
Plant t
ethics, anti-
g. for SoEs
for Lease
MW of electricity
financials and
Selection of.
•Lease Fam's enters
corruption
Managers-
Pg-l bid
projections:
capacity
campaign
submission
G for MIM.
-launch ethics
stage 2- request add
Set up
and detailed
- 18 SOES-
Go: info.
F/up ones
anticorruption
bullding
# Announce
proposals
Office of.
proposed:
le 35 plants
campaign:
Review IG candidates
ponor pits
Compliance Lease Pgm Il
•update FPS security
Prepare loan
f/up on a
Contact IEDC, to monitor.
strategy for SOEs
Donor pits
"applications for viable
rea training
•Lease Pam L- open
lease pgm
Iplants e
Pgm for MiM
Initlals bids:
SEP 404
AUG '04
JUL'04
OCT '04
APR '04
MAY '04
JUN 04
Revlaw status of
Ministry sets course
•Begin: 2005
-Ministry.
Ministry operating
for July December
-Achieve end state for
Budget Planning
prepares 2005
abals and oblectives
Bunits and all SOE
1 security plan under
Evalate all SOE
Budgeti
2004 budget.
tor each operating
I plants,
Strategic Plans
plant
-constraints"
1•Electrical power to
Identity tech:
1 select SOE for
•Lease pgm ll-2m
Sign Lease
consulting:
Phases
Agreements for Lease
greater capacity:
reguired for,
- IPP up and
-Discuss plan to
Pam Il
leasing pgm.
transition MIM to:
running, providing
330 mw of power to
Ministry of Industrial
SOES
Development and
Now Iraqi
-Lease Pom lI
Investment Promotion
goverment
revise & evaluate
bids
Takes power
-Office of
'CPA dissolves
Compliance Initial
report:
FEB '05
DEC '04
NOV '04
MAY $05
MAR '05
JAN 05
APR '05
iS.
Dated 03.09.04

-
-
-
COALITION PROVISIONAL AUTHORITY
BAGHDAD
March 15, 2004
FOR:
Strategic Plan Objective Holders and Designated Representatives.
FROM:
Director Policy Planning and Analysis -(b)(6)
SUBJECT: The CPA Strategic Plan - Planning and Reporting Process.
Introduction
1.
Directors, Senior Advisors and CJTF-7 C-5 were advised by an Action Memo, dated 15
January 2004, of the Strategic Plan reporting process that would drive forward delivery of our
priority objectives enabling the CPA and CJTF-7 executive leadership to better monitor and so .
manage progress. Since then the Strategic Plan has migrated to the Oracle database, some
necessary modifications to the reporting process have been made and there has been a change-
over of some of the personnel involved in planning & reporting. Unfortunately, these changes
have led to a decline in familiarity with the correct reporting process, and consequently, I believe
it timely to issue a reminder of the reporting requirements and the process to be followed,
particularly as we are soon to enter the last quarter before TOA when progress monitoring of the
Plan will be increasingly important.
Weekly Reporting
Weekly reporting is required to be done by Objective Holders, or their designated
representatives, against the Tasks within the Strategic Plan. Every week each Strategic Plan
Objective Holder (e.g. Governance, Strategic Communications) is to update the Strategic Plan
database, providing:
i)
a status narrative entry against each Supporting Task. The narrative will cover a)
whether progress is on schedule and b) any appropriate significant events (significant
vents may include those that occurred during the reporting period, and/or events tha
vill occur that should be brought to the attention of management
ii)
a color code at Supporting Task, Key Task and Objective level. (Unfortunately, since
migration to the Oracle database, this function has been available only for Supporting
asks; however, the system is being modified to allow Objective holders to make th
implete selection. Complain of tha wark is expected by 18 March, In th
in OPPA to discuss allocation of color
UNCLASSIFIED

UNCLASSIFIED
3.
The information required is to be collated during the week and input by Objective
Holders or their designated representative directly to the Strategic Plan by latest 1800hrs every
Thursday. The Strategic Plan inputs will be reviewed by OPPA on Friday. A further Review
Meeting will be held Friday at 1430hrs to validate the inputs.'
On the basis of the inputs, a Strategic Plan Status Check will be drafted by OPPA and
4.
briefed to the Executive Board on Sunday. The Status Check will provide an overall synopsis of
significant activity by Core Foundation and also highlight those significant tasks that are Red or
Amber. Also, the Executive Board briefing will focus on CPO ministries and COO, respectively,
on alternate weeks. Prior to each meeting OPPA and the Executive Board will determine on
which Ministry to focus. This will enable the Executive Board to focus upon areas where there
are problems with the implementation of the Plan.
Monthly Reporting
5.
During the last week of each month OPPA will collate changes to the Plan and produce
an updated hard copy Strategic Plan for Ambassador Bremer for the forthcoming month. The
updated copy will be issued with a covering memo detailing key changes to the Plan in the
preceding month and likely areas of risk. Consequently, Objective Holders are to ensure that any
agreed updates to the Plan itself as well as updates to status narratives for that week are
completed by 1800hrs on the last Thursday of each month at the latest.
Conclusion
The combination of the existing daily reports to COO and CPO and the process of regular
updates to the Strategic Plan will provide a wealth of material from which reports can be
extracted at varying levels of granularity. In addition to the overviews for the Executive Board,
IMU will be able to produce narrative reports for customers in Washington. CPO, COO and
CJTF-7 (C-9) will also have access to the data they need to conduct more detailed analysis of
developments in narticular areas of concern. The OPPA PoC for help with access to the Strategic
Plan is (b)(6)
Action
As we work towards the 30 Jun deadline we have a good overall plan. In order to
7.
improve implementing plans, synchronize our efforts, focus on problem areas and report our
progress to the world, we must report progress on our objectives, key tasks and supporting tasks
on a weekly basis. Each ministry and Strategic Plan Objective Holder must engage to track and
applicable) are completed by 1800hrs on the last Thursday in each month. The table overleaf
' Comprising: OPPA, IMU, Working Group leaders, COO & CPO.
UNCLASSIFIED

.. •
UNCLASSIFIED
Weekly updates to Status Narratives are 1800hrs each Thursday
due to be input by latest:
Monthly updates to the Plan itself (if
a. 1800hrs Thurs 25 Mar 04.
applicable) should be completed by
b. 1800hrs Thurs 29 April 04.
c. 1800hrs Thurs 27 May 04.
(PoC if difficulties are experienced is (bX6)
UNCLASSIFIED

The Ministry of Industry and Minerals
Status of State Owned Enterprises
Operational Status
and Issues
6 January 2004

Ministry of Industry and Minerals
Ministry of Industry and Minerals SOE Facilities
State Owned Enterprise Facilities
Immediate Needs for Operating (as of 1 December 2003)
# of
Needs
Needs
Needs repairs
Needs
# of facilities
Operating Level
Needs other
employees
Natural gas
cash
electricity
from looting
Substantial (60 -
0
2
7
10
4
4,768
100%)
Partial (30 - 60%)
4
39
22
0
24
15
27,135
0
43
3
29
29,320
Minimal (1-30%)
39
15
70
25
Shutdown 0%
46,208
29
4
20
4
Total
78
107,431
162
27
66
114

MIM SOE Reemployment
Challenges and Milestones
April - All bank accounts frozen
May
Last priority for electricity allocation
- No priority for coalition security
• June
- All public debts (only) forgiven - No positive working capital
- First round of management firing
- Proposed USAID Capital Fund withdrawn
- Viability assessment of SOE initiated
• July
- Electricity allocation policy retains allocation status quo
- 2003 Budget allocation from Ministry of Finance provides 45% of operational requirements
- Viability assessment completed
• August -
- All private debts (prior to 9 April) now an obligation of the Treasury
- Interim Minister announced
- Reorganized under Private Sector Development
- Fifty percent (50%) of operational funding released
• September
- Second round of management firing
- MIM SOE obtain 180 MW of electricity
- MIM FPS achieves 1,500 guards

MIM SOE Reemployment
Challenges and Milestones
• October
- MIM SOE obtain 230 MW from the grid
- MIM initiates IPP tender
MOE obtains 4,000 MW peak status and initiate maintenance program
-
MIM FPS campaign operational (2,500 guards)
• November
- Ramadan reallocates electricity away from industry
- MIM FPS (3,500 guards)
-
MIM initiates lease program announcement
• December
-
MIM FPS (4,500 guards)
- MIM falls back to 180 MW
• January
-
Second 50% grant allocation disbursed
- MIM receiving little electricity (Cement Companies receiving as little as 5MW vice 25 MW)

MIM SOE Reemployment
Challenges
• Liquidity problems and undercapitalization
• Electricity
• Customer demand
• Capital expenditure budgeting
• Security
• Capacity
• Freedom to conduct business
- Many SOE lack incentives due to policy
- Lack clear guidance on how to proceed
• Unclear what the starting balance sheet is due to:
- Current inventory and fixed assets changes daily with looting
and security issues
- Historical financials difficult to obtain
- One time accounting adjustments for war not determined yet

CPA MIM SOE Forward Strategy
To address
• Liquidity problems and undercapitalization
- 2003 grant allocation ($130 million required - <$60 million received) - last 50%
distributed in January 2004
- SOE loan program issues:
• Lack of professional due diligence standards from Iraqi accountants
• KPMG product disappointing
• TAGI (Najaf Tire) to loan review in mid January
- Operational budget for 2004 not articulated clearly
• Clear guidance required on "Support to SOE" pot
• MIM has clear vision on how to proceed for 2004:
- Limit salary subsidy to firms that need it (3,6,9 and 12 month options) and allow MIM to
reallocate balance
Operations, capital expenditures etc.
» Army rent proceeds
» Fund reclassified SOE to Agency status (Industrial Promotion, Geological Survey, etc.)
with operating budget
» Offer a voluntary severance package
» Pay private sector creditors ($100 million outstanding): Cement Factory $6 million;
Rubber Company over 3 year A/P
- Limit MIM salary schedule to 2003 wage level and use new salary schedule to provide a
"production bonus" vice "profit bonus
development strom monetied assets and profits to rebuild where feasible and establish a

CPA MIM SOE Forward Strategy
To address
• Electricity
- Delivered 11MW of small generating capacity to SOE
- Independent Power Producers
• Program benefits
- Private sector investors ($560 million investment) assume risk - deliver electricity to factories
on a KWh price.
- Delivering 330 MW of power in 9 locations (10% of grid)
- Begins price liberalization of the energy sector - by default
• Program issues
- Bank guarantee (from Trade Bank)
- Memorandum 4 (applicable?)
- Purchase of excess electricity (MOE committed - issue is source of funds)
• Project issues
- CPA MoE expressing interest to dovetail on project
• Customer Demand
- Obtained upward of $7 million in contracts for NIA
- Attempting to secure interest with MoE
- Issue of bidding on USAID/Bechtel Contracts directly (can become a sub)

CPA MIM SOE Forward Strategy
To address:
• Capital Expenditure Budget
Non existent other than loan
Banking standards are 10-30% equity in a loan deal
Many viable companies can not provide amount (Petro-chemical firms still not operating due to lack of gas pressure and electricity)
Need for operating budget with CAPEX for select firms
May need to revisit policy preventing the rebuilding of destroyed firms
• Security
- MIM "Train the Trainer" FPS (from improvised force to organized force)
Routine issues with Coalition forces to resolve given MIM footprint
• Capacity Development
-
Management Capacity
• NFTE training (entrepreneurship 101)
- Organizational Capacity
Establishing "Lease Arrangements" for the non strategic industries
- Eighteen (18) in first round... fifty three (53 proposals)
Reviewing "Management Contracts" and other arrangements
• Developing Business Plans
- Operational plan for 2004
- Funding request
Iraqi Accounting and Management Consulting firms engaged
-
Basis for loan program
• Establish financial reporting capacity - teach them how to manage cash
- World Bank/IMF training must incorporate Ministry and SOE

CPA MIM SOE Forward Strategy
To address:
• Freedom to Conduct Business
- No incentive to operate like a business
• 95% of profits go up to Ministry of Finance
- Could create a "cash crunch" for firms as they repay debt schedule and attempt to
operate
- Risk preventing some from pursuing loans
• Workers paid the same regardless of productivity
- Lack clear guidance on how to proceed
• Issue is management reluctance to act and assume responsibility
• Lack of Clarity on Starting Balance Sheet
- Supreme Board of Auditors need to make a ruling on accounting adjustments
from war and CPA policy
- Nation wide adjustment required toward GAAP accounting principles

:
CPA MIM SOE
Conclusion
Each Ministry needs to manage its own SOE in a status quo - non
privatized environment
eed to review each SOE on an independent basis for continuing
pport - no all encompassing approach will work

The Ministry of Industry and Minerals
101st Air Assault Division
27 October 2003

Ministry of Industry and Minerals
Agenda
• CPA MIM Team
• MIM Introduction
• Where we've come from
• Where we are
• Where we want to go
• Azimuth and direction

Ministry of Industry and Minerals
CPA MIM Team
• Rick Ortiz - Senior Advisor, Commercial Attaché,
Department of Commerce
• LTC Brad Jackson - Deputy Advisor, Executive
Director/CEO, Industrial Development Agency/Local
Development Corporation; ASI 6C Economist
• MAJ Terry McCall - Advisor, Attorney
• SPC Glenn Corliss - Advisor, Financial Analyst,
Leveraged Buyout Firm/Bank One
• IRDC
- Dr. Shakir Al-Zaidi - Founder and CEO of Specialty Chemical
Manufacturer in England
- Garabed Sahakian - Geologist, Pacific Gas and Electricity
- Faisal Murad - Civil Engineer, Municipality of London
- Dr. Adnan Hamoudi - Geologist, Professor Algiers University

Ministry of Industry and Minerals
(MIM) Dual Mission
• Performing as a holding company for State
Owned Enterprises
• Performing as a government agency
responsible for industrial and mineral
development.
the
The former is short-term in nature...
later is long term in nature.
The former was key to a Socialist path the
later is critical to a market economy

Ministry of Industry and Minerals
(MIM) SOE Introduction
• Seven Sectors
- Food
- Chemical/Fertilizer/Petrochemical
- Construction
- Engineering
- Service
- Pharmaceutical
- Textile
• Each sector has strong and weak companies
• Represent 100,000 employees
• A $1.2 Billion operating company

MIM SOE Challenges
• Pre 2003 Setbacks - similar to Russian and CIS
countries
- Decades of Socialist thinking and poor management
- Aged and neglected property and equipment
- Closed Market - minimal export or import opportunity
• 2003 War Setbacks - these are unique to Iraq
- Extensive damage to property and equipment
- Loss of Inventory
- Complete loss of payment terms on raw materials purchases
- 6 months of production lost
- All cash in bank accounts frozen
- All customers facing the same massive trauma
- Much of the top management fired

MIM SOE Reemployment
Challenges
April - All bank accounts frozen
May
- Last priority for electricity allocation
- No priority for coalition security
• June
- All public debts forgiven - No positive working capital
- First round of management firing
- Proposed USAID Capital Fund withdrawn
• July
- Electricity allocation policy retains allocation status quo
- 2003 Budget allocation from Ministry of Finance provides 45% of operational
requirements
• August -
- Interim Minister announced
- Reorganized under Private Sector Development
• September - Second round of management firing

MIM SOE Reemployment
Challenges
• Liquidity problems and undercapitalization
• Electricity
• Customer demand
• Capital expenditure budgeting
• Security
• Raw materials
• Freedom to conduct business
- Many SOE lack incentive to make money due to CPA policy
- Lack the freedom to operate
- Lack clear guidance on how to proceed
• Unclear what the starting balance sheet is due to:
- Current inventory and fixed assets changes daily with looting
and security issues
- Historical financials difficult to obtain
- One time accounting adjustments for war not determined yet

CPA MIM SOE Reemployment
Issues
• Operating companies only with no experience in buying and selling
in the open market
• Labor-Management relations
• Looting continues - largely from within
• Extent to which dependent on subsidies not appreciated by current
management
- Oil for Food MOU
• Existing operating machinery and equipment largely cannibalized
• Real Estate more valuable than the operating company
• Growing disgust at what they don't know or don't disclose
- Assets which can be monetized
- Failure to provide financials
• Conclusion "These companies will not get better with time"
- (In their current configuration)

CPA MIM SOE Policy Successes
• Influenced the Ministry of Finance to make "one-off" exceptions for
otherwise viable Companies particularly hurt by the debt
cancellation policy.
• Set $60 million operating budget for MIM SOEs
• Successfully argued for front-loaded distribution of $60 million to
"prime the industrial pump" and get the businesses back up and
running ASAP
• Successfully argued for transition consulting fund for SOEs.
Received $2.75 million
• Successfully influenced an electricity distribution policy that includes
industry
• Successfully influenced Ministry of Finance to provide debt
financing.
• Successfully influenced the "freedom to conduct business"
guidelines - Promulgated in Bremer's 6 September
- Firm's have the authority to hire and fire
- Firm's have the authority to set prices
di
jren

CPA MIM SOE Forward Strategy
To address
• Capacity
- Developing Business Plans
• Operational plan for 2004
• Funding request
- Pan Arabic Accounting and Management Consulting firm engaged
• Establish financial reporting capacity - teach them how to manage cash
• Liquidity
- SOE Loan Program
- 2004 Budget allocation
i
• Electricity
- Independent Power Producers
• Assume risk - deliver electricity to factories on a Kwh price
• Delivering 330 MW of power in 9 locations
- 35 MW Sinjar
- 55 MW Badoosh
• Security
- MIM "Train the Trainer" FPS (from improvised force to organized force)

MSC Support to SOE
MSC can assist the MIM with the following:
• Begin capacity development by assisting with the operationa
component of the business olar
- We will need to work together on the operational outcome
• Support your local DG
- In Labor-Management disputes
- In local government vs. SOE disputes
- In security considerations - Winter Campaign!
• Support the CPA objective to "corporatize" the SOE
- Cash constraints require we maximize profits
• Support market solutions
- Allow the firm freedom to conduct business - local government support
a Lassiez faire approach with SOE
- High Market Prices now mean lower prices and higher quantity later

MSC Support to Factory
Market Values
Army Values
• Communal Interest
• Self Interest
- Maintain standards
- Invisible hand
• Command and Control
• Economic Individualism
- C4I
- Absence of intervention
- Laissez-Faire
- Planning
Command Climate
• Markets
•
- "Caring Leadership"
- Price System "Impersonal"
•
Government Property
• Private Property
- Provides Incentive
- Requires "duty"
- Influences distribution of
- High maintenance
wealth
- Requisition and issue
- High degree of exchange
Supporting Market Solutions
Requires you to operate outside of your comfort zone

3. At present, it appears that these functions are not being fully implemented in
the Ministry of Industry and Minerals, nor in any other ministry (though the
Ministry of Planning is giving some attention to long term development). It
seems that about 95% of the work of the Ministry of Industry and Minerals is
devoted to supervising, directing and problem-solving for the SOEs.
4. Hence it is proposed that there should be a fundamental re-direction of the
Ministry of Industry and Minerals :
- away from being a holding company for SOEs,
and towards being an industrial development and regulatory agency
- away from the operational management of companies,
and towards the policy management for industrial sectors
- away from developing and protecting state enterprises,
and towards promoting the private sector
- But, in the short term, it will be unavoidable to continue some of the
traditional operations of the Ministry, though in this respect it is proposed
that there should be a fundamental shift away from direct control by the
Ministry over the company managers, to indirect control by the Ministry
through the boards of directors with a performance contract between the
board (represented by the chairman of the board) and the Ministry.
5. Accordingly, the proposed new structure for consideration by the Minister
contains
the following main divisions and modules. A 'modular'
organisational structure is deliberately suggested so that each organisational
'module' could be moved around from one division to another division of the
Ministry, or transferred out of the Ministry of Industry and Minerals and into
another agency, or another module could be transferred from another Ministry
into the Ministry of Industry and Minerals.
This proposed restructuring will require some redirection and also retraining
of staff. In particular, those staff in the Ministry who have previously
concentrated on controlling the SOEs will need to refocus on managing
industrial market sectors, covering both the private and the state-owned
factories in the sector. Also, and most important, the delegation of control over
the SOEs away from the ministry to the boards of directors will need a special
corporate governance training programme for all directors.
The proposed Ministry organisational structure will consist of :
The Minister's Office
Industrial Advisory Council
- Personal Staff
- Minister of Industry (Chair)
- Ministry of Trade Rep.
- Inspector General (and Intl Audit)
Central Staff Directorate
- Ministry of Finance Rep.
- Ministry of Planning Rep.
- Strategic Planning and Statistics
- Industry Associations
- I.T.
- Chambers of Commerce
- Security
Finance
(- Cabinet Office Rep.)
Personnel
- others
- Public Relations
- Legal Adviser
04217

- -
-----
Deputy Minister for Industrial and Minerals Development
- Regulatory Directorate
- Market Regulation
- Product Standards
- Environmental Standards
- Social Impact Assessment
- Competition Commission
- Fair Trading Agency
- Investment Promotion Directorate
- Domestic (portfolio/direct)
- Foreign (portfolio/direct)
- Industrial estates
- Competitiveness Directorate
- Technology Development
• ISO
- Benchmarking
- Export promotion
- Industrial Clusters
- Minerals Directorate
- Minerals Survey
- Exploration Licensing
- Development Licensing
Deputy Minister for State Enterprises
-
Sectoral Directorates
- Chemicals
Food and Agro-Industries
Building Materials
- Textiles
-
Engineering
Metals
- Electrical
Transport
- Boards of Directors of each SOE

Draft for Discussion
25/April/2004
Ministry of Industry & Minerals
Minister
Advisory Council
Central Staff
Inspector General
Directorate
& Internal Audit
Strategic Planning
Legal
IT & Data Bank
Finance
Personnel
Security
PR / Media
Deputy Mi mister.
Deputy Minister
Industry & Minerals
development
Operations
SOE's Boards
Directors & mixed
Chemicals *
Industrial
SOE's Boards
Investment
Regulation
development &
Mining
Directors & mixed
Food *
Competitiveness
Promotion
SOE's Boards
Construction*
Market regulation
Domestic
Minerals
Technology
Directors & mixed
development
survey
Textiles *
Product standards
Foreign
SOE's Boards
Directors & mixed
Benchmarking
Exploration
& ISO
Environmental
Industrial
Licensing
standards
estates
SOE's Boards
Engineering *
Directors & mixed
Export promotion
Social impact
assessments
Industrial clusters
Development
SOE's Boards
Metals *
licensing
Directors & mixed
Competition
commission
Human resources
development
SOE's Boards
Electric *
Directors & mixed
Fair trading agency
Others as
needed
* SIC Classification

Draft for Discussion
25/April/2004
Ministry of Industry & Minerals
Minister
Advisory Council
Central Staff
Inspector General
Directorate
& Internal Audit
Strategic Planning
Legal
IT & Data Bank
Finance
Personnel
Security
PR / Media
Deputy Minister
Deputy Ministe
Industry &e Minerals
SOES &
development
Operations
SOE's Boards
Directors & mixed
Chemicals +
Industrial
SOE's Boards
Investment
Regulation
Mining
development &
Directors & mixed
Food *
Promotion
Competitiveness
SOE's Boards
Construction*
Market regulation
Technology
Minerals
Directors & mixed
Domestic
develooment
survey
Textiles *
Foreien
Product standards
SOE's Boards
Directors & mixed
Benchmarking
& ISO
Exploration
Environmental
Industrial
standards
Licensing
SOE's Boards
estates
Engineering *
Export promotion
Directors & mixed
Social impact
assessments
Industrial clusters
Development
SOE's Boards
Metals *
Directors & mixed
licensing
Competition
commission
Human resources
SOE's Boards
development
Electric *
Directors & mixed
Fair trading agency
Others as
needed
* SIC Classification

Draft for Discussion
25/ApriV/2004
Ministry of Industry & Minerals
Minister
Advisory Council
Central Staff
Inspector General
Directorate
& Internal Audit
Strategic Planning
Legal
IT & Data Bank
Finance
Personnel
Security
PR / Media
Deputy Minister:
Deputy Minister
Industry & Minerals
SOBS&
development
Operations
SOE's Boards
Directors & mixed
Chemicals +
Industrial
Investment
SOE's Boards
Regulation
development &
Mining
Directors & mixed
Food *
Promotion
Comdetitiveness
SOE's Boards
Construction*
Market regulation
Technology
Directors & mixed
Domestic
Minerals
development
survey
Textiles *
Product standards
SOE's Boards
Foreign
Directors & mixed
Benchmarking
& ISO
Exploration
Environmental
Industrial
standards
Licensing
SOE's Boards
estates
Engineering *
Directors & mixed
Export promotion
Social impact
assessments
Industrial clusters
Development
SOE's Boards
Metals *
Ticensing
Directors & mixed
Competition
commission
Human resources
SOE's Boards
development
Electric *
Directors & mixed
Fair trading agency
Others as
needed
* SIC Classification

Draft for Discussion
25/April/2004
Ministry of Industry & Minerals
Minister
Advisory Council
Central Staff
Inspector General
& Internal Audit
Directorate
Strategic Planning
Legal
IT & Data Bank
Finance
Personnel
Security
PR / Media
Deputy Minister.
Deputy Minister
Industry & Minerals
SOES &
development
Operations
SOE's Boards
Directors & mixed
Chemicals *
Industrial
Investment
SOE's Boards
Regulation
Mining
development &
Directors & mixed
Competitiveness
Food *
Promotion
SOE's Boards
Construction*
Market regulation
Technology
Domestic
Directors & mixed
Minerals
develonment
survey
Product standards
Textiles *
Foreign
SOE's Boards
Benchmarking
Directors & mixed
& ISO
Exploration
Environmental
Industrial
standards
Licensing
estates
SOE's Boards
Engineering +
Export promotion
Directors & mixed
Social impact
assessments
Industrial clusters
Development
SOE's Boards
Metals *
licensing
Directors & mixed
Competition
commission
Human resources
SOE's Boards
development
Electric +
Directors & mixed
Fair trading agency
Others as
needed
* SIC Classification

Draft for Discussion
25/April/2004
Ministry of Industry & Minerals
Minister
Advisory Council
Central Staff
Inspector General
Directorate
& Internal Audit
Strategic Planning
Legal
IT & Data Bank
Finance
Personnel
Security
PR / Media
Deputy Minister.
Deputy Minister
Industry & Minerals
SOES &
development
Operations
SOE's Boards
Directors & mixed
Chemicals *
Industrial
SOE's Boards
Investment
Regulation
development &
Mining
Directors & mixed
Food *
Comoetitiveness
Promotion
SOE's Boards
Construction*
Market regulation
Technology
Directors & mixed
Domestic
Minerals
develooment
survey
Textiles *
Product standards
Foreign
SOE's Boards
Directors & mixed
Benchmarking
& ISO
Exploration
Environmental
Industrial
Licensing
standards
SOE's Boards
estates
Engineering *
Directors & mixed
Export promotion
Social impact
assessments
Industrial clusters
Development
SOE's Boards
Metals *
licensing
Directors & mixed
Competition
commission
Human resources
development
SOE's Boards
Electric *
Directors & mixed
Fair trading agency
Others as
needed
* SIC Classification

-—
-
Г
PROPOSED RE-ORGANISATION
OF
MINISTRY OF INDUSTRY AND MINERALS
For Discussion
1. The proposed re-organisation is directed by the strategic functions of the Ministry,
based on a Function Review.
The Function Review forms an analytical process which works through a series of
simple questions to help identify the needs for various types of organisational
forms.
The most important element of the Function Review is that it ensures that the
organisation structure is driven by the strategic function of the Ministry, not the
other way round.
The key questions in the Function Review are :
1) What are the essential functions which must be done to promote the
industrial and minerals development of Iraq?
2) Who is carrying out these functions now ?
5) Is there anyone else who would be able to do the job better (including the
private sector) ?
6) What are the current main operations of the Ministry of Industry and
Minerals ? Do these fit in with the essential functions which are needed ?
7) Is the Ministry carrying out the right functions at the right time in the right
place with the right people at the right cost and with the right results?
These are simple questions, but they are invariably not so simple to answer.
2. The essential functions which must be done to promote the industrial and
minerals development of Iraq are outlined in the Draft Green Paper and are
suggested to be :
a) Long term strategic policy formulation for industrial and minerals
development
b) Promotion of the competitiveness of national industry and mining
c) Regulation of the industrial and minerals sectors, especially through
ensuring free and fair market competition, proper standards for the
protection of public interests, and self-regulation
d) Promotion of both national and foreign direct and indirect investment
in industry and mining
e) In the short and medium term, the restructuring and privatisation of the
Ministry's SOEs
f)
In the immediate term, the restart of the state and private industrial and
mining companies to provide critical supplies for reconstruction, cover
all or part of the costs of the salaries, and activate the economy through
the industrial supply chain.

PROPOSED RE-ORGANISATION
OF
MINISTRY OF INDUSTRY AND MINERALS
For Discussion
1. The proposed re-organisation is directed by the strategic functions of the Ministly,
based on à Function Review.
The Function Review forms an analytical process which works through a series of
simple questions to help identify the needs for various types of organisational
forms.
The most important element of the Function Review is that it ensures that the
organisation structure is driven by the strategic function of the Ministry, not the
other way round.
The key questions in the Function Review are :
1) What are the essential functions which must be done to promote the
industrial and minerals development of Iraq?
2) Who is carrying out these functions now ?
3) How are they carrying out these functions - well or badly ?
Why are these particular agencies or people carrying out these functions ?
5) Is there anyone else who would be able to do the job better (including the
private sector) ?
6) What are the current main operations of the Ministry of Industry and
Minerals ? Do these fit in with the essential functions which are needed ?
7) Is the Ministry carrying out the right functions at the right time in the right
place with the right people at the right cost and with the right results ?
These are simple questions, butthey are invariably not so simple to answer.
2. The essential functions which naust be done to promote the industrial and
minerals development of fraq are outlined in the Draft Green Paper and are
suggested to be :
a) Long term strategic policy formulation for industrial and minerals
development
b) Promotion of the competitiveness of national industry and mining
• Regulation of the industrial and minerals sectors, especially through
c)
ensuring free and fair market competition, proper standards for the
protection of public interests, and self-regulation
d) Promotion of both national and foreign direct and indirect investment
in industry and mining
e) In the short and medium term, the restruoturing and privatisation of the
Ministry's SOEs
t) In the immediate term, the restart of the state and private industrial and
nining companies to provide critical supplies for reconstruction, cover
all or part of the costs of the salaries, and activate the economy through
the industrial supply chain.

3. At present, it appears that these functions are not being implemented at all in
the Ministry of Industry and Minerals, nor in any other ministry (though the
Ministry of Planning is giving some attention to long term development).
Hence the main issue is not so much whether these functions are being
performed well or badly but whether they are being done at all, and why the
ministries are not carrying out these functions. It seems that the main
operations (about 95% of the work) of the Ministry of Industry and Minerals
are devoted to supervising, directing and problem-solving for the SOEs.
4. Hence it is proposed that there should be a fundamental re-direction of the
Ministry of Industry and Minerals:
- away from being a holding company for SOEs,
and towards being an industrial development and regulatory agency
and towards promoting the private sector
- But, in the short term, it will be unavoidable to continue some of the
traditional operations of the Ministry, though in this respect it is proposed
that there should be a fundamental shift away from direct control by the
Ministry over the company managers, to indirect control by the Ministry
through the boards of directors.
5. Accordingly, the proposed new structure for consideration by the Minister
the following main divisions and modules. A 'modular'
organisational structure is deliberately suggested so that each organisational
'module' could be moved around from one division to another division of the
Ministry, or transferred out of the Ministry of Industry and Minerals and into
another agency, or another module could be transferred from another Ministry
into the Ministry of Industry and Minerals.
The proposed Ministry organisational structure will consist of :
The Minister's Office
Industrial Advisory Council
- Personal Staff
- Minister of Industry (Chair)
- Ministry of Trade Rep.
- Inspector General (and Intl Audit)
- Central Staff Directorate
- Ministry of Finance Rep.
-
- Ministry of Planning Rep
Strategic Planning and Statistics
- Industry Associations
I.T.
- Chambers of Commerce
Security
Finance
(- Cabinet Office Rep.)
- others
Personnel
Public Relations
Legal Adviser

-- -
Deputy Minister for Industrial and Minerals Development
- Regulatory Directorate
-
Market Regulation
- Product Standards
- Environmental Standards
-
Social Impact Assessment
- Competition Commission
- Fair Trading Agency
- Investment Promotion Directorate
- Domestic (portfolio/direct)
- Foreign (portfolio/direct)
- Industrial estates
- Competitiveness Directorate
-
Technology Development
-
ISO
- Benchmarking
- Export promotion
- Industrial Clusters
Minerals Directorate
-
- Minerals Survey
- Exploration Licensing
- Development Licensing
Deputy Minister for State Enterprises
-
Sectoral Directorates
- Chemicals
- Food and Agro-Industries
- Building Materials
Textiles
Engineering
-
Metals
Electrical
- Transport
Boards of Directors of each SOE

Ministry of Industry and Minerals
Inspector Genera
- Internal Audit
Deputy Minister,
Deputy Minister,
Industry and Minerals
SOEs
Development
Regulation
SOOC

minister
MIM
Idvisore
Admin Sentin /Ast)
5trategy
- ouncil
min's Advisors
Bank
data
Leyal, depar
investment
Ancillary
SOES
operations
&development
MIC
companies
mixed
mineral
Sector
mixed
• development
sector
compancer
industrial
Planning
product.
Administr.
operations
atian.
& Budgeting
devetopment
Mic
industrial
Companies
Planning
Technical
Admini.
Estates
Ollid not
Lasses
department
stration
min's
industriale
80/5.
development
Budgeting.
Sales &
security
ffinance
Marketing
control
Auditeng
gal
Fernerd Environmental
ISO
Business Certifilation.

Ministry of Industry and Minerals
lăing Cói
information
dards
intemal Audi
Technology
Traing ?
14 April 2004

Page 1 of 2
(b)(6)
From:
(b)(6)
Sent:
Sunday, February 08, 2004 9:20 AM
To:
(b)(6)
Subject: FW: Access to the Strategic Plan database
----Original Messane--
From: (b) (6)
Sent: Sunday. February 08, 2004 9:18 AM
To: (b)(6)
Subject: FW: Access to the Strategic Plan database
This should get you to the plans.
(b)(6)
CPA Oftice of Policy Planning and Analysis
Palace M239
(b (6)
----Original Message-----
From: (b)(6)
Sent: Wednesday, November 19, 2003 11:56 AM
To: (b)(6)
| Agresto, John T. (SES); Alhakim, Mohamed; Arsht, Leslye A. (SES); Castle, Edwin S.
(SES-2 General Counsel): Evers, Williamson M. (SES): Fatfat. Mounzer R. (SES): (h)/61
(b)(6)
Johnson, susan R. (SESR(hi/6)
McKee, Robert E. (SES); /h V/Cl
(b)(6)
Trent Darrell (SES-6)
(bV/6)
TGBR): Crane, Keith W. (SES); (b)(6)
(b)(6)
Subject: Access to the Strategic Plan database
Please see attached to skeleton Milestone slide for Ministries and the path to the Strategic Plan Access
Database.
The path to the plan on the CPA Public Folder is:
'right click' on My Computer and 'left click' Explore
then left click in turn on:
My Network Places
Entire Network
Microsoft Windows Network
Orha
Fserv2
2/17/2004

:
Page 2 of 2
Public
To read: Open 'CPA Strategic Plan as of 1 Nov (read only)' folder and select 'Feb 3 Strategic Plan'
To edit: Open 'CPA Strategic Plan (Write)' folder and select '8 Feb Strategic Plan' (it is the only one)
If you or your staff require write access - please contact me - thank you
(bV6)
Wing Commander (OF-5)
HQ CPA Rm M239
(b)(6)
2/17/2004
- -

Page 1 of 1
Ministry of Industry & Minerals
1. Security - State Enterprises need adequate security to ensure that personnel, plant, and equipment are
secure.
2. Employment - Determine adequate personnel levels for the Ministry and the state companies and
determine how to reduce over-employment. We should identify the most competent managers in each
industry sector and at company plants to act as decision making heads that report progress directly to
the Minister. The minister should reorganize the Administration Department to be more flexible and
expedient in addressing urgent personnel issues.
3. Management - Restructure the strongest of the SOEs to enable those firms that are self sustaining to
grow and prosper as independent entities, while successfully exercising Leasing and Liquidation
strategies for the weaker firms and plants. Strengthen the Administration and Accounting Departments '
to improve budget and fiscal accountability, monitoring and tracking of funds; we should also revamp
and strengthen the Technical Department to track progress and identify areas of potential future
growth, while identifying solutions to problems and concerns. We should establish clear lines of
responsibility for each DG, and draft a Standard Operating Manual to establish the means of
accomplishing tasks and initiatives in an efficient and effective manner.
4. Essential Needs Assessment - Upon completion of the SOE assessments, fine tune and streamline
plans for obtaining Liquidity, Electricity, and Raw Materials to enable SOEs to re-open or expand
operations. Identify necessary modifications to production, sales and marketing that will enhance the
viability of existing firms. (It is not enough simply to get companies running again, they must produce
products that are high quality, attractive and durable, and able to compete with growing import
competition.)
http://intranet.orha.centcom.mil/Government/OPP/ANNEX
2/8/2004
_A.htm

Ministry of Industry and Minerals
JAN '04
FEB 04
OCT '03 1
DEC 03
MAR '04
NOV '03
E Ministry of Industry
Review
Sign IPP contracts fol
NFTE Training Review:
•Receive SOE co.
- Deadline
•Training for
Plant:
status of. UN,
i for Lease
330 MW of electricity
ethics, anti-
Pg. for SOEs
financlals and
Selection of
Donor
corruption
•Lease Pgm I enters
*Managers-
Pg. (i bid
projections
projects
capacity
stage: 2 - request add
G for MIM
campaign
submission
launch ethics:
Announce
detailed
bullding
•Set up
Corinfo, and
F/up on
anticorruption
18 SOES
Announce
Office ofia
• Lease Pgmil
proposed
proposals
ie 35 plänts
campaign.
Complance
winners
Lease Rgmill
Donor pits.
Review G candidates
•update FPS security
•flup on 1-
A NETE
Contact IED to monitor
strategy for SOEs
I •Prepare loan
trainnees
Hease pgm
•Lease Pam [-open
applications for viable
to: training
Donor pits
train others
plants
Initials bids
pom for MIM
JUL'04
SEP '04
JUN '04
AUG '04
ост '04
MAY "04
APR '04
•Review status of
-Ministry sets
Ministry.
•Lease Pgm II -1
course for July-
/ Ministry operating.
i Closing of Lease Pai
deadline for bids.
prepares 2005
December goals.
[units and all SOE
-Achieve end state for
Budget:
Identify:
ahd oblectives for
plants:
character/nature
FPS enhanced
each operating
PIPP up and
1 security plan.
of technical
l running, providing
plant
Loase pgm lI -open
advice needed to
bids:
Sign Leasel
330 mw of power to
gulde leasing
SOES
Agreements for
Discuss plan to
program toward.
Lease Pgm Il
transition MIM to
-Lease Pgm lI
successful
completes
Ministry of Industrial
transfer to private
New Iraqi
Development and
management.
evaluation of bids
Office of
government
Investment Promotion:
-NFTE trainees
Compliance Initial:
takes power:
train others
report
'CPA dissolves'
FEB '05
APR '05
DEC 104
MAR '05
NOV 04
MAY '05
JAN 05
EMIM
•Companies to
oreDare
inancia
statements and
reconciliations
ty 2004
Dated 01.08.04

Strand
Issue
Comments
Category
Status
Strategy for implementing prioritized list of
2.1.1 Other than a proposed lease/partnership there os no reference to a long term
Red
plan. Review Ambassador Bremer plan.
short-term (1 year) and long-term(2-5) years
Green
goals
Yellow
Strategy
No indication in Plan
Red
Ownership of strategy down through the
Green
Ministry
Yellow
No indication in Plan
Red
Ministry structure and staffing levels designed
Green
which support organizational goals
Yellow
Structure
Red
check organization chart
Progress in making appointments at DG level
Green
and tiers below, including Inspector General
Yellow
No indication in Plan
Red
Analysis of training/capacity needs completed
Green
Yellow
Skills
No indication in Plan
Roll out in Ministry of consequent
Red
management training programmes down
Green
through senior and mid-level staff
Yellow
No indication in Plan with respect to governates; budgeting process in irder for short
a. Principles of coordination and
term; no personnel policies apparent in plan; security issues unknown.
communication with governates clear
Readiness
for
b. Financial control and budgeting systems
Red
developed
Green
Transition
c. Existence of personnel policies based on
Yellow
CPA template
d. Adequate security plans
No indication in Plan.
Systems
a. Basic Connectivity (phones, email) in place
for key regional Ministry staff
b. Consistent capability to pay staff salaries,
get money to governates and transparently
Red
execute competitve contracts
Green
c. Proportion/level of Ministry staff with agreed
Yellow
job descriptions
d. Ministry payment of FPS staff in agreed
numbers and locations
Unknown
Outline areas where support will be needed
Red
by Ministry after 1 Jul or when minister stands
Green
down: identification of source of support
Yellow
Support
Unknown
Red
Level of agreement down through ministry
Green
Yellow
Kuklas

Ministry Transition Interview Checklist
FEB 6 2004
Date
INDUSTRY AND MINERALS
Ministry
Interviewee(s)
(b)(6)
Interviewer(s)
OPPA
Civil Affairs

Ministry Transition Interview Checklist
FEB 6 2004
Date
INDUSTRY AND MINERALS
Ministry
Interviewee(s)
(b)(6)
Interviewer(s)
Civil Affairs
OPPA

Leag- "Privatzy Mongrat" "Transfinatio
alk. 3 Inhast - 5yr. 50E NY litakler ebld paulinet →> bust
Privative
Told &
Dates
Maket Ing
Issue
Category
Status
Comments
1200
Stand
.1.1 Other than a proposed lease/partnership there os no reference to a long ter
Strategy for implementing prioritized list of
Red
Рая
Deol
lan. Review Ambassador Bremer plai
short-term (1 year) and long-term(2-5) years
Green
wall
goals
Yellow
seve
Strategy
Red
Ownership of strategy down through the
Green
Get buyin -
No indication in Plan el Din Lendeslipe D6 level,
Ministry
Yellow
Red
Ministry structure and staffing levels designed
Green
which support organizational goals
Yellow
Structure
Red
Progress in making appointments at DG level
Green
and tiers below, including Inspector General
Yellow
hector endive =
va indication in Plan Male, Fine, "Arry-
Analysis of training/capacity needs completed
- trab in tao
Skills
Roll out in Ministry of consequent
management training programmes down
through senior and mid-level staff
a. Principles of coordination and
communication with governates clear
Readiness
b. Financial control and budgeting systems
for
Transition
c. Existence of personnel policies based on
d. Adequate security plans
No indication in Plan.
Systems
Ta. Basic Connectivity (phones, email) in place
for key regional Ministry staff
b. Consistent capability to pay staff salaries
destitt
Red
get money to governates and transparently
execute competitve contracts
Green
Hotzoo" - AlEplan -
c. Proportion/level of Ministry staff with agreed
Yellow
d. Ministry payment of FPS staff in agreed
Unknown
Red
Outline areas where support will be needed
y Ministry after 1 Jul or when minister stand:
Green
lown; identification of source of suppor
Yellow
Support
Red
Unknown
Green
Level of agreement down through ministry
Yellow

Strand
Issue
Category
Status
Comments
2.1.1 Other than a proposed lease/partnership there is no reference to a long term plan. New plan is being
Strategy for implementing prioritized list of
incorporated into Strat Plan which includes elimination of the SOEs within a 3-5 year timeline; will require
short-term (1 year) and long-term(2-5) years
Yellow
extensive coordination with Private Sector and Strat Comm.
goals
Strategy
No current buy in from Ministry.
Ownership of strategy down through the
Red
Ministry
Must be added to Strat Plan.
Ministry structure and staffing levels designed
Yellow
which support organizational goals
Structure
New Organization chart being prepared; with 2 DGs; Minister will NOTmake IG recommendation.
Progress in making appointments at DG level
Red
and tiers below, including Inspector General
Major funding short fall.
Analysis of training/capacity needs completed
Yellow
Skills
Roll out in Ministry of consequent
No indication in Plan /
management training programmes down
wh
through senior and mid-level staff
Yellow,
No indication in Plan with respect to governates; budgeting process in order for short term; no personnel
a. Principles of coordination and
policies apparent in plan; security issues unknown; major discrpancy between FPS funding and number of
Readiness
communication with governates clear -
for
b. Financial control and budgeting systems
Transition
Yellow
14g18
c. Existence of personnel policies based on
- sui gain or can deal,
CPA template
d. Adequate security plans - In place
Try /wald Bh /DMF
Gapp, fa. Cahols, En Rest,
Major gap in planning process in connectivity; job descriptions. Salaries are paid at every level; including
Systems
a. Basic Connectivity (phones, email) in place
-no// Decaput IT pigen the bluldy.
for key regional Ministry staff
b. Consistent capability to pay staff salaries,
get money to governates and transparently
execute competitve contracts
Yellow
c. Proportion/level of Ministry staff with agreed
job descriptions
a coasty stat win agree On sept q cand parr will be renth Mi
d. Ministry payment of FPS staff in agreed
numbers and locations
dace: Coordinator; Coalition i
Total five personnel Arministaken Vegal NE
Outline areas where support will be needed
y Ministry after 1 Jul or when minister stand:
Coathe Coolite
down; identification of source of suppo
Support
En mite
No buy-in from Ministry
Level of agreement down through ministry
Aim: hug ads for poes gyrates

Implement Policy Towards State Owned Enterprises (SOEs)
POC
Key Task
Status Narrative
1 July - 30 September (Q3) 2004 - Onwards
1 January - 31 March (Q1) 2004
1 April - 30 June (Q2) 2004
Tom Foley
7
Implement Policy Towards State Owned Enterprises (SOEs)
Return SOEs to pre-war operating levels, where appropriate
e.On track. Private financing and
Return SOEs to pre-war operating
1. What was peolevels?
levels, where appropriate
possible ownership transfers being
discussed with respective ministries.
a. Continued progress of SOEs
"Key sE only. Lish
1.12/23/03 update - No ownership
standing up to normal operating
levels.Salaries will be
transfer options at this point although
the CPA continues to assist the
subsidized indirectly. Subsidies
will not be removed
ministries to evaluate leases
2.12/30/03 update - Revised SOE
action plan in development. Work
continues on addressing barriers
preventing SOEs from standing up
3.1/7/04 update -Need to re-evaluate
current SOE strategy based on current
political
constraints
4.1/26/04 Work continues.
Pushing Iraqi Central Cement to apply
for a $10MM capital expenditure loan
through SOE state banks
Need to re-evaluate current SOE
2 Continued progress of SOEs
standing up to normal operating
strategy based on current political
levels.
constraints
Need to re-evaluate current SOE
4 SOEs are facing hard budget
strategy based on current political
constraints and are taking steps
constraints. Based on financial
to alleviate pressures. These
reports from selected SOEs conducted
steps include the pursuit of
by KPMG and Talal Abu-Ghazaleh &
leasing of property of many of
Co. International (TAGI), the Iraqi
unprofitable SOEs. Need to re-
Central Cement Company (ICCC) and
evaluate current SOE strategy
Najaf Tire could have loan packages
based on current political
completed within the month. CPA is
constraints
working with ICCC to apply for a $10
million capital expenditure loan through
Economy
Page 21 of 37
Sunday, February 08, 2004

Implement Policy Towards State Owried Enterprises (SOEs)
Key Task
POC
1 January - 31 March (Q1) 2004
1 July - 30 September (Q3) 2004 - Onwards
1 April - 30 June (Q2) 2004
Status Narrative
Iraqi state banks.
2 Find sources for financing their short term working capital and investment requirements - (leasing).
1 Improve monitoring system to
Need to re-evaluate current SOE
a process. Ministries improvi
track performance of SOEs.
nternal reporting techniques
strategy based on current political
constraints. 111 bidders are
competing in a review process to lease
an we get copie
35 plants belonging to 18 Ministry of
Industry and Mineral SOEs. Of the
111 bidders, 20 are foreign and 91 are
Iraqi (many have opted to form
partnerships with international firms, a
reprty?
very positive step toward free
enterprise). A committee process (in
conjunction with Merchant Bridge
consultants and IRDC staff) will whittle
down the candidates and a short list
will be invited to make a complete
proposal which will begin the firms due
igence process. Do not anticipate
ase deal within the next 3 mont
Sunday, February 08, 2004
Page 22 of 37
Economy

Implement Policy Towards State Owned Enterprises (SOEs)
Key Task
POC
1 January - 31 March (Q1) 2004
1 April - 30 June (Q2) 2004
1 July - 30 September (Q3) 2004 - Onwards
Status Narrative
3
Hard Budget Constraints
1 Need to re-evaluate current SOE
Continue to assist restructuring
eed to re-evaluate current SC
strategy based on current politica
efforts as advisors.
rategy based on current politic
constraints
constraints
04 SOE Budgets being reviewed by
OMB. Ten private Iraqi accounting
firms and one international firm
(KPMG) are preparing financial report
or some SOEs in order to help th
stronger firms apply for liquidity loan:
and assist the ministry in determinin
the viability of the remaining firms.
2 Examine restructuring state
Need to re-evaluate current SOE
owned insurance companies.
strategy based on current political
constraints
Need to re-evaluate current SOE
strategy based on current political
constraints
4 a Develop Restructuring Plan for SOEs
1
Plan presented verbally to AME
Bremer. Follow on memo outlining
SOE plan to be submitted by the enc
of the week
Economy
Sunday, February 08, 2004
Page 23 of 37

Page 1 of 1
Ministry of Industry & Minerals
1. Security - State Enterprises need adequate security to ensure that personnel, plant, and equipment are
secure.
2. Employment - Determine adequate personnel levels for the Ministry and the state companies and
expedient in addressing urgent personnel issues.
3. Management - Restructure the strongest of the SOEs to enable those firms that are self sustaining to
grow and prosper as independent entities, while successfully exercising Leasing and Liquidation
strategies for the weaker firms and plants. Strengthen the Administration and Accounting Departments
to improve budget and fiscal accountability, monitoring and tracking of funds; we should also revamp
and strengthen the Technical Department to track progress and identify areas of potential future
growth, while identifying solutions to problems and concerns. We should establish clear lines of
responsibility for each DG, and draft a Standard Operating Manual to establish the means of
accomplishing tasks and initiatives in an efficient and effective manner.
4. Essential Needs Assessment - Upon completion of the SOE assessments, fine tune and streamline
plans for obtaining Liquidity, Electricity, and Raw Materials to enable SOEs to re-open or expand
operations. Identify necessary modifications to production, sales and marketing that will enhance the
viability of existing firms. (It is not enough simply to get companies running again, they must produce
able to compete with growing import
products that are high quality, attractive and durable, and
competition.)
2/8/2004
http://intranet.orha.centcom.mil/Government/OPP/ANNEX_A.htm
-

Restructuring the State-Owned Banks of Iraq
Issue: Whether and when to move beyond the initial rehabilitation of the state-owned
banks to a fundamental restructuring of bank operations, organizations, and ownership.
Considerable efforts to rehabilitate and strengthen the state-owned banks are underway.
In an early stage, these efforts were directed to assessing bank needs, enhancing security,
reopening branches, restoring communications, and supporting other institution-building
activities. In the present stage, key bank strengthening activities include:
• Modernizing bank operating policies, procedures, and systems
• Strengthening accounting practices and reporting in compliance
with international accounting standards (IAS)
• Upgrading internal budgeting, monitoring, and financial review
processes
• Improving bank automated systems and information technology
infrastructure
• Revising credit policies, procedures, and systems in compliance
with international best practices
• Providing comprehensive training programs for bank managers
and staff
It is now necessary to consider whether and when to realign the organizational structures
of the state-owned banks and to prepare them for ownership transfer to the private sector.
In the next stage, a fundamental financial and organizational restructuring would include
the following activities:
• Completing balance-sheet adjustments for each institution
• Adopting international best practices for disclosure and
transparency
• Improving bank management and governance mechanisms
• Rationalizing nationwide branch networks and consolidating
• Developing and implementing smarine business plans
• Transferring bank ownership to the private sector
Further discussion of the current condition and proposed restructuring of the state-owned
banks follows. The discussion assumes that fundamental restructuring will be reinforced
by a strong legal framework and effective bank supervision.
R/R.
- Fold + non performing Keries

Current Condition of the State-Owned Banks
Bank Structure
• The two large commercial state-owned banks, Rafidain and Rasheed, together
account for about $1.8 billion in assets or about 86 percent of the total assets in
the banking system.
• The two banks maintain about 330 branches, of which about 260 branches are
currently open. Together, the two banks have more than 2.8 million deposit
accounts and 14,500 employees.
• The four small specialized state-owned banks (i.e., the Agricultural Cooperative
Bank, Industrial Bank, Real Estate Bank, and Socialist Bank) together account for
about 7 percent of the total assets in the banking system.
• The four banks maintain about 50 branches. Although they were established
originally to serve specific sectors of the Iraqi economy, since 1997 they have
been authorized to conduct general commercial banking activities.
Bank Assessment
An overview assessment of the state-owned banks was conducted by a team of
U.S. Treasury banking advisors, supported by USAID contractor personnel. Its
findings are summarized below.
• The available financial statements of the six state-owned banks indicate unusual
asset/liability structure and weak financial condition. The six banks hold large
amounts of cash and government securities, but relatively small amounts of loans
and other assets.
• In general, the state-owned banks are undercapitalized, with poor asset quality
and weak management structures. Although the banks have adequate liquidity,
they rely heavily on interest income from Iraqi Treasury bills for their earnings.
• In addition, the state-owned banks are in poor physical condition and require
substantial rehabilitation of their facilities, information systems, and office
equipment. Managers and staff need training in modern banking practices.
- 2 -

Necessity for Restructuring the State-Owned Banks
Microeconomic Considerations
• Several of the state-owned banks present liquidity and solvency concerns, and all
of the banks face unresolved issues including attachment risk impeding foreign
operations, the treatment of intra-government obligations, and high levels of non-
performing assets resulting from many years of government-directed activity.
• Of particular concern are capital adequacy, asset quality, and management depth.
For example, the system-wide total capital ratio is about 2 percent (compared to a
legal requirement of 12 percent) and non-performing loan ratios range from 50 to
90 percent of total private credit.
• The continuing process of rehabilitation will not address the underlying structural
problems of the state-owned banks such as excessive staff, inefficient operations,
and inadequate competition.
Macroeconomic Considerations
The weak condition of the state-owned banks is impeding the recovery, growth,
and development of the real enterprise sector and, to some degree, of the other
institutions and markets in the financial sector. The macroeconomic results are
lower employment, income, growth, and security.
• In the short to medium term, a restructuring of the state-owned banks will be an
important component of the effort to re-establish financial services to the Iraqi
economy and to increase employment, income, growth, and security.
• Proper management and ownership structures, within a regulatory framework that
is consistent with international best practice, are essential to financial strength and
systemic stability.
Other Considerations
• The weak condition of the state-owned banks could make the Iraqi economy
vulnerable to a banking and financial crisis, in the event of further internal
conflicts or external shocks.
• The international financial institutions (i.e., IMF and World Bank) may be
expected to require financial-sector restructuring and reform as part of the
conditionality of programs for financial and technical assistance.
- 3 -

Key Elements of Restructuring the State-Owned Banks
Strategic Planning
• Government decision-makers must recognize the breadth and depth of problems
in the state-owned banks.
• Early commitment to bank restructuring should be followed by early action on a
multi-year strategic plan.
• It is necessary to develop and implement such a plan to enhance the value of the
banks in preparation for an ownership transfer to the private sector.
Management Structures
• New management and governance structures are needed to guide the restructuring
process and to oversee plan implementation, with operational independence from
the Ministry of Finance.
• Efficient and effective institutional arrangements must be adopted to value bank
assets, adjust balance sheets, and resolve non-performing loans.
• New management must have broad powers and political support to close insolvent
institutions and to merge weak institutions despite criticism and opposition.
Restructuring Goals
• The overall goal is to create a competitive, privately-owned banking system that
operates in accordance with international best practices.
• Bank supervision policies and procedures must be strengthened in order to avoid
recurring problems and repeated restructurings of the banking system.
- 4 -

Bank Restructuring Proposal and Organization
Restructuring Components
• A restructuring proposal for the state-owned banks involves three components:
(1) the creation of a new management structure, named the Bank Restructuring
Committee (BRC), for the state-owned banks; (2) the design and implementation
by the BRC of a restructuring plan for the state-owned banks; (3) the preparation
and execution of an ownership transfer of the state-owned banks to the private
sector. The components may require more than two years to implement in full.
Management Structure
• In the first component, the BRC will be established as a new and independent
management committee with broad power to determine the activities, operations,
and structures of the six state-owned banks. Its members, appointed by the CPA
Administrator, will design a bank restructuring plan, oversee the implementation
of the plan, and provide strategic guidance to bank management. The boards of
the two large state-owned banks will also be reorganized, with new members, to
support the restructuring process.
Restructuring Plan
•
In the second component, the restructuring plan for the state-owned banks will be
designed and implemented by the BRC. It will include activities such as asset
valuation, balance-sheet adjustments, the disposition of non-performing loans, a
rationalization of the branch network, and new loan programs to enhance value.
The four specialized state-owned banks will be consolidated and merged into the
Rafidain Bank and/or Rasheed Bank at the outset of the restructuring process.
Ownership Transfer
• In the final component, the BRC will prepare for an ownership transfer of the
state-owned banks to the private sector, by an appropriate date to be determined.
premial buf and o erin maxinth vite sale pure the sals to recove
restructuring costs and provide a fair return to the government.
Restructuring Organization
An essential feature of the restructuring process is the creation of a management
entity, the BRC, that will guide planning and implementation. The BRC will
design, manage, and oversee the restructuring process. However, the BRC will
cease to exist when ownership of the restructured banks has been transferred to
- 5 -

Ministry of Industry and Minerals
Information
Se
SOE
Internal Audit
Finance
General Counse
Technology
14 April 2004

Ministry of Industry and Minerals
Information,
SOE Sectors
Finance
Standards
General Counsel
Technology:
14 April 2004

Ministry of Industry and Minerals
Shief of St
trial
gulatory
#Information
Internal Audit
General Counsel
andards
Technology
aining Program
14 April 2004

MIM "Holding Company"
Produ
Operations*
Plannigg and Budgeting*
Ancillary Operetions*
MIG SCE
Mixed Sectat
MIM SOE
empanies*
ctor Direct
S
ector Director x 7
Sector®
ALI SOES
Sectors Strateg
Sub-functions organized on a sectoral basis
* Operational coordination

Ministry of Industry and
Minerals (MIM)
Proposed Re-organizational Plan
Submission from CPA

MIM Planning Considerations
MIM must restructure to deal with two concurrent
missions (the twin pillars) in mind:
• Performing as a holding company for State
Owned Enterprises
• Performing as a government agency responsible
for industrial and mineral development.
The former is short-term in nature (adjusted as
privatization occurs)... the later is long term in
nature (shall develop in time).

MIM Planning Considerations
MIM must restructure with Iraq's and the
Ministry's future in mind:
• Iraq becomes market oriented
• The Ministry
- Focuses on assisting the private sector in
industrial and economic development
- Becomes a leaner organization
- Must manage an organizational transition
(phased reorganization)

MIM
Organizational Proposal
Ministry HQ
Ministerial Staff
Advisory Office/Council:
Non Profit Corporation?
Holding Company
Development Agency
* Deputy Minister Status
** Situational Option

MIM Planning Considerations for
the "Holding Company"
MIM must establish an organizational capacity that is rational and efficient. As
a holding company the following "Staff" recommendations are paramount:
• Planning, Auditing, Investing and Budgeting are one Directorate
- anything of a financial/resource nature should be consolidated and combined
with planning
- Identify ends, ways, means
• Plans presented, assessed, discussed and approved prior to new fiscal year
• Plans are assessed during the year and at years end to assess targets
• SOE Core Operations should be consolidated in one Directorate: Role is to
advise and assist the SOE management:
- Technical Department
- Sales and Marketing Department
• SOE Ancillary Operations should be consolidated in one Directorate: Role is
to advise and assist the SOE management:
- Security
- Legal
- Administration

MIM Planning Considerations for
the "Holding Company"
The following "Line" recommendations are
paramount:
• Establish Directorates for SOE Affairs to provide
the Deputy Minister of the Holding Company a
manageable span of control:
- Mixed Sector SOE
- MIM SOE
- MIC SOE (former)
• Sub-classify the Directorates of SOE Affairs on a
sectorial basis (Current sector distinctions are
adequate)

MIM "Holding Company"
Staff Functions
Holding Company
1g and Finance
Auditing
Sub-functions organized on a sectoral basis
* Operational coordination
** Financial and Production

MIM Planning Considerations for the "Industrial
and Mineral Development Agency"
A meaningful Industrial and Mineral Development Agency should incorporate the
following features:
Mineral Resource Development: "Front end" for MIM's interaction with the private sector inside
and outside of Iraq interested in developing Iraq's Mineral resources
- Geological Survey: In addition maintain intelligence on mining industry/cluster knowledge both inside and
outside Iraq. Capable deal makers on projects. Work closely with Mineral Promotion and Mineral
Development Departments
- Mineral Promotion and Marketing (mining and quarrying)
- Industrial Development (salts, chemicals, minerals, nonmetallic minerals)
- Program Management
Industrial Development and Marketing: "Front end" for MIM's interaction with the private sector
inside and outside of Iraq for industry's seeking public assistance
- Strategic Industry Department: Maintain market intelligence on industry/cluster knowledge both inside and
outside Irag. Capable deal makers on projects (financing, technical assistance, site location). This element
could be organized either geographically, industrial/cluster basis or sub-classified in to heavy vs. light
industry. Work closely with Industrial Promotion and Marketing and Industrial Development Department).
- Industrial Promotion and Marketing
- Industrial Development - focused on recruiting and retention (to include research and development)
- Program Management

MIM Planning Considerations for the "Industrial
and Mineral Development Agency"
(Continued)
• Program Management - Programs in support of the Private Sector
-
Work force training programs (to work closely with Ministry of Labor)
- Technical and Environmental programs
- ISO
-
Business certification/bank lien filings
Industrial Estates/Parks
Care taker (oversee day to day operations)
Planning and design
• Develop infrastructure
• Develop spec buildings or build to suit options
-
Investment development
-
Marketing

MIM "Industrial and Mineral Development Agency"
evelopment Agency
Industriaf Estates
Program M
Migeral Development
Industrial Developmer
Development Agency integrates the activities of Geological Survey, Training
and Development and Tanmia

MIM "Industrial and Mineral Development Agency"
Mineral Development:
Geological Survey
Marketing and Promotion
Development
Program Management
Geglogical Survey Activities
The DG of Geological Survey fulfills the role of DG of Mineral Development

MIM "Industrial and Mineral Development Agency"
Industrial Development
Strategic Industry
Program Management
Marketing and Promotion
Development
Heavy Industries
ight industries
Could be organized on sector,
cluster or geographical basis

MIM "Industrial and Mineral Development Agency"
Program Management
ISO
Work Force Training
Technical/Environmental
Business Certification

MIM Planning Considerations for the "Industrial
and Mineral Development Agency"
ndustrial Estates/Bark
Marketin
•Caretaker
Investment
Planging and Des
200 millio
An Endurit
Be Burpst

MIM Planning Considerations for the
Non Profit Organization
Non Profit organization:
A means to manage the transition from what you are to what you can become (Iraq's premier
industrial development agency)
• A public-private partnership in Iraq's industrial and economic development
- A new way not associated with the past
• Advisory Council is Board of Directors
• Investment and Development
- Where investment decisions are staffed (both current practice and public sector assistance
to private companies)
- Conduct due diligence on companies seeking public sector financial assistance.
- Work very closely with Development Agency to develop deals
• Development Fund
- An Industrial Development non bank, bank for Private and Public Sector Projects
- Development fund accounting and auditing
• Non Profit Corporation is not Civil Service (voluntary transfers or private sector hires)
- A "professional staff' that must maintain itself from returns on investment
• Development Fund
- MIM surplus for 2004 transferred to NPC
- Matched by Iraqi/Pan Arab private sector (Development Fund under discussion
- Provides funding - debt financing or equity to companies - or grants to Development Agency.~
- Investment decisions no longer become SOE focused

MIM Non Profit Organization
Non Profit Corporati
Advisory Council
Development Fund
nvestment and Developme
Advisory Council serves as Board of Directors for Non Profit Organization
Defend against conflict of interest
Legal framework must define it as an association of the MIM
Non Profit Corporation is not Civil Service (voluntary transfers or private sector hires)
Must maintain itself from returns on Investment
Development Fund
MIM surplus for 2004 transferred to NPC
Matched by Iraqi private sector Development Fund (under discussion... Sami and Shakir)
Provides funding to private sector development (subordinated debt, etc.)
Investment decisions no longer become SOE focus

MIM Planning Considerations
Ministerial Staff
The Ministerial Staff will perform:
• Special Staff Functions for the Ministry/Minister - direct access to
the Minister
- Inspector General
- Public Relations
- Legal
• Coordinating Staff - directed by a Chief of Staff
- Administration and Personnel Management
- Logistics and services support
- Operations

MIM
Ministerial Staff
Ministerial Staff
Coordinating Staff
Special Staff
(Chief of Staff)
(Direct access to Minister):
Personnel and Administration
Inspector General
Logistics and Services Suppo
Public Relations
Operations.
Legal
(Security, Plans, Operations, Training)

MIM Planning Considerations
Advisory Council
The Advisory Council performs as:
• The advisory office to the Minister
• To coordinate the activity of a wider advisory council which meets periodically to
make recommendations and suggestions to the minister.
• To crystallize a vision for the Ministry, its role in the future.
• The Board of Directors to the Non-Profit Organization
• The Board of Directors of MIM developing its policies and future outlook and to
review its investment decisions
- The results of SOE activities and their investment decisions
- Investment promotion of new industrial concerns
The Advisory Council - mix of public and private sector with a preponderance of private
• Three to be selected from the MIM staff (Minister and proposed Deputy Ministers)
• DG's from various sectors
Prominent members of the private sector, industrialists, banks, investors, industrial
consultant, accountant and a lawyer
- To avoid a conflict of interest board members must resign if they seek public assistance for
personal projects
- To avoid a conflict of interest members must abstain on voting on projects with a personal
interest

MIM
Organizational Proposal
Ministry HQ
- Ministerial Staff
Advisory Office/Council
Non Profit Corporation
*Holding Company
Development Agency
Advisory Council has a relationship to the Ministry and the
Non Profit Corporation
Piraclai

MIM
Organizational Proposal
Concluding Thoughts
• The MIM can incorporate current sub-functions as they see fit...
• Only the two pillars is sacrosanct
• The reorganization could be phased in
- Implement the reorganization of the Holding Company and Ministerial
Staff now
- Form an Advisory Council now
- Plan and coordinate the Development Agency
• Integrate Geological Survey and Tanmia
• Phase the implementation to accommodate personnel reassignments from
the Holding Company
- Plan and develop the Non Profit Corporation
• Seek broad support from the private sector
- Use the Advisory Council to develop a coalition of support for the GC and the
Ministry of Finance

(b)(6)
Ministry of Industry and
Minerals (MIM)
Proposed Re-organizational Plan
Submission from CPA

MIM Planning Considerations
MIM must restructure to deal with two concurrent
missions (the twin pillars) in mind:
• Performing as a holding company for State
Owned Enterprises
• Performing as a government agency responsible
for industrial and mineral development.
The former is short-term in nature (adjusted as
privatization occurs).... the later is long term in
nature (shall develop in time).

MIM Planning Considerations
MIM must restructure with Iraq's and the
Ministry's future in mind:
• Iraq becomes market oriented
• The Ministry
- Focuses on assisting the private sector in
industrial and economic development
- Becomes a leaner organization
- Must manage an organizational transition
(phased reorganization)

MIM
Organizational Proposal
Ministry HQ
Ministerial Staff
Advisory Office/Council
Non Profit Corporation*
Holding Company
Development Agency
* Deputy Minister Status
** Situational Option

MIM Planning Considerations for
the "Holding Company"
MIM must establish an organizational capacity that is rational and efficient. As
a holding company the following "Staff" recommendations are paramount:
• Planning, Auditing, Investing and Budgeting are one Directorate
- anything of a financial/resource nature should be consolidated and combined
with planning
- Identify ends, ways, means
• Plans presented, assessed, discussed and approved prior to new fiscal year
• Plans are assessed during the year and at years end to assess targets
• SOE Core Operations should be consolidated in one Directorate: Role is to
advise and assist the SOE management:
- Technical Department
- Sales and Marketing Department
• SOE Ancillary Operations should be consolidated in one Directorate: Role is
to advise and assist the SOE management:
- Security
- Legal
- Administration

MIM Planning Considerations for
the "Holding Company"
The following "Line" recommendations are
paramount:
• Establish Directorates for SOE Affairs to provide
the Deputy Minister of the Holding Company a
manageable span of control:
- Mixed Sector SOE
- MIM SOE
- MIC SOE (former)
• Sub-classify the Directorates of SOE Affairs on a
sectorial basis (Current sector distinctions are
adequate)

MIM "Holding Company"
compan
Product Operations
Planning and Budgeting
Ancillary Operations
Ixed
'Sector Companies
Sub-functions organized on a sectoral basis
* Operational coordination

MIM "Holding Company"
Staff Functions
Holding Company
Sub-functions organized on a sectoral basis
* Operational coordination
** Financial and Production

----
MIM Planning Considerations for the "Industrial
and Mineral Development Agency"
A meaningful Industrial and Mineral Development Agency should incorporate the
following features:
Mineral Resource Development: "Front end" for MIM's interaction with the private sector inside
and outside of Iraq interested in developing Iraq's Mineral resources
- Geological Survey: In addition maintain intelligence on mining industry/cluster knowledge both inside and
outside Iraq. Capable deal makers on projects. Work closely with Mineral Promotion and Mineral
Development Departments
- Mineral Promotion and Marketing (mining and quarrying)
- Industrial Development (salts, chemicals, minerals, nonmetallic minerals)
- Program Management
• Industrial Development and Marketing: "Front end" for MIM's interaction with the private sector
inside and outside of Iraq for industry's seeking public assistance
- Strategic Industry Department: Maintain market intelligence on industry/cluster knowledge both inside and
outside Iraq. Capable deal makers on projects (financing, technical assistance, site location). This element
could be organized either geographically, industrial/cluster basis or sub-classified in to heavy vs. light
industry. Work closely with Industrial Promotion and Marketing and Industrial Development Department).
- Industrial Promotion and Marketing
- Industrial Development - focused on recruiting and retention (to include research and development)
- Program Management

MIM Planning Considerations for the "Industrial
and Mineral Development Agency"
(Continued)
• Program Management - Programs in support of the Private Sector
- Work force training programs (to work closely with Ministry of Labor)
- Technical and Environmental programs
- ISO
- Business certification/bank lien filings
Industrial Estates/Parks
Care taker (oversee day to day operations)
- Planning and design
Develop infrastructure
• Develop spec buildings or build to suit options
Investment development
Marketing

MIM "Industrial and Mineral Development Agency"
Industrial Estates
Industrial Development
Mineral Develogmen
Development Agency integrates the activities of Geological Survey, Training
and Development and Tanmia

MIM "Industrial and Mineral Development Agency"
Mineral Development*
Geological Survey
Marketing and Promotion
Development
Program Management
Geological Survey Activities
The DG of Geological Survey fulfills the role of DG of Mineral Development

MIM "Industrial and Mineral Development Agency"
Industrial Development
Program Management
Developmen
Marketing and Promotion
Strategic Industri
Heavy Industries
Light Industrie
Could be organized on sector,
cluster or geographical basis

MIM "Industrial and Mineral Development Agency"
Program Mana
/ork Foree.
nical/Environmental
Busine

MIM Planning Considerations for the "Industrial
and Mineral Development Agency"
industrial Estates/Parks
Caretake
Planning and Design
larketing
lovesiment:

MIM Planning Considerations for the
Non Profit Organization
Non Profit organization:
A means to manage the transition from what you are to what you can become (Iraq's premier
industrial development agency)
• A public-private partnership in Iraq's industrial and economic development
- A new way not associated with the past
• Advisory Council is Board of Directors
• Investment and Development
- Where investment decisions are staffed (both current practice and public sector assistance
to private companies)
- Conduct due diligence on companies seeking public sector financial assistance.
- Work very closely with Development Agency to develop deals
• Development Fund
- An Industrial Development non bank, bank for Private and Public Sector Projects
- Development fund accounting and auditing
• Non Profit Corporation is not Civil Service (voluntary transfers or private sector hires)
- A "professional staff" that must maintain itself from returns on investment
• Development Fund
- MIM surplus for 2004 transferred to NPC
- Matched by Iraqi/Pan Arab private sector (Development Fund under discussion
- Provides funding - debt financing or equity to companies - or grants to Development Agency
- Investment decisions no longer become SOE focused

MIM Non Profit Organization
in Profit Corporatio
Advisory Councili
Investmentiand Developmen
Development Fund a
Advisory Council serves as Board of Directors for Non Profit Organization
Defend against conflict of interest
Legal framework must define it as an association of the MIM
Non Profit Corporation is not Civil Service (voluntary transfers or private sector hires)
Must maintain itself from returns on Investment
Development Fund
MIM surplus for 2004 transferred to NPC
Matched by Iraqi private sector Development Fund (under discussion... Sami and Shakir)
Provides funding to private sector development (subordinated debt, etc.)
Investment decisions no longer become SOE focus
-

MIM Planning Considerations
Ministerial Staff
The Ministerial Staff will perform:
• Special Staff Functions for the Ministry/Minister - direct access to
the Minister
- Inspector General
- Public Relations
- Legal
• Coordinating Staff - directed by a Chief of Staff
- Administration and Personnel Management
- Logistics and services support
- Operations

MIM
Ministerial Staff
Migisterial Staff
Special Staff:
Coordinating Staff
(Directraccess to Minister
(Chief of Start
inspector General
Personnel and Administration
Rublic Relations
Logistics and Services Suppor
Operations
(Security, Plans, Operations, Training)

MIM Planning Considerations
Advisory Council
The Advisory Council performs as:
• The advisory office to the Minister
• To coordinate the activity of a wider advisory council which meets periodically to
make recommendations and suggestions to the minister.
• To crystallize a vision for the Ministry, its role in the future.
• The Board of Directors to the Non-Profit Organization
• The Board of Directors of MIM developing its policies and future outlook and to
review its investment decisions
- The results of SOE activities and their investment decisions
- Investment promotion of new industrial concerns
The Advisory Council - mix of public and private sector with a preponderance of private
• Three to be selected from the MIM staff (Minister and proposed Deputy Ministers)
• DG's from various sectors
• Prominent members of the private sector, industrialists, banks, investors, industrial
consultant, accountant and a lawyer
- To avoid a conflict of interest board members must resign if they seek public assistance for
personal projects
- To avoid a conflict of interest members must abstain on voting on projects with a personal
interest

MIM
Organizational Proposal
Ministry HQ
Ministerial Staff
Advisory Office/Council
Non Profit Corporation
Development Agency
"Holding Company
Advisory Council has a relationship to the Ministry and the
Non Profit Corporation

MIM
Organizational Proposal
Concluding Thoughts
• The MIM can incorporate current sub-functions as they see fit...
• Only the two pillars is sacrosanct
• The reorganization could be phased in
- Implement the reorganization of the Holding Company and Ministerial
Staff now
- Form an Advisory Council now
- Plan and coordinate the Development Agency
• Integrate Geological Survey and Tanmia
• Phase the implementation to accommodate personnel reassignments from
the Holding Company
- Plan and develop the Non Profit Corporation
• Seek broad support from the private sector
- Use the Advisory Council to develop a coalition of support for the GC and the
Ministry of Finance

- •
-
-
Strategic Plan - MIM
1. Restructuring - The Ministry of Industry and Minerals envisions transitioning
from a holding company of state owned enterprises (SOE) to an Industrial
Development Agency. The MIM has developed a conceptual restructuring plan
(with organizational chart). Critical to this restructuring is disposing of the SOEs
(privatizing, liquidating, restructuring). Its short term objectives including
privatizing the management of the SOEs through leasing programs. The
Ministry's goal is to achieve its SOE disposition within 2-5 years. A rationaly
organized short term holding company will be established to manage the
operations of the SOE.
2. Industrial Development - Essential to the above transformation is the Ministry's
evolvement into an Industrial Development Agency. The Ministry will embark
on industrial park development and establish industrial development program
activities to assist the private sector in business development and to attract foreign
direct investment. With private competition many of these firms will eventually
disapear. The Ministry is moving toward establishing public-private partnerships
and organizations to provide strategic and operational guidiance to the Ministry.
3. Management - The Minister anticipates that the necessary restructuring will
require a substantial change in the DG leadership of the Ministry. In addition a
substantial training program is necessary to reorient the staff from a
socialist/planned economic model to a market oriented economic model as the
means to develop the Iraqi economy
4. Economic Development - the immediate goal of the Ministry is to get select
SOE's operational as soon as possible. The IPP i(and other electricity sources) is
essential to this process. The leasing program will assist some of the marginal
firms to achieve meaningful production levels.

Chief Information Officer
Iraq
29 April 2004
Ministry Of Communication

The office of the CIO is to Consolidate IT requirements
and standardize IT procurements at the PMO
Step3
Step2
Step1
Prioritize & Standardize Procurement:
Categorize requirements:
Conduct an inventory of IT
- Short term
- Applications
requirements for the Ministries
- Long term
- Infrastructure & Architecture
- Open standard / Microsoft affice suite
- Organization & Operations
- Training
LLAN
Ministry ClO
Accounting/GL
Ministry CIO
VSAT
Internet
Applications
Email
Email
Email
HR/Payroll
HR/Payroll
Short term
Data Center
Accounting/GL
LAN
LAN
Req. Analysts
WAN
WAN
Infrastructure
& Architecture
VSAT
Training
Internet
PMO Procurement Standards
1334665512"
HR/Payroll
Internet:
Long term
Ministry CIO
Accounting/GL
Organization
Req. Analysts
WAN
-
VSAT
& Operations
L Training
Ministry
Ministry
Ministry
2
Ministry Of Communication
29 April 2004

Office of the CIO plan milestones
1. Issue CIO standards for PMO procurement
2. Work with Ministries to :
a. Inventory IT requirements
b. Plan Ministry connection to the network
3. Assess Ministry and Ministry-CIO training requirements
4. Develop internet portal for the Iraqi Government
5. Work with PMO to provide oversight over procurement standards
a. Setup shadow CIO office at PMO
b. Establish 2 national data centers
3
Ministry Of Communication
29 April 2004

Government Connectivity - WBB - Baghdad
• Point-to-point wireless solution for key locations and infrastructure
• Complements/replaces VSAT interim solution
Commercial
- of Health
Area of Baghdad
SHATTH HA
mistry
BAGHDAD
änk
Statie
ald.
Pedia
idastial
Hospttal
Min ot Trad
Baghdad Int.
alian
Airport
mbassy
Baghdad Univ.
International
Airport
Ministry Of Communication
29 April 2004

Government and Other Connectivity - Baghdad
• WiMax Overlay (point-to-multipoint) for greater service area coverage
Example Rollout
9 Microwave Nodes
5 WiMax OFDM Cells
KH HAMID
40,000+ user initial
capability
BAGHDAD
End user speeds >1.5mbps
First links (i.e. ministries)
operational within 90 days
of funding
Ubiquitous service capability
for metro-Baghdad
Internationa
Airport
5
29 April 2004
Ministry Of Communication

MoC/CIO/Ministry Relationships
Global Internet:
Service Providers
Ministries
Spacelink
GOIC
Global Internet:
Ministry 1
Mail
Router
Router
Satellite
SCIS/VEGA
WEB
etc
Ethernet
Satellite
Switch
Radius
Servers: DNS,
Workstations
Server
IP Address
Broadband: wireless, fiber
OR
Ministry 2
ITPC
Mail
Router
SCIS
Router
WEB
etc
IP
Ethernet
Switch
Broadband: wireless, fiber
Future
Radius
Workstations
Servers: DNS,
Server
IP Address
6
Ministry Of Communication
29 April 2004

CIO Function
• Iraqi CIO:
- Cross functional (IT across ministries)
- Sets standards; provides guidelines
- Develops future vision for Iraqi gov't IT
• PMO CIO "Shadow Function"
- Executes vision
- Builds to Iraqi ClO Approved Standards
Economies of Scale (combine like reqmts)
- Works across all sectors
- Coordinates projects with Iraqi CIO
- For Trans/comm sector: "more of the same"
7
Ministry Of Communication
29 April 2004

kpmg
Iraqi Cement Company
(Draft) Financial Assessment
Report
December 2003
This report contains 54 pages and 4 appendices

Iragi Cement Company
kpmg
(Draft) Financial Assessment
December 2003
Contents
1
Introduction
1
1.1
Background
1
1.2
Scope of engagement
Scope restrictions
2
1.3
Approach and procedures
1.4
1.5
Other issues
2
Executive summary
2.1
Current status in Iraq
2.2
Overview of ICC
Key business issues
2.3
2.4
Key financial issues
2.5
Business opportunities
2.6
Projections for the year 2004
3
14
Operating structure and activities
3.1
Operations
14
3.2
Company structure and employee
4
17
Summary combined financial statements
Basis of preparation
17
18
summary combined income statement
Summary combined balance sheet
19
Iraqi Accounting Standards
20
5
21
Analysis of summary combined balance sheets
Tangible fixed assets
21
Assets under construction
26
Financial investments
27
28
Inventory
Trade receivables
30
Cash
32
34
Trade accounts payable
36
Dividends payable
37
Bank loans
38
Capital and reserves
This document is private and confidential and is to be read and used only in the contex of the current status of the Iraqi Cement
Companv. It is not to be copied or distributed without KPMG's brior written consent.

aqi Cement Compa
raff) Financial Assessme
kpmg
December 2003
41
6
Commitments and contingent liabilities
Commitments
41
6.1
41
6.2
Contingent liabilities
42
6.3
Claims and litigation
7
43
Capital Investments
44
8
Sales Cycle Description and Cash Controls
Sales
44
8.1
45
8.2
Petty Cash
8.3
45
Salaries
46
Cheques - Received
8.4
8.5
47
Cheques - Issued
8.6
47
Bank Accounts
9
49
Management Letter Comments
10
50
Management Assessment
50
10.1
Introduction
10.2
50
Management - General issues
50
10.3
IT management
10.4
Accounting Department
50
51
10.5
Production Engineers
Appendices:
Engagement letter.
Appendix 1:
Appendix 2:
2002 summary balance sheet and income statement by plant
Projected financial information for 2004
Appendix 3:
"Status update" of 22 November 2003
Appendix 4:
This document is private and confidential and is to be read and used only in the context of the current status of the Iraqi Cement
Company. It is not to be copied or distributed without KPMG's prior written consent.

Iraqi Cement Company
kpmg
(Draft) Financial Assessment
December 2003
1
Introduction
Background
1.1
In November 2003, KPMG Bahrain (hereafter, "KMG") were requested by the Ministry of
Industry and Minerals (hereafter "MIM") and the Coalition Provisional Authority (hereafter "CPA")
to complete certain procedures on Iraqi Cement Company (hereafter "ICC" or "the Company").
1.2
Scope of engagement
Details of the procedures completed are set out in our engagement letter, as shown in appendix 1,
and related findings are set out in this report.
The engagement has been carried out in accordance with the terms set out in our engagement letter
dated 12 October 2003 as shown in appendix 1. This report documents our findings based on
fieldwork performed from 17 November 2003 to 3 December 2003, inclusive.
The primary purpose of this report is to assist MIM and CPA in their assessment of the current status
of ICC by performing certain agreed upon procedures. The procedures we have undertaken are
limited in nature and extent to those which MIM and CPA have determined will best suit their needs
and as such will not necessarily disclose all significant matters about ICC or reveal irregularities, if
any, present in the underlying information.
The procedures we have undertaken during the course of the engagement do not constitute an audit.
Accordingly, we do not express any opinion as to the accuracy or completeness of the information
included in this report. Had such audit(s) been undertaken, then our findings could differ from the
information presented herein.
We have no responsibility to update this report for transactions and events occurring after the
completion of our fieldwork on 3 December 2003.
We were requested under the terms of this engagement to assist ICC in the preparation of
Prospective Financial Information ("PFT") for the 12 month period ending 31 December 2004 as set
assumptions will need to be reviewed and revised to reflect such changes in trading patterns, cost
of the projections.
Since the forecasts/projections relate to the future, actual results are likely to be different from the
projected results because events and circumstances frequently do not occur as expected, and the
differences may be material.
1
This document is private and confidential and is to be read and used only in the context of the current status of the Iragi Cement
Compan. It is not to be copied or distributed without KPMG's prior written consent.

kpmg
December 2003
1.3
Scope restrictions
13.1
Preparation of 2003 balance sheet
MIM requested that KPMG prepare a balance sheet as at 31 August 2003 as detailed in our
engagement letter attached in appendix 1. MIM informed us that the necessary information would
be available for 2003 to enable KPMG to perform this work. This was also confirmed to us by ICC.
However while performing our work, we encountered the following significant limitations in
information available to us:
• No general ledger, sub-ledgers or interim financial statements for the year 2003 were available;
• We understand that the accounting records for the pre-war business activities of ICC were
recorded and maintained at the Head Office. After the war, the accounting records have only
been maintained on a factory by factory basis. For 2003, the factories were only able to provide
us with the monthly net debits/credits per factory which is not sufficient to be able to compile a
balance sheet as requested by MEM; and A
• We were provided with limited access/ to ICC staff largely due to their current working hours
during the Ramadan period (9:00-12:45 each working day) and the fact that Fridays are a
holiday. In addition, our work was performed during the Eid holiday where the premises were
closed for 3 days. It should be noted that these potential access limitations had been raised with
MIM and the Coalition Provisional Authority (hereafter "CPA") prior to our field visit and we
had been assured that appropriate members of ICC staff would be available to assist us.
Due to the above restrictions, we were unable to prepare a balance sheet for 2003 as requested by
MIM in our engagement letter attached as appendix 1.
On 22 November 2003, we submitted a "status update" to Rick Ortiz, Senior Advisor to MIM,
which we understand was distributed to the interim Minister of MIM, ICC and the CPA. This status
report stated that in the absence of any financial information for the year 2003, we would prepare a
summarized balance sheet as at 31 December 2002.
This report should be read in conjunction with the "status' report referred to above and attached as
appendix 4.
Limited discussions and field visits
1.3.2
In addition, it should be noted that we were unable to visit two of ICC's four plants, those located in
Al-Qaim and Kubaissa, due to security issues in those areas. As a result, the points raised in this
report are mainly based on discussions with management of and field visits to ICC's head office and
_2
This document is private and confidential and is to be read and used only in the context of the current status of the iragi Cemens
Compar. It is not to be copied or distributed without KPMG's brior written consent.

Iragi Cement Company
kpmg
(Draft) Financial Assessment
December 2003
1.3.3
Inventory and fixed asset counts
During our visit to the two factories and the Head Office, we have performed a physical count and/or
observation of the inventory and fixed assets. However no accounting records were available to
compare our results to the books.
1.4
Approach and procedures
Our approach to this engagement involved the performance of the following procedures:
• Inspecting the 2002 long form audit report issued by Iraq's Supreme Board of Auditors;
• Inspecting the ICC general ledger and certain supporting documents for the financial year 2002;
• Field visits to two factories (Fallujah and Kirkuk) and the Head office of ICC;
• Holding discussions with ICC senior management at ICC's Head Office;
• Holding discussions with financial management of the four factories and the Head Office of
• Holding discussions with the head of ICC's planning department; and
• Holding discussions with the head of ICC's-legal department.
Other issues
1.5
Management of ICC have not read this report, nor have they verified the factual accuracy of the
information contained herein, or provided us with any written representations in this regard.
All monetary figures in this report are presented in Iraqi Dinars (ID), thousands of Iraqi Dinars
("ID_k"), millions of Iraqi Dinars ("ID _mn") or billions of Iraqi Dinars ("ID_bn").
As of 3 December 2003, the current market exchange rate between the Iraqi dinar and the US Dollar
was ID 2,000 to USD 1.
We have not performed any legal, technical or environmental assessments on ICC as this was
outside the scope of our engagement.
This report, including all parts thereof, is provided on the basis that it is for the internal information
of MIM and ICC only and that it will not be distributed, published or referred to, in whole or in part,
without our prior written consent. Should the report or parts thereof be reproduced, MIM or ICC
must have KPMG review and agree in writing to the context in which the reproduced part of the
report is to be used.
3
This document is private and confidential and is to be read and used only in the context of the current status of the Iraqi Cement
Company. It is not to be copied or distributed without KPMG's prior written consent.

Iraqi Cement Company
kpmg
(Drafi) Financial Assessmen
December 2003
2 Executive summary
2.1 Current status in Iraq
State of conflict
2.1.1
At the beginning of May 2003 the conflict between the Coalition Forces and Iraq ended by the
removal of Saddam Hussein and the Baath party from power. Post conflict problems for Iraqis are
un-employment, looting, crime and security. It is acknowledged that over the past few months the
security of iraqi people has improved. However during the past months the Coalition Forces and the
Coalition Provisional Authorities have been facing mounting attacks against their troops and their
(sub) contractors. President George W. Bush, United Nations and the world's Islamic nations
(during its Triennial Arab Summit of 16-17 October 2003) have pledged to fight terrorism and to
support the Iraqi people.
Governing authorities
2.1.2
The adoption of the U.N. Security Council Resolution 1483 on 22 May 2003 marks a turning point
in the historical pages in Iraq. It ends nearly 13 years of economic sanctions, encourages the
international community to support Iraqis reconstruction, and supports the establishment of a
transitional administration run by Iraqis. The resolution recognizes the authority of the Coalition
Forces under the Fourth Geneva Convention as an "occupying power" (or Coalition Provisional
Authority"). The CPA has the rights and obligations to take the lead during the interim period, not
only in reconstructing and rebuilding Iraq in the near-term, but also in creating a process by which
Iraqis can choose their future government. Unanimous adoption of the U.N. Security Council
Resolution 1511 on 16 October 2003 confers U.N. legitimacy to US-led operations in Iraq.
On 13 July 2003 an Interim Governing Council was formed and subsequently recognized by the
U.N. resolution 1511. They have recently approved to hold democratic elections of a governing
body by June 2004.
2.1.3
Iraq's economy
According to the World Bank (WB), Iraq's economy will shrink 22 percent this year, having fallen
21% in 2002 and 12% in 2001. Average income fell from $3,600 per person in 1980 to $770-1,020
in 2001 and just $450-610 by the end of 2003.
However, with its huge oil and gas reserves, virtually unlimited supplies of water (the Tigris and
Euphrates rivers) and a large well-educated population, Iraq, is expected to re-emerge as an
important economic and hence political force in the Arab world. Iraq has a proven oil reserve of
around 113bn barrels and a probable reserve of 220bn barrels. Saudi Arabia and Russia hold the
world's largest proven reserves of around 270bn barrels each. According to 1997 figures, Iraq has
proven gas reserves of 3,000bn cm. The oil minister has stated that Iraq has the potential to become
the world's second or third largest holder of gas reserves.
4
This document is private and confidential and is to be read and used only in the context of the current status of the Iragi Cement
Comparv. It is not to be copied or distributed without KPMG's prior written consent.

Iraqi Cement Company
kpmg
(Draf) Financial Assessment
December 2003
2.1.4
Future expected political and economic developments
The prospect of a stable, democratic, market based economy in a region relatively unattractive for
Foreign Direct Investment is promising. Senate and US House representatives have recently
approved a budget of $87bn to finance war against terrorism and for reconstruction of Iraq and
Afghanistan. $18 billion of this has been allocated mainly to the reconstruction of Iraqi
infrastructure. Other countries at the Donors' conference of October in Madrid for Iraqi
reconstruction committed an additional $17bn. In addition, Paris Club has recently stated that it
would consider canceling part of Iraq's $40bn debt. Reconstruction and development of the oil and
gas industry could also contribute significantly to the Iraqi economy.
Over the past few months the Coalition Provisional Authority have passed a number of measures to
allow an acceleration of the modemization of the iragi economy. These included the following:
• CPA no 39 allows foreign investors to set-up. a frade office, a branch, a subsidiary or a joint
venture, or to acquire an investment in all sectors except banks, insurance companies or natural
resources. Authorization was granted to repatriate frid.
• CPA no 37 reduces- substantially the level of taxation and sets the maximum tax rate on
individual and corporate income át 15% as from 1 January 2004.
• CPA no 18 sets measures to ensure the independence of the Central Bank of Iraq.
• CPA no 20 establishes a Trade Bank of Iraq to provide financial services to facilitate import and
export of goods and services.
• CPA no 40 set a new banking act in accordance with western practice. Total number of licences
for banks controlled by foreigners is limited to six banks through 31 December 2008.
5
This document is private and corfidential and is to be read and used only in the context of the current status of the Iraqi Cement
Compan. It is not to be copied or distributed without KPMG's prior written consent.

- - -
aqi Cement Compar
kpmg
Draft) Financial Assessme
December 2003
Overview of ICC
2.2
Background
2.2.1
1Ce ath payd in 1964 through the merger of three cement companies and their nationalization by
ICC's core activities are the production and sales of cement through its four plants located in central
Iraq. ICC's market share is approximately one-third of the Iraqi market.
Financial highlights
2.2.2
The financial highlights of ICC as at and for the years ended 31 December 2002 and 2001 are set out
in the table below:
2002
2001
(Expressed in thousand of Iragi Dinar) i
(unaudited)
(unaudited)
38,925,313
48,506,845
Total revenues Ar
11,216,078
Net profit for the year
17,539,096
2,235,000
wa
Volume produced in tons
n/a
21,703
Average price per ton
8,820,716
Net equity.
8,327,738
Source: Prepared by KPMG based on the general ledgers of ICC.
n/a- not available.
6
This document is private and confidential and is to be read and used only in the context of the current status of the Iraqi Cement
Compar. It is not to be copied or distributed without KPMG's prior written consent.

Iraqi Cement Company
kpmg
(Draft) Financial Assessment
December 2003
2.3
Key business issues
The key business issues which came to our attention during the performance of our procedures are
summarized below:
2.3.1
Security issues
The ongoing security issues throughout Iraq are detrimental to the Company's business and have the
following key effects:
• Misappropriation of the physical assets;
• Delayed travel for employees going to work at the plants from their homes in the cities;
• Additional security costs incurred for the business;
• Delays in the transportation of ray materials and spare parts; and
• A lack of access to international expertise.
2.3.2
Lack of electricity
Currently, ICC does not have electricity to operate their production lines. As a result, since the end
of the war, ICC's four plants have either not been operational or been operating on severely limited
basis. We understand that ICC management is currently considering the purchase or leasing of
electricity generators in order to secure at least a minimum electricity supply.
2.3.3
Cement demand
Currently, significant cement imports are being made from Iraq's neighboring countries. As a result
the selling price per ton of cement has considerably increased, from approx. US$ 10 per ton before
the war to currently over US$ 40-60 per ton.
7
This document is private and confidential and is to be read and used only in the context of the current status of the Iraqi Cement
Companv. It is not to be copied or distributed without KPMG's prior written consent.

Iraqi Cement Company
kpmg
(Draft) Financial Assessment
December 2003
Condition of ICC's facilities
2.3.4
ICC's production facilities were constructed over 20 years ago and are therefore old and in need of
repair and modernisation;
There has been a lack of proper maintenance of fixed assets in ICC since the 1991 Gulf War
resulting:
• Poor production efficiencies and wastage of raw materials;
• High consumption of energy; and
• Significant capital expenditure required in the future to restore maximum capacity.
Human resource issues
2.3.5
Due to the war, ICC's highly qualified technicians have either fled the country or were recruited by
private companies. The hiring and training of technicians for the plants should be a key focus area
for the Company in the future.
Financial management and staff require extensive training and guidance for ICC to be able to
operate in and make the transition to a market economy.
2.3.6
Supplies
Raw materials, electricity, oil and transportation prices as well as salaries are in the process of being
liberalized.
Raw materials used in ICC's production process (i.e. limestone, clay, iron ore and gypsum) have to
be transported long distances to the plants. As a result, transportation costs are high and there are
frequent cases of supplies not arriving at all.
_8
This document is private and confidential and is to be read and used only in the context of the current status of the Iraqi Cement
Compan. It is not to be copied or distributed without KPMG's prior written consent.

Iraqi Cement Company
kpmg
(Drafi) Financial Assessment
December 2003
2.4
Key financial issues
Set out below are some of the key financial issues identified as a result of our work:
2.4.1
Historical cost of production facilities
The historical cost of the four production facilities of ICC was over USD 700 million. The current
book value in ID is based on historical exchange rate for imported goods. However, if the current
exchange rate is applied, then the net book value of the fixed assets of ICC as at 31 December 2002
amounts to USD 7 million.
To ascertain the market value of the production facilities, we would propose that a valuation is
performed taking into consideration the technical condition of the assets, the completeness of the
assets and their potential market value in a post-war Iraq.
2.4.2
Frozen monetary assets and liabilities
Under [rule/law ROBERT], all monetary assets and liabilities from the pre-war period have been
frozen. It is uncertain as to when the blocking of these assets and liabilities will be lifted and to what
extent these assets and liabilities will still exist when the restrictions are lifted.
Grants
2.4.3
ICC has general reserves included in its 2002 equity of ID 16,5 bn which relate primarily to cash
granted by the former Iraqi government for carrying out capital improvements. It is uncertain in a
post-war Iraq whether these funds will be required to be repaid.
Other reserves
2.4.4
Included in ICC's equity in 2002 is a research & development reserve of ID 0.9 bn and a social
reserve of ID 0.9 bn, which has been created from the income of ICC in prior years. Before the war,
these reserves were to be paid to governmental institutions. Post-war, it is uncertain whether these
reserves will still be required to be paid to these institutions. In any cases, until this issue is resolved
by the new Iraqi government, these reserves should be recorded as liabilities of the Company.
IT limitations
2.4.5
The IT mainframe in place in 2002 is in the process of being changed to a PC based system provided
by MIM. The mainframe has several system failures and the PC based system is not functioning
properly at this time. As a result, limited information is available to ICC management to manage the
business.
9
This document is private and confidential and is to be read and used only in the context of the current status of the Iragi Cement
Comparv. It is not to be copied or distributed without KPMG's prior written consent.

- -
Iraqi Cement Company
kpmg
(Draft) Financial Assessment
December 2003
2.4.6
Adjusted net equity at 31 December 2002
2.4.6.1
Quantifiable adjustments
A senter of ur probed anifiable acousing adjustments to IC's combined equity as at 31
Ref.
(Expressed in thousands of Iragi Dinar)
31 December 2002
28,820,716
Net combined equity of ICC as reported by management
Proposed adjustments:
1 Financial investments
5.3
(40,000)
5.4
(200,000)
2 Unused bags in Head Office for long period
3
(445,000)
Receivables from institutions linked to Saddam
]5.5
5.6
4 Unrecoverable deposit in transit
(3,000,000)
5 Reclassification of general reserves
5.10.3
(16,432,267
(964,439)
5.10.3.1
6 Reclassification of research and development reserves
5.10.3.1
(886,919)
7 Reclassification of social reserves
8 Unquantifiable adjustments c
2.4.6.2
NQ
Adjusted combined equity
6,852.091
Source: Prepared by KPMG.
NQ - not quantifiable.
Details of each adjustment áre set out in the body of the report as referenced above.
its hould be note of at the combined eguy prose ted alive reasonia the or yanti ans and
information was not available to us.
he total effect of our quantifiable adjustments is to reduce the net equity of ICC by Iragi Dina
1,968,625k from Iraqi Dinar 28,820,716k to Iraqi Dinar 6,852,0911
10
This document is private and confidential and is to be read and used only in the context of the current status of the iraqi Cement
Company. It is not to be copied or distributed without KPMG's prior written consent.

Iraqi Cement Company
kpmg
(Draft) Financial Assessment
December 2003
2.4.6.2
Non-quantifiable adjustments
It should be noted that in addition to the above quantifiable adjustments, further adjustments may be
required in respect of other issues for which we were not provided with sufficient information. A
summary of these issues is set out below, further details of which can be found in the body of this
• Amount of looted assets in warehouses in Baghdad and the plant in Kirkuk;
• Adjustments as a result of the IT system failure especially in the accounting of fixed assets;
• Adjustments as a result of "real" exchange rate fluctuations and historical "fixed" exchange rates
used;
• Valuation of land and properties owned by the company
11
• Impairment of fixed assets;
coverbity of re a money as and useding housand dosis.
• Obligations to pay pre-war monetary liabilities;
• Inter-divisional margins in inventory;
• Write-off of looted cash; /
• Interest and penalties on loans from Al-Rafadian bank;
• Obligations to repay CPA in the future for staff costs currently paid by the CPA;
• Outstanding litigation against ICC; and
• Ownership of fixed assets.
For further contingent issues to be taken into consideration, see section 6.
This document is private and confidential and is to be read and used only in the context of the current starus of the iragi Cement
Companv. It is not to be copied or distributed without KPMG's brior written consent.

raqi Cement Compar
kpmg
Draft) Financial Assessme
December 2003
Business opportunities
2.5
During our work, we have noted the following areas which may represent significant strengths and
opportunities for ICC in the future:
• Leadership qualities of the Director General;
• ICC's plants have not been "looted" except for some vehicles, small equipment and stock in
Baghdad;
• There is a high demand for ICC's products at the moment in Iraq;
• t in the note cited rey time i on into die color in pred
goods;
* in spor the cores eping uper i to aer ad am the which is hima due reo the
• ICC has comparatively low production costs of less than USD 10-15 per ton;
• The quality of ICC's products is well-recognized in the region;
• ICC has managed to retain a large number of its employees from the pre-war period; and
• ICC management have informed us that the Company could realize a limited productio
apacity within a short period of time and without major capital investment
12
This document is private and confidential and is to be read and used only in the context of the current status of the iragi Cement
Company. It is not to be copied or distributed without KPMG's prior written consent.

Iragi Cement Company
kpmg
(Draff) Financial Assessment
December 2003
2.6
Projections for the year 2004
We have assisted ICC management in the preparation of prospective financial information for the 12
month period ending 31 December 2004 as set out in appendix 3.
The following assumptions have been applied by ICC management to prepare these projections:
• The annual production in 2004 is estimated at 1.6 million tons of cement i.e. approx. 33% of the
designed capacity.
• The total investment required over the next few years is estimated at USD 60 million. Half of
this amount is expected to be invested in 2004 mainly for the acquisition of three generators for
electricity and gear boxes for the mills. However these investments are not expected to improve
the level of production but only to restart the production, Additional investments will be required
to reach the maximum level of designed capacity of 4.8 million tons of cement.
• The average selling price is projected at USD 40 per ton and the production costs, on a full
absorption basis, at around USD 30 per ton.
• Productivity gain or costs reduction have not been factored in the 2004 projections as it will
require a detailed review and an implementation plan.
• Substantial increases in the purchase price of raw materials have been projected due to the
expected liberalization of prices.
We must emphasise that the realisation of the forecasts/projections as prepared by ICC is dependent
on the continuing validity of the assumptions on which they are based. The assumptions will need to
be reviewed and revised to reflect such changes in trading patterns, cost structures or the direction of
the business as emerge.
We accept no responsibility for the realisation of the projections or the
validity of the assumptions of ICC management especially given the general uncertainty, both
politically, socially and economically in Iraq at the current time.
Since the forecasts/projections relate to the future, actual results are likely to be different from the
projected results because events and circumstances frequently do not occur as expected, and the
differences may be material.
13
This document is private and confidential and is to be read and used only in the context of the current status of the iraqi Cement
Comparv. It is not to be copied or distributed without KPMG's prior written consent.

-
Iraqi Cement Compary
(Draft) Financial Assessment
Kpmg
December 2003
3
Operating structure and activities
Operations
3.1
Activities
3.1.1
ICC produces and sells cement from its four plants located in central Iraq. The cement is primarily
designed for domestic use. In addition, ICC have two warehouses in Baghdad which will need to be
upgraded and refurbished due to heavy "looting" after the war.
In addition, the Company extracts raw materials for some of its plants from its quarries.
3.1.2
Suppliers
3.1.3
- _
ICC's suppliers of raw materials and services are Iraqi companies while for equipment, machinery
and spare parts, ICC rely on international suppliers.
Payments and receipts
3.1.4
ICC realizes sales and makes purchases primarily through cash advances in the form of certified
cheques. However it should be noted that since the war ended, direct wire transfers are increasing.
Production facilities
3.1.5
he Company's plants are not operating at this time due to a lack of electricity. ICC manageme
dicated that the plants could operate with a limited capacity within a short period of time
sufficient power was made available.
ICC management indicated to us that the Company's production capacity could be significantly
increased if appropriate capital improvements were made. Due to U.N. restrictions since 1991, there
has been a lack of proper spare parts and trained international technicians available to ICC and as a
result the plants have not been adequately maintained.
14
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Comparv. It is not to be copied or distributed without KPMG's prior written consent.

Iraqi Cement Company
kpmg
(Draft) Financial Assessment
December 2003
3.2
Company structure and employee
3.2.1
Legal status
raqi Cement Company is a state-owned company and has four production plants located in centre
f Iraq with its Head Office in Baghda
3.2.2
Overview of ICC corporate structure
Set out below is a brief overview of ICC's corporate structure:
Director General (DG)
Head Office -
Kirkuk Plant
Kubaissa Plant
Fallujah Plant
Al-Qaim Plant
2 lines
Baghdad
2 lines
1 line
3 lines + 1 old
515 employees
625 employees
460 employees
720 employees
464 employees
On 31 October 2003, ICC had a total number of employees of 2,784 with salary expenses of USD
313,900 per month currently paid by the CPA (average monthly salary of USD 113 per employee).
15
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Comparv. It is not to be copied or distributed without KPMG's prior written consent.

kpmg
Drop area Commen
December 2003
3.2.3
Overview of ICC's Head Office organizational structure
Set out below is an overview of ICC's organizational structure at its Head Office:
Mohammed Abd-Allah Mohamed
Director General ("DG")
Deputy DG
Deputy DG
Maintenance
R&D
Planning
Legal
Managerial
100 employees
10 employees
5 employees
40 employees
118 employees
Internal control
Commercial
Accounting
Marketing
Quality control
24 employees
69 employees
20 employees
50 employees
10 employees
ISO
IT
Engineering
3 employees
50 employees
33 employees
Source: ICC management.
16
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Compar. It is not to be copied or distributed without KPMG's prior written consent.

Iragi Cement Company
kpmg
(Draft) Financial Assessment
December 2003
4 Summary combined financial statements
4.1
Basis of preparation
The combined income statements and balance sheets presented in this section have been prepared in
accordance with Iraqi Accounting Standards. There are significant differences between Generally
Accepted Accounting Principles in the United States of America and the Iraqi Accounting
Standards.
umbination of me tour iro on prants sath tend thee ree wid but eliminaring in the
divisional transactions and balances. ICC management indicated to us that inter-divisional
transactions and balances have not been eliminated due to the fact that the final financial statements
for the year ended 31 December 2002 were not completed prior to the start of the war.
As this combined information is all that was made available to us, we have based our procedures and
findings as set out in this report on the combined totals.
The long form audit report issued by the Supreme Board of Auditors (government auditors) included
financial statements for the year ended 31 December 2002 and management letter comments. There
are a significant number of comments and proposed adjustments made by the auditors which have
not been addressed or recorded (see section 9 for further details).
he proposed adjustments resulting from our work as summarized in paragraph 2.4 of this report ar
lot recorded in the combined balance sheets and income statements presented below
17
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Company. It is not to be copied or distributed without KPMG's prior written consent.

Iraqi Cement Company
(Drat) Financial Assessment
kpmg
December 2003
Summary combined income statements
4.2
out combined income stalements of IC for the years ended 31 December 2002 and 2001 are set
2001
Ref.
26 2002
(unaudited)
(unaudited)
(Expressed in thousands of Iraqi Dinar)
Turnover
48,506,845
38,925.313
N/A
(24,308,425),
Raw materials and consumables
N/A
24,198,420
Gross Profit
49.9%
Gross profit %
Operating expenses
Wages and salaries
(6,477,557)
N/A
N/A
External services
(3,424,072)
N/A
Depreciation
(803,909)
N/A
Capitalized costs
6,003,507
N/A
Operating profit
19,496,389
$ 40.2%
Operating profit %
RAI
Interest expense
(348,751)
N/A
N/A
Other expenses
(1,608,541)
Net income before ta?
11,216,078
17,539,097
Income tax
17,539,097
Net profit for the year
11.216,078
Source: prepared from ICC's combined 2002 & 2001 general ledgers.
N/A - not available
18
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Comparv. It is not to be copied or distributed without KPMG's brior written consent.

Iragi Cement Company
kpmg
(Draft) Financial Assessment
December 2003
4.3
Summary combined balance sheets
The combined balance sheets of ICC as at 31 December 2002 and 2001 are set out below:
Ref.
2002
2001
(Expressed in thousands of Iragi Dinar)
(unaudited)
(unaudited)
Fixed assets
Tangible fixed assets
5.1
15,006,130
2,602,276
Assets under construction
5.2
95,574
4,089,126
Financial investments
5.3
40,000
40,000
19,13.5.256
2,737.850
Current assets
Inventory
38,180,224
5.4
30,063,164
Receivables
4,253,929
1,079,480
Cash
17,999,891
34.317,093
47.259,595
Current liabilities
(Amounts falling due wi
one year
7
Payables
5.
16,635,552
5,884,503
5.8
Dividends payable
16,948,206
13,512,011
Overdraft
3,981,692
23,378,206
33.583,758
Net current assets
13,675,837
10,938,886
Long-term liabilities
(Amounts falling due after one year)
Bank loans
5.9
3,990,377
5,349,000
Net assets
28,820,716
8,327,736
Capital and reserves
5.10
Share capital
1,523,000
1,523,000
Reserves
6,804,738
27,297,716
28,820,716
8,327,736
Source: prepared from ICC's combined 2002 & 2001 general ledgers.
19
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Companv. It is not to be copied or distributed without KPMG's prior written consent.

ragi Cement Compan
Draft) Financial Assessmer
kpmg
December 2003
4.4
Iraqi Accounting Standards
Standards and International Accounting
4.4.1
Differences between Iraqi Accounting
Standards
A summary of the main differences affecting the financial statements of ICC is summarized below.
• Although it is allowed to set-up provisions for non-recoverable assets, no provisions were made
by ICC in connection with doubtful debts, slow moving inventory, and cash-in-transit and
uncollected checks outstanding for a long period.
• Fixed assets fully depreciated but still in use continue to be depreciated until there are retired.
The excess depreciation is included in reserves.-
• Certain expenses are charged directly to reserves (e.g. social reserves) instead of profit and loss
account.
• Accounting for grants received which become repayable when certain conditions are met.
• No accounting principles for hyper inflationary economy.
• Accounting for transactions denominated in foreign currencies. Various artificial exchange rates
are used to purchase foreign goods, which distort the presentation of the balance sheet and the
real profitability of the company.
• Annual allocation of profits to certain institutions (e,g. R&D institution) is shown in reserves
until cash call and payment made. These reserves should be reclassified as payable.
• Accounting for litigation and claims are recorded only when paid.
• Limited disclosure notes.
20
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Comparv. It is not to be copied or distributed without KPMG's prior written consent.

Iragi Cement Company
kpmg
(Draft) Financial Assessment
December 2003
5
Analysis of summary combined balance sheets
5.1
Tangible fixed assets
Composition
5.1.1
Set out below is an analysis of fixed assets as at 31 December 2002 with comparative figures for
2001:
NBV
Acquisition cost
Acc. Dep.
NBV
(2002)
(Expressed in thousands of iraqi Dinar)
(2002)
(2001)
(2002)
Land
84,694
N/A
84,694
Buildings
(117,518)
1,261,895
N/A
1,144,377
(177,689)
Machinery & equipment
13,526,787
12,749,088
Transportation equipment
(152,418)
741,500
N/A
589,082
Small tools & molds
26,076
(4,074)
N/A
22,002
Furniture & fixtures
(82,310)
487,144
NIA
404,834
Other
12,052
12,052
NA
(1,134,019)
16,140,148
15,006,130
2,602.276
Source: Prepared from ICC's 2002 & 2001 combined general ledgers.
N/A: not available
5.1.1.1 Details
• Land comprises land at the Head Office, the four production plants, and the quarries for raw
materials.
• Machinery and equipment comprises the plant and machinery located at the four production sites
(Kirkuk, Kubaissa, Fallujah and Al-Qaim) and the Head Office.
• The NBV increased during 2002 by approx. ID 14bn due to capital improvements made by ICC.
ICC management indicated to us that fixed asset additions during 2002 were recorded at an
exchange rate of approx. 2,000 ID / US $1.
5.1.1.2 Looted assets
• In Baghdad, the Company has two warehouses, which were looted after the war. All the
Company's stock in these warehouses was taken. ICC management informed us that one
warehouse was completely "gutted" as all the doors, windows, and electrical connections were
removed.
• In addition, ICC management indicated that approx. 10 cars/trucks, a bulldozer in Kirkuk, office
equipment (computers, air-conditioning) and various small parts/tools were also looted.
_21
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Comparv. It is not to be copied or distribued without KPMG's prior written consent.

- --. -
Iragi Cement Company
kpmg
(Draft) Financial Assessment
December 2003
5.1.1.3 Key limitations in fixed asset accounting
• The fixed asset sub-ledgers per plant did not reconcile to the general ledger by approximately ID
12 bn;
• Additions in 2002 after the computer system failure were not recorded;
• Certain fixed asset balances were recorded directly in the general ledger;
• The fixed asset sub-ledgers did not include total balances due to the system failure;
* The fixed asset sub-ledgers sub-totals do not total accurately; and
• The fixed asset sub-ledgers did not calculate depreciation for the 2002 additions. ICC
management recorded depreciation directly in the general ledger.
differences were not available.
5.1.2
Fixed asset count/
We performed a physical count of fixed assets at the production plants in Kirkuk and Fallujah and at
the Head Office in Baghdad. As the company was unable to provide us with fixed assets sub-ledgers
which reconcile to the general ledger, we were unable to trace the assets back to the books. However
based on our discussions with the plant managers and our observations, plant, machinery and
equipment located at both factories were not looted. Furthermore, although the Kirkuk factory was
in a much better shape than the Fallujah factory, both would appear to be operational. Plant,
nachinery and equipment at the head Office includes a production facility retired more than 2(
years ago and a number of office buildings and warehouses which require major overhaul
22
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Compan. It is not to be copied or distributed without KPMG's prior written consent.

Iragi Cement Company
kpmg
(Draft) Financial Assessment
December 2003
5.1.3
Production plants
5.1.3.1 Analysis of fixed assets by plant
Set out below is an analysis of fixed assets by plant as at 31 December 2002:
Acquisition cost
NBV
Acc. Dep.
(Expressed in thousands of Iraqi Dinar)
Kirkuk plant
3,567,054
(209,366)
3,357.687
Kubaissa plant
4,878,383
(315,516)
4,562.866
Al-Qaim plant
4,921,892
4,663.437
(258,454)
Fallujah plant
(77,765)
922,580
1,000,346. 1
Head Office
(272,915)
1,772,473
1,499,557
A
16,140.148
(1,134,018)
15,006,130
Source: prepared from information abramed tom the general ledgers by plant.
As noted in section! 5.1.1.3, the printed fixed assets sub-ledgers by plant did not reconcile to the
general ledger by approx: ID 12 bn' due to the computer system failure in mid-2002.
5.1.3.2
Acquisition cost
Set out below is an analysis of the historical acquisition cost of the Company's plants:
Cost per plant
(Expressed in million of US dollars)
Kirkuk plant - built in 1984 by a Japanese company
200
Kubaissa plant - built in 1984 by a Japanese company
200
Al-Qaim plant - built in the 1980's by a Romanian company
150
Fallujah plant - built in 1970's by a German company
150
700
Source: ICC management.
We were unable to reconcile the above amounts provided by ICC management to original contracts
as ICC management could not provide us with the relevant contracts. Reportedly, construction of a
state-of-the-art facility, with a capacity of 2 million tons per year, would cost over $300 million.
The historical acquisition cost for fixed assets purchased in foreign currencies has been calculated
based on a wide range of exchange rates over the last 20 years. It should be noted that no official
exchange rates have been published by the country since the Gulf War in 1991.
A fixed exchange rate of 1 ID for USD 3.2 was used for a long period. This rate allowed Iraqi
companies to purchase assets and spare parts at low costs, which however understated the historical
cost of the assets when converted into Iraqi Dinars and overstated the annual profits as the
depreciation charge is very low.
23
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Comparv. It is not to be conied or distributed without KPMG's brior written consent.

Iraqi Cement Company
kpmg
(Drat) Financial Assessment
December 2003
The net book value of the fixed assets as at 31 December 2002 at the current exchange rate of 2000
Dinars for 1 US is USD 7,5 million and is significantly lower than the acquisition cost of over USD
700 million as reported by ICC management.
5.1.3.3
Design capacity
The design annual capacity for the four plants is as follows:
• Kirkuk: 2 lines with a total capacity of 2 million tons of Portland cement.
• Kubaissa: 2 lines with a total capacity of 2 million tons of Portland cement.
• Fallujah: 3 lines with a total capacity of 280,000 tons of white cement.
- Al-Qaim: 1 line with a total capacity of 500,000 tons of water resistant cement.
The Kirkuk and Kubaissa plants were built by a Japanese company and are similar in layout and
designed capacity.
ICC management indicated to us that the Al-Qaim plant experienced production problems during the
1980s and final testing was never completed as the Romanian company responsible for building the
plant left Iraq prior to the 1991 Gulf War.
ICC management indicated that the Falujah plant has experienced quality problems as the white
cement (main product) was not compliant with international standards.
5.1.4
Depreciation rates
The single accepted method of depreciation in Iraq is on a straight-line basis. A summary of
depreciation rates per major fixed asset category is set out below:
Rate
Fixed asset category
Land
Not depreciated
Quarries
Not depreciated
3 to 5%
Buildings
5%
Machinery and equipment
5%
Transportation equipment (e.g. bulldozers)
10 to 12%
Vehicles
Furniture & Fixtures
15%
20%
Computers and printers
Source: ICC management.
These rates are not in accordance with the Iraqi Accounting Standards. These rates have been
promulgated by the Ministry of Finance for the Cement industry in Iraq as the assets in the cement
industry are considered to have a longer life than that prescribed by Iraqi Accounting Standards.
According to Iraqi Accounting Standards, assets still in use after being fully depreciated must
continue to be depreciated at 50% of the previous rate until the asset is retired. The amount of
additional depreciation expense for 2002 for fully depreciated assets is recorded as a reserve in
equity amounting to ID 806 mn.
24
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Iraqi Cement Company
kpmg
(Draft) Financial Assessment
December 2003
5.1.5
Impairment provision
ICC management have not performed an impairment analysis on the four production plants. We
visited the Kirkuk, Fallujah and Head Office facilities during our procedures. We did not visit the
Al-Qaim and Kubaissa plants due to severe security risks.
Based on our discussions with plant personnel of those facilities we visited, we have not identified
any significant impaired assets except as noted below.
• Production at
the Head Office ceased more than 20 years ago and, according to ICC
management, is fully depreciated. This facility has been cannibalized for parts for the other
facilities. These parts were transferred at zero value.
• The Fallujah plant has 3 lines built in the 1970's and 1 older line, which is currently not in use.
The line not in use is according to ICC management fully depreciated.
• ICC management indicated they want to improve the quality of the white cement and re-furbish
the older line at Fallujah. The current capacity is sufficient for the Iraqi market of white cement.
ICC management believe that increased quality and capacity will allow for export sales of white
cement which has a higher value than standard Portland cement.
• ICC management and plant personnel indicated that production in the plants visited could begin
within a short period if sufficient electricity is supplied. While the plants need certain machinery
and spare parts, the plants did operate during the period of U.N. sanctions. Machinery and spare
parts were either obtained from Iraqi suppliers, produced by ICC or smuggled into the country.
ICC management indicated that no significant capital expenditures were needed to produce at
limited capacity, around 30% of the designed capacity. Should ICC be required to produce at full
capacity then significant capital expenditures would be required as described in section 7.
Other issues
5.1.6
• No significant non-core assets were identified based on the limited procedures performed.
• All plants are at least 19 years old with depreciation periods of between 20 - 33 years. See
section 5.1.4 for comments on the 2002 depreciation expense.
• During our field visit, there was no production of cement at the plants due to a lack of electricity.
• The Head Office holds equipment and inventory for the production of packaging for the cement.
The equipment and inventory (700,000 bags) have not been used since the war. ICC
management indicated that the equipment has been fully depreciated. However an adjustment
for the impairment of any remaining book values in this regard has not been assessed or recorded
by management.
• No borrowing costs have been capitalized by management. ICC management stated that the loan
received in 2002 of USD 2.3 million was used to purchase spare parts.
25
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Companv. It is not to be copied or distributed without KPMG's prior written consent.

- - =
Iraqi Cement Compan
kpmg
Drafi) Financial Assessmer
December 2003
Assets under construction
5.2
Set out below is an analysis of assets under construction at 31 December 2002:
2002
(Expressed in thousands of Iragt Dinar)
3,575,682
Advance payments
506,928
Buildings
Warehouses and silos
6,515
4,089,126
Source: prepared from the ICC 2002 combined general ledger.
dvance payments consist of advances to suppliers made through the MIM. ICC manageme
formed us that these outstanding advance payments were frozen at the beginning of the war. It
not certain when or if these advances will be unfrozen.
DRAN
26
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Iraqi Cement Company
kpmg
(Draft) Financial Assessment
December 2003
Financial investments
5.3
Composition
5.3.1
An analysis of financial investments at 31 December 2002 is set out in the table below:
31 Dec 2002
% shareholding
Date of acg.
bear)
(%)
(ID _k)
2.66%
Hadar Company - marble extraction
2002
20,000
Grok - marble extraction
n/a
n/a
20,000
40,000
Source: prepared from information obtained from ICC management.
na - not available
Detailed information on ICC's inyestment/ in Orok was not available to us. ICC management
ndicated that the transaction was not finalized before the war started. The cheque used to pay for th
ransaction was not cashed and was recorded as an outstanding cheque as at 31 December 2002
Given the current status of Iraq, it is uncertain whether any return will ever be recovered from these
investments and therefore we propose that the carrying value of these investments be written down
to zero (see adjustment l in section 2.4.6).
27
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Company. It is not to be copied or distributed without KPMG 's prior written consent.
i

kpmg
December 200.
5.4
Inventory
5.4.1
Composition
An analysis of inventory at 31 December 2002 is set out in the table below:
31 Dec 2002
(Expressed in thousands of Iraqi Dinar)
20,154,545
Spare parts
6,036,258
Finished goods and work-in-progress
Letters of Credit (primarily for spare parts)
4,629,829
Raw materials
2,776,526
Consumables
2,181,657
Packaging
2,021,103
380,306
Oil and gas
38,180,224
Source: prepared from 1CC's 2002 general ledger
Details
5.4.1.1
ICC management indicated to us that the outstanding Letters of Credit noted above of ID 4,629,829k
made before the war have been frozen. The status and recoverability of these letters of credit is not
clear and no provision has been recorded for this amount.
Sales of inter-company raw materials and finished goods were recorded at "market value" and the
closing inventory balance in each plant includes the gross margins earned on these transactions. We
were unable to
record an adjustment to eliminate this inter-company margin as insufficient
information was available to us from ICC management.
5.4.1.2
"Looted" inventory
Inventory looted, as noted per ICC management, included certain finished goods at the Baghdad
warehouses, explosives (used in extraction at the quarries), and various small parts and tools. A
provision for these amounts has not been recorded and no details as to the amount of inventory
looted was available to us.
5.4.1.3 Key limitations in inventory accounting
A sub-ledger, listing or aging of inventory was not provided to us by ICC management.
28
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Iraqi Cement Company
kpmg
(Draft) Financial Assessment
December 2003
5.4.2
Stock count
The inventory stock count performed by ICC personnel for the year 2002 noted no stock differences
at any plants or warehouses. We indicated that to have no stock differences during a stock-count of
a large entity with many different types of stock items (e.g. spare parts, finished goods, raw
materials etc.) was unusual.
ICC responded that differences in stock take results were often
deducted from employee salaries.
During our visit to the Kirkuk and Fallujah plants we noted that the spare parts warehouses were
well organized and clean. In addition, ICC management indicated to us that a large number of spare
parts had been smuggled into the country during the period of U.N. sanctions in the 1990's.
5.4.3
Valuation of inventory
As regards the valuation of the inventory balances recorded at 31 December 2002, we have noted the
following key issues:
• The cost of raw materials varies due to transportation costs (depending on the location of the
quarries) and suppliers.
• In Kirkuk, the local government sold raw materials to ICC at a very low cost while the Fallujah
and Kubaissa plants purchased raw materials at market rates. The Al-Qaim plant extracted much
of its own raw materials.
• The cost of spare parts varied due to exchange rates used, transportation costs and suppliers.
Spare parts imported over the past years included a significant commission for having been
"smuggled" into the country.
These facilities have not been utilized since the start of the war. The quality and condition of the
700,000 bags held by ICC (purchase price is approx. USD 0,15 per bag) at the Head Office is in
doubt as it has not been used for several months and may indeed never be used. ICC
management indicated that these bags could be sold to the Northern or Southern cement
companies. No provision has been recorded for these items in the accounting records. We have
proposed that these items be written off (see adjustment 2 in section 2.4.6).
5.4.4
Inventory provision
An inventory provision of ID 1,293,814k has been recorded in the ICC general ledger as at 31
December 2002 and local financial statements as a credit balance in receivables (see 5.5.1 below).
his provision was recorded as a result of stock take differences noted in the 1999 physica
nventory count. The related inventory has been reclassified to a suspense account in receivables
le understand that this provision was only approved in 2002 and, as a result, the provision wa
corded as a "prior year expense" in 2002
29
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-

Iragi Cement Company
(Draft) Financial Assessment
Kpmg
December 2003
Trade receivables
5.5
Composition
5.5.1
Set out below is an analysis of accounts receivable at 31 December 2002:
31 Dec 2002
(Expressed in thousands of Iraqi Dinar)
Suspense account (stock take difference)
1,290,075
886,385
Receivables
Inter-divisional receivables
177,762
19,072
Loans to employees and other
(1,293,814)
Inventory provision
1,079,480
Source: prepared from the ICC 2002 general ledge
5.5.1.1 Details
• Sales at ICC were primarily made by cash advance payments except for entities closely related
to Saddam Hussain. As such, trade accounts receivable are limited.
• ICC management indicated to us that the majority of the receivables noted above did not
represent amounts owed to ICC but cash advances made to suppliers and unmatched cash
disbursements. ICC management stated that the accounts receivable sub-ledgers may include
amounts that have not been reconciled for as long as 20-30 years.
• A re-classification of ID 58 bn in assets and liabilities was recorded by the Supreme Board of
Auditors in the final 2002 financial statements. We have not received any detailed analysis of
this adjustment from ICC but we understand that in accordance with local Accounting Standards
all debit amounts in payables are re-classified to receivables and all credit amounts in
receivables are re-classified to payables. This adjustment is not reflected above or in the
summary balance sheets presented in section 4.3 of this report.
Accounts receivable include inter-division transactions with a net amount of ID 177,762k, which
have not been eliminated.
• ICC management informed us that none of the receivables due are denominated in foreign
currencies.
• The Ministry of Finance has issued an order to delay all pre-war accounts receivable. The
recoverability of these receivables is therefore unknown.
• For details as to the "suspense account" caption and the "inventory provision" caption noted
above, see section 5.4.4 for details.
-_ 30
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Iraqi Cement Company
kpmg
(Drafi) Financial Assessment
December 2003
5.5.1.2
Limitations in receivable information provided
The following limitations were imposed on us by ICC management as regards our examination of
ICC's 2002 receivables:
* The accounts receivable sub-ledgers for 2002 provided to us at the beginning of our work did not
reconcile to the general ledger.
We further noted that the sub-ledgers were not the final
versions;
• Final copies of all sub-ledgers were provided to the Supreme Board of Auditors but we were
initially denied access to these documents;
• We requested the final sub-ledgers but the printer at the Head Office was broken and therefore
they could not be provided to us at that time;
• On the last day of our procedures, we received the final accounts receivable sub-ledgers as these
sub-ledgers were printed externally. We understand that the sub-ledger totals agreed to the
general ledger but we were unable to perform additional procedures on these ledgers due to the
time constraints; and
• In addition, we have not been able to access the provision required if any, for all cash advances
made to suppliers for fixed assets or inventory.
5.5.2
Provision for doubtful debts
• In 2002 ICC operated primarily through cash advances for sales and as a result, only small
doubtful debt provisions were recorded in 2002 (ID 10k).
• Certain entities related to Saddam Hussain received credit for sales. A list of these receivables
as at 31 December 2002 was provided to us and amounted to ID 445mn. No provision has been
recorded for these items and we would propose that such an adjustment be made (see adjustment
3 in section 2.4.6).
31
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Company. It is not to be copied or distributed without KPMG's prior written consent.

Iraqi Cement Company
kpmg
(Draft) Financial Assessment
December 2003
Cash
5.6
Composition
5.6.1
An analysis of the cash and bank balance is set out in the table below:
31 Dec 2002
19 Nov 2003
(Expressed in thousands of Iraqi Dinar)
Not available
Cash in bank - ID (pre-war accounts)
7,999,891
Deposit in transit (USD1,5 mn)
3,000,000
Cash in bank - USD at the official bank rate
- 368,847
Cash in bank - ID (post-war accounts)
192,051
3,560,890
7,999,891
Source: prepared from ICC's combined 2002 general ledger and information obtained from ICC management for 2003.
5.6.1.1 Details
• ICC management informed us that all pre-war cash balances were frozen. It is not certain
whether these amounts will be received.
• The use of certified cheques in Iraq was common before the war to pay for goods. The status of
outstanding cheques and deposits in transit made before the war is not clear at this time. The
amount is not material.
• Cash in bank as at 19 Nov 2003 represents cash in bank accounts opened during November
2003. From August 2003 until November 2003, most sales were made in cash.
• Cash in Bank - USD at 19 Nov 2003 was translated into ID for accounting purposes at the
official bank rate (ID 1 / USD 3.22) and not the current market rate (ID 2,000 / USD 1). ICC
nanagement indicated that the cash would not be converted into ID but used for US dolla
expenses. The US dollar balance at 19 Nov 2003 was USD 1,189,831. The ID equivalent woul
be ID 2,379,662K and not ID 368,847k. This adjustment should only affect the 2003 accounting
records.
• The deposit in transit at 19 November 2003 includes a cheque that has not yet been deposited for
USD 1.5mn. The cheque is kept at the Head Office and we understand that there is doubt
whether this cheque can be redeemed. ICC management indicated to us that in August 2003 the
bank did not accept the cheque. ICC management are currently following up on this issue. No
provision for this amount has been recorded in the accounting records. We have proposed an
adjustment to write-off this cheque (see adjustment 4 in section 2.4.6).
32
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L

Iraqi Cement Company
kpmg
(Drafi) Financial Assessment
December 2003
"Looted" cash
5.6.1.2
Cash provided by the CPA for ICC salaries was stolen from a safe in the Head Office and a safe in
Kirkuk amounting to USD 209,000 and ID 119mn respectively. ICC management were unable to
provide us with any evidence confirming the amounts stolen in Kirkuk. We have not proposed any
adjustment as it is unclear whether the cash provided by the CPA, which has been looted, belongs to
the company.
Existence of cash
5.6.2
We have obtained a copy of the bank statements and bank reconciliations at 31 December 2002 and
at 19 November 2003.
DRAFI
33
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Comoany. It is not to be copied or distributed without KPMG's prior written consent.

Kpmg
Dro Premiere commen
ecember 200.
Trade accounts payable
5.7
Composition
5.7.1
An analysis of trade accounts payable as at 31 December 2002 is set out in the table below:
31 Dec 2002
(Expressed in thousands of Iragi Dinar)
Trade accounts payable
9,111,943
Payable to the Ministry of Finance
7,049,532
Inter-division payables
474,077
16,635,552
Source: prepared from the combined ICC general ledger for 2002,
5.7.1.1
• Purchases at ICC are primarily made by cash advance payments. As such, trade accounts
payable are limited.
• ICC management indicated to us that the majority of the payables did not represent amounts
owed by ICC but cash advances received from ICC customers and unmatched cash advances
received from ICC customers with sales invoices. ICC management stated that the accounts
payable sub-ledgers may include amounts that have not been reconciled for as long as 20-30
years.
• Accounts payable includes inter-division balances with a net credit balance of ID 474 million
which have not been eliminated.
• Trade accounts payable are primarily denominated in Iraqi Dinar per ICC management for local
suppliers and foreign currencies for imported fixed assets and spare parts. ICC management
provided a list of accounts payable and purchase commitments in foreign currencies as at 21
September 2003 as requested by MIM. The total of the list was ID 1.5bn (using 2,000 ID / 1
USD) consisting of payables in US dollar, Euro, British pounds, and Japanese Yen.
• The Ministry of Finance has issued an order to delay all pre-war accounts payable. The
obligation of ICC to therefore settle its pre-war liabilities is therefore unknown.
34
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Iraqi Cement Company
kpmg
(Draft) Financial Assessment
December 2003
5.7.1.2
Limitations in payable information provided
The following limitations were imposed on us by ICC management as regards our examination of
ICC's 2002 payables:
The acous a she sub ledgers for per ide to us althe begining fee work did not
* Final lodies od al subledges eum provided to the Supreme Board of Auditors but we were
We requested the final sub-ledgers but the printer at the Head Office was broken and therefor
hey could not be provided to us at that time
On the last day of our procedures, we réceived the final accounts payable sub-ledgers as thes
ub-ledgers were printed exterhally. We, understand that the sub-ledger totals agreed to th
general ledger but we were unable to perform additional procedures on these ledgers due to the
time constraints; and
• In addition, we have not been able to access the provision required if any, for all cash advances
made to suppliers for fixed assets or inventory.
5.7.2
Completeness of trade payables
CC management indicated that purchase commitments in foreign currencies totaling Euro 1711
approximately ID 380mn) as at 21 September 2003 per the list submitted to MIM. A list o
purchase commitments for Iraqi suppliers was not available as ICC management stated that local
purchase commitments could be cancelled due to the war.
35
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Iraqi Cement Company
kpmg
(Draft) Financial Assessment
December 2003
5.8
Dividends payable
5.8.1
Movements
Set out below is an analysis of movements in dividends payable as at 31 December 2002:
(Expressed in thousands of Iraqi Dinar)
13,512,111
Dividends payable at 31 December 2001
12,325,640
Allocation of 2002 income (see 5.10.2 below)
(8,889,445)
Payments made
16,948,206
Dividends payable at 31 December 2002
Source: prepared based on the combined 2002 general lodger of IC.
DRA
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Comparv. It is not to be copied or distributed without KPMG's prior written consent.

Iraqi Cement Company
Kpmg
(Draft) Financial Assessment
December 2003
5.9
Bank loans
Composition
5.9.1
Set out below is an analysis of loans due as at 31 December 2002:
31 Dec 2002
(Expressed in thousands of Iragi Dinar)
Bank loans
3,990,376
Source: prepared based on the combined 2002 general ledger of ICC.
5.9.1.1 Details
ICC received two loans in 2002 from Al-Rafidain bank, denominated in US dollars. These have
been converted into ID for accounting purposes using an exchange rate of ID 1,985 to 1 USD.
The key teams of these loans is as follows:
• Interest rate is 4% per annum with a term of two years.
• The status of the loans as well as interest and any penalties for late payment is not certain at this
time as all pre-war bank loan balances have been frozen.
5.9.2
Repayment schedule (2003 and beyond)
Set out below is a summary repayment schedule for the above loan obligations as at 31 December
2002:
31 Dec
Paid in
Due in
Original
Due in
Lender
2002
2003
Loan
2002
2004
(Expressed in thousands of US dollars)
Al-Rafidain Bank
1,300
165
1,135
650
500
Al-Rafidain Bank
875
1,000
125
485
375
290
1,135
2,010
2,300
875
Source: Based on information obtained from ICC management and the respective loan agreements.
• One principal and interest payment was made during 2002 for each loan.
• A principle payment of USD 165,000 for the first loan was made in January 2003.
• ICC management indicated that the loans were denominated in US dollars as the funds were
used for purchasing spare parts from outside of Iraq.
37
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Iraqi Cement Company
(Draft) Financial Assessment
kpmg
December 2003
Capital and reserves
5.10
Composition
5.10.1
An analysis of ICC's capital and reserves as at 31 December 2002 is set out in the table below:
31 Dec 2002
(Expressed in thousands of Iragi Dinar)
Share capital
1,523,000
Reserves:
- General Reserves
16,432,267
- Sundry Reserves
5,587,820
5,277,715
- Capital reserves
27,297,716
Source: prepared from the combined ICC 2002 general ledger.
Company in a re-organization more than lO years aços,
ICC management informed us that one plant was transfered out of ICC during this re-organization.
5.10.2
Allocation of net income for the year 2002
Iraqi legislation set down certain specific rules and percentages for the allocation of the annual net
income of Iraqi companies. However the proposed allocation of net income can be amended after
discussions with the Authorities. In August 2002, we understand that such a change was approved
by MIM. An analysis of the approved allocation of net income for the year 2002 is set out in the
Allocation to:
31 Dec 2002
(Expressed in thousands of Iragi Dinar)
Dividends payable for 2002
12,325,640
Capital reserves
3,010,790
General reserves
1,001,212
Sundry reserves:
- Research & development
700,848
- Social reserves (pensions)
500,606
Net income
17,539,096
Source: prepared from the combined ICC 2002 general ledger.
38
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Iraqi Cement Company
kpmg
(Draft) Financial Assessment
December 2003
5.10.3
Movement in equity reserves
Set out below is an analysis of the movements in the Company's equity reserves in 2002:
Allocation from
Other
Reserves
31 Dec 2001
movements
2002 income
31 Dec 2002
(Expressed in thousands of Iraqi Dinar)
Sundry reserves
4,652,251
(265,885)
1,201,454
5,587,820
Capital reserves
1,460,942
3,010,790
805,895
5,277,627
General reserves
1,001,212
680,238
16,432,267
14,750,817
6,793,431
5,213.456
15,296.827
27,297,716
Source: prepared from the combined ICC 2002 general ledger.
For details on the composition and movements in sundry reserves, see section 5.10.3.1 below.
The capital reserves movement of ID 805,895k in 2002 relates to excess depreciation for fully
depreciated assets. See section 5.1.4 on Fixed Assets for additional information.
The general reserves movement of ID 14,750,817k relates to cash and assets granted by MIM to ICC
for capital improvements /at the plants. ICC management indicated that the amount should be
recorded in general reserves and not as a loan, although if net income improved as a result of an
increased production capacity then the grant would have to be repaid. No adjustment has been
recorded by ICC management in the accounting records for such an eventuality. We have proposed
that the 2002 balance of ID 16,432,267k be shown as a liability until the exact nature and amount of
any obligation is determined (see adjustment 5 in section 2.4.6).
In addition, ICC management informed us that MIM had provided smaller grants to ICC in the years
2000 and 2001 which have been recorded as general reserves. No additional information or
supporting documentation was available to us regarding these transactions.
5.10.3.1 Movement in sundry reserves
Set out below is analysis of the movements in the Company's sundry reserves in 2002:
Other
Allocation from
Reserves
31 Dec 2001
2002 income
movements
31 Dec 2002
(Expressed in thousands of Iragi Dinar)
Research & development
700,848
964,439
(168,982)
432,573
500,606
Social (pension)
(97,215)
886,919
483,528
Other reserves
-
312
3,736,150
3,736,462
1,201,454
(265,885)
5,587,820
4,652,251
Source: prepared from the combined ICC 2002 general ledger.
39
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Iraqi Cement Company
kpmg
(Draft) Financial Assessment
December 2003
The research & development reserve of ID 0.9 bn and the social reserve of ID 0.9 bn were created
from the income of ICC in prior years. Before the war, these reserves were to be paid to
governmental institutions. Post-war, it is uncertain whether these reserves will still be required to be
paid to these institutions. In any cases, until this issue is resolved by the new Iraqi government, these
reserves should be recorded as liabilities of the Company. We have proposed an adjustment to
reclassify these reserves as liabilities (see adjustments 6&27 in section 2.4.6).
40
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Iraqi Cement Company
kpmg
(Draft) Financial Assessment
December 2003
6 Commitments and contingent liabilities
6.1 Commitments
As regards the Company's commitments as noted in our report in section 5, the following issues
should be taken into consideration:
• It is currently unclear whether pre-war sales commitments will be honored at current market
rates (over USD 40-60 per ton) or contractual rates (+/- USD 10 per ton). However ICC
management agree that they do have a commitment to deliver the quantity ordered. The head of
legal department stated that there is currently a claim filed with the court by a customer of ICC
to the effect that ICC will deliver the cement at the pre-war selling price i.e approximately USD
10 per ton instead of the current price of over USD 40-60 per ton. ICC management believe that
ICC will win the court case on the basis that the change in the purchase price is as a result of
exceptional circumstances. In these cases, ICC management is of the opinion that customers
could either receive a refund of their cash advance payment or pay the current price per ton.
• Pre-war purchase commitments are not clear at this time. A list was submitted to MIM in
October 2003 but the amounts have not been approved as of the date of this report.
Employee salaries are currently paid by the CPA. ICC expects to be able to start paying the
aff salaries themselves during 2004. We are not aware whether the salaries paid by the CPA c
behalf of ICC will require te be repaid to the CPA.
6.2
Contingent liabilities
The following key contingent liabilities should be taken into consideration as regards ICC's
financial position:
• Penalties for past non-compliance with Iraqi Accounting legislation;
• Repayment of the government grants received totaling more than ID 16bn;
• Research and development reserves and social reserves may be transferred to the Government
authorities;
• Frozen cash accounts and outstanding cheques / deposits-in-transit may not be recoverable;
• Frozen letters of credit may be not realised;
• Frozen bank loans may or may not be required to be repaid;
• Pre-war trade accounts receivables and payables may or may not be realised / required to be
paid;
• The existence of the Company's fixed assets, the completion of the Company's construction-in-
progress and the realization of the Company's advance payments for fixed assets of nearly ID
4bn;
• The realization of the Company's purchase commitments for spare parts and supplies from
foreign companies; and
41
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Iraqi Cement Company
kpmg
(Draft) Financial Assessment
December 2003
• Potential reclamation costs regarding the quarries.
6.3
Claims and litigation
• ICC management indicated to us that they have had few claims or litigations in the past. Those
claims that were made related to claims by ICC for bad cheques received from customers.
• ICC management stated that litigation for product liability and guarantees were very difficult to
pursue under pre-war Iraqi law.
42
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Iragi Cement Company
kpmg
(Draft) Financial Assessment
December 2003
7
Capital Investments
Before the war, ICC management completed a capital investment assessment and provided a list of
required capital investments as set out below. We have not evaluated the validity or completeness of
this assessment.
No.
Description
Total
Price
Location
4
Packing machine
300,000
1,200,000
Kubaissa
Packing machine
Kirkuk
300,000
900,000
Packing machine (plus accessories)
600,000
Fallujah
600,000
Generator for electricity (including
transportation and installation)
Kubaissa/ Kirkuk/ Al-Qaim
6,000,000
18,000,000
Gear with 2 pinions for cement mill
3
500,000
Kirkuk
1,500,000
Gear with 1 pinions for cement mill
500,000
500,000
Fallujah
Gear boxes
10
250,000
2,500,000
All plants
Air cooler after kiln
1,000,000
All plants
4,000,000
Air quenching cooler exhaust fan
2
600,000
Kirkuk
1,200,000
Compressor Air
20 @ 10 cubic m pressure 7 bar
20 @64 cubic m pressure 2-bar
40
50,000
All plants
2,000,000
/3
High tension motor (raw mill)
500,000
1,500,000
Kubaissa/ Kirkuk/ Al-Qaim
Shovel - crane
500,000
10
5,000,000
Kubaissa/ Kirkuk/ Al-Qaim
Bulldozer
10
500,000
Kubaissa/ Kirkuk/ Al-Qaim
5,000,000
Dump truck
10
300,000
3,000,000
Kubaissa/ Kirkuk/ Al-Qaim
Kiln shell @ 4.3 meter (70 mm)
2
1,000,000
Kubaissa and Kirkuk
2,000,000
Kiln shell @ 4.4 meter (80 mm)
1
1,000,000
Al-Qaim
1,000,000
Metallic conveyor (after clinker)
4
500,000
2,000,000
All plants
4
On line sampling & quality control system
1,000,000
250,000
All plants
Upgrade PLC control system
including software/hardware
4
500,000
All plants
2,000,000
5
Training
1,000,000
200,000
All plants + Head Office
Environmental dust prevention system for
4
2,000,000
500,000
production process
All plants
Air conditioning & dust prevention for
4
2,000,000
500,000
All plants
Computer equipment
TOTAL USD
59,900,000
Source: prepared from information obtained from ICC management.
43
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Iraqi Cement Compan
Draft) Financial Assessmen
kpmg
December 2003
8
Sales Cycle Description and Cash Controls
Under this engagement we have assessed certain matters involving ICC's internal controls and other
operational matters. The comments and recommendations set out below are intended to assist in
improving ICC's internal controls and increase ICC's operating efficiencies but are not al
encompassing. These issues have been identified only as a result of the limited procedure:
performed under this engagement and therefore other issues may exist which are not included below.
Sales
8.1
Current status
8.1.1
• ICC's pre-war sales were co-coordinated by the Head Office.
• ICC's post-war sales are co-coordinated by each Plant due to changes in Head Offic
communication issues (limited access to phones), and security issues whe
management,
traveling from the Head Office to the plants.
Pre-payments of goods is made by ICC's customers, usually by certified cheque, at a loc
anch of one of two Baghdad ban!
Customers must submit proper building permits / proof of construction and the amount
ement needed for that construction in order purchase ICC cement product
• In the majority of cases, the customers collect their cement at ICC's plant.
ICC management informed us that selling prices are set every two weeks during a meetin
etween MIM and the GDs of the three Iraqi cement companies (Northern, Southern an
8.1.2 Potential Control Weakness / Improvements
• Plant managers control sales prices allowing for unauthorized discounts. No subsequent controls
are in place to control the sales prices invoiced.
• Matching between the sales agreement to the actual sales price / cash received/ quantities doe
lot occur. Significant discrepancies identified are not followed up on a timely basi.
A greater segregation of duties is required between ICC staff responsible for the loading dock
nd for the weighing station. The controls over this process should be examined by IC
management and clearly documented.
_44
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Iraqi Cement Company
kpmg
(Draft) Financial Assessment
December 2003
8.2
Petty Cash
8.2.1 Current status
• Each plant as well as 3 Head Office departments holds ID 150,000 of petty cash for small
purchases such as office supplies.
• Petty cash reconciliations are performed monthly.
• Signed receipts from the cashier are required for each cash disbursement and are reviewed by
another accountant.
8.2.2
Potential Control Weakness / Improvements
• Greater physical access controls to the petty cash should be implemented. There have already
been instances where petty cash as has been stolen.
• Adequate descriptions over the use of petty cash should be maintained as there may be a lack of
proper receipts / supporting documentation for many types of expenses in Iraq (taxi, office
supplies purchased at small shops etc.).
• Authorisation limits and budgets should be set and monitored for petty cash disbursements.
• Reconciliations between physical cash and the petty cash records should be made on a timely
basis with any differences followed up immediately.
• ICC management should monitor and approve the petty cash statements and reconciliations.
8.3
Salaries
8.3.1 Current Status
• The CPA currently pays the salaries of ICC's staff.
• Each employee should physically receive their own salary (no delegation should be allowed) and
sign a cash receipt confirming their receipt.
Management should monitor the cash disbursements and the signatures on cash receipts.
• Cash not disbursed is returned to the ICC bank account until the next month.
45
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Iraqi Cement Company
kpmg
(Draft) Financial Assessmen
December 2003
8.3.2
Potential Control Weaknesses / Improvements
• 'Ghost' employees exist on ICC's list of employees.
• Salaries are provided to the wrong employees.
• Incorrect salary rates are paid.
Terminated employees are not recorded on the employee listing on a timely basis.
• 'Commissions' are charged
on salary disbursement to employees by the cash disbursement
employee.
• ICC management should monitor and approve the petty cash statements and reconciliations, and
documented through a signature and date.
8.4
Current Status
8.4.1
• A list is prepared of all/cheques received. These cheques are then deposited with the bank.
8.4.2
Potential Control Weaknesses / Improvements
• The cheques should be endorsed immediately upon receipt. A sub-ledger should be maintained
and copies of cheques received but deposited at the banks should be made.
• Cheque deposit slips should be reconciled to the cheques received sub-ledger by a person other
than the person that originally prepared the sub-ledger.
• Physical access to cheques received should be limited.
• A formal written corporate policy for cash receipts should be drawn up and implemented.
• ICC management should monitor and approve the cheque received ledgers and deposits received
by the bank. This process should be evidenced by a signature and date.
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Iraqi Cement Company
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(Draft) Financial Assessmen
December 200.
8.5
Cheques - Issued
8.5.1
Current Status
the cheque with supporting documentation and authorized
• An ICC employee prepares
signatures.
• MIM approves certain cash disbursements.
• Current bank balances are examined to ensure sufficient funds are available.
8.5.2
Potential Control Weaknesses / Improvements
• Enticement fees to facilitate transactions may occur.
• A formal, written policy on the appropriate authorizations and limits should be prepared for the
Head Office and the plants.
• ICC management should monitor, and approve the cheques made ledgers and bank payments
made. This process should be evidenced by a signature and date.
8.6
Bank Accounts
8.6.1 Current Status
• Pre-war bank accounts and outstanding cheques are currently frozen.
• Two accounts opened during November 2003 at the Rasheed Bank - an ID account and a US
dollar account - in Baghdad. Bank branches near the plants have been opened for the receipt and
disbursement of cash.
• The US dollar account has an official exchange rate of ID 1 / US $3.22.
8.6.2
Potential Control Weaknesses / Improvements
• Bank reconciliations should be prepared monthly and reviewed on a timely basis. Outstandin!
heques should be followed-up and documented also on a timely basis. During our field visit
we noted that the bank reconciliations as at 31 December 2002 included outstanding cheques for
several periods.
Cash management procedures need to be improved and re-organised. The Company's ability to
monitor its overall cash position may be difficult due to the changing disbursements and receipts
at each plant and the Head Office.
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Company. It is not to be copied or distributed without KPMG's prior written consent.

Iragi Cement Company
kpmg
(Draft) Financial Assessment
December 2003
• The Us dollar account should be strictly used for US dollar expenses and not converted into II
niess conversion is made at market rates which is currently at ID 2,000 / US 51
ICC management should be monitor and approve the bank statements, reconciliations, and
cheque listings. This approval process should be documented through signatures and dates.
• An appropriate segregation of duties is critical to the safeguarding of assets and the overall
control environment at ICC.
DRAFT
48
This document is private and confidential and is to be read and used only in the context of the current stars of the Iragi Cement
Company. It is not to be copied or distributed without KPMG's prior written consent.

Iragi Cement Company
kpmg
(Draft) Financial Assessment
December 2003
9
Management Letter Comments
they have how if a dy been of the in this repo leter comments of ICE's auditors to the extent that
ICe management indicated that Cash in Bank - USD should only be translated into ID at th
fficial rate of ID 1 / USD 3.23 and not the current market rate of ID 2,000 / USD1. W
strongly encourage management to ensure that their US dollars are not translated at this official
rate. We understand that converting ID 1 into USD 3.22 is not possible at the bank.
• The Company's current IT systems are not functioning properly as regards the old mainframe
system and the new PC-based system. After the system is upgraded, further training and
computers will be needed. In addition, IT security issues will be need to be considered when
implementing the system such as:
- System upgrades and maintenance responsibilities (ICC or MIM);
- Passwords and appropriate access to enter data or programming changes;
- System back-up and storage; and
Ter inion ion if tocounting information interde system (for example, accounting
* Due to lotings we an entrol proper em at die perform prope feed set counts and
• The accounting system and printer were not functioning properly during our audit and not all
final ledgers were available to us. Certain accounting adjustments were not recorded in the 2002
financial statements by the accounting department as a result (for example, the elimination of
inter-division transactions).
49
This document is private and confidential and is to be read and used only in the context of the current status of the Iraqi Cement
Companv. It is not to be copied or distributed without KPMG's prior written consent.

Iraqi Cement Company
kpmg
(Draft) Financial Assessment
December 2003
10
Management Assessment
Introduction
10.1
Set out below is a preliminary assessment of management of ICC based on the limited procedures
performed under this engagement and our limited exposure to ICC management. These comments
are for your information purposes only and for a more detailed assessment of ICC management a full
scope investigation should be performed.
10.2
Management - General issues
• We understand that the DG of ICC is heavily inyolved in the day-to-day operations of the plants
and appears to be quickly gaining control of the organization. The DG was directly involved in
co-coordinating our procedures at the plants and the Head Office.
The previous government was a planned economy which was focused on production. As such,
staff and management of state-owned entities were not as concerned with the quality of financial
information and supporting documentation as is the case in wester market economies.
Furthermore, management were not motivated by the Company's financial results but rather the
Company's production. Certain salaries / bonuses were linked to production outputs.
10.3
IT management
• The IT systems were previously provided by MIM. The current systems (software and
hardware) are not functioning properly. A clear IT strategy should be implemented to improve
the quality of financial information and non-financial information and ensure the effective
operation of the Company's IT framework.
10.4 Accounting Department
• Financial information for the year ended 31 December 2002 had still not been finalized during
certain financial statement balances and transactions.
• Accounting and financial errors made by accounting staff were deducted from employee
salaries. For example, if there were differences between the accounting records and the physical
inventory count at a plant than the difference could be taken from the relevant person's salary.
As a result, during the 2002 inventory count, there were no differences identified at any plants or
50
This document is private and confidential and is to be read and used only in the context of the current status of the Iraqi Cement
Comparv. It is not to be copied or distributed withour KPMG's prior written consent.

--. =
Iragi Cement Company
kpmg
(Draft) Financial Assessment
December 2003
the Baghdad warehouses between the physical amounts stored there and the Company's
accounting records.
10.5
Production Engineers
• During our plant visits, we met with several managers and engineers. We were however unable
to assess the quality of these employees due to the technical nature of their work which is
beyond the scope of our engagement.
While in Baghdad, we worked with the chief engineer of ICC, Nagib Teleb. He was very a
perative in providing information for the projections, accompanied us on our plant visit t
Kirkuk and displayed an excellent understanding of the cement industry.
DRAFT
51
This document is private and confidential and is to be read and used only in the context of the current status of the iraqi Cement
Companv. It is not to be copied or distributed without KPMG's prior written consent.
i

(b)(6)
Private Sector Development Group
Coalition Provisional Authorit
3aghdad, Iraq
12 October 2003
Dear (b)(6)
Compilation of a balance sheet as at 31 August 2003 and preparation of prospective
financial information for the period from 1 September 2003 to 31 December 2004.
In reference to your letter dated 16 September 2003, our proposal dated 23 September 2003 and
our subsequent meeting on 4 October 2003, the purpose of this letter is to confirm our
understanding of the terms of our appointment and the nature of the services we will perform for
you. The scope is as follows:
• To compile a balance sheet of Iraqi Cement Company ("the Company" or "ICC") as at 31
August 2003;
• To assist ICC in the preparation of Prospective Financial Information ("PFI") for the 16
month period ending 31 December 2004;
• To review the internal cash control policies in place and prepare a short report on the
weaknesses identified;
• To conduct a physical inventory count of the inventory and property, plant and equipment
and prepare a short report on the conditions of those assets; and
• To perform an overall assessment of the management's understanding of the company's
ability to respond to current dynamics and its ability to respond to, identify and control its
cost drivers and prepare a short report of our assessment.
Our deliverables will be submitted in English and Arabic.
Professional standards
We conduct our engagements in accordance with the principles of independence, integrity,
objectivity, professional competence and due care, confidentiality, professional behaviour and
technical standards as defined in the technical pronouncements of the International Federation of
Accountants.

Scope of compilation
We will compile the balance sheet of the Company in accordance with the International
Standards on Auditing applicable to compilation engagements on the basis of information
provided by you.
We will not carry out audit or review engagement procedures or otherwise
attempt to verify the accuracy or completeness of such information.
Our report on the balance sheet of the Company is presently expected to read as follows:
'On the basis of information provided by the management we have compiled, in accordance with
the International Standard on Auditing applicable to compilation engagements, the balance
sheet of ICC as at 31 August 2003. Management are responsible for the information reflected in
the balance sheet. We have not audited or reviewed the balance sheet and accordingly express
no assurance thereon.'
Scope of the assistance in preparation of the Prospective Financial Information (PF),
We would assist ICC in preparation of the PFI, which would basically involve construction of a
financial model. The financial model would be prepared in discussions with the management of
the Company and would basically involve preparation of revenue and cost models, based on
which projected income statements, balance sheets and cash flows statements would be prepared
for the period of 16 months ending 31 December 2003.
We would like to highlight that the role of KPMG would be limited to the preparation of the
financial model based on the discussion carried out with senior management team. KPMG's
assistance in development of the financial model shall not be construed as expression of its
opinion with respect to the reasonableness and achievability of the same.
Responsibility of management
You, as management, are responsible for both the accuracy and completeness of the information
supplied to us and responsible to users for the financial information compiled by us.
includes the maintenance of adequate accounting records and internal controls and the selection
and application of appropriate accounting policies.
Our engagement cannot be relied upon to disclose whether fraud or errors, or illegal acts exist.
However, we will inform you of any such matters which come to our attention.
We look forward to full co-operation with your staff and we trust that they will make available
to us whatever records, documentation and other information we request in connection with our
compilation.
Before starting the compilation of your balance sheet we shall require your accountant to prepare
a tallied trial balance and certain schedules, listings and analyses, the form and contents of which
we shall explain to him as well as giving him draft format.

•-•+
Timing
Provided no unforeseen major problems are encountered especially with the security in Baghdad,
any of the visits after consulting with the contracting parties without penalties to KPMG.
Fees
Our fees, which will be billed as work progresses, are based on the time required by the
individuals assigned to the engagement. Individual hourly rates vary according to the degree of
responsibility involved and the experience and skills required. Our invoices are due and payable
on receipt.
We expect our total fees to be USD S5,000 plus outlays and any taxes applicable to Iraq, payable
as follows:
• 50% on commencement of the work; and
• Balance 50% on delivery of the draft deliverables.
Should there be any delays in the provision of information by the Company, should other issues
arise which require additional work to be performed by KPMG or should delays arise from any
other cause outside our control, we shall discuss such matters with the Company and shall have
the right to defer completion of the work and the Engagement letter until the matters are
resolved. In the event of delays and/or additional work being required of KPMG arising from
these reasons, we have the right to request additional fees needed to complete the Engagement
letter based on the additional time spent and hourly rates of particular employees.
Applicable law
This engagement shall be governed by, and construed in accordance with the Bahrain relevant
laws. The Courts of Bahrain shall have exclusive jurisdiction in relation to any claim, dispute or
wires an itemingy have to ject a an ation being brought in i. e Cowary rain abay
the action has been brought in an inconvenient forum, or to claim that those Courts do not have
jurisdiction.

Administration
Responsibility for this engagement will be carried out by suitably qualified staff.
We aim to provide you with the best possible service and Abdul Hakim Al-Adhamy, as
engagement partner, will seek to ensure that this is satisfactory at all times. If however, at any
time you are unable to deal with any difficulty through him please let us know by contacting our
managing partner (b)(6)
Confidentiality
We are well aware of the importance that you place on confidentiality requirements and we have
a proven record of maintaining a strict code of confidentiality. Our policy requires that affairs of
clients be confidentially kept at all times and the only exceptions are when the following
conditions are met:
• The client has authorised disclosure in writing;
• There is a professional duty to disclose;
• Disclosure is required by a legal or judicial process; and
• Disclosure is required by law.
If the arrangements outlined are in accordance with your requirements and if the above terms are
acceptable to you, please sign the duplicate of this letter in the space provided and return it to us.
We appreciate the opportunity to be of service to you and we emphasise our commitment to
provide you with quality services in an efficient and timely manner.
Yours faithfully
b) (6)
Partner

Icknowledgement on behalf o
raqi Cement Compan
Date
((b)(6)

Iraqi Cement Company
Appendix 2.1
Balance Sheet at 31 December 2002 (unaudited)
Per production plant
(in Iraqi Dinar)
Combined
Head office
Kubaissa
Kirkuk
Fallujah
Al-Qaim
Total assets
66,394,850,123
20,361,771,547
16,290,419,020
11,140,165,652
8,419,855,877
10,182,641,239
Tangible fixed assets
15,006, 129,646
1,499,557,341
4,562,866,134
3,357,687,391
922,580,935
4,663,437,845
Assets under construction
4,089,126,084
0
0
4,035,658,884
53,467,200
Financial investments
40,000,000
40,000,000
0
0
0
Inventory
38,180,223,668
6,307,936,697
11,163,477,773
8,018,649,320
7,262,385,111
5,427,774,767
Receivables
1,079,479,576
360,317,373
767,422,798
213,776,505
(251,011,111)
Cash
(11,025,989)
14,839,249
7,711,195,024
7,999,890,346
203,756,937
21,112,523
48,986,613
Total liabilities
66,394,850,123
39,925,049,125
3,504,526,888
9,441,346,531
5,219,123,260
Capital
8,304,804,319
0
1,376,758,296
1,522,999,997
83,382,969
0
62,858,732
Reserves
27,297,715,952
10,525,592,979
3,581,252,366
6,944,861,796
5,016,284,491
1,229,724,320
Bank loans
3,990,376,215
3,990,376,215
0
Payables
16,635,552,072
7,084,040,748
(160,033,447)
3,225.661,09%
3,989,398,940
Dividends payable
16,948,205,887
16,948,280,887
2,496,484,735
(75,000)

-
Iraqi Cement Company
Appendix 2.2
Profit and Loss Account for the year ended 31 December 2002 (unaudited)
Per production plant
Al-Qaim
Fallujah
Kirkuk
Head office
(in fragi Dinar)
Combined
Kubaissa
Revenues
8,262,431,564
7,740,049,702
48,506,844,584
4,054,470,995
13,869,747,773
14,580,144,550
Revenue from production
8,245,615,660
13,729,114,697
7,644,051,899
14,559,004,934
3,322,914,71S
47,500,701,905
140,633,076
95,997,803
Other revenues
21,139,616
16,815,904
731,556,280
1,006,142,679
4,804,823,661
30,967,748,257
6,944,506,567
6,384,595,431
Expenses
7,020,676,079
5,813,146,519
1,066,959,044
Salaries and wages
1,041,591,412
2,038,784,828
1,360,794,395
6,477,557,354
969,427,675
993,736,480
2,053,309,843
1,324,154,372
Raw material:
7,737,047,670
3,340,218,219
445,663,619
548,738,108
Limestone
608,175,064
3,815,483,843
2,212,907.052
324,368,207
Clay
23632738
89,160,060
839,375,142
425,846,875
0
0
Silica Sand - Fallujah only
3,500)
249,946,326
249,949,826
0
372,366,183
169,682,185
953,898,337
tron ore
1,495,946,705
24,745,475
165,370,190
110,134,015
18,600,446
Gypsum
641,039,449
Flint - Fallujah only
11,39.234)
267,888,042
(79,139,832)
829,787,659
37,289,220
11,638,047
74,556,081
25,628,756
Alcohol and reagents
52,166,845
214,411,379
Explosives
266,578,224
366,877,603
431,656,889
1,196,035,793
29,668,486
186,795,097
Oil and gas
181,037,718
1,375,432,076
1,615,070,153
3,215,105,947
1,309,555,273
533.465,989
Spare parts and maintenance
8,048,629.438
672,785,047
6,241,772,167
Packaging material
2,676,693,916
262,535,903
1,850,951,422
Packaging materials purchase
27,243,529
5,287,867,695
1,840,186,907
672,785,047
1,968.846,333
0
Packaging materials produced
953,904,472
10,764,515
235,292,374
707,847,583
4,279,829
253,825,657
387,526,055
60,387,163
Water and electricity
1,084,939,698
378,920,994
External services
155,915,614
2,407,485,611
159,680,160
458,098,465
3,424,072,419
242.892,569
Interest
311,747,002
348,750,698
3,800,000
10,914,696
22.289,000
803,908,702
249,882,791
249,033,502
187,200,931
29,732,873
88,058,605
Depreciation
94,204,421
302,500,349
40,197,772
1,132,209,678
Other expenses
39,429,182
1,608,541,402
(3,376,282,750)
(6,003,507,084)
(1,559,304,400)
Capitalised costs for self-construction
(1,064,317,075)
(3,602,859)
2,935,226,041
Profit (loss) for the year
1,877,836,133
17,539,096,327
7,635,637,983
(1,758,675,524)
6,849,071,694

Iraqi Cement Company
Appendix 3.1
Projected Profit and Loss Account for the year ending 31 December 2004
With Comparative Figures for the year 2002
All amounts in Iragi Dinar (ID) unless otherwise stated
2004 Projections
2002 Actual
Head Office
Kirkuk
Kubaissa
Fallujah
Combined
Combined
Al-Qaim
Total revenues
45,050,000,000
• Acct no.
37,550,000,000
11,550,000,000
34,050,000,000
128,700,000,000
500,000,000
48,506,844,584
Revenues from current year production
411,412
45,000,000,000
37,500,000,000
11,500,000,000
128,000,000,000
34,000,000,000
45,513,723,388
Change in finished goods
(126,568,744)
Change in semi-finished goods
2,113,547,261
Other revenues
500,000,000
50,000,000
50,000,000
50,000,000
50,000,000
700,000,000
1,006,J42,679
Total costs
26,801,800,056
30,907,214,119
5,560,058,605
7,556,148,042
94,740,631,126
23,915,410,303
Salaries
30,967,48,266
31,326
3,456,000,000
2,472,000,000
2,284,800,000
3,456,000,000
14,404,800,000
2,736,000,000
6,477,557,354
Other costs (estimated)
3,000,000,000
0
3,000,000,000
Raw materials
321
3,807,999,680
3,074,638,080
1,016,760,000
4,877,368,576
Limestone
7,737,047,674
12,776,766,336
3211
2,283,227,520
1,55S,706,880
362,419,20
1,770,725,376
5,972,078,976
3,815,483,844
Clay
3212
157,772,160
464,284,800
992,540,160
370,483,200
839,375,142
Silica Sand - Fallujah only
0
3213
0
272,448,000
272,448,000
249,949,826
Iron ore
3214
0
2,012,160,000
1,152,000,000
363,686,400
3,527,846,400
1,495,946,705
Gypsum
3215
115,000,000
124,000,000
90,960,000
21,800,000
165.370,192
351,760,000
3217
Flint - Fallujah only
0
260,092,800
829,787,659
260,092,800
Alcohol and reagents
3218
100,000,000
100.000.000
100,000,000
100,000,000
400,000,000
74,556,082
Explosives
3219
0
500,000,000
0
500,000,000
1,000,000,000
266,578,224
322
Oil and gas
4,232,800,000
3,856,800,000
2,778,000,000
714,800,000
11,582,400,000
1,196,035,798
Spare parts and maintenance
323,325
1,302,500,000
3,436,200,000
514,700,000
1,863,200,000
7,116,600,000
8,048,629,438
Packaging materials
324
1,575,000,000
5,040,000,000
1,890,000,000
315,000,000
1,260,000,000
6,241,772,169
327
Water and electricity
9,720,000,000
8,100,000,000
6,480,000,000
1,620,000,000
25,920,000,000
1,084,939,698
External services
3,210,067,893
2,675,056,577
535,011,315
2,140,045,262
3,424,072,419
8,560,181,048
Interest
36
239,093,854
838,326,201
755,557,978
707,997,008
2,540,975,040
348,750,698
Depreciation
88,058,605
37
1,072,799,458
1,190,117,598
3,798,908,702
803,908,702
315,982,873
1,131, 950,169
39
Other expenses (mainty prior year adj.)
0
1,608,541,400
45
Capitalised costs for self-construction
•
(6,003,507,084)
Profit (loss) for the year
10.134.589.697
(5,060,058,605)
16,142,185,881
10,748, 199,944
3.993,851,958
33,959,368,875
17.539,096,318

Appendix 3.2
Iraqi Cement Company
Projected Profit and Loss Account for the year ending 31 December 2004
Price per ton
Price per ton
Assumptions:
(in 1D)
(in ID)
In bulk
In bag
Portland at Kirkuk and Kubaissa
70,000
80,000
* 110,000
White cement at Fallujah
120,000
Sulfure resistant cement at Al-Qaim
80,000
90,000
2004 production is forecasted at only 1.6 million tons
Efficiency and productivity gains are not factored in the 2004 projections as the 2004 investments are only to restart the production.
Costs reduction are not factored in the 2004 projections as no implementation plan is in place.
Sales: 50% in bag and 50% in bulk
Kirkuk
Kubaissa
Al-Qaim
Fallujah
2002 Actuall
2004 Projections
Projected production for 2004
Head office
500,000
600,000
400,000
1,600,000
2,235,000
100,000
Percentage sold in bag
50%
50%
50%
50%
50%
50%
80,000
120,000
Sale price per ton (bag)
80,000
85,000
70,000
90,000
Percentage sold in bulk
50%
50%
50%
50%
50%
50%
110,000
¿Sale price per ton (bulk)
70,000
70,000
80,000
75,000
70,000
Revenues
128,000,000,000
11,500,000,000
34,000,000,000
37,500,000,000
45,000.000,000
47,500,701,905
Note I: Total revenues divided by tons sold

+--
Iraqi Cement Company
Appendix 3.3
Projected Profit and Loss Account for the year ending 31 December 2004
Wage and salaries
Assumptions:
Average monthly salary (in USD)
200
Exchange rate: USD 1 equals Iraqi Dinars
2,000
Head office
Kubaissa
Fallujah
AI-Qaim
2004 Projections
2002 Actual
Number of employees
515
476
720
570
2,850
3,001
Average monthly salaries (in USD)
200
200
200
200
200
95
Exchange rate
2,000
2,000
2,000
2,000
2,000
2,000
2,000
12 months
12
12
12
12
12
12
12
Cost of wage and salaries
3,456,000,000
2,736,000,000
3,456,000,000
2,472,000,000
2,284,800,000
14,404,800,000
6,477,557,354

Iraqi Cement Company
Appendix 3.4.1
Projected Profit and Loss Account for the year ending 31 December 2004
Raw materials required
Kirkuk Plant
Designed capacity (in tons)
2,000,000
500,000
Planned volume in 2004 (in tons)
Conversion factor
2.0
Total raw materials required (in tons)
1,000,000
Composition%
Quantity required
Transportation
Cost per (on
Limestone
65.9%
658,560
3,067
Clay
282,240
28.2%
480
Silica Sand - Fallujah only
0.0%
Iron Ore
1.9%
19,200
20,000
4.0%
40,000
2,000
in -Falliah only
0.0%
Raw Materials - Total
100.0%
1,000,000
Cost of RM per ton
Kubaissa Plant
Designed capacity (in tons)
2,000,000
Planned volume in 2004 (in tons)
600,000
Conversion factor
2.0
1,200,000
Total raw materials required (in tons)
Composition% Quantity required
Cost per ton
Transportation
Limestone
1,370
750
61.2%
733,824
Clay
32.9%
825
395,136
0.0%
Silica Sand - Fallujah only
tron Ore
1.9%
23,040
Gypsum
48,000
4.0%
Flint - Fallujah only
0.0%
Raw Materials - Total
1,00,000
100.0%
Cost of RM per ton
Fallujah Plant
Designed capacity (in tons)
280,000
100,000
Planned volume in 2004 (in tons)
2.0
Conversion factor
Total raw materials required (in tons)
200,000
Composition% Quantity required
Transportation
149,760
74.9%
Limestone
1,700
Cest Per 120
• 0.0%
Silica Sand - Fallujah only
10.6%
10.000
Tron Ore
0.0%
2.000
21.120
8,000
Gypsum
4.0%
Flint - Fallujah only
10,000
10.6%
21,120
2,35g
100.0%
Raw Materials - Tota
200,000
916,760,000
Cost of RM per to
9,168

Iraqi Cement Company
Appendix 3.4.1
Projected Profit and Loss Account for the year ending 31 December 2004
Raw materials required (continued)
Designed capacity (in tons)
500,000
Planned volume in 2004 (in tons)
400,000
2.0
Conversion factor
Total raw materials required (in tons)
• 800,000
Composition%
Quantity required
Transportation
Total cost - RM
64.5%
Limestone
516,096
850
1,770,725,376
Clay
27.6%
875
221,184
0.0%
3.8%
30,720
fire Sand - Falian only
50,000
4.0%
32,000
Flint - Fallujah only
0.0%
3.000
Raw Materials - Total
800,000
100.0%
4277.368,576
Cost of RM per ton
10,693/

--.:
--
Iraqi Cement Company
Appendix 3.5
Projected Profit and Loss Account for the year ending 31 December 2004
Oil and gas
Assumptions:
120 liters required per ton
50
ID 50 per liter of oil
lead office
Kubalssa
Kirkuk
Al-Qaim
Fallujah
2002 Actual
2004 Projections
120
120
120
120
120
Average usage of oil (or gas) per ton
120
120
0
Projected production for 2004
600,000
100,000
500,000
1,600,000
2,235,000|
400,000
50
Cost of oil per liter (in ID)
3
50
so
so
so
3,600,000,000
600,000,000
Costo foll (or gus)
3,000,000,000
9,600,000,000
2,400,000,000
930,213,973/
Lubricant and grease
Assumptions:
90% of produce a in USD)
Head office
Kirkuk
Fallujah
Kubaissa
2004 Projections
2002 Actuall
Al-Qaim
306,000
226,000
Lubricant and grease required - in tons
41,000
708,000
135,000
Grease (in ID)
350,800,000
406,800,000
73,800,000
243,000,000
1,274,400,000
0
Expensive grease (in 1D)
226,000,000
135,000,000
306,000,000
41,000,000
708.000,000
Cost of lubricant and grease
856,800,000
378,000,000
114,800,000
632,800,000
1,982,400,000
265,821,825
3,856,800,000
Total costs of oil, lubricant and grease
2,778,000,000
4,232,800,000
714,800,000
1,196,035,798
11,582,400,000

Iraqi Cement Company
Appendix 3.6
Projected Profit and Loss Account for the year ending 31 December 2004
Spare parts and maintenance
Assumptions:
Need assumptions for the befow affocation
Head office
Kirkuk
Kubaissa
Fallujah
Al-Qaim
2004 Projections
2002 Actuall
Projected production for 2004
500,000
600,000
100,000
400,000
1,600,000
2,235,000k
Need detail for this allocation
687
1,242
216
1,500
2,389
5,040
3,905
3.158
2,605
5,147
5,727
4,658
3,601/
Cost of spare parts and maintenance
1,302,500,000
3,436,200,000
1,863,200,000
514,700,000
7,116,600,000
8,048,629,438

Appendix 3.7
Iraqi Cement Company
Projected Profit and Loss Account for the year ending 31 December 2004
Packaging materials
Assumptions:
No bags produced at lead Office
Sales: 50% in bag and 50% in bulk
Sales @ SOks per bag - 1 ton with bag per ton for wasta.s
Price per bag (in USD)
2002 Actual
Al-Quim
2004 Projections
Fallujah
Kubaissa
Kirkuk
Head office
2,235,000
400,000
1,600,000
100,000
600,000
500,000
Projected production for 2004
50%
50%
50%
50%
30%
50%
Percentage sold in bag
120
21
21
21
21
21
Average usage of bag per ton
0.0233
0.15
0.15
0.15
0.15
0.15
Cost per bag (in USD)
2,000
2,000
2,000
2,000
2,000
2,000
2,000
Exchange rate
6,241,772,169
5,040,000,000
1,260,000,000
315,000,000
1,890,000,000
1,575,000,000
Cost of packaging

Tragi Cement Company
Appendix 3.8
Projected Profit and Loss Account for the year ending 31 December 2004
Electricity
Assumptions:
Peak of 100 MGW per hour for all the factories.
180-200 KWH per tonne of cement
300 days (60 for repairs & maintenance)
ID 90 - KWH (average cost per KWH: S 0.045 - comparable to CEE and Jordan)
90
Head office
Kirkuk
Kubaissa
Al-Qaim
Fallujah
2004 Projections
2002 Actusi
Average usage of KWH per ton
180
180
180
180
180
Projected production for 2004
500,000
600,000
400,000
100,000
1,600,000
Cost of electricity per KWH
90
90
90
90
90
Cost of electricity
8,100,000,000
9,720,000,000
25,920,000,000
1,620,000,000
6,480,000,000
1,084,939,698

Iraql Cement Company
Appendix 3.9
Projected Profit and Loss Account for the year ending 31 December 2004
External services
Assumption:
Cost for 2002 will increase by 250%
External costs include a substantial part for transportation costs which should increase substantially due to expected increase of cost of fuel
Allocated based on tons produced
Kirkuk
Kubaissa
Head office
2002 Actual
Al-Qaim
2004 Projections
Fallujah
Projected production for 2004
500,000
1,600,000
100,000
600,000
400,000
2,235,000
Percentage of increase
250%
250%
250%
250%
250%
External services
8,560,181,048
2,675,056,577
3,210,067,893
535,011,315
2,140,045,262
3.424,072,419

Iraqi Cement Company
Appendix 3.11
Projected Profit and Loss Account for the year ending 31 December 2004
Depreciation
Assumptions:
2004 acquisition of assets is made at beginning of year
No acquisition in 2003
Depreciation rate used for 2004 acquisition is 5% or, 20 year useful life
2004 Projections
Head Office
Kirkuk
Fallujah
Kubaissa
Al-Qaim
Combined
Cost of fixed assets at 31 December 2002
1,772,473,110
3,567,054,283
4,878,382,596
1,000,346,065
4,921,892,451
16,140.148,505
Accumulated depreciation as at 31 December 2002
(272,915,769)
(209,366,892)
(1,134,018,859)
(315,516,462)
(258,454,606)
(77,765.130)
3,357,687,391
Net book value of fixed assets asa t 31 December 2002
4,663,437,845
1,499,557,341
15,006, 129,646
922,580,935
4,562,866,134
2002 depreciation
88,058,605
187,200,931
249,033,502
29,732,873
249,882,791
803,908,702
0
Eflective depreciation rate in 2002
Depreciation charge for 2004:
Acquisition of assets in 2004 (in USD)
10,029,167
2,862,500
8,829,167
8.229,167
29,950,000
Exchange rate
2,000
2,000
2,000
2,000
2,000
2,000
Acquisition of assets in 2004 (in ID)
17,658,333,333
20,058,333,333
33.725,000,000
16,458.333.333
59.900,000,000
Depreciation rate of 5% of assets acquired in 2004
2004 depreciation for assets acquired in 2004
1,002,916,667
822,916,667
286,250,000
882,916,667
2,995,000,000
2004 depreciation for assets acquired prior to 2004
88,058,605
187,200,931
249,033,502
249,882,791
29,732,873
803,908,702
Total depreciation charge for 2004
88,058,605
1,190,117,598
315,982,873
1,072,799,458
T,131,950,169
3,798,908,702

Iraqi Cement Company
Appendix 3.10.1
Projected Profit and Loss Account for the year ending 31 December 2004
Capital investment and interest
Investments made ovcr two years
Interest rate on USD loan is 4%
50% of loan is received at beginning of 2004 and 2005
Repayment of principal starts in 2005
Kubaissa
Fallujah
Kirkuk
Al-Qaim
Price
No.
Description
Total Price
Most urgent capital requirements (in USD):
Gear with 2 pinions for ccment mill
500,000
1,500,000
1,500.000
Gear with I pinion for cement mill
500,000
500,000
500,000
10
625,000
625,000
625,000
Gear Boxes
2,500,000
625,000
250,000
3
6,000,000
6,000,000
6,000,000
18.000,000
6,000,000
Generator for electricity
4
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
4,000,000
Air cooler - affer kiln
Air quenching cooler exhaust fan
2
1,200,000
1,200,000
600,000
250,000
250,000
250,000
250,000
1,000,000
Training
200,000
7,875,000
2.375,000
7,875,000
28,700,000
10,575,000
Other capital requirements (in USD):
300,000
Packing machine
1,200,000
1,200,000
+ M
300,000
900,000
900,000
Packing machine
Packing machine plus accessorie
600,000
600,000
600,000
40
50,000
Compressor Ai
500,000
500,000
500,000
2,000.000
500,000
3
High tension molor
500,000
500,000
1.500,000
500,000
500,000
Shovel - crane
1.666.667
10
1,666,667
1,666,667
500,000
5.000,000
10
1,666,667
1,666,667
5,000,000
500,000
1,666,667
Bulldozer
1,000.000
Dump Truck
1,000,00
300,000
10
3,000,000
1,000,000
Kiln shell @ 4.3 mcler (70 mm)
2
1.000,00
2,000,000
1,000,000
1,000,000
Kiln shell (@4,4 meter (80mm)
1,000,000
1,000,000
1,000,000
500,000
Metallic conveyor (afer clinker)
500,000
2,000,000
500,000
500,000
500,000
On line sampling & quality control system
4
1,000,000
250,000
250,000
250,000
250,000)
250,000
500,000
Upgrade PLC control system
2,000.000
500,000
500,000
500,000
500,000
Environmental dust prevention system for
4
2,000,000
500,000/
500,000
500,000
500,000
500,000
Boroduction prizes dust prevention for
500,000
500,000
computer equipment
4
500,000
500,000
500,000
2,000,000
9,783,333
8,583,333
3,350,000
31,200,000
9,483,333
17,658,333
5,725,000
16,458,333
Total capital investments in 2004 and 2005
20,058,333
59,900,000

Appendix 3.10.2
Iraqi Cement Company
Projected Profit and Loss Account for the year ending 3) December 2004
Capital investment and interest (continued)
Kuhaissa
Kirkuk
Al-Qaim
Fallujah
Total
2,862,500
8,829,167
Loan reccived at beginning of 2004 (in USD)
10,029,167
29,950,000
8,229,167
4%
4%
4%
4%
Interest rate of 4%
4%
2,000đ
2,000
2,000
2,000
2,000
Exchange ratc
658,333,333
802.333,333
229,000,000
706,333,333
Interest charge for new loan
2.396,000,000
Interest charge on existing loans
3,990,376,000
Loans as at 31 December 2002
(366,000,000)
Repayment in January 2003
3,624,376.000
Loans outstanding as at 31 December 2003
10,093,854
49,663,675
35.992,868
144,975,040
49,224,644
Interest rate of 4%
239,093,854
707,997,008
838,326,201
Total interest charge
755,557.978
2,540,975,040

kpmg
Iraqi Cement Company
Status Update
22 November 2003
Saturda Appendix 4)
KPMG has utilized 9 staff (four expatriates with a minimum of eight years of experience,
one Iraqi with seven years of local audit experience and four Iraqi assistants) during the
week of 17 November 2003 and noted the following:
Co-operation and access to staff
1
a Working hours are limited for ICC (9:00 - 12:45)
• No work on Fridays
Closed for EID holiday
Management may have limited knowledge of the cement industry as newly hired
Printer at Head Office does not work
2
Issues noted for 2003 Financial Information
• No financial information prepared
• Only monthly G/L debits / credits prepared per factory on a monthly basis
• January and February records at the Head Office in Baghdad but no access to date
March - October records managed by each factory
Cash is currently managed and controlled by each factory
Each factory records their basic accounting transactions
• Cash at the Head Office has been reportedly stolen
3
Issues noted for 2002 Financial Information
• Financial statements have not yet been approved by the authorities
• Final version of most of the (sub) ledgers are not accessible to date
Final adjustments for 2002 are not recorded in the sub-ledgers provided to KPMG
Source documents / original documents are not available (eg. bank statements)
Sub-ledgers do not reconcile to the General Ledger (AP, AR, Fixed Assets)
Bank reconciliations do not agree to the General Ledger
No supporting documentation for provisions to date
No supporting documentation for retained earnings and reserves
Netting/off-setting amounts included in Accounts Receivable and Payables (ID 58bn)
No ageing analysis of Accounts Receivables provided
Totals and sub-totals in the Fixed Assets do not add properly
Final information on investments (ID 20m) is not available
Fixed Assets Roll-forward is not correct
Control Weaknesses Identified
4
Accounting and especially IT systems are deficient
No monthly financial analysis available for 2003
Management control over the factories may be inadequate
Based on our observations and the reports issued by the Board of Supreme Audits,
1
many basic accounting control weaknesses identified and not resolved
•
Differences between physical and actual counts for fixed assets and inventory
• Accounts receivable provision is not adequate
Discrepancies between AR / AP confirmations and sub-ledgers
Recording errors with cash noted in the prior year

kpmg
Iraqi Cement Company
Status Update
22 November 200.
Saturda Appendix 4)
Contingent liabilities (US $500k) noted in the prior year
Business Issues
5
• Lack of electricity for production
Lack of spare parts for plant and machinery
Security issues including travel from the city to the plant for employees
Training of technicians and management
Distance of raw materials (limestone, clay, iron ore) from the plants
Oil leakage
iberalization of prices of raw materials, electricity, oil, salary, transportatio
ignificant capital investment required for maximum capacit
Lack of proper maintenance resulting in poor utilization of raw materials
Foreign exchange exposure on loans, AR and AP
6
Business Strengths
• Plants not looted
• High demand for products
Monopoly in Iraq and price fixing to reduce imports
High selling price per ton
Low production costs
Well-recognized quality in the region
Large number of employees retained from pre-war conditions
Return to pre-war capacity (60%-70%) within a week without major investment
7
Potential adjustments identified but not quantified (net equity at Dec 02: US $14m)
• Bad debt and inventory provisions
• Impairment for idle assets and assets under construction
Write off of investments
Uncollected outstanding checks received and issued
Interest on overdue suppliers' balances
Outstanding litigations and claims
8
Way forward
• Visit of Fallujah and Kubaissa
• Cash Flow Projections for 2004
Balance Sheet and Income Statement for 2002 (and 2003 subject to availability)
Preparation of DRAFT deliverables

COALITION PROVISIONAL AUTHORITY
BAGHDAD
Private Sector Development
MEMO
(b)(6)
From
To
Re
Business auditors scope of work
Date
Sunday, October 05, 2003
Elements of the letter to financial advisors on their potential privatization mandate.
Scope of the work
The advisors are to deliver the report presenting business assessment of the company being privatizatized,
proposals concerning privatization strategy of that company and next to assist the Ownership Transformation
Agency in execution of the strategy decided
I.
Business assessment report should include
1. the company identification data: locations, addresses, telephone numbers, e-mail, website, basic
data from the register
2. short history of the company, esp. past ownership changes, mergers, split offs, changes of
business profile
3. management bodies of the company, names of managers, their responsibilities, telephone
numbers, time of employment in the company, time on the present position, previous position.
4. company's relationship with the Ministry. Level and areas of subordination, prewar and present
5. product (services) profile, i.e. description what are the sources (main and secondary) of
company's proceeds. Changes of that profile in time - before the war 2003 and after. Breakdown
of sales by types of customers, product type, etc
methodology, Review of the markets on which
6. market analysis (e.g. according (b)(6)
company operates (market structure, competitors' characteristics, suppliers characteristics, key
determinants for success on these markets, market prospects for the future), market position(s) of
the company [share(s) of the market]. Prewar and present situation.
7. assessment of present management. Does the DG ar his senior staff have marketing skills to get
more projects? Do they need business training to sell the company's services?
8. staff. Number of employees. Breakdown by age, education level, job, period of service. Number
of employees qualified for disability and retirement. Salary system
9. financial analysis. Audit of financial statements for 2002 and for the last day of the month
preceding submission of this report. If needed, preparation of these documents as of the last day
of the month preceding submission of this report
1

10. technical equipment. Physical inventory count if needed. Assessment of the assets from technical
and economic point of view. War damages and reparation
11. analysis of technology used - economic and technical perspective
12. working capital analysis covering post-war period
13. cost analysis covering post-war period including fixed and variable costs. Break even point.
14. past, present and potential long term partners of the company: J-V, production co-operation, long
term trade relations, etc.
Analyses 2 - 14 should be prepared basing on detailed analytical work. The report summarizing these
analyses should be presented in concise form (e.g. Power Point presentation) with clear bullet points
conclusions. Analysis in points 9 should be also prepared separatedly according GAAP standards. Analysis
in point 10 should be (if needed) separatedly prepared in form of detailed list.
The authors should be prepared to present working materials confirming their conclusions.
Analyses 2 - 14 are not to be prepared for themselves. They must have very clear goal: to make contribution
to give the answer for main question: how should this company be privatized (method, timetable, pre-
privatization turn-around)?
II.
Conclusions from analyses 2 - 14 leading to formulation the appropriate privatization strategy
III.
Valuation of the company relevant to decided privatization strategy
Iv.
If trade sale decided, preparation of list of potential investors and Offering Memorandum
V.
Execution of sale under the supervision of Ownership Transformation Agency and with co-
operation with lawyers
2

---
-
COALITION PROVISIONAL AUTHORITY
BAGHDAD
September 16, 2003
Request For Proposal
Subject:
Auditing Services
professional level (i.e. partner or accountant)
Scope of Work
The auditing firm will audit the Company to produce a set of Financial Statements
(Income Statement, Balance Sheet and Cash Flow Statement). The financial
statements will be prepared in accordance with US or international Generally
Accepted Accounting Principles (GAAP). The financial services company will:
• Provide a financial statement for August, 2003 in accordance with GAAP
• Provide a proforma for the 2004 calender year
• Conduct a physical inventory count
• Review working capital requirements
• Assess the status of fixed assets.
• Determine mandatory and discretionary capital expenditure for 2004
• Review internal cash control policies and procedures
• An overall assessment of the management's understanding of the company's
ability to respond to current market dynamics and its ability to identify and
control its cost drivers
Requirements
• Fluent in Arabic with professional experience in the Middle East
• Hire and integrate local Iraqi accountants to the auditing team
Duration of the Assigament
!
The financial services firm should enter Iraq to commence work within one week of
contract award. The scope of work needs to be completed within 21 working days
from the date the auditing team enters Iraq.

Deliverables
At the completion of this contract, the financial service company will:
• Provide a set of August, 2003 financial statements in accordance to US or
internationally accepted GAAP. A financial statement will be generated for
each factory as well as a set of consolidated financial statements
• Provide a 2004 calender year consolidated proforma. The proforma should
delineate revenue and cost figures for each factory
• Provide a written summary report for the items listed in the Scope of Work.
Three copies of the items listed above will be submitted in English and Arabic. An
Arabic and English electronic copy will also be submitted
General
• The financial services company will coordinate with the MIM and the
Company for site visit schedules
• All visits to all locations will be subject to the security situation in the area,
The financial services company has the right to reschedule or cancel any of the
visits after consulting with the MIM and the CPA
• Transportation to the Company facilities to include security will be arranged
and paid for by the MIM and the Company
Point of Contact for this Request for Proposal:
(b)(6)
(b)(6)
CPA Advisor
Private Sector Development Group
Coalition Provisional Authority
Ministry & Industry Minerals
(b)(6)
http://www.cpa-iraq.org

-..
kpmg
Iraqi Cement Company
Proposal for audit services
Audit & Accounting
23 September 2003
This report contains 25 pages
Report for Iraqi Cement Company

!
-
!
kpng
Iraqi Cement Compan
roposal for audit service
Audit & Accounting
23 September 2003
!
Contents
1
Why choose KPMG?
The right team
2
Understanding your business
5
4.
7
Meeting your needs - the right audit approach
4.1
Strategic and process analysis
Risk assessment
4.2
4.3
Audit plan and programs
Audit test work
4.4
4.5
10
Review and reporting
4.6
Debriefing and follow up
10
5.
KPMG's credentials
11
6.
12
Providing value for money
Timing
13
Appendices - The resumes of core Team members
14
Report for Iraqi Cement Company!

-
!
Iraqi Cement Compan
kpig
roposal for audit service
Audit & Accounting
23 September 2003
1.
Why choose KPMG?
services to ICC for the following reasons:
Our knowledge of the cement sector
Hakim Al-Adhamy has been the engagement partner for the audits of Qatar National Cement
Company since 1997 and United Cement Company (Bahrain).
Michel Picard has been involved in the assessment and the valuation of the Cemex
subsidiaries based in Spain in connection with the refinancing of the Cemex group.
TAS accredited partner
Another area of major focus, particular in the first year of our audit, will be a review of your
accounting policies to ensure that they are fully compliant with IAS.
Michel Picard is one of 200 KPMG partners worldwide who has been accredited to review
and approve financial statements prepared in accordance with International Accounting
Standards (IAS). This assures consistency in the preparation and audit of IAS financial
statements.
We have the necessary resources
KPMG Middle East has over 1,000 professionals that are trained in the audit of
manufacturing, distribution, retail, technology, banking and insurance operations. This
ensures a solid basis for providing quality services to a wide range of business sectors. Our
staff in the Middle East have gained considerable knowledge in the preparation of IAS
financial statements as these are commonly used in the area over the past 20 years.
Our proposed team consists of professionals fluent in English and Arabic and includes a
number of Iraqis.
Risk-based tailored audit approach
Our audit process is designed to give you maximum comfort on the risks and issues facing
your organisation. It is a no surprises approach based on regular communication. Our audit
focuses on the risks inherent in a business strategy and in identifying improvement
opportunities. In short, we will make it work for you.
Report for Iraqi Cement Company - 23/09/2003 4:47 PM
2

kong
Iragi Cement Company
Proposal for audit services
Audit & Accounting
23 September 2003
High quality audit services
Our approach as a business partner:
• results in the audit relationship being more than just the independent verification of the
financial statements;
• assures we understand the strategic focus of ICC and act as a sounding board on business
and financial issues; and
• ensures performance of a cost-effective audit of the financial statements, which considers
the business risks of ICC and the systems, and controls that operate to manage those
risks.
Our approach focuses on an in-depth understanding of your business. From this
nderstanding we can address strategic issues and determine improvement opportuniti‹
enior management requires independent corroboration and feedback on strategic decisio
Hakim and Michel and other KPMG personnel, as required, will be available to act as a
sounding board to management and assist in the resolution of business issues as they arise.
Our commitment to your business
Our sat il aly comited in coving your wil the let us far service and
Report for Iraqi Cement Company 1 - 23/09/2003 4:47 PRA

kpig
The right team
<PMG will function as a single global team serving the Company. We have developed ou
ngagement management structure that provides a proper balance combining appropriat
industry expertise with a local focus.
1l the senior members of our team have significant experience, are accustomed to advisin
t board level/senior members of management and understand the challenges which confror
and business and industry advisers for the Company.
Choosing the right people is a key criterion in your decision to appoint auditors. We have
brought together an integrated team for the Company made up of individuals with a wide
range of experience in the industrial sector and, in particular, in the cement business. Our
key people have each been selected to add value to the audit process through their
professional and technical expertise.
The benefits to ICC of the team we have chosen are:
• highly qualified and experienced client and engagement partner;
• clear direction to ensure a consistent service;
• people who have knowledge of your business needs and have an in-depth experience of
the cement industry: and
transaction services.
4
Report for iraqi Cement Company - 23/09/2003 4:47 PSt

kpmg
Iraqi Cement Compan
roposal for audit service
Audit & Accounting
23 September 2003
Our core leadership team
Team member
Kule
Apperien
A Hakim Al-Adhamy
Hakim will serve as Engagement Hakim has over 30 years experience
Engagement Partner
Partner for the audit of the Company, in auditing in the Middle East and the
Fellow of the Institute of Chartered
He will be responsible for the
UK. Hakim, is the engagement
Accountants In England and Wales
planning and execution of all phases
partner of several major audit clients
of the audit.
in Bahrain and in Qatar, providing
audit and advisory services. Hakim
is currently the engagement partner
of Qatar National Cement Company
and of Unided Cement Company
(Bahrain). Hakim is the Quality
Performance Liasion Partner and the
Risk Manager for KPMG Qatar and
Bahrain
Concurring Review
Partner & IAS As Concurring
Review Partner, Michel has over 20 years of
Michel will ensure that there is experience in providing professional
Fellow of the Canadian Institute of Chartered
compliance with services to a wide range of clients in
standards, KPMG Western Europe, Central and Easter
policies and IAS. He will act as a Europe and Africa. He has recently
sounding board to the Engagement relocated to KPMG Bahrain to lead
Partner on all key technical or other the establishment of an office in iraq.
Michel was instrumental in the
development of our firm based in
Bratislava
In addition to the above core team members, we will hire and integrate a number of local
Iraqi accountants to the audit team. Hakim has maintained regular contacts with the Iraqi
accounting professionals over the past years and especially over the past months.
Report for Iraqi Cement Company 1 - 23/09/2003 4:47 PM

tragi Cement Compal
komg
roposal for audit service
Audit & Accounting
23 September 2003
Understanding your business
Our audit approach is driven by an understanding of your business risks to focus our
resources on those areas with the greatest financial risk. The table below summarises our
preliminary assessment of the business risks faced by ICC. Each of these translates into a
series of potential financial and audit issues as outlined below.
We would expect our audit to be focused on the following:
Financial and control implications
Business rish
• Adequacy of bad debt provision
Quality of customer base
Assessment of credit risk and associated risks
Customer concentration exposure
Compliance with key customer contracts
Valuation of fixed assets and services
Procurement Fraud
Budgeting control
Commitments
Adequacy of provision
•
Law suits
Controls over contracting
Transparency of IAS financial statements
Financial reporting and policies
• Evolution of IAS
• Compliance of the factories with policies
• Consistency of reported information
Bridge between Iraq accounts and IAS accounts
Managing shareholder expectations
Financial targets
Assurance over underlying financial processes
• Accounting guidance and compliance
1
•
Visibility of local forecasts and performance risks
Quality of local financial controls
Governance and control
Role and effectiveness of internal audit
Control procedures in various factories
Budgetary controls
• Risk management controls
• Improper decision based on incomplete or incorrect data
6
Report for Iraqi Cement CompanyI - 23/09/2003 4:47

kpmg
raqi Cement Compa
roposal for audit servic
Audit & Accounting
23 September 2003
Business risk
Financial and control implications
Existence
Cash
Cash flow requirements
Quality of Inventory
Adequacy of inventory provision
Purchase and disposal of fixed
Effectiveness of CAPEX budgets and control over CAPEX
assets
purchases and disposals
Utilization and potential for impairment provision
Report for Iragi Cement Company - 23/09/2003 4:47 P

kpig
Propost or and series
Audit & Accounting
23 September 2003
4.
Meeting your needs - the right audit approach
We will conduct our audit in accordance with International Standards on Auditing. Those
conduct of our audit.
KPMG's Audit Methodology has an operational and business risk focus. It is designed to
aid the efficiency and effectiveness of business operations, as well as address the traditional
financial and compliance areas.
Some of the key benefits of our methodology include:
• Risk-based, business focused approach to audit. This is different from the traditional
audit approach which concentrates only on the accounting transactions and practices;
• Review of all business risks (financial and non-financial);
• Focuses on business processes rather than only accounting transactions; and
• Assisting in identifying performance improvement and cost reduction opportunities
A highly focused audit plan
Increased emphasis on key business
risks
Well-grounded judgment about key F/S
assertions:
6-1-814
Regularly scheduled meetings
Frequent, informal communication yea
round
•Analysis of key business strategie
processes
Assessment of critical business risks
Evaluation of control environments
Comparison with industry *best
practices"
Report for Iraai Cement Company1 - 23/09/2003 4:47 PM

komg
Iraqi Cement Company
Proposal for audit services
Audit de Accounting
23 September 2003
The KPMG audit process is diagrammatically presented below:
I, Strategk
Process Analysts
IL. Rist
sment.
Iraq Cement Company
IIT. Audit Plar
Reporting
Prograrts
TV. Audit Test
Work
4.1
Strategic and process analysis
In this stage we will obtain a high level understanding of:
• The Business activities and results of the Company;
• The Company's corporate objectives including management's strategy for attaining
these. This will involve carrying out the following major tasks:
• External forces affecting the organisation, including competition, technology, economic
conditions, legislation, etc.
• Business relationship with customers, alliances, suppliers and shareholder.
• Business objectives and the risks that threaten the attainment of these objectives.
• Critical success factors and validating their effect on the business objectives.
• The Company's key business processes and the system of internal controls.
Report for Iragi Cement Company1 - 23/09/2003 4:47 PB
9

kpig
Iraqi Cement Company
Proposal for audit services
Audit & Accounting
23 September 2003
Risk assessment
4.2
In this stage we will assess the business risks and the management actions taken to address
the pries in ding semen or i sa bie od to consider financial mering stingives,
perceptions, and judgements about:
• Magnitudes and probabilities of the occurrence of events indicated by the business risk;
and
• Management actions taken to address these risks.
Our assessment of risk will cover the inherent risk (the risk that mis-statements, both
intentional and unintentional, may occur, disregarding the effectiveness of internal controls
to prevent or detect and correct such misstatements) and control risk (the risk that
misstatements may occur and will not be prevented or detected and corrected on a timely
basis by internal control). We will translate the risks facing the business that have
significant implications for the audit into audit objectives.
4.3
Audit plan and programs
In this stage, together with you, we will carry out the following tasks:
• Specify all the systems and activities to be covered in the period of the plan;
• Establish the priority areas;Assess the audit risk in each activity;
• Outline the suggested audit approach for each area; and
Audit test work
4.4
In this stage the detailed fieldwork will be carried out. We will use a "system based" audit
methodology driven by our risk assessment. The methodology includes:
• Ascertaining the transaction flows based on the Company's policies and procedures;
• Identifying key controls to mitigate the risks identified;
• Testing the operation of those key controls.
his approach is a well proven method for audit review and with the correct application wi
dentify opportunities to "add value'
Report for iraqi Cement Company1 - 23/09/2003 4:47 P
10

kpig
Iragi Cement Compan
roposal for audit service.
Audit & Accounting
23 September 2003
4.5
Review and reporting
Working papers for all key areas will be reviewed by partners and managers on site to ensure
that the conclusions drawn and the depth of work are sufficient.
Our reporting is designed to ensure that our work leads to beneficial change. The key
features are:
• Any serious matters will be reported immediately and followed by a written report;
• All draft reports will be issued soon after the completion of the work;
• Draft reports will be discussed with the head of accounts to:
- Ensure factual accuracy;
- Ensure recommendations are practical;
- Agree implementation plans for the recommendations made, together with action
dates, for inclusion in reports;
- Incorporate managers' comments for each matter raised and accompanying
recommendation; and
• a final audit report will be issued to the company.
4.6
Debriefing and follow up
At the end of each assignment we will seek the views of the Company's management on the
service we have provided to ensure that we meet your standards for delivery. We will agree
with you a set of criteria, measures and a feedback mechanism that will help both of us to
manage the partnership effectively.
We will carry out reviews following up audit reports from previous visits to ascertain
whether all the agreed actions in the previous report have been implemented. Where
management has not implemented agreed actions by their target dates, this will be separately
reported, together with a further recommended course of action.
11
Report for Iraqi Cement Company 1 - 23/09/2003 4:47 PM

- =
raql Cement Compa
kpig
oposal for audit servic
Audit & Accounting
23 September 2003
KPMG's credentials
KPMG is the global network of professional services firms whose aim is to turn
understanding of information, industries and business trends into value for our clients. With
more than 100,000 people worldwide, KPMG member firms operate from more than 750
cities in 157 countries.
We work in a global market place distinguished by remarkable growth and upheavals. The
impact of corporate and accounting scandals and new regulations and laws that are following
in their wake - is now being felt around the world.
Corporate governance, transparency, effective internal controls as robust financial reporting
are key for trust and confidence among shareholders and investors, and achieving profitable
growth in an uncertain global economy. There is now demand to extend corporate disclosure
into broader, non-financial areas such as stakeholders reporting and remuneration to show
the responsibility we all have to employees and the wider communities. There is also
increasing pressure to find new ways of realizing the full potential of our businesses, such as
the value of intellectual property.
At KPMG in the Middle East and through our global network — we recognize and share these
concerns, and offer support to Governments, chief executives and other business leaders
through the quality, integrity and independence of our work.
KPMG in the Middle East has 50 partners and over 1,000 staff in 17 offices throughout the
region. KPMG has a long-term and deep commitment to the region. KPMG Middle East is
in the process of establishing an office in Iraq. Our offices are staffed with a mixture of
nationalities, both national and expatriate, thus maintaining access to expertise of the highest
level whilst ensuring that we have the long-term expatriates and nationals necessary to have
the requisite understanding of the environment in which our clients operate.
One of the cornerstones of KPMG's success in the Middle East is the training provided to
staff at all levels, including an integrated training program for all new university graduates
who join. Training takes place at KPMG International and at the Middle East Training
Centers, and covers the most up-to-date procedures in Assurance, Financial Advisory
Services, Tax and Legal, and Consulting. Local presence and thorough knowledge of the
respective industry ensure that our solutions and concepts are precisely tailored to the
concrete situation of each client we serve. This enables a seamless service along the value
chain clients.
Our market position is the result of our consistent focus on the aspects that are most
1
for the success of our clients. Thus we can shape the future together.
Report for Iraqi Cement Company - 23/09/2003 4:47 PM
|

kong
Iraqi Cement Compan
roposal for audit service
Audit & Accounting
23 September 2003
6.
Providing value for money
Ve will deliver a first class robust audit with high quality service throughout the engagemen
Jur proposed hours for the specific services requested are set out in the table below.
Your requirements
Ilours
Assistance in the preparation and audits of the consolidated financial stateme
fIC and of the individual (company) financial statements as at August 31
203, profit in odordance in mermainal Stairs on And insands:
500
Assistance in the preparation of a proforma profit and loss account for th
nancial year 2004, on a consolidated basis and for each factor
120
3. Review internal cash control policies and procedures in place
50
4. Asses the status of fixed assets and determine mandatory and discretionary
20
capital expenditure for 2004
140
5. Conduct a physical inventory count at each factory
6. Overall assessment of the managements' understanding of the company's
ability to respond to current dynamics and its ability to respond to, identify anc
control its cost drivers
20
850
TOTAL HOURS
Our report will be submitted in English and Arabic. An electronic copy will also be
submitted.
We propose a fee of USD 55,000 for the services mentioned above, excluding outlays and
VAT (or local equivalent) which will be billed separately.
The proposed fees includes a significant discount on our standard rates for similar
engagements. The hourly rates, after our discount, for each professional level are as follows:
Level
Kate
Partner
USD 175
USD 100
Manager
Supervisor
USD 60
Experienced staff
USD 40
USD 20
Local Iragi staff
Report for Iragi Cement Company 1 - 23/09/2003 4:47 PM

kpmg
Iraqi Cement Compan
roposal for audit service
udit & Accounti
3 September 201
7. Timing
14
Report for Iraqi Cement Company 1 - 23/09/2003 4:47 PM

kpmg
Iraqi Cement Company
Proposal for audit services
Audit & Accounting
23 September 2003
(b)(6)
15
Report for Iragi Cement CompanyI - 23/09/2003 4:47 PM

kpig
Iraql Cement Company
Proposal for audit services
Audit & Accounting
23 September 2003
(b)(6)
Report for Iragi Cement Company1 - 23/09/2003 4:47 PM
16

kpmg
Iraqi Cement Company
Proposal for audit services
Audit & Accounting
23 September 2003
(b)(6)
17
Report for Iraqi Cement CompanyI - 23/09/2003 4:47 Ph6

Iraqi Cement Company
kpmg
Proposal for audit services
Audit & ocountina
(b)(6)
18
Report for Iragi Cement Company1 - 23/09/2003 4:47 PM

kpng
Iraqi Cement Company
Proposal for audit services
Audit & Accounting
(b)(6)
Report for Iraqi Cement Company - 23/09/2003 4:47 PM8
19

kpmg
Iraql Cement Company
Proposal for audit services
Audit & Accounting
23 September 2003
(b)(6)
Report for Iragi Cement CompanyI - 23/09/2003 4:47 PAQ
20

-
kpng
Iraqi Cement Compar
roposal for audit servic
idit & Accounti
3 September 20
7. Timing
We will enter Iraq to commence our work within one week from the signature of the
contract. We expect to provide you with draft reports of our deliverables within three
24
Report for Iragi Cement Company1 - 23/09/2003 4:47 EM

(b)(6)
Private Sector Development Group
Coalition Provisional Authority
Baghdad
PERSONAL AND CONFIDENTIAL
-
23 September 2003
Dear (b)(6)
We are delighted to have been asked to submit this proposal to act as auditors and business
advisors of Iraqi Cement Company (ICC).
As an important high profile player in the reconstruction of Iraq with ambitious objectives for the
future, ICC is precisely the kind of forward-looking organisation we want to work with and which
KPMG genuinely excels at serving.
This is a real opportunity for ICC to gain the benefit of an international approach to its audit. We
firmly believe that our team can and will provide you with the type of value-for-money service
which you expect. Our belief is based on the following reasons:
• We approach this opportunity with the intention of being a business partner and an advisor to
the Iraqi Government;
• The core team has an in-depth experience of your industry whose members have the time and
the commitment to serve;
• Our audit approach is a risk-based methodology that ensures we focus on the areas of highest
risk and of most significance to the business;
• We will give you feedback on your processes and people and will be available for open
discussions with your team;
• KPMG Middle East is proficient in the preparation of financial statements prepared in
accordance with International Accounting Standards (IAS). I am one of the 200 KPMG
partners worldwide who has been accredited to review and approve financial statements
prepared in accordance with IAS.

• I have gained considerable knowledge of a country in a transitional phase from a planned
economy to a more Western style economy. During my eight years in the Slovak Republic, I
have been privileged to witness the tremendous development of the country, including the
flotation of the Slovak currency, the election of a democratic government, the privatisation of
the banking sector and most of the state-owned companies, the liberalisation of the prices,
acceleration of FDI and the development of a solid market economy; and
• have recently relocated from the Slovak Republic to KPMG Middle East mainly based in
Bahrain with the objective to establish a KPMG office in Iraq in the near future. Our presence
in the country will be useful in our future communication and discussions.
Everyone in our team is enthusiastic about the prospect of working with ICC. It is a challenging
vet exciting time for the company and we look forward to further demonstrating our commitmen
to ICC and IRAQ.
Should you have any questions or queries, or wish to discuss any aspect of our proposal then
please do not hesitate to contact me on +(b)(6)
Yours faithfully
(b) (6)
Partner

KING
• I have gainod considerable knowledge of a country in a transitional phase from a planne
economy to a more Western style economy. During my eight years in the Slovak Republic,
have been privileged to witness the tremendous development of the country, including the
et excing time fortie company a boe to forward to further ge win as our coallenging
to ICC and IRAQ.
Should you have any questions or queries, or wish to discuss any aspect of our proposal then
please do not hesitate to contact me on +973 965 2204.
Yours faithfully
(b)(6)
Partner

Mr. Mohammad Rahim Tawfeq
Interim Minister
Ministry of Industry and Minerals
Baghdad, Iraq
12 October 2003
Dear Mr. Mohammad Rahim Tawfeq
Compilation of a balance sheet as at 31 August 2003 and preparation of prospective
financial information for the period from 1 September 2003 to 31 December 2004.
In reference to your letter dated 16 September 2003, our proposal dated 23 September 2003 and
our subsequent meeting on 4 October 2003, the purpose of this letter is to confirm our
understanding of the terms of our appointment and the nature of the services we will perform for
you. The scope is as follows:
• To compile a balance sheet of Iraqi Cement Company ("the Company" or "ICC") as at 31
August 2003;
• To assist ICC in the preparation of Prospective Financial Information ("PFI") for the 16
month period ending 31 December 2004;
• To review the internal cash control policies in place and prepare a short report on the
weaknesses identified;
• To conduct a physical inventory count of the inventory and property, plant and equipment
and prepare a short report on the conditions of those assets; and
• To perform an overall assessment of the management's understanding of the company's
ability to respond to current dynamics and its ability to respond to, identify and control its
cost drivers and prepare a short report of our assessment.
Our deliverables will be submitted in English and Arabic.
Professional standards
We conduct our engagements in accordance with the principles of independence, integrity,
objectivity, professional competence and due care, confidentiality, professional behaviour and
technical standards as defined in the technical pronouncements of the International Federation of
Accountants.
(b)(6)
SIGNED ENGAGEMENT
(b)(6)
LETTER...
HAS MORE DETAILS.
(b)(6)

Scope of compilation
We will compile the balance sheet of the Company in accordance with the International
Standards on Auditing applicable to compilation engagements on the basis of information
provided by you. We will not carry out audit or review engagement procedures or otherwise
attempt to verify the accuracy or completeness of such information.
Our report on the balance sheet of the Company is presently expected to read as follows:
'On the basis of information provided by the management we have compiled, in accordance with
the International Standard on Auditing applicable to compilation engagements, the balance
sheet of ICC as at 31 August 2003. Management are responsible for the information reflected in
the balance sheet. We have not audited or reviewed the balance sheet and accordingly express
no assurance thereon.'
Scope of the assistance in preparation of the Prospective Financial Information (PFD
We would assist ICC in preparation of the PFI, which would basically involve construction of a
for the period of 16 months ending 31 December 2003.
2004
We would like to highlight that the role of KPMG would be limited to the preparation of the
financial model based on the discussion carried out with senior management team. KPMG's
assistance in development of the financial model shall not be construed as expression of its
opinion with respect to the reasonableness and achievability of the same.
Responsibility of management
You, as management, are responsible for both the accuracy and completeness of the information
supplied to us and responsible to users for the financial information compiled by us. This
includes the maintenance of adequate accounting records and internal controls and the selection
and application of appropriate accounting policies.
Our engagement cannot be relied upon to disclose whether fraud or errors, or illegal acts exist.
However, we will inform you of any such matters which come to our attention.
We look forward to full co-operation with your staff and we trust that they will make available
to us whatever records, documentation and other information we request in connection with our
compilation.
Before starting the compilation of your balance sheet we shall require your accountant to prepare
a tallied trial balance and certain schedules, listings and analyses, the form and contents of which
we shall explain to him as well as giving him draft format.

Timing
Provided no unforeseen major problems are encountered especially with the security in Baghdad,
we expect to be able to start our work within two weeks of signing this agreement and deliver
the draft balance sheet, prospective financial information and other reports within dates to be
agreed with the Management. However if the security does not allow our team to perform our
work in accordance with the plan and timetable then we reserve the right to reschedule or cancel
any of the visits after consulting with the contracting parties without penalties to KPMG
Our fees, which will be billed as work progresses, are based on the time required by the
individuals assigned to the engagement. Individual hourly rates vary according to the degree of
responsibility involved and the experience and skills required. Our invoices are due and payable
on receipt.
We expect our total fees to be USD 55,000 plus outlays and any taxes applicable to Iraq, payable
as follows:
• 50% on commencement of the work; and
• Balance 50% on delivery of the draft deliverables.
Should there be any delays in the provision of information by the Company, should other issues
arise which require additional work to be performed by KPMG or should delays arise from any
other cause outside our control, we shall discuss such matters with the Company and shall have
the right to defer completion of the work and the Engagement letter until the matters are
resolved. In the event of delays and/or additional work being required of KPMG arising from
these reasons, we have the right to request additional fees needed to complete the Engagement
letter based on the additional time spent and hourly rates of particular employees.
Applicable law
This engagement shall be governed by, and construed in accordance with the Bahrain relevant
laws. The Courts of Bahrain shall have exclusive jurisdiction in relation to any claim, dispute or
difference concerning this engagement and any matters arising from it. Each party irrevocably
waives any right it may have to object to an action being brought in those Courts, to claim that
the action has been brought in an inconvenient forum, or to claim that those Courts do not have
jurisdiction.

Administration
Responsibility for this engagement will be carried out by suitably qualified staff.
We aim to provide you with the best possible service and Abdul Hakim Al-Adhamy, as
engagement partner, will seek to ensure that this is satisfactory at all times. If however, at any
time you are unable to deal with any difficulty through him please let us know by contacting our
managing partner Michel Picard.
Confidentiality
We are well aware of the importance that you place on confidentiality requirements and we have
a proven record of maintaining a strict code of confidentiality. Our policy requires that affairs of
clients be confidentially kept at all times and the only exceptions are when the following
conditions are met:
• The client has authorised disclosure in writing;
There is a professional duty to disclose;
• Disclosure is required by a legal or judicial process; and
• Disclosure is required by law.
We appreciate the opportunity to be of service to you and we emphasise our commitment to
provide you with quality services in an efficient and timely manner.
Yours faithfully
Michel Picard
Partner

Acknowledgement on behalf of
Iraqi Cement Company
23.10.03
Mohammad Rahim Tawfeq
Date

Weakly update for SOEs Companies.
Food Industries sector.
ACH
Achi
Pro
Producti
The work is being resumed only in the
1 State Co. for Vegetable Oil Industries.
morning because of the security
23 Tons.
Oil.
situation.Development in the production
70%
60 Tons
Soap.
42 Tons
33%
comparing with the previous week.
462 Tons.
Detergents.
152 Tons
46% Their sellings were 70 MID.
Liquid detergents
92 Tons
42 Tons
49%
Cosmetics
3.4 Tons
7 Tons
Mosul & Kadisia plants are are not working
2 State Co, for Dairy products.
till now because of the disavailability of raw
4 Tons
Milk
Cream.
33% materials. The electricity is unstable in
3 Tons
9 Tons
Butter.
50% Abu-Ghareeb plant. The achieved sellings
1 Ton
5 Ton
32% were 11.4 MID.
Cheese.
3 Tons
9 Tons
15%
1.6 Tons.
11 Tons
Yogourt.
Reduction of the production because the
3 State Co. for Tobaccos & Cegarettes.
16% generator is out of order. The achieved selling
4200 Carton
688 Carton
Cegarettes.
56% were 10.8 MID
Matches.
507 Carton
900 Carton
3 Tons
15% The achieved sellings were 1.64 MID.
Bread yeast.
18 Tons
4 State Co. for Sugar Industries.
1500 liter.
12,777,000
76% There is somehow a development in the
Pills
16,750,000
5 Samara State Co. for Drugs.
Tablits
54% production comparing with the previos week.
4,250,000
2,290,000
125,000
37.000
Powders
30% Reduction of production for some drugs is
250,000
417,000
Syrup
167% due to rehabilation & Shortage in raw materials.
47,000
62,000
76% The achieved sellings were too low comparing
Oral drops
41,000
31,000
eye drops
76% with the production (no more than 59 MID)
Creams
166,000
172,000
104% because of the limitation in markets.
31,000
14,000
14,000
100%
6,000
100%
12,000
12,000
1,000
37.000
Pills
7,500.000
63%
Ninavah State Co. for Drugs.
4,750,000
900,000
36%
Tablits
2,500,000
48,000
Syrup
38%
125.000
Oral Drops
50,000
26,000
113,000
23%
Creams
125,000
75,000
Eye Drops.

UNCLASSIFIED
COALITION PROVISIONAL AUTHORITY
BAGHDAD
TRIP REPORT
1 November 2003
FOR: SEE DISTRIBUTION
FROM: (b)(6)
Deputy Advisor/LNO Ministry of Industry and Minerals
SUBJECT: Ministry of Industry and Minerals Trip Report
A CPA Ministry of Industry Team (b)(6)
with an
traveled north from
Iraqi Ministry of Industry staff (b)(6)
the 26* to the 31* of October to discuss the following issues:
A. Distribution and Pricing of Cement
a. Mosul.
The combined MIM team met with the Mayor of Mosul and local council
attendance and others) on 27 October to discuss the pricing and distribution of
cement. The combined MIM team met with the 101" Commander and Assistant
regarding pricing (as well as security and labor-management issues).
ii. The combined MIM team expressed the position that the high price for cement
would offset the large margins the local black market currently enjoys. This
would eliminate black market activity. The 101 agreed that the issue required a
supply side response allowing for: 1) higher prices in the short run by the cement
factory to allow for available capital to rehabilitate the plant and 2) flooding the
market with cement (using the good offices of a local reputable wholesaler) with
imports.
iii.
The MIM met with the City Council to discuss the issue of pricing. The message
was the MIM could achieve a level of production by late summer 2004 to
In
materially affect the level of supply and thus the lowering price of cement.
the end the civil leadership agreed that it would defer to the MIM regarding this
issue.
b. Kirkuk. The combined MIM team met with the Mayor of Kirkuk and local council
members along with members of the 173' Brigade (CMOC staff) to discuss the pricing
and distribution of cement. The discussion raised the following issues:
i. The Mayor stipulated his position that as long as the Kirkuk Cement operation
was a SOE he would treat it as a public interest of Kirkuk and be involved in its
operations (question is one of oversight vs. supervision). He would want a say in
(b)(6)
UNCLASSIFIED

UNCLASSIFIED
the distribution of cement. The City Council has also been involved in personnel
matters of the firm (see security paragraph). This is not the intent of Bremer's 6
September memo.
ii. The MIM team welcomed the oversight but not the supervision of the factory by
the civil leadership. The MIM's agenda is to see the firm placed on a sound
commercial footing (in accordance with the CPA strategic plan) and this would
require a laissez faire approach by the local civil leadership.
iii. The Mayor expressed concern about the distribution of cement (the allocation
ends up in the black market) and would prefer to see the firm provide a
controlled distribution to an end user (through a mechanism set up by the civil
leadership). Since quotas are preferred to price controls this would be welcomed.
iv. The Kirkuk plant suffers from its proximity to Sulimaniya regarding the pricing
issue where cement sells for $25 a bag. In Sulimaniya the Kurdish Prime
minister thru the Kurdish MIM has set a price ceiling as well as controlled
distribution. The Kirkuk leadership would prefer a similar arrangement.
v. It is recommended that a joint commission will be formed by the local civil and
MIM leadership to review the above and other allegations of corruption.
vi. The local civil leadership expressed their concern about price controls as a means
to regulate the black market. They indicated empirical evidence of factory price
increases being followed by black market price increases. This suggests that a
well established cartel exists that controls the distribution of cement and thus the
pricing of cement.
B. Mishraq Sulfur. On 26 October the Combined MIM Team met with the 101" Brigade
Commander and the plant leadership to integrate efforts to get the plant up and running.
a. This firm is the most viable entity in the MIM portfolio. It recently sold $22 million in
sulfur and has another $66 million in ready inventory remaining. It sits on an estimated
$25 billion of sulfur.
b. The Brigade Commander challenged the MIM team to reinvest sooner in the plant's
rehabilitation (suffering from $25 million in looting and repairs) and to invest on a broad
front (security, production equipment, etc.) and not phase the investment and
rehabilitation process. The brigade commander committed to having a detachment of
101* soldiers on the ground to begin the process.
c. The 101" will be involved with the local plant management to assist in the reconstruction
effort (bidding, oversight).
d. The key to the rapid rebuilding of Mishraq is to ensure the sale proceeds are provided to
the SOE for reconstruction and not diverted to the MoF.
C. Geological Survey and Mining. On 27 October and 28 October the Combined MIM Team met
with the Ministry of Industry and Minerals in both Irbil and Sulimaniya respectively. The tean
was joined by the Director General of the Geological Survey and Mining Company
a.
The Geological Survey will be reclassified by Private Sector Development as a
government agency. This reclassification has not been formalized. However it will nee
funding for its activities for 2004. Since the 2004 budget has been published, it i:
issumed that this funding will come from the available pool of money for the SOE'
The funding requirement is $4 million for capital expenditures and 2.5 million fo
(b)(6)
UNCLASSIFIED

UNCLASSIFIED
b. The Geological Survey would like to survey the Kurdish regions and outlined his plan to
the Ministers. He also requested from the regional ministries financial support for the
effort.
D. Security
A. Mishraq Sulfur - We met with (b)(6)
101 AASLT, 1 BCT FPS coordinator at the
Mishraq site. He reported there were 271 FPS working at the site. He indicated that
uniforms and weapons were available and would be issued soon. The MIM issue at this
site is the lack of loyalty of the FPS toward the DG. Mr. Ali spoke with the FPS
supervisor, a local tribal leader named Sheik Azeez Sinjar. The dialogue indicated that
Mr. Sinjar wants to act as a power broker, deciding what he will and won't secure and
also who will work at the site. Mr. Ali made it clear that if the FPS loyalty is to anything
or anyone other than MIM and the DG they will be fired. The agreement reached was that
the FPS here will undergo a two month "probation" and if their loyalty and performance
are satisfactory, the MIM will assume their payroll on 1 January, if not they will be fired.
A written assessment of the security plan for the site is also to be prepared by the FPS in
conjunction withb (6)
B. Badoosh Cement - We met with
(b) (6)
101 FPS
coordinator and 2 BCT commanders respectively, at City Hall in Mosul. The DG of
Northern Cement explained that he was not satisfied with the 101 trained FPS at his site
(currently 70 FPS on site). The agreement reached is that the local battalion commander
will work more closely with the DG and support his decisions with coalition force
provided he consults the commander first. The 70 FPS will be picked up by MIM payroll
in the near future. The DG has some trouble expressing his real position to the ground
commanders. This is something that must be overcome or the DG will find the patience
of the local commanders exhausted with his frequent cries of wolf.
the 173 area commander
C. Kirkuk Cement - We met with (b)(6)
and 173" Team Civil leader respectively. The 173" explained that it has trained no FPS
in its AOR. Mr. Ali explained that we were unable to train FPS at this location because
the DG refused to allow our trainers in. There is a guard force at the site (approximately
40) which will have to be trained. At this point the only option is to bring these
employees to Baghdad and train at the FPS Academy. The issue of Kurd discrimination
against Arab FPS supervisors was also raised. The DG said he could not accept the FPS
supervisor because the Governor would not allow him. The Governor said it was the
decision of the City Council of Kirkuk. This issue is not resolved.
D. Geological Survey - Mr. Humam, the DG of Geo Survey, explained a plan to survey
areas within the Irbil Governorate. Two issues affecting the proposal are mine hazards
and the PKK threat. For follow up on these issues MIM will coordinate with the Mine
Action Group at CPA and try to coordinate weapon permits for the 101 AOR so that the
geo survey team can secure itself.
E. State Owned Enterprise Operations. The Combined Team message to the military leadership of
the 101" and the 173 was that they support their local SOE. The intent is to put these companies
on a sound commercial footing and that the SOE was in the short term in control of its destiny.
The decisions of the DG and the SOE Board of Directors should not be second guessed. This was
particularly important in personnel and operational matters. The factory floor consists of so many
factions (tribal, religious, party) that it is impossible to please all parties. The local leadership
must support the plant management going forward in all their decisions.
(b)(6)
UNCLASSIFIED

- -
-
... l
UNCLASSIFIED
DISTRIBUTION:
Commander 352" CACOM
Commander 352"* CACOM Attn: Economics and Commerce Team
Director, Private Sector Development
Senior Advisor Ministry of Industry and Minerals
Chief Of Staff, CPA
ATTACHMENTS:
COORDINATION:
(b)(6)
UNCLASSIFIED

KPMG
Iraqi Cement Company
status Uodat
Saturday, 22 November 2003
:P.MG has utilized 9 staff (four expatriates with a minimum of eight years of experienc
ne Iraqi with seven years of local audit experience and four Iraqi assistants) during th
weck of 17 November 2003 and noted the following:
Co-operation and access to staff
• Working hours are limited for ICC (9:00 - 12:45)
No work on Fridays
Closed for EID holiday
Management may have limited knowledge of the cement industry as newly hired
Printer at Head Office does not work
2
Issues noted for 2003 Financial Information
• No financial information prepared
• Only monthly G/L debits / credits prepared per factory on a monthly basis
January and February records at the Head Office in Baghdad but no access to date
March - October records managed by each factory
Cash is currently managed and controlled by each factory
Each factory records their basic accounting transactions
Cash at the Head Office has been reportedly stolen
3
Issues noted for 2002 Financial Information
Financial statements have not yet been approved by the authorities
Final version of most of the (sub) ledgers are not accessible to date
Final adjustments for 2002 are not recorded in the sub-ledgers provided to KPM
Source documents / original documents are not available (eg. bank statements)
Sub-ledgers do not reconcile to the General Ledger (AP. AR. Fixed Assets)
No supporting documentation for provisions to date
No supporting documentation for retained earnings and reserves
Vetting/off-setting amounts included in Accounts Receivable and Payables (ID 58bn)
No aveing analvsis of Accounts Receivables provided
Totals and sub-totals in the Fixed Assets do not add properly
Final information on investments (ID 20m) is not available
• Fixed Assets Roll-forward is not correct
4
Control Weaknesses Identified
• Accounting and especially IT systems are deficient
• No monthly financial analysis available for 2003
Management control over the factories may be inadequate
• Based on our observations and the reports issued by the Board of Supreme Audits,
many basic accounting control weaknesses identified and not resolved
Differences between physical and actual counts for fixed assets and inventory
Accounts receivable provision is not adequate
Discrepancies between AR / AP confirmations and sub-ledgers
Recording errors with cash noted in the prior year
• Contingent liabilities (US S500k) noted in the prior year

Iraqi Cement Company
Status Update
Saturday, 22 November 2003
5
Other Issues Noted
• Sales to employees below market price
Business Issues
6
• Lack of electricity for production
• Lack of spare parts for plant and machinery
Security issues including travel from the city to the plant for employees
Training of technicians and management
Distance of raw materials (limestone, clay, iron ore) from the plants
Oil leakage
Liberalization of prices of rau materials, electricity, oil, salary, transportation
Signiticant capital investment required for maximum capacity
Lack of proper maintenance resulting in poor utilization of raw materials
• Foreign exchange exposure on loans, AR and AP
7
Business Strengths
• Plants not looted
• High demand for products
Monopoly in Iraq and price fixing to reduce imports
High selling price per ton
Low production costs
Well-recognized quality in the region
Large number of employees retained from pre-war conditions
Return to pre-war capacity (60%-70%) within a week without major investment
8 .
Potential adjustments identified but not quantified (net equity at Dec 02: US S14m)
• Bad debt and inventory provisions
• Impairment for idle assets and assets under construction
Write off of investments
Uncollected outstanding checks received and issued
-
Interest on overdue suppliers* balances
Outstanding litigations and claims
9
Way forward
• Visit of Fallujah and Kubaissa
• Cash Flow Projections for 2004
'Balance Sheet and Income Statement for 2002 (and 2003 subject to availability)
• Preparation of DRAFT deliverables

Iraqi Cement Company
Balance sheet
As at 31 December 2002 and 2001
2002
2001
Non-current assets
2.598.469.218
Fixed assets
14.994.081.268
4.089.126.085
95.574.273
Building under construction
Deferred expenses
12.048.396
3.806.794
Long-term investments
40.000.000
40.000.000
Total non-current
19.135.255.749
2.737.850.285
Current assets
33.550.394.768
29.852.431.401
Inventory
210.732.147
4.629.828.930
Letter of credit
Receivables
37.708.634.683
60.163.385.705
7.999.891.127
2.174.909.866
Cash and banks
69.946.708.097
106.343.500.530
Total current assets
125.478.756.279
72.684.558.382
Total assets
Equity
1.523.000.000
1.523.000.000
Share capital paid
27.297.715.965
Reserves
6.804.738.027
28.820.715.965
8.327.738.027
Total equity
Non-current liabilities
3.990.376.215
Bank loans
5.349.000.000
10.823
10.823
Long-term provisions
5.349.010.823
3.990.387.038
Total long-term of liabilities
Current liabilities
91.373.849.465
Payables
52.847.479.161
1.293.803.811
3.728.753
Provisions
0
6.156.601.618
Bank loans
92.667.653.276
59.007.809.532
Total current liabilities
125.478.756.279
Total of liabilities
72.684.558.382
=

Iraqi Cement Company
Profit and loss account
For the years ended 31 December 2002 and 2001
2001
2002
38.925.312.720
52.033.872.107
Revenues
26.057.595.703
17.794.620.266
Costs of production
7.615.582.199
5.659.899.485
Services
-552.391.656
-2.113.547.261
Variation of WIP
-1.999.965
Sales of scrap
29.601.947.962
24.857.810.809
Costs of production
126.568.744
-139.100.762
Variation of finished goods
24.718.710.047
29.728.516.706
14.206.602.673
22.305.355.401
Gross margin
1.254.385.211
410.716.867
Marketing expenses
- ..
1.977.534.640
Administration costs
3.234.484.926
10.974.682.822
18.660.153.608
265.448.939
202.866.366
Processing revenues
284.634.724
97.741.545
Other revenues
-
363.190.484
487.501.090
28.845.930
616.000
ssing expenses
92.949.794
1.607.922.405
-
.... expenses
121.795.724
1.608.538.405
17.539.116.293
11.216.077.582
Net income

IRAQ Cement -
100m
2 2000002000
4 plants.
Whitlement - 1
это, оточ
- Securty-
- 5.27 millins.-
50%
2s/ Ton
I So/Ton
-electricity - problem-
- 160,020,00 Cos dune
$20000,000 to
65,000,000
git génerators
60% - 2004-
Highleman
- 7,000,000 2002
2003
2004 - 710,020,00.
10,020,000
2004
Upgradingsystem
15%
10,000,000
NELSO
80%-2005
MULLIN
425,00,000.
www.nmrs.cor
800.237.200
Needs #12000,000. now.
Fireneit

i Compay Name: NORTHREN CEMENT
CompANy
Product, Portland Cement.
Design Capacity 1 Year: 4,500,000 Tons
(Three plante)
Actual Capacity Year: 1800, 000-2,0916
$50 UsD/ ton.
Estimated price :
Estimated Cest: #
50, 000, 000 USD
90,000,000 - 100,000,00
Total Rewenue =
USD
Notes
It aramd $10, 000, 000 US ias extre
bugde, the production capacity
exced about 30-35%, the
ALRA MOHEMED ALTUFILY
D •G
30/8/2003

ISOMW
Dair
Southeun Cenet
- 8 Fatoris.
1-Lime - 12,00 Tms pe
year.
7-cement.
parttono
- 6.4 millim toris -
suphur
60% - Lisign -
5,300
éplogees
- $2000/430.00 -Costs
1 10,000,000
# 5,000,000 - repair damage
# 5,000,000 - genenitos for milling.
NELSO
MULLIR
www.nmrs.cor
800.237.2000

25mW
now
Northenss Cenarl
-
3plants
400 kMs
- 45/Tons Design
#50/Ton
18/20 - capiity
$ 90,000,000.
- 2,000 Tons
210,00, 000. - Lore parene
- Uplato cento in hautes -
NELSC
MULLI
www.nmrs.r
800.237.2

CPA South
Industrial Development
(b)(6)
From:
(Trade & Industry) Dep. - (Industrial Development) Sect.
Date:
07.12.2003
Subject:
General report related to the status and actions to boost the production in the
basic industry strategic plants in the south of IRAQ
Introduction:
This document is issued to give guidance to the various CPA pillars and private entities in
view of a coordinated action to boost the production of the basic industry in the south.
Due to the timing extremely compressed, the end of June 2004, and the uncertain
strategies of the Iraqi Ministries after the end over of responsibility and governance by
CPA, this document is considering only the possible, effective actions to be undertaken in
the next seven months.
This actions should be limited merely at the support to identify the bottle necks in the
production process of the plants and to launch projects, like supply of equipment and
spare parts to eliminate the constrain.
During our surveys started at the beginning of November, two mayor problems was
focused as the principal cause of plants reduced or non operation. These problems are
the lack of steady stable and constant electrical supply as well as for gas.
These two points are the most critical ones because they are involving the work and
strategy of different players, TF RIO for oil & gas, TF RIE, Bechtel, Mott Mc Donald for
electricity, therefore the direction and time schedule for each program related to these
fields might effect the production of the considered plants.
(b)(6)

CPA South
Industrial Development
Status of each plant and actions to be undertaken.
Integrated steel plant. See attach. (1
The plant is an integrated steel complex located in Kor Az Zubayr designed to produce
400,000 Tons/year of carbon steel in form of long products, rounds and sections.
It was designed, installed and commissioned by the French group CRUSOT LOIRE in the
1974.
The plant has 4,845 employees and was producing before the war 60,000 Tons/year of
steel for military purpose, the maximum production was 200,000 Tons/year.
Status
The plant is completely looted, is in bad condition for what is concerning the electrical and
instrumentation part that has to be redesign and reinstall completely, moreover some
processes are old and not any more profitable, for example the direct reduction plant and
the melt shop, those parts of the plant have to be extensively modified from a mechanical
and process point of view, however the rolling area is still in a good shape and with the
installation of new electrical equipment and automation can produce rounds and profiles
with acceptable quality standards, necessary condition for the working of the rolling mill is
the rehabilitation of the water treatment plant, compressed air plant, and distribution
substation.
Actions
The above mentioned works cannot be undertaken under the frame of a local contingency
plan, the involvement of a specialized company is necessary to investigate in detail the
process and undertake the necessary extensive works for the rehabilitation of the plant in
accordance to the actual quality standards, reliability and efficiency.
Splitting of the plant in several process area can be taken in consideration due to the
different damages suffered by the equipment, however the auxiliary services have to be
rehabilitated almost completely whatever part of the process they have to supply.
In conclusion this installation need extensive investments and the involvement of
big multinational companies specialized in the steel plants sector, nothing can be
done with contingency plans in within the next seven months, the destiny of the
complex will be a decision of the new iraqi government.
(b)(6)

CPA South
Industrial Development
Spiral welded tubes plant
It is a separated unit of the integrated steel plant, this production unit is situated near Um
Kuasr port and will be visited by our team this week.
Al Muthanna Cement Factory attach. (2
The plant located near As Samawa city, Grid. NV 004 545, has two lines for dry type
cement production process, designed to produce 2,000,000 Tons/year of Portland
cement, high tension cement and sulfate resistant cement.
It was designed, installed and commissioned by the German company KHD in within the
1982 -1984.
The plant has 850 employees and now is producing 1800 tons/day of cement equal to
360,000 tons/year of cement considering an availability of electrical energy of 200
days/year.
Status
The plant is adopting a good and rather modern technology, it is in a good shape
compared to other installations in the country and with some little rehabilitations and parts
replacement will be able to produce 1,000,000 tons per year with one production line in full
operation. The production of cement is very precious for the reconstruction of the country,
at the contrary of the steel melt shop were little is left for the contingency plan, is possible
for this factory to apply some corrective action to boost the production at the level
mentioned.
Actions
To reach 1,000,000 tons per year of Portland cement the following action has to be
undertaken:
The plant need stable and reliable supply of electrical energy. The energy required is 15
Mw more in addition to the already available power, this can be done easily trough the
Kadisia substation, rising the power supply setting from 10Mw to 25Mw, proper
coordination with Baghdad is needed to allow the IEC, Iraqi Electricity Committee to
dispatch the necessary orders.
A project of 4.5 Mio of US$ has been approved by CPA south for the supply of the
necessary excavating equipment for the quarry. The project need to be push forward in
Baghdad as a matter of priority.
During our team last visit a detailed list of spare parts as been requested to the
management, this list is not yet produced to the CPA South, further actions and
pressures has to be applied trough the project officer, Cap. Serge Doreleyers
RNLMC to receive this list and approve a project for the purchase.
b) (6)

CPA South
Industrial Development
Petrochemical plant
The plant, located near Kor Az Zubayr city, grid QU 61 58, was designed, installed and
commissioned by a JV between the American LUMMS and the German Thyssen in the
19/9, but due to the Iran - Iraq war was started up only in the 1988.
The plant has five different processing lines for the following products:
•
Low density polyethylene
•
High density polyethylene
•
Ethylene
Plastic sheets for crops covering
•
Chlorine
•
Soda
P.V.C.
• Hydrolytic acid HCL
The number of the personnel is 3379.
The plant is in relative good shape, it was interested by a extensive extraordinary
maintenance program during the year 1992, he reached the maximum production in the
2001, about 45% of the designed production, just before the last war the water cooling
pipes was renovated and substituted.
Status
The plant is ready to restart the production of plastic sheets, chlorine, low and high density
polyethylene.
Actions
Two are the key factors to restart the production:
1. 30 Mw of steady, stable and uninterruptible power supply.
This can be obtained with the refurbishment of the gas turbines power plant
embedded in the petrochemical complex.
This job has been identified and advised by Bechtel to CPA Baghdad for the
contract award, our team is contact with CPA Baghdad to try to expedite the order
award and the beginning of the works.
2. 120 million cubic feet of gas per day to produce five tons of chlorine per day and
four hundred tons of high and low density polyethylene per month.
The Gas liquefaction plant is located in GRID QU 631 531, three kilometers
south of the petrochemical plant.
Our team spoke with IFEST and CPA Baghdad to coordinate with TF RIO to
restart the gas supply.
(b)(6)

CPA South
Industrial Development
Paper Factory Missan
The plant, located 20 km south of Al Amarah, grid QA 09 02, was installed and
commissioned in the 1979 by the German company WOITH SULZER, the equipment was
of first quality, boilers from LURGI, controls and steam turbine from SIEMENS,
instrumentation from ICAR.
The plant can produce pulp from recycled paper and from imported pulp, the percentage
of new or recycled material depend by the type and quality of final product.
There are two paper mill, one to produce bags for packing cement and the other to
produce cartoon sheets for packaging boxes, the rated production is 350 tons a day.
The plant employ 940 workers, 25 engineers, and 100 security guards.
Status
The paper mills and the pulp plant are in good condition and the management has in mind
to restart the production of cartoon sheets for packaging boxes, the production rate
calculated will be 25 tons per day, that means 7% of the rated production. The production
capacity will be so low at the beginning due to serious problems at the water treatment
plant and in the pulp plant, some filters has to be substituted and the original vertical
motors have to be reinstalled to give at the plant the original performance.
The plant is equipped with a steam gas turbine of 10Mw complete with a steam recycling
system, but the heat exchangers they are not any more working due to the corrosion
caused by the bed filtering of contaminated water from the pulp plant.
However the turbine should be putted operational using the existing boilers without
recirculation.
Actions
Investigate and gets more details on the two lists of spare parts and consumables
supplied by the management, the two documents are listing the equipment needed to
restart the production of the plant as indicated above and to restart the steam turbine
operation with a great advantage for the grid and Missan population.
Another survey will be paid by our team together with the Utilities team and Bechtel.
The final lists of spares will be processed by CPA South for approval.
(b)(6)

- -
CPA South
Industrial Development
Cement Factory Um Kuasr
To be visited before Christmas
Fertilizer plant
The plant was designed, installed and commissioned by Mitsubishi Heavy Industries in the
1979, is composed by two parallel lines for the production of 500,000 tons per year of
ammonia and urea for each line.
The services, water treatment plant and cooling towers are very old design and unable to
reach the water quality and purity required, the open system technology is consuming a
big quantity of chemicals, and the quality of them is poor, this is effecting the production
in terms of wearing of the equipment and quality.
Status
the plant was not looted and can restart the production. The equipment is generally
heavily worn and far out of the minimum safety margins, the maintenance and
management is poor and need to be updated with modern and effective procedures.
The plant is a continuous process and need a preparation time to carry the equipment at
the rated values to start the chemical processes, this require a process starting up of 20
days minimum, it is enough to loose the power supply for more than three seconds to shut
down completely the plant and restart from the beginning the procedure. In these last
three months the technical teams failed three times to start up the process due to
electricity black out from the grid.
There are two incoming lines in the main substation, one is coming from Kor Az Zubayr
PP substation in operation and the other from Umm Quas substation down.
50 Mio feet/day of natural gas is needed to withstand the production rate, the gas should
be available from the South Oil Distribution Company, gas receiving and reducing station
is ready to operate.
Actions
Verify the possibility to place a 15 Mw mobile generating set to start and maintain the
production. TF RIE, Bechtel and Mott Mc Donald to be involved.
A request for detail the spare parts and the chemicals has been made to the
management to assist the production till the end June.
Actions with Mitsubishi will be undertaken to try to recover some important and quite
expensive equipment stored in Japan for maintenance.
(b) (6)

CPA South
Industrial Development
Paper mill Bashra
To be visited before Christmas
B Magit engineering and steel structure fabrication company
Engineering company serving all the South part of Iraq before the war, capable to design
end manufacture full customized fabricated steel equipment like filter, heat exchangers,
vessels, tanks, bridges, piping, stacks, little ships.
It is composed by 100 engineers, of which 16 are design engineers plus the workers for
assembling and manufacturing.
The company was reporting to the Army and was led by a General Officer.
The company is composed by several assembling sheds equipped with overhead cranes.
Status
The company was completely looted after the war and little is left in term of equipment in
the assembling facilities.
Also the offices was looted, and all the software and the documentation, drawings,
calculations, manuals were lost.
Actions
Put them again in operation supplying the necessary material to restart the assembling
in one of the sheds and use them as advisors for assessing and analyzing some part of
the plants we are inspecting.
Right now a data sheet for motors identification has been delivered to them to identify
more precisely their needs in terms of equipment to be supplied and their capacity to
understand the modern technical standards.
(b) (6)

Econ Hom
AIRBORNE
FACTORY STATUS
Factories & Companies
#
Operatio
%
City
Grid
Owner
Factory
Current #
Projects
Notes
nal Pre-
Opera Employ
Initiated
war?
ees
tional
Employee
Gvt
Lack of raw material
Abu Ghuryb
200
?
?
Baby Milk
?
Lack of raw millk
?
50%
?
700
Gvt
Abu Ghuryb
Dairy
Production halted since RR Bridge
that links mine w/SPP was
destroyed. RR Bridge is being
Phosphate
?
Gvt
Akashot
3210
0%
repaired - expected completion
Mine
date on/about 1Jan04. Mine
needs explosives in order to
increase excavation.
Carpet
82
Gvt
0
Al Fallujah
0%
Company
Y
Gvt
0
0%
47
Asphalt
Al Fallujah
Not enough seed from BGD
Flour Mill
40
Prv
Al Fallujah
40
• 50%
Received 2x860KVA generator -
Brick Factory
needs 1,025amp transformer - will
Pvt
1500
45%
740
Al Fallujah
Y
employ remaining 760 workers.
(Refractory)
Needs more security
Cement
Needs 11MW of pwr; only has
431
50%
Y
Gvt
590
LB93179264
Al Fallujah
2MW
Factory Plant
Needs contractor to provide
56
Al Fallujah
143
10%
?
Pvt
Tile Factory
cement; power is okay

Econ Hom
AIRBORNE
FACTORY STATUS
Factories & Companies
#
Owner
Factory
City
Grid
%
Operatio
Current #
Projects
Opera
Notes
nal Pre-
Employ
Employee
Initiated
tional
war?
ees
Cotton Mill
Al Fallujah
Gvt
85
N
Northern Oil
Al Fallujah
Gvt
12k
Const & Con
Al Fallujah
Gvt
3329
Y
3329
13 jobs/year
Const Material
Al Fallujah
124
N
Gvt
Livestock
Y
Al Fallujah
40
Gvt
Slaughter Hs
Akashat
Akashat
Phosphate
Pvt
Y
234
Mine

Econ Homel
AIRBORNE
FACTORY STATUS
Factories & Companies
Current
Factory
Grid
Owner
#
City
%
Operation
#
Projects
Notes
al Pre-
Operat
Employe
Initiated
Employ
es
ional
war?
ees
Only needs opportunities to bid
Asphalt
Al Qaim
Pvt
40
100%
40
on contracts.
Factory
Requires cement. Previously
purchased at $7.50 per ton now
Brick
?
Al Qaim
costs $75 per ton. Still paying
Pvt
?
Factory
employees - specially trained on
German Equip.
Cement
Al Qaim
?
462
Gvt
Y
600
Needs 25 MW of power.
Factory
Cement
Al Qaim -
Gvt
676
676
Anbar Branch
Factory
2.5 MW generator rec'd from
CPA. Had to be sent to
Super
Al Qaim
Gvt
0%
Y at 20%
FU 006009
3,210
33-09o compt mania pre-Needs
Phosphate
3,210
raw materials (Urea, nat gas &
Factory
batch process) Ribbon cutting

Econ Home
FACTORY STATUS
Factories & Companies
Curren
Factory
Grid
Owner
City
Operation
t#
Projects
Notes
al Pre-
Operation Employ
Initiated
Emplo
ees
war?
yees
Hamorabi
An' ah
30
Asphalt Plant
Textile Factory -
Not Operating-no access to
An' ah
0%
Gvt
114
114
carpet
quality material.
Not operating - no access to
Textile Factory -
An' ah
Gvt
Y
0
120
70-100%
clothes
quality material.
Ar
Pvt
Flour Mill
Ramadi
Needs 750KVA to replace a
Ar
?
?
Y
?
Pvt
generator currently borrowed
Asphalt
Ramadi
from Fallujah Asphalt Plant.
Al Shaheed Gen
Ar
4MW for start up & Min.ops.;
?
?
?
1279
Co/Copper
Ramadi
14MW to be 100%.
Factory

AIRBORN
FACTORY STATUS
Factories & Companies
Factory
Grid
Owner
City
#
Current #
%
Operatio
Notes
nal Pre-
Employe
Projects Initiated
Employe
Operatio
es
es
nal
war?
Beef Slaughter
Ar Ramadi
Pvt
150?
300
50%
House
Chicken
Production
Ar Ramadi
Pvt
?
?
?
0%
Factory
Diyala Canning -
?
?
?
Ar Ramadi
Pvt
1300
Muqadadiyah
Diyala Canning -
?
Pvt
?
?
Ar Ramadi
1200
Baqubah
Diyala Canning
Ar Ramadi
Pvt
?
?
?
?
Factory
Fish & Chiken
Ar Ramadi
P/Gvt
718
100%
718
Y
Production
Needs steady power
and LPG gas.
?
Ar Ramadi
?%
1200
Receiving 25% of
0
Glass Factory 1
1.5ML of diesel
needed per month
?
?
?
Ar Ramadi
Glass Factory 2
?
?%
Pvt
Ar Ramadi
Muqadadiyah
?
?%
180
Ar Ramadi
Pvt
800
Y
Tomato Paste Co
60%
480?
BITERBORN EDI
-

Econ Home
AIRBORNE
FACTORY STATUS
Factories & Companies
Grid
Current #
City
Factory
Owner
Operational
Notes
Projects Initiated
Employe
Operatio
Employe
Pre-war?
nal
Babad Diyala
Tomato Paste
Habbaniyah
Pvt
?
80
250
Factory
Bayji Fertlizer
Gvt
Habbaniyah
?
0
Plant
1,300
Corn Processing
0
Gvt
Y
Habbaniyah
32-45
plant
Dour Sala Ad Din
Gvt
?
Habbaniyah
Gen Eng Co
2,843
T. Al Sura Co
Pvt
Habbaniyah
100
Y
200
200
(dry wall)
T.Abu-Laith Co
Pvt
Habbaniyah
100
Y
200
200
(debris removal)
Tabacco
?
Gvt
?
Habbaniyah
?
?
Chicken Process
Pvt
Habbaniyah
?
N
150
Samara
Y
Y
Gvt
Habbaniyah
2500
?
Pharmacueticals

Econ Homel
AIRBORNE
FACTORY STATUS
Empl. Home
Factories & Companies
#
%
Current #
Factory
Grid
Operatio
Owner
City
Notes
Projects Initiated
nal Pre-
Employe
Operatio
Employe
es
es
war?
nal
Samara Gravel
7
Y
7
Habbaniyah
/Sand/Chemical
Y
120
Pvt
Tikrit Dairy
120
Habbaniyah
6053
Bayji Refining Co
Y
6053
Habbaniyah
Y
Balad Soft Drink
Y
36
36
Habbaniyah
25
Y
Y
25
Balad Flour Mill
Habbaniyah
Habbaniyah
Habbaniyah
Habbaniyah

Econ Home
AIRBORNE
FACTORY STATUS
Empi. Home
Factories & Companies
%
Current
Grid
#
Owner
City
Operation
Factory
Projects
Oper
#
al Pre-
Notes
Employ
ation
Initiated
Employ
ees
war?
al
ees
Haditha
?
?
Refinery
?
?
?
Haditha
MA319678
Tire Factory
Y
?
?
?
?
Very large fac.; no status
Hit
Same Owner as the 2 in
Flour Mill
Pvt
?
?
?
?
Fallujan and 1 in Ramadi
Agriculture
?
Iskandriyah
?
?
?
3850
Factory
?
Gvt
Iskandriyah
?
Ammo Factory
1276
1276
Employees being paid
?
?
Iskandriyah
?
Soap Factory
?
?
Gvt
Truck Factory
Iskandriyah
2060
Employees@ half pay; no
Iskandriyah
Gvt
Tractor Factory
N
50%
4,000
4,000
market for tractors
Kubaysah
Gvt
KC680200
Cement Factory
Y
682
682
20%
Needs 50 MW of power
Nassir Wa Al
Needs 2- 750 KVA
Al Faris Co
Salaam
Generators. W/ pwr plant
(Steel
MB11478574
Gvt
Y
%
500
1300
(Outskirts of
will be able to operate at
Fabrication)
Fallujah)
full capacity
Rutba Asphalt
Rutba
?
Gvt
FS26955529
?
?
Plant
SU TIKBORNE DEY

Econ Home:
AIRBORNE
FACTORY STATUS
Factories & Companies
Grid
Owner
City
Factory
Current
%
#
750perati
#
Projects
Notes
onal Pre-
Opera
Employ
Initiated
Employ
war?
tional
ees
ees
National Metal &
200
4080 5968
250
Gvt
Mahmudiyah
Bicycle
Garment
75
300
Mahmudiyah
Gvt
4081 6003
Factory
East Cotton
Pvt
MB 3932 6397
Mahmudiyah
Fact.

Econ Homek
AIRBORN
FACTORY STATUS
Factories & Companies
Factory
#
Owner
City
%
Grid
Operation
Projects
curent
Notes
al Pre-
Opera
Employ
Initiated
Employ
ees
war?
tional
ees
?
Haditha
?
?
Refinery
?
?
Haditha
?
?
MA319678
?
Y
?
Tire Factory
Large factory; no status
Hit
Flour Mill
Same Owner as the 2 in
?
Pvt
?
?
?
Fallujan and 1 in Ramadi
Agriculture
?
?
Iskandriyah
?
?
?
Factory
?
?
Ammo Factory
Iskandriyah
Gvt
1276
1276
Employees getting paid
?
?
Soap Factory
Iskandriyah
?
?
?
Employees@ half pay; no
Tractor Factory
Iskandriyah
Gvt
50%
N
4,000
4,000
market for tractors
Kubusah
Cement Factory
KC680200
Y
Gvt
682
682
20%
Needs 50 MW of power
Nassir Wa Al
Needs 2- 750 KVA
Al Faris Co
Salaam
Generators. W/ power plant
Gvt
(Steel
MB11478574
1300
500
%
(Outskirts of
will be able to operate at full
Fabrication)
Fallujah)
capacity
Rutba Asphalt
Rutba
FS26955529
Gvt
?
?
?
Plant
B2UE7CKBORNEDIK

Please complete the folowing information for your Company.
Reason why more amployets not packonnelee
curkya
Company nam
equipmen
50% Good
2680
75%
100%
No bonus to encourage the
50%
1 Hilla Textile Co.
employees & inrease production
yes
effecteed by war
63%
2242
yes
2 Woolen Ind.
100% No
yes
Not good
3 Ur state Comp.
Najaf Factory completely destroyed
3100
100% yes
4 R.M.C
All
good
100%
5 That AL-Sawari
TATI
100%
Not good
6 Paper Ind.
All
100%
7 Zawraa Co.
80%
60%
6800
8 Cotton ind.
100% yes
Main buiding is damaged
yes
9 Engineering Institute
Shortage in gas.
yes
yes
10 Construction Ind. Co.
yes
80% yes
Shortage in gas.
Reasonable Non
yes
All
100% Non
11 Battery Co.
The Company is distroyed and out
100%
12 17 Nissan
815
of order.
bad
No bonus to encourage the
100% 70% available
3255
available
13 Wasit Textiles.
employees & inrease production
No
TAIl
100% No
yes
lyes
14 Sammara Drug Co.

Reasonwhy.more employeesootback ontre.job..ur
Corpany name:
security equipmention
back at work
materials.
spare burt
Boarcasy
All
15 Automible Company.
100% yes
because of marketing problems.
All
16 Ninawa Drug Comp.
No
Yes
100% yes
Some
damages
17
Hand Made
No
No
Available
Good
Nothing.
Carpet Company.
3758
18 Mechanical Ind. Co.
yes
available.
Not available. Non
100% yes

Ministry Of Industry & Minerals: State Owned Enterprises
Damaged beyond repair
Needs Assessment as of January 2004
Operational within thirty days
Cap
Employ
Facility
Actions
Enterprise
Location
0 Util vs
Remarks
ment
Sector
2002
Electricity
Remarks
Remarks
Items
Status
Grid
Type
Name
Priority
Looting
Province
Electricity
Needs Cash
Repairs from
Needs Other
Naturaul Gas
Diesel Supply
TAUgUSt MW
Current supply
Capacity Need
Coalition Sector
State Owned
Raw materials
Company for
2,090
<320MID or
Tobbaco and
Food
400Mcigarettes
Cigarettes
Tobacco Co
18,000 tons of ra
1,222
Al Faris Co
material = 6 months
Engineering
Requires
enhancement of raw
State Co of
Ready Made
3,229
material to increase
> Z
Textile
Wears
production. Also must
solve tent production
State
Company for
Materials
-
N
0%
260
1
Heavily damaged
•
1st AD
Construction
Baghdad
Production
Construction
industry
Thermostone Brick Plant
State
Company for
Materials
N
0%
Heavily damaged
1
-
150
Diala
Construction
Production
Construction
Industry
Diala Brick Plant
State
lack of diesel
Company for
Operational 60K
Materials
220
Need gr
NIN
e oil limiting
-
Y 25%
bricks per day
scatio
Construction
MNDCS
production
Production
Construction
Ad Diuaniyah
Industry
Babylon - Mahawel
Mahawel Brick Plant
35Km NE of
State
Sammarra on
the Buhayrat
Company of
Shar...
Geological
Needs orders
- - cutenty supplying
•
5%
silica for glass plant
4th ID
AJ Dora
Survey &
1 MW/hr
Verify
Salhadin
Production
Construction
Mining
location on
Sodium Sulfales
large map
Prepared tol (b)(6) 35°

Ministry Of Industry & Minerals: State Owned Enterprises
Damaged beyond repair
Needs Assessment as of January 2004
Operational within thirty days
Cap
Employ
Enterprise
Facilty
Needs
Location
Actions
Q Util vs
ment
Remarks
File #
Sector
2002
Electricity
Remarks
Items
Remarks
Status
City
Grid
Name
Type
Distra
Priority
Looting
Province
Electricity
T AuguSt MW
Needs Cash
Needs Other
Repairs from
Capacity Need
Current supply
Diesel Supply
Naturaul Gas
Coalition Sector
State
Company of
9 35Km N of
Geological
Salt
Operational
Sammawah
$
Y 50%
-Or orceon depends
Survey &
Al Dora
1 MW/hr
Samawa
Production
Construction
Mining
State
Company for
Geological
Mosul Camp
N 0%
Mining
Survey &
Al Dora
Construction
Mining
Started rehabilitation
for operation in mid-
Southern
17MW full Q
Locations 35 km from
October... and
Need Grid
econd line Samawah... sulphil
Cement
-
750%
ip jan 04
= for one line
-
cement grinding at
25%
Location...
34MW total
resistant cement
Company
40MW/Hг
MNDCS
500 tons per day...
Samawah
w/ 10 MW
Production
A Muthama
Construction
As Samawah
stocks 20,000 tons
NV00505510
started Q at 1500
tons/ day
Glass and
Ceramics
N/A
Anbar
Company
Production
A Ramadi
Construction
LB 3790 9888
Glass Company
Near City
Center... ®
confluence of
Reached 25tons/day
Needs natural
Started production of
Glass and
Euphrates
fat glass. Also
glass using deisel oil.
Ceramics
and Warai
- gas also...
1,200
started 1 line of bottle
50%
needs 5kCM
Have 3MW from
82nd
3MW/Hr
Company
River... go
production at 5 tons /
A Ramadi
Production
LPG
unreliable generators
Construction
south... plant
day
LC3839500419
Glass Company
on right side
lof road
Needs natural
Glass and
Obtained 40 tons of
gas also...
1,200
-
Ceramics
LPG and started
•
Needs PWC
82nd
Y 20%
needs 5kCM
Anbar
Company
fumace
A Ramadi
Production
LPG
Construction
LC3814198729
Cemaic Company
Prepared fol (b)(6) 352 CA COM
2

Damaged beyond repair
Ministry Of Industry & Minerals: State Owned Enterprises
Needs Assessment as of January 2004
Operational within thirty days
Cap
Employ
Needs
Actions
Facility
Location
Enterprise
Remarks
Q Util vs
SC
ment
File #
Sector
Factory
2002
Electricity
Items
Status
Remarks
Remarks
Grid
Distr
Type
Name
Priortty
Looting
Electricity
Province
August ww
Needs Other
Repairs from
Needs Cash
Naturaul Gas
Diesel Supply
Capacity Need
Current suppty
Coalition Sector
State
Company for
Materials
Y| 30%
-Operational
~
Anbar
1st AD
Construction
Production
0.7MW/Hr
Abu Ghraibe
Construction
MB22628540
Industry
Abu-Ghraibe Concrete Plant
Storage areas in
Baquba (not utilized)
State Owned
Anu Graib, Bab
Company for
Muadam, New
50
Food
Tobbaco and
1st AD
Storage
Baghdad, Near
Cigarettes
Tobacco Co
Abu Ghurayb
MB43129073
Rasheed camp,
Kirkuk (not utilized)
State Owned
Company for
•
•
Tobbaco and
Food
1st AD
Storage
Cigaretles
Abu Ghurayb
MB43129073
Bab Al Muather
State Owned
Company for
•
Tobbaco and
Food
Anbar
1st AD
Storage
Cigarettes
Abu Ghurayb
MB51938624
Warehouse #11
Water Purification
Al Faris Co
0%
-
-1 ~ Operational
435
Plant
Anbar
Production
Engineering
Abu Grahbe
State
150km from
- - - Substation and trai
N 0%
-
peparing startup
Company for
bridoe - repairec
Qaim
Mines
Anbar
Mininig
Phosphate
Akashol
Fertilizer/ Petrochemical
Design and
N. 0%
Construction
Anbar
Service
Design and
N
Construction
Anbar
Service
352 CA COM
Prepared for /h\/A)
Al Ramadi | AJ Quain

Ministry Of Industry & Minerals: State Owned Enterprises
Damaged beyond repair
Needs Assessment as of January 2004
Operational within thirty days
Employ
Cap
Enterprise
Facility
Location
Needs
SC
Actions
Remarks
File #
Q / Util vs
ment
Factory
Sector
2002
Electricity
Remarks
Items
Status
Grid
City
Type
Name
Province
Looting
Needs Cash
Natureul Gas
Needs Other
Repairs from
Cap
Current supply
Coalition Sector
Started production at
Iragi Cement
1,000 tons per day.
60,000 ton of linker
Y
Company
25%
Anber
Expected monthly
Al-Qaen
3rd ACR
20MW/Hr
Cement Co
Construction
prodution 25K tons.
State Co of
In City.. Need
Ready Made
o operational
Y 24%
Wears
Textle
location...
Production
Anah Factory
State
Company for
82nd
84%
Hand Made
Anna
Textile
Anbar
Carpets
Production
Started grinding of
Iraqi Cement
for white cement...
white cement 300
500%
Company
Y 36%
Anbar
started 1 mill 300T/d
Falluja
3rd ACR
tons per day
Construction
LB9318593012
Haririat State
Next to
No Q in Nov
Cement
Company for
560
N
started Q on 12.10.03
0%
82nd
3 due to power
Anbar
Falluja
Refractories
1
2MW/hr
cuts
factory
Construction
Refractories
L89313592404
1MW for start
Heavy engineering
another
equipment Can get
Obtained contract for
up... 5 MW
$660k and to 60% capacity in 60
-
total
• $2.4M for water
25%
$1.4m
days assuming 5
1MW/Hr
treatment units
Operating on
pending
MW. achieved 50
diesel
tons of Q
Iraqi Cement
Requires 20 mw
started klinker
800
-
N 0%
Anbar
Company
power for One line
production
3rd ACR
35MW/Hг
Kubaassa
Cement Co
Construction
30MW
403 tons of fertilizers
State
15 mw electric.
required at full
sold..31,000 tons in
3,212
Company for
200=
Awaiting 10M cubic ft
stock. should start
Anbar
82nd
0%
Qaim
Phosphate
300,000 tons
25MWPhr
of gas.
O after provision of
GU005001
per year
gas
Fertilizer/ Petrochemical
State
Company for
•
91%
Hand Made
Textile
Rawa
Anbar
Carpets
Production
Prepared for (b)(6)
352 CA COM

Damaged beyond repair
Ministry Of Industry & Minerals: State Owned Enterprises
Needs Assessment as of January 2004
Operational within thirty days
Cap
Employ
Actions
Remarks
Q Util vs
Location
Facility
Enterprise
ment
2002
Sector
Fle #
Electricit
Status
Remarks
Items
Remarks
Grid
Priortty
Looting
Electricity
Province
Needs Cash
Needs Other
TAUgUST MW
Repairs from
Naturaul Gas
Diesel Supply
Current supply
Capacity Need
Coalition Sector
State
Company for
5 sites near
N| 0%
Needs orders
Geological
145
city
82nd
Rutba
Anbar
Mining
Survey &
Construction
Mining
State
Company for
-
54%
Hand Made
4th ID
Kirkuk
Textile
At Ta MiM
Production
Carpets
Daily production 500
one of 2 lines
tons... production
10 Km SE of
Iraqi Cement
operational Capacity y
-
20%
o 30,000 tons a
problems = low
KirkMDD SE
Company
4th ID
Kirkuk
At Tamim
32MW/Hr
month
capaity utilization
Cement Co
Construction
State Co for
plant has ginning
N 0%
Cotton
done in Baghdad
Kirkuk
Textile
4th ID
Industries
At Tamim
Ginning Plant
Cotton Industries
State Owned
Compary for
Food
Tobbaco and
BaD AT
1$t AD
storage
Tobacco
Muather
Cigarettes
Baghded,.
Center of
Hilla towards
Has 2MW/hr
State
south on road
Started recently due
Isales @ 150MID/
presently 5
Company for
-
Y 37%
2,642
to Najaf and
month
Textile
to power supply
MW design
Babi
Textile
Diawinah...N
Al Hilla
5MW/Hr
MNDCS
capacity
Production
Industries
eed grid
MA4850836873
location...
Hilla Textile Company
State
25 Km SE of
provision of
Company for
2MW diesel
Lack of electricity
Baghdad...Ne -
220
N 0%
Materials
Babl
ed grid
generator will
Construction
MNDCS
start 28 Oct
Production
location
Construction
As Suwayrah
Industry
Suwayrah Bricks Plant
Lack of raw
Stopped Q due to
0%
N
-
-Operating under
-
100
Dairy Products
lack of raw materials
generator with 1MW materials
Food
MNDCS
Production
Dairy Factory
352 CA COM
Prepared for (b)(6)

Ministry Of Industry & Minerals: State Owned Enterprises
Damaged beyond repair
Needs Assessment as of January 2004
Operational within thirty days
Cap
Employ
Facility
Enterprise
Location
Needs
Actions
Q Util vs
ment
File #
Remarks
Sector
Factory
2002
Electricity
Remarks
Remarks
Items
Grid
Status
Name
Type
Distro
Priority
Province
Looting
Electricity
T AUgUST MW
Diesel Supply
Naturaul Gas
Repairs from
Needs Cash
Needs Other
Capacity Need
Current supply
Coalition Sector
State
Company for
Hand Made
Babil
Hilla
y 63%
Textile
MND CS
Carpets
State
Company for
Hand Made
Y 87%
Textile
MND CS
Production Production
Carpets
Near Babylon
Need power to start
Southern
production @ 3mw...
Saddah vs
Cement
- MW total
-
started 1 line of
y 50%
Saddat....
Babil
demand
Saddah
Saddah
Company
MNDCS
6MW/Hr
production ® the rate
Production
Verify grid
Construction
44 25' 32 43°
of 250 tons per day
location...
Not operational, US
Al Faris Co
- Army unit will be
Steel Structures
N 0%
3MW/Hr
moved...
MNDCS
Babylon
Production
Engineering
Al Musayyib
MB11815572
two feeders:
Lack of raw
one from
- a Dairy Products
materials.., 25%
200
-
o university; one
Food
N 0%
1st AD
damaged due to
from Al
Baghdad
Production
Hanvsri
Abu Ghurayb
looting
MB 23158763
Baby Milk Factory
Operating
Requires raw milk or
under
- Dairy Products
700
N
-
MID per mo
- imported powdered
Food
Y 3%
generator with
as 300M
2MW/hr
ISt AD
milk
Baghdad
MB234867
1MW...
Abu Ghurayb
Dairy Factory
Production & Admin
October
The General
production
Company for
3,777
Food
NIA
expected to 24.5BID for 2003
planned
Vegetable Oils
Baghdad
reach
Baghdad
1000MID
Can get by
One shift
Obtained 1 MW from
with 2.5
The General
operation
S. Baghdad
MW/Hr...
Company for
N
863
-
as security PP...28, 2b, 2C. All
1
Y 62%
Food
power supply
improves.
Vegetable Oils
5MWhr
Rasheed
Production
near each other in
unstopable 1
lin Oct 2
MW with diesel
Rashid Camp
6
352 CA COM
Prepared for (b)(6)

Damaged beyond repair
Ministry Of Industry & Minerals: State Owned Enterprises
Needs Assessment as of January 2004
Operational within thirty days
Cap
Employ
Actions
Q Util vs
Location
Enterprise
Facility
Remarks
SC
mem
FRe #
2002
Factory
Mtems
Status
Remarks
Remarks
Grid
Type
Name
Priority
Distm
Looting
Province
Electricity
Needs Cash
Repairs from
Needs Other
Neturaul Gas
Capacity Need
TAuguST MW
Diesal Supply
Current supply
Coalition Sector
Near Rashid
The General
shampoo, liquid
1MW with
58%
bleach, sulpuric acid Y
-
Military
Company for
diesel
Food
1st AD
5MW/tr
Camp?
production resumed
Vegetable Oils
Baghdad
Baghdad
Ma'amoon
Production
MB491843
On diesel
The General
Q = 150 tons of
Company for
r 34%
generator 2
aundry soap
Food
1st AD
Vegetable Oüs
2MW/hr
TW
Ahmaen
Baghdad
Baghdad
MB497832
Production
The General
.5 MW with
N
•
Company for
155
0%
Wit restart 1.1.2004
diesel
Food
1st AD
2MW/hr
Vegetable Oils
Baghdad
Baghdad
Al Farabl
Production
State Owned
2MW
requirement
180MID per month
Comparty for
10%
-
Karada
-
700
Tobbaco and
revenue (vs 250)
met by
Food
1st AD
Baghdad
Karadah
Tobacco
Baghdad
Cigarettes
generator
M845328313
State Owned
Company for
Food
Tobbaco and
1st AD
storage
Baghdad
Tobacco
Cigarettes
Maghdad a
State
Q=1,500 lead acid
Company for
26%
-
N
batteries per month
Batteries
3LPG shortals •
Babil 2
1st AD
Baghdad
Chemical
Baghdad
Industry
Acid Battery
MB43639172
1Km west of
State
record 4a
Operating on
actual production
Q stopped due to
Company for
0%
-
40
location...
N
338
Batteries
4500 batteries/month
electrical power
3 menal
Babil 1
1st AD
Need Grid
generator
Chemical
Baghdad
Baghdad
Industry
Acid Battery
location...
MB43959193
State
Operating on
Company for
Y!
internal
10%
Produces lead
230
Battories
1st AD
Smelter
MB2287
generator
Baghdad
Chemical
Baghded
Industry
State
1.4M dry colls /
Operating on
Compary for
internal
Operational month. Need money
inside military -
Shortage of rag
10%
materials
camp
Batteries
1st AD
for raw materials
generator
Baghdad
Chemical
Baghdad
Production
Industry
MB28898820
Dry-cell Battery
S of Canal to
the left 3 Km
Y
DG under question...
1%
-
- rockwool
damage 50%
67
• AlSawary Co
from resin
subplant in Baghdad
1st AD
Baghdad
Chemical
Rekweld
Baghdad
Production
plant
2MID for
inks... 250MID for
started Q of PVA2
3km from
59%
insulation... only
resins after plant
-
83
Al Sewery fo
rekweld
Lotue
4th ID
emulsion paint
rehab
Al Gihad
Baghdad
Baghdad
Chemical
352 CA COM
Production
3.5MW/Hr
Prepared for (b)(6)
MB28529875
production

Ministry Of Industry & Minerals: State Owned Enterprises
Damaged beyond repair
Needs Assessment as of January 2004
Operational within thirty days
Cap
Employ
Enterprise
Facility
Needs
Location
Actions
Remarks
Q Util vs
ment
Sector
File #
Factory
2002
Electricity
Remarks
Remarks
City
Status
Items
Grid
Type
Name
Distm
Priority
Province
Looting
Electricity
August MW
Needs Cash
Needs Other
Repairs from
Diesel Supply
Naturaul Gas
Capacity Need
Current supply
Coalition Sector
Iraqi Cement
-
600
Y
10%
Company
1st AD
Baghdad
Baghdad
Construction
MB49888174
State
Company for
Plastic pipes plant.
Near Iraqi
Need raw materials..
Materials
250
-
10
Lack of raw materials
comes from other
0%
Cement Co
Construction
1st AD
2MWhr
Baghdad
Baghdad
petro plant... plastics
and electric power
MB497818
Construction
Industry
Baghdad Plant
Production/ administration
State
Company for
E
Materials
-
56
Heavily damaged
N 0%
Construction
1st AD
1MW/hr
Baghdad
Baghdad
Production
MB486637
Construction
Industry
14th July Brick Plant
Haririat State
-
Company for
Not operational
140
Refractories
1st AD
2MWhr
Baghdad
Baghdad
Refractories
Construction
MB41407330
State
Company of
Suffered heav
damages & looting of N
Geological
на
Cross
Survey &
equipment from
Baghdad
Construction
Mining
mining areas
Administration
subfractional
Output 300M ID pe
Adjacent to
month. Lack of raw
State Co. for
electrical motors
Waziriah
Electrical
-
1,348
•
materials... air
-
Q=$120,000/month.. 15%
battery
1st AD
Industries
Baghdad
suffered heavily from
Baghdad
conditioning plant
5.0 MW/hr
Production
MB436921
factory.....
Engineering
awaits raw materials
looting
Electrical Company
On the
highway
opposite Al
General
Contracts with oil and
Systems
Started production as
•
Y
41S
electricity worth
70%
Stadium
per signed contracts
1st AD
Company
Baghdad
Baghdad
$1.8M USD
beside
Engineering
MB46358950
University of
technology
Prepared for (b)(6) 352 CA COM

Damaged beyond repair
Ministry Of Industry & Minerals: State Owned Enterprises
Needs Assessment as of January 2004
Operational within thirty days
Cap
Employ
Actions
Remarks
a Util vs
SC
Location
Enterprise
Facilty
ment
File #
2002
Sector
Factory
Electricity
Status
Items
Remarks
Remarks
Priority
Type
Looting
Name
Electricity
Province
Needs Cash
Needs Other
TALUST MW
Naturaul Gas
Diesel Supply
Repairs from
Capacity Need
Current supply
Coalition Sector
Currently American
Requires
forces and
N 0%
rehab and raw
-
Deisel engine plant
4000
- # → Venices Co
1
damaged... heavily
materials
1st AD
MB4174
Baghdad
Baghdad
damaged
Engineering
Requires
Earth moving
rehab and
equipment
10%
- Out of operation.
300
1
1
7 • Vehicles Co
heavily damaged
spare parts
reconditioning
1st AD
Baghdad
Baghdad
Engineering
Needs
Currently American
After salos service
vehicular
Vehicles Co
N 0%
200
- forces
plant
rehab to start
Ist AD
Baghdad
Engineering
MB 288 862 MB 288 862
Near Al-
Shaab
17th Nissan
- - Heavily damaged and
-
0%
289
looted
Stadium...Al-®
Co
1st AD
Baghdad
Baghdad
Rusafa side
Engineering
MB48008833
Near Al-
Shaab
17th Nissan
1
- Partiaily looted,
N
0%
needs raw materials
Co
Stadlum..A °
Ist AD
Baghdad
Baghdad
Rusafa side
Sign Factory Investment Casting Factory
Engineering
MB47948833
S Karkh
side... sw
17th Nissan
1
-
- Looted and damaged
0%
N
Co
350}
side of city
Ist AD
Baghdad
Baghdad
near airport
Engineering
Head Office and Medal Factory
17th Nissan
Looted and damaged.
Co
Baghdad
Baghdad
Engineering
Prepared for (b)(6)
352 CA COM

Ministry Of Industry & Minerals: State Owned Enterprises
Damaged beyond repair
Needs Assessment as of January 2004
Operational within thirty days
Cap
Employ
Facility
Needs
Location
Enterprise
SC
Actions
Remarks
ment
Q Util vs
Sector
File #
Factory
2002
Electricity
Remarks
Remarks
City
Items
Status
Grid
Type
Name
Distino
Priority
Province
Electricity
August MW
Needs Cash
Needs Other
Diesel Supply
Naturaul Ges
Capacity Need
Repairs from
Current supply
Coalition Sector
On rd to
monthly sales =
State Co for
5MW total at
Cotton
500MID... inventory
2MW diesel
Y 20%
-
full Q
opposite
Textile
in finished product =
Industries
5MW/Hr
-112
4.3Bid
Cotton Industries
Production & admin
3287 total
Woolen Co.
#56
-
40%
Operational employment. 70%
Textile
Carpet
1st AD
2MW/hr
Baghdad
Baghdad
capacity
MB39389260
Production & admin
2mw ow
Requires more
Woolen Co.
leise
450
Operational electricity to increase Y 25%
2MWhr
Textile
Ist AD
generator
Baghdad
production
Baghdad
14th Ramadan
Woolen Co.
-
- 2MW diesel
300
Operational
Y 10%
Textile
30-Jul
1st AD
2MW/hr
Baghdad
Baghdad
-
- 2MW diesel
Woolen Co.
350
24,382 Y 25%
-
under repair
1-Jun
1st AD
Textile
Baghdad
Baghdad
MB37539421 MB39239295 MB39419258
-
Woolen Co.
- 2MW diesel
150
Y 10%
Textile
1st AD
Baghdad
Baghdad
MB397925
Spinning Factory
State Co of
Ready Made
300
Y 60%
Textile
Wears
1st AD
Baghded
Baghdad
MB434911
Production
Baghdad Factory
State
Locations include
Comparty for
-
890
#56
-sales =$50,000/
Hand Made
month
Mosul, KiMDD SE. Y 33%
Ist AD
Textile
Hilla, Ar Ramadi, An
Baghdad
Carpets
Baghdad
Production
Andrau
MB39389278
10
Prepared for (h)(6) 352 CA COM

Damaged beyond repair
Ministry Of Industry & Minerals: State Owned Enterprises
Operational within thirty days
Needs Assessment as of January 2004
Cap
Employ
Actions
Location
Remarks
a Util vs
Enterprise
ment
File 7
I Fairy
2002
Electricity
Items
Remarks
Remarks
Status
Grid
Distra
Type
Priority
Looting
Electricity
Province
Noeds Cash
Naturaul Gas
Needs Other
Repairs from
Capacity Need
Diesel Supply
Current supply
T August Mw
Coaition Sector
Needs raw materials
Leather
•
2MW with
- to increase capacity
Production for August y 50%
~ = = Manufacturing
and 2mm stable
generator
220M ID
Textile
1st AD
Co.
Baghdad
electric power
MB49508146
al entrance of
Leather
outter
A
2,722
Karada... 3km o
Manufacturing
Textile
Ist AD
Co.
Baghdad
from palace
Baghdad
MB453835
bridge
btained contract in
Design and
10
- Obtained a contract
0%
to rehab MIM HO
464
Ramadi = 1000MID'
o 7 " Construction
Service
1st AD
Baghdad
Baghdad
in process of
Design and
obtaining contracts
looking for 1200SM
Industrial
0%
802
with oil ministry
100K rent
Service
Consultation
companies
Baghdad
Baghdad
MB45518799 MB456 18799|
State
commission
Have no research
forResearch
-
987
0%
N
contrats
Service
and
Baghdad
Baghdad
Development
State
Have not received
Commission
Undergoing reorg
-
N 50%
approval on new
for Training
Servica
Baghdad
student enrollment
Baghdad
Centers
MB43659138 MB42968225
State
Welding center
Commission
Y 20%
operational
for Training
Service
Baghdad
Centers
Started minor
Specialized
Y
contracts - worth
-
5%
Institute for
287
412.
6OMID - needs rehab
1st AD
Service
Baghdad Baghdad
Baghdad
Engineering
WI340Z308T
Have found new
noVI
-
N 0%
Software
165
officas to rent
1
1.11.0:
1st AD
Service
Baghdad
Baghdad
MB45798794
Current
Requires directives
Industrial
0
180
50%
location of
on what to do
Promotion
1st AD
Service
Ministry
Baghdad
Baghdad
MB479849
Prepared for (b)(6) 352 CA COM

Ministry Of Industry & Minerals: State Owned Enterprises
Damaged beyond repair
Needs Assessment as of January 2004
Operational within thirty days
Cap
Employ
Enterprise
Location
Facility
Needs
Actions
Remarks
ment
Q Util vs
File #
Sector
2002
Electricity
Remarks
Remarks
Items
Status
City
Grid
Type
Name
Priority
Province
Looting
Electricity
Needs Cash
Needs Other
Repairs from
TAUguSt MW
Diesel Supply
Capacity Need
Naturaul Gas
Current supply
Coalition Sector
Research and
Development
0%
1
N
1st AD
Service
Company
Baghdad
Baghdada
Started some
Nasser AJ
1,106
MIC
Adeem
contracts with oil
y 30%
1st AD
Baghdad
Baghdad
ministry 260MID
MB46338167
02 for medical
Needs 1mmw
SDI
-
own generator
additional to double
Operational purposes. Nitrous
Y 50%
gasses and
production
Baghdad
1.5MW/Hr
bandages.
North Baghdad
Pharmaceutical
State Industry
Y
0%
for Furniture
Workshop
Completely destroye
1st AD
Baghdad
Production
Zanfaraia
Baghdad Furniture Company
State
Commission
-
Partially damagec
1
-
for Training
Y 30%
Service
Baghdad
Centers
Zaafarania
MB52887907
Al-Sawary Co
325
- - rockwool Q started
fiberglass
-
1
N 53%
1st AD
Baghdad
Chemical
Production
total sale in 15 days
resins, inks,
~ - A-Sawary Co
191
1
is $20,000. Ink
Y 2%
glue
Chemical
Baghdad
Production
production started
MB28529875 | MB37968326
Started contracts
Al Samood
1,487
y
7%
MIC
worth $1.9M
Baghdad
Merged with
Al Kharzen
Electronic Co....
0%
Center
N
362
Have contracts worth
Baghdad
$1.8 M
MB52727868 | MC28721564
Prepared for (b)(6) 352 CA COM

Damaged beyond repair
Ministry Of Industry & Minerals: State Owned Enterprises
Needs Assessment as of January 2004
Operational within thirty days
Cap
Employ
Location
Needs
Actions
Enterprise
a uti vs
Facility
Remarks
ment
SC
Sector
File #
2002
Factory
Electricity
Remarks
Items
Remarks
Status
Grid
City
Distro.
Name
Priority
Type
Looting
Electricity
Province
Needs Cash
TANgUSIMW
Needs Other
Naturaul Gas
Repairs from
Diesel Supply
Current supply
Capacity Need
Coalition Sector
obtained
needs rehab and
-
~ power in Nov
-
Paper Industry
-
2,300
upgrading... Sufered N 0%
Basrah
for start up
heavy damage
7.5MW
Basrah
Chemical
MDD SE
QU568044
Production/ Administration
PQ - 600,000 tons
Khor A-Zubar
per yr. Capacity =
Received 50 mcl of
NG PP near by
iMit tons per yr
Requires
gas... awaiting
Operates 2
Southem
3 Km from
50MCF of NG
stable power for start
lines... Need ol
,341
2,
-
Company for
-
port of Khor
ministry input 6 June N 0%
up... started checking
per line... 15-
Basrah
At-Zubar
Fertilizer
Basrah
MDD SE
equipment... Q
17 MW at ful
QU734425
Production
Oil coming... 19,000
begins 15.12.037
Q per line
tons of inv... Q=
25MW Total
Southem Fertilizer Co
15,000 tons per da
Fertlizer/ Petrochemical
or 2 line:
Requires stable
10MW per
27Km from
line...
-
1
QU 619585.
power supply and pee Star a by prost ed el tons of
-
port of Khor
+= - Petro-chemical
3.872
produces 2
- gas available up to
15.12.03
Compary
A-Zubiar
Basrah
Basran
MDD SE
30 m cu fL.
ines
Production
QU619585
Fertilizer/ Petrochemical
2MW needed
or pipeline
production...
State
issued tenders for
15 km from
NGPP
Heavily damaged.
N. 0%
sale of 350,000 tons
1,500
o 8 = Company for
port
Not operational.
neartr...
lof pellets
Basrah
Basrah
Iron and Steel
MDD SE
QuB20202
needs 50MCI
Engineering
of Natural gas
Spiral Piping Plant
for production
2MW neaded
for pipeline
production...
State
NGPP
Heavily damaged.
25 km west of o
1,000
1
∞ * u Company for
N 0%
Basrah
nearty...
Not operational
Basrah
Iron and Stee
MOD SE
needs 50MCF
Engineering
35-50MW/hr
lof Natural gas
for production
Asbestos piping plant
Prepared for (h)/6) 352 CA COM
-

Ministry Of Industry & Minerals: State Owned Enterprises
Damaged beyond repair
Needs Assessment as of January 2004
Operational within thirty days
Employ
Enterprise
Cap
Facility
Needs
Location
Actions
Remarks
ment
File #
Q Util vs
Sector
Factory
2002
Electricity
Remarks
Remarks
Grid
Status
City
Items
Type
Name
Distra
Priority
Province
Looting
Electricity
T August MW
Needs Cash
Repairs from
Diesel Supply
Naturaul Gas
Capacity Need
Needs Other
Current supply
Coalition Sector
Design and
Construction
Basrah
Basrah
Service
N 0%
State
Commission
∞ 7
-
Operational
for Training
y 80%
Service
Basrah
Basrah
H33
Centers
State
Commission
Damaged
N
for Training
1
0%
Basrah
Basrah
Service
H33
Centers
Needs rehab and
Southem
clinker & electric
Need Grid
Cement
-
500
power 5 mw.... Will
Location...
0%
N
Basrah
Company
MDD SE
start production on
Um Qasar
Construction
Production
10.10.2003
State
Company for
Geological
53
-
- Not operational...
1
Needs orders
N 0%
heavily damaged
Basrah
Saltary
Survey &
Mining
MND SE
Mining
Construction
Produces aluminam
Ur State
sarted
10MW for fuil
Company for
sheets and wire
limited
City
-
in
3,278
-
1n capacity
Engineering
Ready to produce...
N 0%
Q..11 tons
needs 3MW
5MW/Hr
Industries
Dhi Oar
MNDCS
Engineerin
Company
Nassariyah
of cables Sold 180MID of
Not
1,200
Woolen Co.
-
-
• plant damaged
1
0%
operational
Textile
MDDSE
Dhi Qar
Production
PV18803235
Nassariyah
Clean and Dye Production
State
Commission
-
Operational
for Training
Service
Y 50%
Dhi Qar
Centers
Nassariyah
PVIsJUSSs
Have 3 MW
currently..
Diala State for
Operational. Sales at
obtained $1800k in
2.254
Electrical
contracts from
4th ID
Y 30%
300M ID / month
industries Co
Baqouba
Engineering
problems for
Kurdish Electricity
MC 66693706
machinery
352 CA COM
Prepared for /1

Damaged beyond repair
Ministry Of Industry & Minerals: State Owned Enterprises
Operational within thirty days
Needs Assessment as of January 2004
Cap
Employ
Needs
Actions
Q Util vs
Remarks
Enterprise
Location
Facility
ment
SC
Fie n
Sector
2002
Factory
Electricity
Items
Remarks
Status
Type
Distm
Name
Looting
Province
Needs Cash
Repairs from
Needs Other
Naturaul Gas
Diesel Supply
Current supply
State
for
Company
2Mw total 1
Will start
1
-
200)
Materials
fumace heting started N 0%
25 Od
MW generator
4th ID
1MW/hr
Diyala
Construction
Hussania
Production
Construction
Industry
Site should
Baghdad Brick Plant
be on quad
map
State
Company for
Wil start
•
Materials
fumace heting started N 0%
100
-
1
-
-
25 Oct
4th ID
Construction
Diyala
Hussania
1
Construction
Industry
Abu NuBase Bricks
DG under question...
Plant ready for
330248
egg arton 100k trays
- operation... depends
N 0%
-
350
Paper Industry
per month... need 5
Taji
fumiture plant
Diyala
on electricity supply
Chemical
tons of paper scrap
MC
State Owned
Y
5%
-
-
-
1,400
-
Jat 500 cartons per
Food
1st AD
3MWHr
Tobacco
Baghdad
Habibiyah
MB519934
Habbiblyah
3-5MW for
Northem
Onty old line
start up 15
Q = 300 tons/day
operating... new line
y 40%
Cement
101st
600
MW for testy
not operating
state 20 MW
Company
Hamam
Cement Co
Mosul-Alial
LF39390772
Construction
Max
produces starch for
pharmaceutical and
Needs 1 MW
Al Furat State
E to operate has
Company for
food industry...
-
Started production
270
N 0%
5 16,000 tons rav
Hilla
Chemical
Stopped production
MNDCS
material
Chemical
Production
Industries
because of leasing &
Al- Hashamiyah
problems with stait
Started
Lack of raw materials
Mechanical
Sama a sion yates,
~ 12MW with
N
-
-
and components...
-
0%
4,072
Foundary
implements 100/ and dies... ned
Industries Co
heavily damaged
MNDCS
Iskandaria
Production
... outlook raw materials
Engineering
MB38603987
bleak
352 CA COM
Prepared for (b)(6)
15

Ministry Of Industry & Minerals: State Owned Enterprises
Damaged beyond repair
Needs Assessment as of January 2004
Operational within thirty days
Employ
Cap
Enterprise
Facility
Needs
Location
Actions
Remarks
Q
ment
File #
Util vs
Sector
Factory
2002
Electricity
Remarks
Remarks
City
Grid
Items
Status
Type
Name
Distm.
Priority
Looting
Province
Electricity
Needs Cash
Naturaul Gas
Repairs from
Needs Other
TAUgUST MW
Diesel Supply
Capacity Need
Current supply
Coalition Sector
Completed 10 trucks
Requires truck
-
Vehicles Co
10
Requires assembly
-
- after adding missing
8%
components
Hilla
components
MNDCS
parts.
Iskandaria
Engineering
MB39304102
Vehicles Co
Completed 10 semi
Non standard
-
-
Y 10%
trailers
equipment
MNDCS
Iskandaria
Engineering
MB39304102
Requires
Vehicles Co
400
- Completed 13 busses
Bus assembly
chasses
Y 10%
MNDCS
Iskendaria
Engineering
MB39304102
Produces gasses
(NaOH) (H2SO4)
70 Km South
AJ Furat State
(Hcl) (cl2) (NaOCi)
of Baghdad
Company for
and 35 Km
for uses in refineries,
•
•
-
-
-
N/A
Chemical
Y 50%
power stations and
"before"
6MW/Hr
Chemical
Production
Industries
44 15°32 40*
sterilizing water...
Karbara
Sadat AJ Hindiyah
sales about 1000MID
a month
71 Km South
Al Furat State
of Baghdad
Company for
requirements
2nd piant, same
and 35 Km
N/A
Y 50%
Chemical
Hilla
included above
products as above
"before"
Chemical
Industries
Production
45 15'32 40'
Karbara
Sadat Al Hindiyah
2MW needed
for pipeline
State
production...
NGPP
Company for
Heavily damaged
0%
Requires major rehab N
nearby...
Not operational
Iron and Steel
1
Engineering
needs 50MCF
of Natural gas
for production
State
Company for
lack of diesel
Materials
Operational 70K
- oil limiting
24%
Plant
Construction
bricks per day
production
Production
Construction
Kadsia Brick
Industry
- 014
352 CA COM
16
Prepared for L/h\/A)

Ministry Of Industry & Minerals: State Owned Enterprises
Damaged beyond repair
Needs Assessment as of January 2004
Operational within thirty days
Cap
Employ
Actions
Location
Facility
Enterprise
Remarks
a Ull vs
File #
ment
Sector
Factory
2002
Electricity
Remarks
Items
Remarks
Status
Grid
Type
Distm
Name
Priority
Looting
Province
Electricity
Needs Cash
Needs Other
TAIR UST MW
Repairs from
Naturaul Gas
Diesel Supply
Current supply
Capacity Need
Coalition Sector
Southem
2 lines 4
One line in production
Cement
& mills.. 34MW
Q=600 tons per day
y 10%
at low efficiency
total demand
Karbaria
Karbarla
Company
Karbarila
MNDCS
40MW/Hr
Production
Construction
LB96960364
State
Company for
str (6) sites
Materials
Operational
r | 40%
throughout
Construction
city
1MWhr
Karbarta
Karbaria
MNDCS
Production
Construction
Sand Plants
44 00 32 37
Industry
Southem
Started one line of
Need Grid
Y
Cement
30%
preparing for start up
- production at 150
500
Location..,
Company
tons a day of lime
MNDCS
13MW/Hr
Production
Construction
AR Razzazar
Southern
Need Grid
500
Cement
Lime facility
1
Y 30%
• 4MW total
Location...
Company
Karberta
Neurrea
MNDCS
Production
Construction
State
for
Company
Plastic pipes plant.
340
Materials
N
-
1
Lack of raw materials
0%
damaged
Construction
Maysan
2MW/hr
and electric power
MDD SE
Production
AL-Amarah
47 10 31 51'
Construction
Industry
Maysan Plant
Operational on
The
2mw deisel.
1
IN 25%
700
Con
-
detergents and
Misan
Food
Maysan
Vege
soap
MDD SE
Production
The General
Soap and detergent
5%
Comparry for
450
-
production
Food
Misan
Vegetable Ois
Maysan
MDO SE
Production
Al Muatassem Ammaran Piant
New plant manager..
Also need
requires rehabilitation
Need 400MID from
1
o of cane sugar farm
Bank... produces
400CM of
0%
800
-
Sugar Co
N
Misan
Food
Sugar
and the plant.
Natural Gas
4MWmr
Maysan
bagas (paperpulp)
MDD SE
and mollases
Production/ Administration
carboard cartons 200
IN
0%
1 = a Paper industry
tons, cement paper
Requires 3MW - O- Requires power and
850
Misan
Maysan
QA0902
bags 250 tons
SMW/Hr
Chemical
MOD SE
52 CA COM
Prepared for (h)(6)
17

Ministry Of Industry & Minerals: State Owned Enterprises
Damaged beyond repair
Needs Assessment as of January 2004
Operational within thirty days
Cap
Employ
SC
Location
Enterprise
Facility
Needs
Actions
Remarks
ment
File #
o Util vs
Sector
Factory
2002
Electricity
Remarks
Remarks
City
Items
Status
Grid
Type
Name
Priority
Looting
Province
Electricity
Needs Other
Needs Cash
TAUGUST MW
Repairs from
Naturaul Gas
Current supply
Capacity Need
Diesel Supply
Coalition Sector
Leather
Power supply and
a Manufacturing
Expected 700M ID for v 70%
Najaf
Sept.
stability issues
Co.
Textile
Al Kufa
Tanning
MNDCS
3 mw power supply.
State
Feed from
Started production
reached 7-10MW for full
2.195
Company for
" substation in
650
22 Sept 2003,
Y 35%
Najaf
production
Tire industry
BMW/Hr
An Najaf
MNDCS
Chemical
An Najaf
Planned Q = 1,000
Production
tires/day
Natural gas required
MA31786776
tires a day
Najaf Tire Industry
State
Q=2600 tires due to
=
Company for
+
electrical power
Najat
Y 50%
An Najaf
Tire Industry
MNDCS
Chemical
Production
problems
Rubber Belt
MA38893963
Southem
2 locations in Najaf
old K needs 4
Cement
300 tons per day for
2,000
-
Kufa
Y 30%
-
2 MW new K
old kufa... 1000
Company
MNDCS
17MW/Hг
needs 25 MW
Production
Najaf & Kufa
Construction
MA46503667
tons/day for new kufa
- -Damaged, requires
N
0%
rehab
Leather
Started production of
Producing 3M ID per
•
477
= o. Manufacturing
8
Y 20%
-
-
Najat
Textile
Co
sports shoes
day
MND CS
Lack of raw
o Dairy Products
100
-
-
Stopped Q due to
-Operating under
Food
0%
101st
materials
Ninawa
Mosul
lack of raw material:
generator with 1MW
LF308305
Production
Dairy Factory
Beets and yeast
factory...Q=3,000
tons of sugar = 3350.
has 4.5MW in
Next to Mosul -
Sugar Co
230
-
$400 per
-
-
2 plant from
Food
5%
airport
101st
Mosul
Sugar
Ninawa
ton... Current
boiler
Production
LF33601833
production yeast onh
at 4.5 tons... sales :
SMID/month
7MW for start
Northem
one clinker line and
Grinding only 1000
up 20 MW for
Cement
grinding line
Y 30%
tons/day... second
SS and 35 MW •
Company
2OMW/Hг
operational
Cement Ca
for fullo
lined damage
Construction
18
52 CA COM
Prepered for (b)(6)

Damaged beyond repair
Ministry Of Industry & Minerals: State Owned Enterprises
Needs Assessment as of January 2004
Operational within thirty days
Cap
Employ
Actions
Enterprise
Location
Q Uti vs
Facility
Needs
Remarks
ment
File #
Sector
2002
Factory
Electricity
Items
Remarks
Status
Remarks
City
Grid
Type
Distm
Priority
Looting
Province
Electricity
Needs Cash
Repairs from
Needs Other
Naturaul Gas
TAUgUST MW
Diesel Supply
Current suppty
Capacity Need
Coalition Sector
17MW for start
Norther
20Km NW of
two lines in operation
up 20 MW for
Cement
Y 30%
~
1200 tons porday
(Mosul
SS and 25 MW •
101st
old, new, expansion
Ninawa
Company
23MW/Hr
Cement Co
for fullQ
Construction
Mosul-Badoosh
State Co for
6MW total
Requires additional
-
Cotton
-
Operational
•
,300
Y 30%
101 st
2mw
power required
Mosul
Textile
cotton
Industries
6 MW/Hr
Ninewah
Industries
Production
LF3117720886 LF1484034914
in City...
State Co of
Locate site
Requires raw
Ready Made
1,200
80
-
-
Y 24%
101st
on large
• materials
Mosul
Textile
Wears
Ninawah
Production
map...
LF31012087
Mosul Factory
State
Comparty for
-
Y 40%
Hand Made
Mosul
101st
Textile
Ninawah
Production
Carpets
Progress or work
depends on approval
Design and
-
of budget for project
0
N 0%
Construction
Mosul
Service
Ninawah
completion for 03 and
LF31012087
104
State
Lack of reinforcing
manufactures
Company for
Need grid
steel wire rods.. Wil
concrete utility
Materials
N
-
-
0%
70
location
start Production 10
101st
poles... have order
Construction
Ninawah
Production
for 2000 poles
Oct
Construction
Industry
Mosul - Badoosh
Badoosh Colomes Plant
Started
production
53Km South
sold 100,000 tons
tenders issued for
aluminum
rehab... sale
Al Mishrag
unrefined sulpher
of Mosul. 25
•
-
0%
N
•
sulfate...
1
1,278
-
State Co
contracts - bank
at$52: 300,000 tons
101st
Km North of
Mishrak
Ninevah
Sulphur
15MW/hr
Chemical
Gaeta.
refined sutfer at $57
gurantees of
LE47739837
refinery
heavily
Mishrah Sulpher Mine Co.
damaged...
State
Q=200MID per
Comparty for
month... lead time
Q=$180000/m
Medical
N
300
Operational contracts for MOU...
Y 30%
onth
101st
Mosul
Industries and
need PWC for raw
Ninevah
LF27153888
material
Appliances
Pharmaceutical
352 CA COM
(h)(6)
Prepared for

Ministry Of Industry & Minerals: State Owned Enterprises
Damaged beyond repair
Needs Assessment as of January 2004
Operational within thirty days
Employ
Cap
Enterprise
Location
Facility
Needs
Actions
Remarks
ment
Q Util vs
File #
Sector
Factory
2002
Electricity
Remarks
Remarks
Items
Status
Grid
Distro
Type
Name
Priority
Province
Electricity
AUgUSt MW
Needs Cash
Naturaul Gas
Repairs from
Needs Other
Diesel Supply
Current supply
Capacity Need
Coalition Sector
State
Company for
production expected
Medical
to increase due to
Suffered heavy
200
0%
Damaged
N
1
101st
damage
Industries and
delivery of raw
Ninevah
Appliances
materials
Pharmaceutical
State
Provided with 3 mw
Company for
1,200
" needs 3.5MW
Planned Q = 169 tons
-
Rubber
7 tons per some lab problems
y 20%
MNDCS
Chemical
a month
Qadisiyah
Production
Industry
Ad Diwaniyah
Ad Diwaniyah Tire Co
3-5MW
State Co for
Cotton
40
-
started operations on
required. 7.75
Inventory = 4.25BID
Y 15%
MW at full
Textile
Industries
1st AD
30% of machinery
Diwaniah
Qadisiyah
Production
7.5MW/Hr
production
Cotton Industries
substation
have $350k in
inside
Started
steel
Nasser Co
contracts... more
-
plant.....10 MW
-
Y 15%
structure
pending... Q of steel
needed for
GMWhr
Production
Engineering
production structures
entire
50% capacity... (raw
on river 1/2 k
200
Woolen Co.
material shortage)
from furniture -
Tajl
- Power interruptions
Y 50%
4th ID
Textile
Service
MB3402
factory
per D6... DrK says
Salah Ad Din
Clean and Dye
Raw materials 2
The General
Company for
395
1
Food
months. 300 tons of 20%
1
4th ID
oils... Receiving
Vegetable Oils
Salandin
Production
12MW/hr
LD67167688
Mansur Plant
cotton seeds
Need 50MCF
of natural gas
due to delay in
Northem
+ =
1,314
^ 15-17MW at
Capacity 400,000
- Natural gas expected
N 0%
Fertilizer Co
Baji
4th ID
28.36*
Saladin
tons per year
full Q per line
to start Q by 15.12.03
LE52338843
7MW allocated
Fertilizer/ Petrochemical
N35 05' 53.49" E 43 23'
al
Q=1.5BIB. Reacher
have elctricity
1.8B ID sales. Nov
-Aul
Nes a Samarra Drug
- needs met at
71%6
Y
800MID/month...
- - very need is 3.5 or
4MW
MoH not purchasing
stock
20
Prepared for ThI/GI /52 CACOM

Ministry Of Industry & Minerals: State Owned Enterprises
Damaged beyond repair
Needs Assessment as of January 2004
Operational within thirty days
Cap
Employ
Location
Enterprise
Actions
Facility
Needs
Remarks
ment
File #
2002
Electricity
Remarks
Items
Status
Remarks
Grid
Type
Priority
Distro
Province
Looting
Electricity
Needs Cash
TAwdUst MW
Diesel Supply
Needs Other
Naturaul Gas
Repairs from
Current supply
Coalition Sector
Capacity Need
State Co. for
natural gas
Next to Tajl
-
Electrical
619
provided for
y 15%
4th ID
gas plant
Industries
operations.
Salahdin
Bulb Co
Engineerin
Production
200 Meters
North of
State Industry
Powerplant in
Y
5%
Taji where US
for Furniture
1st AD
Service
Salahdin
Baghdad
Furniture
Security is
0.5MW/ hr
Production
MC33380209
lposted.....
Souther
start up Jan
Under rehab...
Need Grid
Cement
N
-
1
0%
750
04 pending
Location...
heavily damaged
Comparty
MNDCS
power
Production
Samawah
Samawah
Construction
As Samawah
State
Need when
Compary for
Operational
Materials
Y 50%
Near Balad
150
21
construction boom
4th ID
Nibaai
1MW/hr
Construction
begins
Production
Slah AL-Dien
Construction
Industry
Sand & Gravel
Wassit State
sales @ 300MID/
Y 51%
"SMW design
Compary for
Started production
2,657
month
capacity
Wasit
Al Kut
Textile
Textiles
MNDCS
ЗMW/Hr
Production
NA77439759
Wassit Textile
State
Commission
1
N
| 0%
-
for Training
Al Kut
Wasit
Service
033
Centers
State Owned
Company for
Tobbaco and
Food
storage
1st AD
Tobacco
Baghdad
Wazarah
Cigarettes
Near
State
electrical
Comparty for
station south
-
-
Materials
an ant prote ton w
0%
1
100
for Baghdad
1st AD
diesel oil and electric
Construction
Zafarina
Baghdad
MB488837
... On same
Construction
power
Industry
Administration
street as
Contracts with oil and
Review of previous
Al Zawra
N 0%
electricity worth
1
MIC
all contracts
1st AD
S3BID
Zafarina
Baghdad
352 CA COM
Prepared for (b)(6)
21

Ministry Of Industry & Minerals: State Owned Enterprises
Damaged beyond repair
Needs Assessment as of January 2004
Operational within thirty days
Cap
Employ
Enterprise
Facility
Location
Needs
Actions
File #
ment
Q Util vs
Remarks
Factory
2002
Electricity
Remarks
Remarks
Grid
Items
Status
Type
Name
Distro
Priority
Looting
Province
Electricity
AUOUST MW
Needs Cash
Needs Other
Diesel Supply
Repairs from
Capacity Need
Naturaul Gas
Current supply
Coalition Sector
has contract for
delivery of raw sugur
Requires import of
1,607
Sugar Co
at 12,500 tons/month
Food
Sugar
unrefined sugar.
Production
at $175 a ton... need
$2.25 loan
State
Shortage of plastic
Company for
1,809
Monthly revenue of
containers for lead
Batteries
N
280MID
Chemical
acid batteries
Industry
Production
Available in stock 13
3,500
million books (could
Paper Industry
sell to Min of Ed)
Chemical
lack raw materials
Needs 800 CM
of fuel oil from
Northem
60,000 tons of
Baji refinery by
Operational at 1,000
Cement
2,293
train...
tons per day
silo..., monthly sales
Company
electricia
come bathy sans A
Cement Co
of 65,000 tons
Construction
power cuts
impacted Q
Southern
Cement
5,212
50.000 tons of Inv
Company
Construction
Iraqi Cement
3,313
Company
> z
Cement Co
Construction
State
Company for
two brick plant
Materials
•
3.145
leavily damaged and 09
Construction
one thermostone
Construction
plant
Industry
Administration
State Co. for
Electrical
3,000
N/A
Industries
Eledrical
Company.
Engineerin
Baghdad
- Mixed Sector
N
Companies
Mixed
1st AD
MB5279
Baghdad
Mixed Cluster
Prepared for (b)(6) 352] CA COM
22

Ministry Of Industry & Minerals: State Owned Enterprises
Damaged beyond repair
Operational within thirty days
Needs Assessment as of January 2004
Cap
Empicy
Enterprise
Facility
Location
Actions
Needs
Q Util vs
Remarks
ment
File #
Factory
Sector
2002
Electricity
items
Remarks
Remarks
Status
Grid
Type
Name
Priority
Looting
Province
Electricity
Needs Cash
Naturaul Gas
Needs Other
TAL USTMW
Repairs from
Diesel Supply
Current supply
Capacity Need
Coalition Sector
Вісусів
Company
Mixed
MNDCS
Mahmoudia
MB40665959
suffered from
Awaiting receipt of
electricity
-
SDI
-
raw materials for start
Syringes new project
0%
a discutions
up
Musayab
1.5MW/Hr
during Nov
Pharmaceutical
State
employment figure for N
Consolidated
Company for
four sites a 1,251.
Dairy Products
Administral
Al Furat State
production dropped
requirements
Comparty for
Y
to 25000 bags per
44%
827
Chemical
included above
day
Chemical
Industries
Production
Polypropylene
State
Company for
N
Geological
Westem dest mines
0%
Partial operation
Mining
Survey &
Construction
Mining
Stale
Commission
0%
for Training
Service
Centers
State
Commission
0%
for Training
Service
Centers
Started production c
Ibn Sena
5%
750
Y
MIC
hemicals & ga
27 18
277.5
-...J
352 CA COM
Prepared for (b)(6)
23

State Co. for Textiles Ind
(b)(6)
State Co. for Drugs & medical
supplies ind. / Sammara
State Co. for Drugs & Medical supplies Ind. / Ninavah
Al-Furat State Company.
State Company for Batteries Ind
Al-Sumood State Company.
Al-Faris State Company.
17 Nissan State Company
State Co. for Vehicles Ind.
State Co. for refractories.
State Co. for Electronic Systems.
State Co. for Rubber Ind
Southern State Co. for Fertilizer Industry.
Northern State Co. for Fertilizer Ind.
State Co. for Petrochemical Ind
State Co. for Design & Engineering Consultants.
UR state Co. for Engineering Industries.
Diala State Co. for Electric Ind.
Specialized Institute for Engineering Industries.
Al-Mishrak State Co. for Sulfur.
State Co. for Phosphate.
State Co. for Geological Survey & Mining
Southern Cement Company.
Iraqi Cement Company
State Co. for Vegetable Oils Ind.
State Co. for Dairy Products.
State Co. for Sugar Ind.
State Co. for Woolen Ind.
State Co. for Leather Ind
State Co. for Ready Made Wear Ind.
State Co. for Cotton Ind
Al-Zawraa State Company.
State Co. for Heavy Eng. Industries.

Damaged beyond repair
Ministry Of Industry & Minerals: State Owned Enterprises
Operational within thirty days
Needs Assessment as of 1 December 03 =
Cap
Employ
Remarks
Q Uti vs
Actions
Needs
Location
Enterprise
Facility
ment
2002
File #
Sector
Factory
Electricity
-.
Items
Status
Remarks
Remarks
Grid
Disten
Type
Looting
Priority
Name
Province
Electricity
Needs Cash
Needs Other
Naturaul Gas
Repairs from
T August MW
Diesel Supply
Capacity Need
Current supply
Coalition Sector
two feeders:
Lack of raw
one from
materials... 25%
N
0%
-
* Dairy Products
200
university, one
damaged due to
Food
Factory.
looting
from Al Hansri)
Al Anbar
Baby Milk
Production
MB 23158783
Abu Ghurayb
Operating
Requires raw mik or
30MID per month
under
Y
3%
-
- imported powdered
-
700
Dairy Products
generator with
(was 300MIB)
milk
Admin
2MW/hr
Food
Al Anbar
1MW...
Dairy Factory
Abu Ghurayb
Production &
Stopped Q due to
Lack of raw
0%
- - Operating under
100
lack of raw materials
-
-
Dairy Products
materials
generator with 1MW
Food
Mosul
Ninawa
Production
Dairy Factory
Stopped Q due to
Lack of raw
0%
Y
•
-
~
10d
lack of raw materials
materials
- = Dairy Products
Hilla
Babil
- Operator wit MY
Food
Dairy
1MW/hr
Factory.
MNDCS
Production
employment figure for N/
State Company
Consolidated
four sites=1,251.
for Dairy
Products
Administral
October
production
The General
expected to 24. 5BID for 2003
3,777
Company for
planned
reach
Food
Vegetable Ols
Baghdad
Baghdad
1000MID
One shift
Obtained 1 MW from
Can get by with
92
operation
S. Baghdad
2.5 MW/Hr...
The General
as security
62%
-
PP..2a,2b,2c. All
power supply
Company for
improves.
Food
near each other in
unstopable 1
Rasheed
In Oct 2
Vegetable Oils
Production
Rashid Camp
MW with diesel
shifts
shampoo, liquid
The General
Near Rashid
1MW with
Y 58%
AD
bleach, sulpuric acid
-
-
Milkary
No
Company for
diesel
Food
production resumed
5MW/hr
Baghdad
Vegetable Oils
Baghdad
Ma'amoon
MB491843
Production
On diesel
Q = 150 tons of
The General
Y 34%
-
v generator 2
Company for
laundry soap
Food
mw
1st AD
Ahmaen
Vegetable Oils
Baghdad
Baghdad
Production
1 CA COM
Prepared for/hV6)
1

Ministry Of Industry & Minerals: State Owned Enterprises
Damaged beyond repair
Needs Assessment as of 1 December 03
Operational within thirty days
Employ
Cap
Enterprise
Facility
Location
Needs
Actions
ment
File #
Q Ut vs
Remarks
Sector
Factory
2002
Electricity
Remarks
Remarks
Items
City
Grid
Status
Name
Type
Distro
Priority
Province
Looting
Electricity
TAugust MW
Diesel Supply
Needs Cash
Naturaul Gas
Repairs from
Current supply
Needs Other
Capacity Need
Coalition Sector
Operational on
The General
2mw deisel -
Company for
700
-
-
Food
25%
One shift for security N
Misan
1
detergents and
Vegetable Olis
Maysan
start on 23.9.2003
Production
soap
Ammaran Plant
Raw materials 2
The General
months. 300 tons of
Company for
395
-
Y
Food
20%
Baji
4th ID
1
Vegetable Olls
Salahdin
oils... Receiving
Production
12MW/hr
Mansur Plant
cotton seeds
LD67167688
The General
10 1.5 MW with
-
155
-
Company for
Will restart 1.1.2004
N
0%
• diese
Food
1st AD
Vegetable Oils
Baghdad
Baghdad
Al Farabi
Production
2MWhr
The General
Company for
450
•
-
Soap and detergen
-
Food
5%
Misan
Vegetable Oils
Maysan
production
MDD SE
4MW/hr
Production
Al Muatassem
State Owned
Company for
Raw materials
2,090
-
Tobbaco and
Food
=320MID or
Cigarettes
Tobacco Co
400Mcigarettes
State Owned
Company for
at 500 cartons per
-
1,400
Tobbaco and
Food
5%
1st AD
1
day
Baghdad
Tobacco
Habiblyah
Cigarettes
3MW/Hr
MB519934
Habbiblyah
State Owned
2MW
Company for
requirement
700
-
180MID per month
Tobbaco and
Food
met by
y 10%
1st AD
Karada
revenue (vs 250)
Tobacco
Baghdad
Karadah
Cigarettes
generator
MB45328313
State Owned
Company for
Tobbaco and
Food
1st AD
storage
Tobacco
Wazariah
Cigarettes
State Owned
Company for
Tobbaco and
Food
1st AD
storage
Tobacco
Muather.
Cigarettes
State Owned
Company for
N/
Food
Tobbaco and
A
storage
1st AD
Tobacco
Baghdad
Cigarettes
Maghdade Baghdad, Mandad,
352 CA COM
Prepared ter/hl/6)

Damaged beyond repair
Ministry Of Industry & Minerals: State Owned Enterprises
Operational within thirty days
Needs Assessment as of 1 December 03
Cap
Q
UlI vs
Remarks
Employ
Actions
Needs
Facility
Enterprise
Location
ment
2002
File #
Sector
Factory
Electricity
Status
Items
Remarks
Remarks
Grid
City
Type
Name
Priority
Looking
Province
Electricity
Needs Cash
Naturaul Gas
Needs Other
Diesel Supply
Repairs from
T August MW
Current supply
Capacity Need
Coalition
Storage areas in
Baquba (not utized)
State Owned
Anu Graib, Bab
Company for
Muadam, New
•
50
Tobbaco and
Food
Baghdad, Near
1st AD
Storage
Cigarettes
Tobacco Co
Rasheed camp.
Abu Ghurayb
MB43129073
Kirkuk (not utilized)
State Owned
Company for
50
•
> Z
Food
Tobbaco and
Anbar
Storage
Cigarettes
Abu Ghurayb
MB43129073
Bab Al Muather
State Owned
Company for
-
50
> z
Tobbaco and
Food
Anbar
1st AD
Storage
Cigarettes
Abu Gurayo
MB51938624
Warehouse #11
has contract for
delivery of raw sugur
Requires Import o
at 12,500 tons/month
A
Sugar Co
unrefined sugar
at $175 a ton... need
Food
Sugar
Production
$2.25 loan
New plant manager...
Need 400MID from
requires rehabilitation
Also need
Bank... produces
• of cane sugar farm
-
N 0%
400CM of
+
-
800/
Sugar Co
4MW/hr
and the plant.
bagas (paperpulp)
Sugar
Misan
Natural Gas
Maysan
MDD SE
and moliases
Production/ Administration
Beets and yeast
factory...Q=3,000
tons of sugar = $350-
has 4.5MW in
5%
$400 per ton... Current Y
-
-
Sugar Co
230
3 plant from
airport
Food
Sugar
Mosul
1MW/hr
bailer
production yeast only
Ninawa
Production
at 4.5 tons... sales =
LF33801833
5MID/month
Q=1.58IB. Reached
1.8B ID sales. Now
have elctricity
verify if need is 3.5 or
North side of
y|
71%
800MID/month...
-
•
N
needs met at
-
Samarra Drug
35 MW
MoH not purchasing
E city
4MW
Salahdin
388
Production
stock
352 CA COM
LC03973785
Pharmaceutical
Prepared for (b)(6)

Ministry Of Industry & Minerals: State Owned Enterprises
Damaged beyond repair
Needs Assessment as of 1 December 03
Operational within thirty days
Cap
Employ
Facility
Enterprise
Location
Needs
SC
Actions
Q Util vs
ment
File #
Remarks
Sector
Factory
2002
Electricity
Remarks
Items
Remarks
Grid
City
Type
Status
Distr
Name
Priority
Province
Looting
Electricity
Needs Other
T AuguSt MW
Naturaul Gas
Diesel Supply
Needs Cash
Capacity Need
Repairs from
Coalition Sector
Current supply
State Company
Q=200MID per
month... lead time
for Medical
-
300
=$ 180000/mo •
-
Industries and
· 30%
Operational contracts for MOU...
Mosul
Ninevah
need PWC for raw
Appliances
LF27153888
material
Pharmaceutical
State Company
production expected
for Medical
Suffered heavy
200
to increase due to
-
-
-
Damaged
N
0%
Industries and
1
Mosul
damage
delivery of raw
Ninevah
Appliances
materials
02 for medical
SDI
Needs 1 mw additional
200
own generator. o
Operational purposes. Nitrous
50%
to double production
gasses and
Baghdad
1.5MW/Hr
bandages.
Pharmaceutical Pharmaceutical
North Baghdad
suffered from
Awaiting receipt of
L2 electricity
SDI
200
raw materials for start
-
•
0%
Syringes new project N
5 disruptions
up
Musayab
1.5MW/Hr
during Nov
Pharmaceutical
Produces gasses
(NaOH) (H2SO4)
70 Km South
(Hci) (c/2) (NaOCI) for
of Baghdad
uses in refineries,
660
-
Y
50%
Chemical
and 35 Km
Hilla
power stations and
"before"
Chemical
BMW/Hr
Production
sterilizing water...
44 15*32 40'
Sadat Al Hindiyah
sales about 1000MID
a month
71 Km South
Al Furat State
of Baghdad
Company for
requirements
2nd plant, same
-
and 35 Km
Chemical
included above
NIA
Y 50%
products as above
"before"
Chemical
Industries
Production
45 15*32 40*
Karbarla
produces starch for
Al Furat State
pharmaceutical and
Needs 1 MW
Company for
food industry...
270
-
-
N 0%
Started production
Chemical
Stopped production
MNDCS
Chemical
Industries
Production
material
352 CA COM
AJ-Hashamiyah Sadat Al Hindiyah|
because of lepries ated for /b)(A)
problems with stal

Damaged beyond repair
Ministry Of Industry & Minerals: State Owned Enterprises
Needs Assessment as of 1 December 03
Operational within thirty days
Cap
Employ
Actions
Remarks
Needs
Location
Q Uti vs
Enterprise
Faclity
ment
File #
2002
Factory
Electricity
Status
Items
Remarks
Remarks
City
Grid
Distro
Type
Name
Priority
Looting
Electricity
Province
Needs Other
Needs Cash
Repairs from
Naturaul Gas
Diesel Supply
Capacity Need
Current supply
TAUgUST MW
Coalition Sector
Al Furat State
production dropped
requirements
Y
Company for
44%
827
to 25000 bags per
-
included above
Chemical
day
Chemical
Production
Industries
Polypropylene
Shortage of plastic
State Company
Monthly revenue of
1.809
containers for lead
for Batteries
280MID
acid batteries
Industry
Chemical
Production
0=1,500 lead aci
Y 28%
for Batteries
-
180
3 LPG shortfalls
batteries per mont
Babil 2
1st AD
2MW/hr
industry
Baghdad
Baghdad
Acid Battery
MB43839172
1Km west of
record 4a
State Company
actual production
a stopped due to
N 0%
AD
-
•
location...
operating on
for Batteries
338
4500 batteries/month
electrical power
1MW/hr
Babil 1
generator
Industry
# Need Grid
Baghdad
Baghdad
Chemical
location...
Acid Battery
MB43959193
State Company
Operating or
-
•
Produces lead
y 10%
-
for Batteries
238
E interna
1st AD
Industry
generator
Smelter
Chemical
MB2287
Baghdad
Baghdad
1.4M dry cells /
Operating on
State Company
Y
10%
Operational month. Need money
2 Inside military +
•
Shortage of rag
-
internal
for Batteries
materials
3060
camp
for raw materials
0.6MW
generator
Industry
Baghdad
Baghdad
Chemical
Production
MB28898620
Dry-cell Battery
Available in stock 13
million books (could
3,500
sell to Min of Ed) lack A
Paper Industry
Chemical
raw materials
obtained power
needs rehab and
N
upgrading... Sufered
0%
-
-
in Nov for start o
-
Paper Industry
2,300
heavy damage
up
Basrah
Basrah
MDD SE
Chemical
Production/
QU56030450
Administration
carboard cartons 200
N
tons, cement paper
Requires power and
0%
Requires 3MW o
Paper Industry
850
pulp
bags 250 tons
Misan
Maysan
5MW/Hr
MDD SE
Chemical
352 CA COM
Prepared for /h\/6)

Ministry Of Industry & Minerals: State Owned Enterprises
Damaged beyond repair
Needs Assessment as of 1 December 03
Operational within thirty days
Employ
Cap
Location
Facility
Needs
Enterprise
Actions
Remarks
ment
File #
Q Util vs
Sector
Factory
2002
Electricity
Remarks
Remarks
Grid
Items
Status
Name
Distro
Type
Priority
Looting
Province
Electricity
Needs Cash
Needs Other
T August wW
Capacity Need
Naturaul Gas
Diesel Supply
Repairs from
Coalition Sector
Current supply
DG under question...
Plant ready for
350
Paper Industry
Taji
-
- operation... depends
0%
egg arton 100k trays N/
= furniture plant
Diyala
per month... need 5
1MW/hr
Chemical
on electricity supply
tons of paper scrap
MC33330248
S of Canal to
the left 3 Km
« Al-Sawary Co
DG under question...
-
damage 50%
1%
1
a tree an
Chemical
Rekweld
Baghdad
subplant in Baghdad
Baghdad
Production
2MID for
started Q of PVA2
inks...250MID for
2 3km from
Al-Sawary Co
-
resins after plant
93%
insulation... only
1
Y 59%
# rekweid
Chemical
Baghdad
Al Gihad
Baghdad
rehab
Production
emulsion paint
3.5MW/Hr
MB28529875
production
325
Al-Sawary Co
- rockwool Q started
N 53%
1st AD
Baghdad
Chemical
Production
MB37968328
total sale in 15 days is
resins, inks,
191
AJ-Sawary Co
-
$20,000.. Ink
2%
glue
Chemical
Baghdad
Production
3MW/Hr
production started
MB28529875
3 mw power supply.
State Company
Feed from
reached 7-10MW for full
=
for Tire
Started production 22
2,195
" substation in
650
production
Y 35%
Najaf
Planned
Sept 2003,
Industry
Industry
BMW/Hr
An Najaf
An Najaf
Chemical
Najaf Tire
MNDCS
Production
tires/day Natural gas required
Q = 1,000 tires a day
MA31786776
State Company
Q=2600 tires due to
for Tire
=
-
Najaf
electrical power
y 50%
1MW/hr
MNDCS
Industry
Chemical
An Najaf
Production
problems
Rubber Belt
MA38893963
State Company
Provided with 3 mw
for Rubber
7 tons per
,200
= needs 3.5MW
Planned Q = 169 tons
some lab problems
Y 20%
day
Industry
MNDCS
Chemical
a month
Production
Qadislyah
Ad Diwaniyah
Ad Diwaniyah Tire Co
352 CA COM
Prepared for(b)(6)

Damaged beyond repair
Ministry Of Industry & Minerals: State Owned Enterprises
Needs Assessment as of 1 December 03
Operational within thirty days
Cap
Employ
Needs
Enterprise
Location
Fachity
Actions
Remarks
SC
a Util vs
ment
File #
Sector
Factory
2002
Electricity
Remarks
Items
Status
Remarks
City
Grid
Type
Name
Priority
Looting
Province
Electricity
Needs Cash
Repairs from
TAUGUST MW
Naturaul Gas
Needs Other
Diesel Supply
Capacity Need
Current supply
Coalition Sector
Startea
roducton
53Km South
sold 100,000 tons
tenders Issued for
aluminum
unrefined suipher
rehab... sale
A-Mishraq
3 of Mosul. 25
-
1,278
0%
sulfate...
N
Co.
-
-
at$52; 300,000 tons
State Co
= Km North of
contracts - bank
Sulphur
Mishrak
Ninevah
Chemical
15MWhr
Gaeta.
gurantees of
refined sulfer at $57
LE47739837
refinery
heavily
Mishrah Sulpher Mine
damaged.
Need 50MCF
due to delay in Natural
of natural gas
Northern
- gas expected to start
0%
-
Capacity 400,000 tons N
1
~ 15-17MW at
-
1,314
Fertilizer Co
per year
4th ID
full Q per Tine
Q by 15.12.03
Salahdin
23' 28.36*
Fertilizer/
LES2338843
7MW allocated
Petrochemical
N35 05' 53.49* E 43
PQ = 600,000 tons
per ут. Capacity =
Khor Al-Zubar
1 Mil tons per yr
NG PP near by
Received 50 mcf of
Operates 2
Requires
gas ... awalting
Souther
13 Km from
lines...Need oil
50MCF of NG
stable power for start
24
-
Company for
port of Khor Af-
N 0%
ministry input 6 June
up... started checking
per line... 15-
Basrah
Zubar
Fertilizer
Basrah
Production
17 MW at full Q
Oil coming... 19,000
equipment... Q
QU72984285
per line 25MW
begins 15.12.03?
tons of Inv... Q =
Southern Fertilizer Co
Total
15,000 tons per day
Fertilizer/ Petrochemical
for 2 lines.
403 tons of fertilizers
3OMW required
15 mw electric
sold..31,000 tons in
lat fui Q Q=
State Company
N 0%
• Awaiting 10M cubic f
-
3,212
stock... should start
Qaim
300,000 tons
Anbar
for Phosphate
of gas.
Q after provision of
Fertilzer/
25MW/hr
GU005001
per year
gas
Petrochemical
150km from
State Company
-
N 0%
peparing startup
8 150m
for Phosphate
Mines
Anbar
- Subst-repart rin
Mininig
Akashot
15MW/hr
Fertilizer/ Petrochemical
10MW per
Requires stable power
produced 60 tons of
4 27Km from
line...
Petro-chemical
QU 619585.
4
supply and gas - gas Start a by plastic sheets for
1
15.12.03
produces 2
available up to 30 m
Company
Basrah
Basrah
covers
Production
QU619585
lines
cu ft.
352 CA COM
Fertilizer/ Petrochemical
Preparid for (b)(f)

Ministry Of Industry & Minerals: State Owned Enterprises
Damaged beyond repair
Needs Assessment as of 1 December 03
Operational within thirty days
Employ
Cap
Enterprise
Facility
Location
Needs
Actions
Remarks
File #
ment
• Util vs
Factory
2002
Electricity
Remarks
Remarks
Iterns
Grid
Type
City
Status
Name
Distro
Looting
Priority
Province
Electricity
Needs Cash
Needs Other
T August MW
Diesel Supply
Capacity Need
Naturaul Gas
Repairs from
Current supply
Coalition Sector
7MW for start
Northern
one clinker line and
t5 120Km Not
Grinding only 1000
up 20 MW for
Cement
grinding line
2 Mosul
tons/day... second
SS and 35 MW
y 30%
Company
Ninawa
operational
lined damage
KF375268
20MW/Hr
Cement Co
Construction
for fulla
Mosul - Sinjar
17MW for start
Northern
up 20 MW for
1,000
Cement
two lines in operation
Y 30%
-
old, new, expansion
SS and 25 MW
1200 tons perday
Company
15MW
Ninawa
Cement Co
for fullQ
Construction
Mosul-Badoosh
LF
3-5MW for
Northern
start up 15
Onty old line
Cement
600
operating... new line
Mosul
Y 40%
Q = 300 tons/day
Mw for teady
Hamam
state 20 MW
not operating
Company
5MW/Hr
Cement Co
Mosul-Alial
Construction
LF39390772
Max
Needs 800 CM
of fuel oil from
Northem
60,000 tons of cement
Baji refinery by
Operational at 1,000
bagged and silo...
Cement
2,293
train...
tons per day
> z
monthly sales of
electricia power
Company
Cement Co
Construction
65,000 tons.
cuts impacted
Southern
Cement
5,212
50,000 tons of Inv
Company
Construction
Southern
: locations in Naja
old K needs 4
Cement
100 tons per day f
2,000
N
-
-
•
2 Mw new K
Y 30%
oid kufa ... 1000
needs 25 MW
MNDCS
Company
17MW/Hг
Production
Construction
Najaf & Kufa
tons/day for new kufa
MA46503667
352 CA COM
Prepared for (b)(6)
8

Ministry Of Industry & Minerals: State Owned Enterprises
Damaged beyond repair
Needs Assessment as of 1 December 03
Operational within thirty days
Cap
Employ
Needs
Facility
Location
Actions
Enterprise
Remarks
ment
Fle #
Sector
Factory
2002
Electricity
Remarks
Items
Status
Type
Distro.
Name
Looting
Province
Needs Other
Repairs from
Needs Cash
Naturaul Gas
Diesel Supply
T August MW
Current supply
tarted rehabilitatio
* operation in mic
10
ah
Locations 35 km fron
Southern
17MW ful Q
October... and
3 Need Grid
second line Samawah... sulphite
Cement
Y
750
2 for one line
25%
up jan 04
cement grinding at
Location...
Company
34MW total
w/ 10 Mw resistant cement
Samawah
0o tons per day...
40MW/Hr
Production
A Muthama
stocks 20,000 tons
Construction
started © at 1500
tons/ day
Southern
start up Jan
Under rehab...
75d
Cement
1
N
-
0%
-
04 pending
heavily damaged
Company
Samawah
power
Samawah
Production
Construction
As Samawah
Near Babylon
Need power to start
Verify
Southem
production @ 3mw...
Saddah vs
Cement
Y
7MW total
-
started 1 line of
50%
demand
Saddat...
Saddah
Saddah
Comparty
production € the rate
Production
Verify grid
Construction
44 25' 32 43*
of 250 tons per day
location....
Souther
2 lines 4
One line in production
•
Y 10%
Cement
Q=600 tons per day
& mils34MW
at low efficiency
total demand
Company
Karbarila
Karbarta
Karbarla
Production
LB96980384
Construction
Southern
started one line o
3 Need Grid
- oroduction at 150 ton
Y 30%
-
-
500
Cement
preparing for start up
Company
Karbarla
a day of lime
a Locatlon...
13MW/Hr
Production
Construction
AR Razzazar
Southern
10
Cement
en 4MW total
Lime faclity
y 30%
500
Location...
Company
Neurrea
Karbaria
Production
Construction
Needs rehab anc
clinker & electric
Southern
Need Grid
-
Cement
power 5 mw.... Wil
N 0%
Location...
Basrah
start production on
Company
Production
MDD:
Um Qasar
Construction
10.10.2003
NI
Iraqi Cement
3,3130
Compary
Cement Co
Construction
Prepared or (b)(6) J352 CA COM

Damaged beyond repair
Ministry Of Industry & Minerals: State Owned Enterprises
Needs Assessment as of 1 December 03
Operational within thirty days
Cap
Employ
Facility
Enterprise
Location
Needs
Remarks
Util vs
Actions
ment
File #
Sector
Factory
2002
Electricity
Remarks
Remarks
Items
Status
City
Grid
Type
Name
Distro.
Priority
Looting
Province
Electricity
Needs Cash
Naturaul Gas
Repairs from
Diesel Supply
Needs Other
TAUgUST MW
Capacity Need
Current supply
Coalition Sector
Daily production 500
one of 2 lines
Iraqi Cement
10 Km SE of
tons...
production
750
1 8.
operational Capacity y
-
20%
Company
KirkMDD SE
4th ID
problems = low
of 30,000 tons a
Kirkuk
At Tamim
32MW/Hr
Cement Co
Construction
month
capaity utilization
Iragi Cement
Requires 20 mw
started klinker
-
N
0%
Anbar
productior
Company
power for One line
3rd ACR
35MW/Hr
Kubaassa
Cement Co
Construction
Started production at
Iraqi Cement
1,000 tons per day.
-
600
60,000 ton of klinker
Y
25%
Company
Anbar
Expected monthly
Al-Qaen
20MW/Hr
3rd ACR
Cement Co
prodution 25K tons.
Construction
Iraqi Cement
600
Y
10%
Company
1st AD
Baghdad
Baghdad
Construction
MB49888174
Started grinding o
Iraqi Cement
for white cement...
white cement 300
500
-
Y 36%
-
Company
started 1 mil 300T/d
Anbar
Falluja
7MW/Hr
tons per day
3rd ACR
Construction
LB9318593012
State Company
two brick plants
for Materials
3,145
-
-
-
heavily damaged and N 0%
Construction
one thermostone plant
Industry
Construction
Administration
Near electrical
State Company
main limitations to
station south
for Materials
increased production
of Baghdad... -
0%
N
-
100
1
Construction
diesel oll and electric
1st AD
On same
Zafarina
Baghdad
MB488837
Industry
Construction
power
Administration
street as
State Company
Plastic pipes plant.
Need raw materials...
Near Iragi
for Materials
~
-
-
N
0%
comes from other
Lack of raw materials
Construction
Cement Co
2MWMr
petro plant... plastics
and electric power
Industry
Construction
Baghdad Plant
Production/ administration
352 CA COM
Prepared for (h\(6)

Damaged beyond repair
Ministry Of Industry & Minerals: State Owned Enterprises
Needs Assessment as of 1 December 03
Operational within thirty days
Cap
Employ
Q Util vs
Needs
Actions
Remarks
Facility
Enterprise
Location
ment
File #
Sector
2002
Factory
Electricity
Items
Status
Remarks
Remarks
Grid
City
Type
Name
Distro
Looting
Priority
Province
Electricity
Needs Cash
TAUgUSt MW
Diesel Supply
Repairs from
Noeds Other
Naturaul Gas
Current supply
Capacity Need
Coalition
State Company
Plastic pipes plant.
for Materlals
10
340
damaged
1
N
•
0%
Lack of raw materials
Construction
Maysan
and electric power
MDD SE
Production
Al-Amarah
Industry
Construction
47 10 31 51'
Maysan Plant
Baquba Street
(BS)...Is BS
also Hwy
State Company
57... Need
for Materials
2Mw total 1
-
1
-
200
Wil start 25 furnace heting started N 0%
-
MW generator
Construction
Industry
Production
Construction
Site should
be on quad
Baghdad Brick Plant
State Compary
for Materials
1
100
Wil start 25 furnace heting started N 0%
-
-
-
Construction
Diyala
4th ID
Hussania
Production
Industry
Construction
Abu Nuaase Bricks
State Company
25 Km SE of
provision of
Baghdad...Ne
2MW diesel
for Materials
-
-
N 0%
Lack of electricity
Construction
Babil
ed grid
generator will
MND
Production
Industry
location
start 28 Oct
Construction
As Suwayrah
Suwayrah Bricks Plant
State Company
lack of diesel
for Materials
perational 60l
-
Y
25%
220
all limiting
Plant
Construction
ricks per da
location
production
Mahaael
Babyion -
Industry
Construction
Ad Diuanlyah
Mahawel Brick
Production
State Company
tack of diesel
for Materials
perational 701
Y 24%
220
-oll limiting
-
Construction
Plant
ricks per da
Kadirin
production
Kausia-Fu
Production
Industry
Construction
Kadsia Brick
Divaniavah..Ad
352. CA COM
Prepared for !/bV6)
11

Damaged beyond repair
Ministry Of Industry & Minerals: State Owned Enterprises
Needs Assessment as of 1 December 03
Operational within thirty days
Employ
Cap
Enterprise
Location
Needs
Actions
Faclity
Q Uti vs
Remarks
ment
File #
Sector
Factory
2002
Electricity
Remarks
Remarks
Grid
Items
Status
Type
City
Name
Distra
Priority
Province
Looting
Electricity
Needs Cash
Naturaul Gas
Current supply
Needs Other
T August MW
Diesel Supply
Repairs from
Capacity Need
Coalition Sector
State Company
for Materials
100
- Operational
Construction
Y 30%
Anbar
1st AD
Production
Industry
0.7MW/Hr
Abu Ghraibe
Construction
MB22628540
Abu-Ghraibe Concrete Plant
State Company
manufactures
for Materials
# Need grid
concrete utility
-
N
Construction
70)
location
1
0%
poles... have order
Ninawah
Industry
Production
0.7MWHr
for 2000 poles
Construction
MB22828540
Mosul - Badoosh
Badoosh Colomes Plant
State Company
& six (6) sites
for Materials
Operational
Construction
Y 40%
150.
throughout
Karbarla
Karbaria
Production
Industry
44 00 32 37
Construction
Sand Plants
State Company
Need when
for Materials
1
Operational
construction boom
Construction
Y 50%
1MW/hr
begins
Production
Industry
Construction
Sand & Gravel
State Company
for Materials
56
N 0%
Heavily damaged
Construction
1
1st AD
Baghdad
Baghdad
Production
Industry
Construction
14th July Brick Plant
State Company
for Materials
150
1
Heavily damaged
-
N 0%
Construction
1
Production
Industry
Construction
Diala Brick Plant
Prepared for (b)(6) 352 CA COM
12

Damaged beyond repair
Ministry Of Industry & Minerals: State Owned Enterprises
Operational within thirty days
Needs Assessment as of 1 December 03
Cap
Employ
Q
Remarks
Actions
Ut vs
Needs
Fachity
Location
Enterprise
ment
File #
Sector
2002
Factory
Electricity
Items
Status
Remarks
Remarks
Grid
Type
Name
Distr
Province
Priority
Looting
Electricity
Needs Cash
Naturaul Gas
Repairs from
Needs Other
Diesel Supply
T AUgUSt MW
Current supply
Capacity Need
Coalition Sector
State Company
for Materials
N
Heavily damaged
0%
-
260
Construction
1st AD
Baghdad
Production
Industry
Construction
Thermostone Brick Plant
Glass and
Ceramics
Glass
Anbar
Company
Company
A Ramadi
Production
Construction
LB 3790 9888
Near City
Reached 25tons/day
Center...®
Started production of
Needs natural
flat glass. Also
confluence of
Glass and
glass using deisel oll..
y
started 1 ine of bottle
50%
N
•
•
Ceramics
-
- gas also...
Euphrates
Have 3MW from
needs 5kCM
Anbar
82nd
production at 5 tons /
3MW/Hг
and Waral
Comparty
A Ramadi
unreliable generators
Production
LPG
Construction
day
River... go
LC3839500419
Glass Company
Needs natural
Obtained 40 tons of
Glass and
gas also...
LPG and startec
-
Needs PWC
Y 20%
Ceramics
-
1,200
needs 5kCM
Anbar
furnace
Company
5MW/Hr
A Ramadi
LPG
Production
Construction
LC3814198729
Cermaic Company
Harriat State
Next to
= No Q in No
started Q on 12.10.03 N
0%
Company for
due to powe
Anbar
Falluja
cuts
Refractories
2MW/hr
factory
Refractories
Construction
L89313592404
Harriat State
Not operational
0%
N
1
-
Company for
140
Refractories
Baghdad
1st AD
Baghdad
Refractories
Construction
MB41407330
Suffered heav
State Company
damages & looting of I N
2 Near the Red
of Geological
750
Survey &
equipment from
I Cross
Baghdad
Baghdad
mining areas
MB487868
Mining
Construction
Administration
352 CA COM
Prepared fo/h)/A)
13

Ministry Of Industry & Minerals: State Owned Enterprises
Damaged beyond repair
Needs Assessment as of 1 December 03
Operational within thirty days
Employ
Cap
Enterprise
Facility
Location
Needs
Remarks
Actions
Q Uta vs
File #
ment
Sector
Factory
2002
Electricity
Items
Grid
Status
Type
City
Name
Province
State Company
•
Operational
Y 50%
- Production depends
on orders
1 MWhr
35Km NE of
Sammarra on
the Buhayrat
ID
-
Needs orders
Y
5%
Al Dora
- Cure to gus pan
Salhadin
# verify
Production
1 MW/hr
Construction
location on
Sodium Sulfates
Marge map
State Company
for Geological
-
Needs orders
Survey &
N 0%
Mining
Mining
Construction
State Company
for Geological
53
- - Not operational...
Needs orders
Survey &
N
1
0%
Mining
heavily damaged
Saltary
Basrah
MND SE
Mining
Construction
State Company
for Geological
Partial operation
Western dest mines
Survey &
N 0%
Mining
Mining
Construction
State Company
for Geological
N
•
0%
Survey &
Mosul Camp
Mining
Al Dora
Mining
Construction
Started
Lack of raw materials Small a off ag implements
Mechanical
12MW with
irrigation systems.
-
4,072
Industries Co
and components...
N 0%
implements tool and dies... ned
~ Foundary
MNDCS
heavily damaged
5MW/hr
Production
Iskandaria
Engineering
.. outlook raw materials
MB38603987
bleak
have $350k in
Started
steel
contracts... more
y| 15%
structure
pending... Q of steel
production patrictures Prepared for (b)(6) 352 CA COM

Damaged beyond epair
Ministry Of Industry & Minerals: State Owned Enterprises
Operational within thirty days
Needs Assessment as of 1 December 03
Cap
Emplay
Remarks
Actions
Uth vs
Needs
Enterprise
Fackity
Location
ment
2002
File #
Sector
Factory.
Electricity
Items
Status
Remarks
Remarks
Grid
Priority
Name
Looting
Electricity
Province
Needs Cash
Repairs from
Needs Other
T AUgust MW
Naturaud Gas
Diesel Supply
Capacity Need
Current supply
Coalition Sector
18,000 tons of ra
material = 6 months
Al Faris Co
1,222
Engineering
Heavy engineering
another
equipment Can get
1MW for start
Obtained contract for
$860k and to 60% capacity in 60
Y 25%
-
• $2.4M for water
~ up... 5 MW
cemetary of
days assuming 5
Al Faris Co
$1.4m
total Operating
treatment units
1 MW/Hr
pending MW... achieved 50
on diesel
Production
Engineering
tons of Q
Not operational, US
0%
N
Steel Structures
- Army unit will be
Al Faris Co
318
moved...
MNDCS
Babylon
Production
Al Musayylb
Engineering
MB11815572
Water Purification
0%
Y
- Operational
Al Faris Co
435
Plant
Anbar
Production
Abu Grahbe
Engineering
2MW needed
for pipeline
State Company
Heavly damaged. Not
Requires major rehab N
0%
1
•
production...
-
for Iron and
operational
Lof Basrah
NGPP
1.500
Basrah
Steei
MDO SE
Engineering
nearby...
QU71915041
2MW needed
for pipeline
issued tenders for
Heavily damaged. Not
State Company
15 km from
production...
N
1
0%
sale of 350,000 lons
,500
for Iron and
operational.
NGPP
Plant.
Basrah
port
Basrah
of pellets
MDD SE
Steel
nearby...
35-50MW/hr
Qu81402797
Engineering
Spiral Piping
needs 50MCF
2MW needed
for pipeline
production...
State Company
NGPP
Heavily damaged. Nol
25 km west of
1
N 0%
for Iron and
1,000
operational
Basrah
nearby...
Basrah
Basrah
Steel
MDD SE
needs 50MCF
35-50MW/hr
Engineering
of Natural gas
Asbestos piping plant
for production
Produces aluminium
sarted
Ur State
10MW for full
limited
sheets and wire
N
Company for
0%
a capacity needs o
In City
3,278
Q...11 tons Ready to produce...
Engineering
Dhi Qar
3MW
of cables sold 180MID of stocks
5MW/Hr
Company
Production
Industries
Nassarlyah
Engineering
Prepared for /h\/61 352 CA COM
15

Ministry Of Industry & Minerals: State Owned Enterprises
Damaged beyond repair
Needs Assessment as of 1 December 03
Operational within thirty days
Cap
Employ
Enterprise
Location
Faclity
Needs
Actions
ment
File #
Remarks
0 Util vs
Sector
2002
Electricity
Remarks
Remarks
Items
City
Grid
Type
Status
Name
Distro
Looting
Priority
Province
Electricity
Needs Cash
Naturaul Gas
Needs Other
Diesel Supply
TAUgUSt MW
Repairs from
Capacity Need
Current supply
Coalition Sector
Output 300M ID per
subfractional electrical
Adjacent to
State Co. for
month. Lack of raw
motors
Waziriah
AD
Electrical
-
1,348
materials... air
a=$120,000/month...Y 15%
Industries
Baghdad
& battery
Baghdad
Electrical
Company
conditioning plant
Production
5.0 MW/hr
MB436821
suffered heavily from
Engineering
factory...
awaits raw materials
looting
State Co. for
natural gas
• Next to Tajl
Electrical
619
-
+
• 8
provided for
Taji
y 16%
Electric
Industries
# gas piant
Salahdin
Bulb Co
operations.
Production
1.0 MW/hr
Engineering
State Co. for
Electrical
3,000
Industries
Baghdad
Elecincal
Engineerin
Company.
Have 3 MW
currently...
Diala State for
obtained $1800k in
Operational. Sales at
Electrical
2,254
-
contracts from
Y 30%
300M ID / month
Diyala
4th ID
Industries Co
Baqouba
Kurdish Electricity
Engineering
problems for
MC 66693706
machinery
General
2
Contracts with oll and
Systems
Started production as
419
70%
electricity worth $1.8M Y
per signed contracts
1st AD
Company
Baghdad
Baghdad
USD
Engineering
MB48358950
TUIT
Completed 10 trucks
- after adding missing
Vehicles Co
Requires truck
400
-
8%
-
components
Hilla
Pompions assembly
parts.
MNDCS
Iskandaria
Engineering
MB39304102
Non standard
•
--Completed 10 semi
Vehicles Co
400-
Y 10%
trailers
equipment
MNDCS
Iskandaria
Engineering
MB39304102
Requires
-
400
- Completed 13 busses
Vehicles Co
y 10%
chasses
Bus assembly
MNDCS
Iskandaria
Engineering
MB39304102
Currently American
Requires rehab
400
Vehicles Co
and raw
-
Deisel engine plant
_forces and
N 0%
-
1
damaged.... heavily
1st AD
materials
MB4174
Baghdad
Baghdad
damaged
Engineering
52 CA COM
Prepared to (b)(6)
16

Ministry Of Industry & Minerals: State Owned Enterprises
Damaged beyond repair
Needs Assessment as of 1 December 03
Operational within thirty days
Cap
Employ
Actions
Needs
Remarks
Enterprise
Location
Facility
• Uti vs
ment
File #
Sector
Factory
2002
Electricity
Remarks
Items
Remarks
Status
City
Grid
Type
Distre
Name
Priority
Province
Looting
Electricity
Needs Cash
Repairs from
Needs Other
Naturaul Gas
T August MW
Diesel Supply
Current supply
Capacity Need
Coalition Sector
Requires rehab
Earth moving
Vehicles Co
1
N 0%
and spare
-
equipment
beauty damage.
1st AD
Baghdad
Baghdad
parts
reconditioning
Engineering
Needs
Currently American
After sales service
N
Vehicles Co
vehicular rehab
-
200
0%
* forces
plant
to start
1st AD
Baghdad
Baghdad
Engineering
MB 288 862 MB 288 862
Near Al-
9 Shaab
∞ 17th Nissan Co
•
-
- - Heavily damaged and
1
Hooted.
289
N 0%
# Stadium...Al-
Casting
Baghdad
Rusafa side
Investment
Engineering
MBaghdada
Near Al-
2 Shaab
-
17th Nissan
0%
- Partially looted, needs
$
-
N
1
174
raw materials
Stadium...Al-
Baghdad
Baghdad
Rusafa side
Engineering
MB47948833
Sign Factory
3 Karkh
& side... sw
Col
17th Nissan
350
-
-
- Looted and damaged.
0%
1
Head
I side of city
Baghdad
Baghdad
Engineerin
Office and
near airport
17th Nissan
Looted and damaged.
Co
793
Baghdad
Baghdad
Engineering
monthly sales =
On rd to
State Co for
2 Mosul
SMW total at
•
Cotton
-
2MW diesel
500MID... inventory in r
20%
2,300
full Q
i opposite
finished product =
admin
Textile
Industries
5MW/Hr
Baghdad
Baghdad
M8377919
4.3Bid
railway
Production &
Cotton Industries
3-5MW
State Co for
required..7.75
started operations on
Y
Cotton
15%
Inventory = 4.25BID
•
2,400
MW at ful
130% of machinery
Textile
Cotton
1st AD
Industries
Diwaniah
Qadisiyah
Industries
Production
7.5MW/Hr
production
State Co for
Cotton
-
plant has ginning done 0%
in Baghdad
cotton
Textile
Kirkuk
4th ID
Industries
At Tamim
1.5MW/Hr
Industries.
Ginning Plant
352 CA COM
Prepared fo (b)(6)
17

Damaged beyond repair
Ministry Of Industry & Minerals: State Owned Enterprises
Needs Assessment as of 1 December 03
Operational within thirty days
Cap
Employ
Facility
Location
Needs
Enterprise
Actions
Remarks
File #
ment
a Util vs
Sector
Factory
2002
Electricity
Remarks
Remarks
City
Items
Status
Grid
Name
Type
Distro
Province
Priority
Looting
Electricity
Needs Cash
TAugust MW
Naturaul Gas
Needs Other
Diesel Supply
Current supply
Repairs from
Coalition Sector
Capacity Need
State Co for
Cotton
Requires additional
GMW total
1,300
Y
Operational
30%
Mosul
101st
Textile
Cotton
2mw
power required
Industries
Ninawah
Industries
Production
8 MW/Hr
LF3117720888
3287 total
Woolen Co.
8 156
-
700
Operational employment. 70%
40%
Carpet
admin
Textile
Baghdad
Baghdad
2MWhr
capacity
Production &
MB39388260
2mw own
Requires more
Woolen Co.
-
450
deisel
Y 25%
Operational electricity to increase
Textile
Baghdad
2MW/hr
generator
Baghdad
production
MB39419258
14th Ramadan
Woolen Co.
- 2MW diesel
300
Operational
Y 10%
30-Jut
1st AD
Textile
2MW/hr
Baghdad
Baghdad
MB39239295
Woolen Co
- 2MW diese
-
350
25%
39,675 Y
under repa
1-Jun
2MW/hr
Baghdad
Baghdad
MB37539421
Woolen Co.
-
- 2MW diesel
Y
10%
Textile
150g
1st AD
Baghdad
Baghdad
1.5MW/Hr
MB397925
on river 1/2 k
50% capacity... (raw
Woolen Co.
from furniture-
200
- Power interruptions
50%
Tajl
material shortage) per
Textile
4th ID
Service
factory
MB3402
DG... Dr K says no
Salah Ad Din
Clean and Dye Spinning Factory
Woolen Co.
Not
1,200
0%
• plant damaged
1
Textile
operational
Dhi Qar
MDDSE
Production
PV19803235
Clean and Dye
352 CA COM
Prepared for (b)(6)
18

Damaged beyond repair
Ministry Of Industry & Minerals: State Owned Enterprises
Operational within thirty days
Needs Assessment as of 1 December 03
Cap
Remarks
Employ
Q
Uti vs
Actions
Needs
Enterprise
Facility
Location
ment
2002
File #
Sector
Factory
Electricky
Status
Items
Remarks
Remarks
Grid
Type
Looting
Name
Priority
Province
Electricity
Needs Other
Needs Cash
Repairs from
Diesel Supply
Naturaul Gas
T AugUst MW
Current supply
Capacity Need
Coalition Sector
DORE UTTA
towards south
Has 2MW/hr
on road to
State Company
sales @ 150MID/
Started recently due
Y
37%
for Textile
Najaf and
month
to power supply
Babli
AJ Hilla
5MW/Hr
Textle
Diawinah...Ne
Industries
Company
capacity
Production
Filla Textle
ed grid
MA4650836873
Wassit State
sales @ 300MID/
5MW design
51%
Started production
N
Company for
-
2,657
month
capacity
Al Kut
Wasit
Textile
Textiles
MNDCS
Production
NA77439759
Wassit Textile
Requires
enhancement of raw
State Co of
material to increase
Ready Made
3,229
Textile
production. Also must
Wears
solve tent production
State Co of
N
0%
-
-
-Damaged, requires
Ready Made
rehab
Textile
Wears
Production
Najaf Factory
State Co of
Y
80%
Ready Made
300
-
Textile
Ist AD
Wears
1MW/hr
Eactory
Baghdad
Baghdad
Baghdad
Production
MB434911
State Co of
24%
-
Requires raw
Ready Made
materials
Wears
Textile
Production
Mosul Factory
State Co of
In City...Need
24%
-
o operational
Ready Made
Anah
Anbar
Textie
location...
Wears
0.5MW/ hr
Production
Anah Factory
Locations include
Mosul, KirkMDD SE,
State Company
- sales =$50,000/
Y 33%
9 a for Hand Made
Hilla, Ar Ramadi, An
month
Textile
Carpets
Andrau
Production
- 130 o
352 CA COM
Prepared for (hY6)
19

Ministry Of Industry & Minerals: State Owned Enterprises
Damaged beyond repair
Needs Assessment as of 1 December 03
Operational within thirty days
Employ
Cap
Facility
Location
Enterprise
Needs
Actions
Q Util vs
Remarks
File #
ment
Sector
Factory
2002
Electricity
Remarks
Remarks
Status
Items
City
Grid
Distra
Type
Name
Priority
Looting
Province
Electricity
Needs Cash
T August MW
Needs Other
Naturaul Gas
Repairs from
Diesel Supply
Current supply
Capacity Need
Coalition Sector
State Company
N
for Hand Made
-
101st
Y 40%
Textile
Mosul
Carpets
Ninawah
Production
State Company
o for Hand Made
•
Kirkuk
54%
4th ID
Textile
Carpets
Production
At Ta MiM
State Company
for Hand Made
•
• ..
•
Y 63%
Hilla
Textile
Babil
Carpets
MND CS
Production
State Company
for Hand Made
-
Y 87%
Hilla
Textile
Carpets
Production
MND CS
State Company
for Hand Made
-
82nd
Y 84%
Textile
Anbar
Carpets
Production
State Company
•
on for Hand Made
•-
Y 91%
Rawa
82nd
Textile
Anbar
Carpets
Production
Leather
" Manufacturing
~ 2MW witr
- Mense ar caperin
Production for August y
generato
50%
and 2mw stable
Co.
220M ID
Textile
1st AD
Baghdad
Baghdad
electric power
MB49508148
Leather
Power supply an
~ # → Manufacturing
686
Expected 700M ID for y
70%
° stablity issue.
Co.
Sept.
Tanning
Al Kufa
MNDCS
Prepared forl (b)(6) 352 CA COM

Damaged beyond repair
Ministry Of Industry & Minerals: State Owned Enterprises
Operational within thirty days
Needs Assessment as of 1 December 03
Cap
Employ
Q Uti vs
Actions
Needs
Enterprise
Location
Facility
Remarks
ment
File #
2002
Sector
Factory
Electricity
Items
Status
Remarks
Remarks
City
Grid
Distin
Priority
Name
Type
Locting
Electricity
Province
Needs Cash
Repairs from
Naturaul Gas
Diesel Supply
Needs Other
Capacity Need
Current supply
TAU -UST MW
Coalition Sector
Leather
Started production of
Producing 3M ID per
Y
20%
477
a Manufacturing
sports shoes
Najaf
day
Najaf
Textile
Co
MND CS
at entrance of
Leather
Karada..3km o
Manufacturing
from palace
Textile
Co
obtained contract i
Design and
N 0%
- Obtained a contract 10
0
rehab MIM HO
Ramadi = 1000MIL
Construction
Service
1st AD
Baghdad
Baghdad
MB45818799
Progress or work
depends on approval
Design and
-
of budget for project
N 0%
Construction
Mosul
Service
completion for 03 and
Ninawah
MB42928211
Design and
N 0%
Construction
Service
Basrah
Basrah
Design and
N 0%
Construction
Anbar
Service
Al Ramadi
Design and
N 0%
Construction
Anbar
88
Service
Al Quain
Prepared for (b)(6) 352 CA COM
21

Damaged beyond repair
Ministry Of Industry & Minerals: State Owned Enterprises
Needs Assessment as of 1 December 03
Operational within thirty days
Cap
Employ
Facility
Needs
Location
Enterprise
Remarks
Actions
Q Uta vs
ment
File #
Factory
Sector
2002
Electricity
Remarks
Items
Remarks
Grid
City
Status
Type
Name
Distra
Priority
Looting
Province
Electricity
Needs Cash
Naturaul Gas
Repairs from
TAugust MW
Diesel Supply
Needs Other
Capacity Need
Current supply
Coalition Sector
in process of
Design and
802
Industrial
obtaining contracts
looking for 1200SM
N0%
100K rent
with oil ministry
Consultation
Service
Baghdad
Baghdad
companies
State
commission
Have no research
forResearch
987
0%
-
contrats
Service
and
Baghdad
Baghdad
MB42968225
Development
State
Commission
Have not received
-
Undergoing reorg
N 50%
approval on new
for Training
Service
Baghdad
Baghdad
student enrollment
Centers
MB43659138
State
Commission
∞ *
•
-
Operational
Y 50%
for Training
Service
Dhi Qar
Centers
PV1350333
Nassariyah
State
Commission
60%
Operational
for Training
Basrah
Basrah
Service
Centers
State
Commission
Partially damaged
for Training
Y 30%
Service
Baghdad
Zaafarania
Centers
MB52887907
State
Commission
-
No%
for Training
Al Kut
Wasit
Service
Centers
Prepared For (b)(6) 352 CA COM
22

Damaged beyond repair
Ministry Of Industry & Minerals: State Owned Enterprises
Operational within thirty days
Needs Assessment as of 1 December 03
Cap
Employ
Q Uti vs
Remarks
Needs
Enterprise
Actions
Fackity
Location
g
ment
File #
Sector
2002
Factory
Electricity
Status
Items
Remarks
Type
Name
Province
Looting
Needs Cash
Naturaul Gas
Needs Other
Repars from
03 - 1084111
State
Commission
N
0%
Damaged
for Training
Basrah
Basrah
Service
Centers
State
Commission
Welding center
Y 20%
• *
operational
for Training
Service
Baghdad
Baghdad
Centers
State
Commission
N 0%
for Training
Service
Centers
State
Commission
for Training
Service
Centers
Started minor
Specialized
5%
contracts - worth
Institute for
287
1st AD
SOMID - needs rehab
Service
Engineering
Baghdad
Baghdad
Have found new
move
0%
Software
0
-
offees to rent
1.11.02
1st AD
Service
Baghdad
Baghdad
MB45798794
Current
Requires directives on
Industrial
y 50%
1
180
location of
111
what to do
Promotion
1st AD
Service
Ministry
Baghdad
Baghdad
MB473849
200 Meters
North of
Powerplant in
y 5%,
State Industry
1
-
Taji
for Furniture
Tali where US
1st AD
Service
Furniture
Salahdin
Baghdad
Production
0.5MW/ hr
Security is
MC33380209
352 CA COM
Prepared 4(h)(6)
posted..
23

Ministry Of Industry & Minerals: State Owned Enterprises
Damaged beyond repair
Needs Assessment as of 1 December 03
Operational within thirty days
Employ
Cap
Facility
Location
Enterprise
Needs
Actions
ment
Remarks
File #
Util vs
Factory
2002
Electricity
Remarks
Remarks
Items
City
Grid
Status
Type
Distro.
Name
Priority
Looting
Province
Electricity
Needs Cash
T August MW
Repairs from
Needs Other
Naturaul Gas
Diesel Supply
Coalition Sector
Capacity Need
Current supply
State Industry
Completety destroyed
for Furniture
0%
1
1st AD
Workshop
Service
Furniture
Baghdad
Baghdad
Production
Research and
Development
N: 0%
1st AD
Company
Service
Baghdad
Baghdad. Zaafaraia
Nasser Al
Started some
-
1,106
MIC
Adeem
contracts with oll
Y 30%
1st AD
Baghdad
Baghdad
ministry 260MID
MB48338187
Ibn Sena
750
Started production of
Y
5%
chemicals & gas
Contracts with oil and
Al Zawra
Review of previous ol
N
MIC
0%
contracts
1
1st AD
electricity worth $3BID
Zafarina
Baghdad
MB524478
Started contracts
Al Samood
1,487
MIC
7%
worth $1.9M
Baghdad
Merged with
Al Kharzen
1
362
-
Electronic Co...
N
Center
MIC
0.5
0%
Have contracts worth
Baghdad
$1.8 M
Bicycle
Company
Mixed
MNDCS
Mahmoudia
MB40665959 MB52727868 MC28721564
Mixed Sector
Companies
Mixed
1st AD
MB5279
Baghdad
Mixed Cluster
27 18
277.5
24
Prepared fa((h)/6) 352 CA COM

Ministry of Industry and Minerals
(USS)
Cash Inflows
1,480,000
831,500
MIM Headquarters
Survey
componat less
1,350,000
1,500,000
(9,250,000)
1,350,000
5,250,000
4,000,000
0,250,000
Geological Survey
(7,800,000) mining
component
1.159,200
1,159,200
44,481,600
3,518,400
2.318,400
70,000,000k
Mishraq Sulfur
22,000,000
1,150,200
70,000,000
$500,000
After transfer
Training & Rehabilitation
72,000
472,000
(100,000) stait ol 40
72,000
$450,000
172,000
(172,000)
remains with
(net transfer)
MIM
General Systems
788,400
500,000
788,400
4,543,400
1,956,600
7,000.000
7,000,000
$445,000
Company
407,250
1,221,750
800,000
407,250
(583,000%
2,383,000
1,800,000
1,629,000
$100,000
1,000,000
Hand Woven Carpets
Al Furat Chemical
1,567,000
4,854,000
(4,854,000)
3,000,000
3,114,000
3,000,000l
1,557,000
1,567,000
$1,500,000
3,000,000
industries
10,344.600
3.484.800
2,200,000
10,000,000
$3.000,000|
3,484,800
6,960,600
3,484,800
Petrochemical Industries
10,000,000|
(2,544,600)
2,800,800
5,781,600
$5.000,000
7,500,000
(6,106,600)
2,800,800
11,206,600
2,400,000
6,000,000
2,800,800
1,500,000
Phosphate
1,423,800l
2,847,600
2,000,000
(1.197,600)
7,500,000
1,423,800
6,697,800)
7,500,000
Northem Fertilizer
1,423,800
$1,000,000
9,509,200
3,000,000
1,212,300|
(3,509,200)
4,849.200
$1,500,000
8,000,000
1,212,300
Souther Fertilizer
3,636,900
9,000,000
7,426,000
12,000,000
20,174,000
1,036,000
1,035,000
4,140,000
$2,000,000
Northem Comont
48,600,000
48,600,000
3,105,000
6.000.000
25,872,000
5,940,000
37,800,000
1.485,000
5,928,000
1.485,000
Iragi Cement
$3,000,000|
37,800,000
4,455.000
10,752,000
15,000,0000
44,448,000
9.360,000v
2,340,000
70,200,000
70,200,000
Souther Cement
7.020,000
2,340,000
$2,600,000
750,000
5,049.600
(4,949,600)
1,760,000
1,750,000
2,109,600
850,000
Al Faris
1,099,800
$1.725,000|
249,800
1.949,800
A/ Qadasia (Dyala)
3,052,350
11,569,800
(5,569,800)
6,000,000
4,069,800
1,017,450
3,052,350
6,000,000
$2,600,000
Electrical Industries
Industrial Design &
2.013,000
1,458,000
(513,000)
1,500,000
1,458,000
$250,000
1,500,000/
1.458,000)
Consultation
6,033,600
1,500,000
16,833,600
10,000,000
10,000,000
6,033,600
6,033, 600
(8,333,600)
Ur Engineering industry
$2,700,000
Mining activity
Geological Survey &
82,800
2.500.000
817.200 minus survey
5,000,000
$1.500.000
817,200
5,000,000
2,417,200
Mining
activity
Nassr SC for Mechanical
4,451,400
1.000.000
(3,201,400)
4,451,400
$3,000,000
7,000,000
0,201,400
4,451,400
7,000,000
Industries
1,170,000
Drugs & Medical Supplies -
(2,080,000)
3,000,000
1,000,000
4,680,000
4,980,000
$1,500,000
1,170,000
3,000,000
3,610,000
Sammara
Drugs & Medica/ Supplies -
427,500
1,000,000
2,010,000
1,710.000
(2,010,000)
1,000,000
427,500
1,282,500
$1,200,000
1,000,000
Ninawa
2,129,400
1.000,000
(4,058,800)
$1,150,000
7,058,800
4,258,800
Glass & Ceramics
4,000,000
4,000,000
2,129,400
2,129,400
297,000
297.000
287,000
1.087,000
200,000
(387,000)
000,000
information Systems
900,000
$250,000
Industrial Design &
Transfer from MIM
828,000
3,562,000
828,000
1,188,000
250,000
5.000.000
$1,000,000
5,000,000
Construction** Budoet 2004 ame

Cash inflows
que
te Owned Ebterprise
Specialized Institute for
$250,000
1,458,000
2,000,000
400.000
2,118,000
2,000,000
(518,000)
1,458.000
1,458,000
Engineering Industries**
0 Transfer from MIM
$2,000,000
3,000.000
Woolen Industries SC
5,761,800
3,000,000
6.111.800
5,761,800
(3,111,800)
5,761,800
Textile Industries - Hilla
$1,000,000
3,000,000
4,881,800-
3,000,000|
7,206,600
4,881,600
(4,206,600)
4,881,600
$2,000,000
5,000,000
Vegetable Olls Industry
12,398,600
6,798,600
5,000,000
5,098,950
(7,398,600)
5,098,950
1,699,650
$1,000,000
Leather Industries
3,500,000
3,500,000
5,079,600
8,670,600
(5,179,600)
5,079,800
5,079,600
1,500,000
3,472,200
Bettery Industries SC
$1,000,000
1,500,000
7,222,200
(5,722,200)
868,050
868,050
2,604,150
$1,200,000
8,000,000
Mechanical industries
22,919,600
6,969,600
8,000,000
(14,919,600)
6,969.600
6,969,600
8,500,000
Cotton Industries SC
$1,000,000
8,500,000
12,096,000
12,846,000
(4,346,000)
12,006,000
12,096,000
Ready Made Wear
2,500,000
$1,000,000
5.812.200
8,637,200
Industries
5,812,200
2,500,000
5,812,200
(6,137,200)
11,250,000
$2,500.000
Tobacco & Cigarettes
11,250,000
1,750,000
4,042,800
1,000,000
17,774,618
3,771,400
271.400
2,021,400
(7,524,618)
$500,000
Iron & Steel
7,574,400
50,000,000
50,000,000
20,000,000
8,074,400
21,926,600
7,574,400
7,574,400
Electrical Industries SC
$2,500,000
7,000,000
5,684.400
7,000,000
9,604.400
(2,604,400)
4,263,300
1,421,100
4,263,300
4,320.000
6,000,000
Tires industries - Najaf
$500,000
6,000,000
8,120,000
1,500,000
(3,620,000)
1.080,000
1,080,000
3,240,000
$250,000
Wasit Textile
6,000,000
6,000,000
5,970,600|
9,385,600
5,970,600
(3,385,600%
5,970,600
$500.000
3,000,000
3,000,000
Construction Industries
5,783,400
1,000.000
8,283,400
5,783,400
5,783,400
(6,283,400)
Al Sawari Chemical
2,500,000
$160,000
3,479,800
2,500,000
1,729,800
1.297.350
Industries
(979,800)
432,450
1,297,350
$250,000
5,675,400
Paper industry
5,675,400
(5,675,400)
5,675,400
5,675,400
Rubber Industries
$500,000
2,161,800
2,161,800
(2,161,800)
2,161.800
2,161,800
$100,000
Industrial Promotion
Agency
338,400
5,000,000
500,000
338,400
(5,500,000)
5,338,400
(5,000,000) reclassification
$500,000
3,000,000
3,000,000
864,000
Sugar Industry
(12,864,000)
15,864,000
864,000
864,000
$125,000
Fumiture Factory
401,400
401.400
(401,400)
401,400
401,400
Dairy Products SC
$500,000
2,187,000
2,187,000
(2,187,000)
2,187,000
2,187,000
$100,000
1,449,000
Nissan (17)
1,449,000
(1.440,000)
1,449,000
1,440,000
Research & Development
$100,000
1.828.800
1,828,800
1,828,800
(1.828,800)
1,828,800
Car Manufacturing
$225,000
750,000
4,750,600
3,900.600
3,900,600
4,850,600
(4,760,600)
(Vehicle Industries)
(750,000)
$200,000
1,729,800
0
2,500,000
Refraciones Company
3,479,800
1.729.800
2,500,000
1.729.800
(979,800)
Budpet 2004 amendiliSheett

1,990,800
1,990,800
Nassor Al Adeem
1,900,800
1,350,000
1,350,000
Ion Sena
1,350,000
1,656,200
Al Zawra
1,555,200
1,555,200
2.878,600
2,676,800
Al Samood
2,676,600g
651,800
325,800
325,800
325,800
Al Kharzen Center
2,340,000
Al Shaheed
2,340.000k
2,340,000
1,612,800
1.612,800
Tareq
1,612,800
1,144,800
Hammurabi
1,144,800
1,144,800
718,200
718,200
718,200
Al Tahady
ton Al Walld
3.058.400
3.056,400
3,058,400
4,287,600
4,287,600
Al Schaa
4,287,800
4.122.000
Al Rashed
4.122,000
4,122,000
903,600
903,600
803,600
Azah al Kabir
1,157,400%
Al Noaman
1,157,400
1,157,400
2,237,400
AJ Uboor
2,237,400
2,237,400
Al Mansour
1,206,000
1,206,000
1,206,000
Al Radhwan
1,368,000
1,368,000
1,368,000
2.302,200
2.302.200
2,302,200
Al Nidaa
1,353,600%
AJ Salam
1,363,600
1,353,600
2,966,400
2.966.400
Ibn Maled
2,988,400
Total
105.700.000
4.850.000
50,400,000
445,800,000Đ
37,453,050
122,300,000
227,868,500
323,500,000
(77.910,818) 173,763,450
409,169,418
190,413,450
Budget 2004 amendilSheet1

mmaanrtrraf fonm

1. Min had whole bidy= back port quocated
MOE. (Befre war)
2. Mot semond the debris sull; Sheched it!
They are located in a wing a 400,
In ALwazeeta mea.
3.
5mil alloCated (
MHC
CDAC. )
morget Armand tilled.
sijied k
nue + void
@ mim go 170,000 = to cavale
mof alocated in NO/Dee 5,000 000, "DA
to revivale four stores (no AC/no eeride)

Page 1 of 1
(b)(6)
From:
(b)(6)
poD)|(b) (6)
Sent:
Monday, July 05, 2004 7:35 PM
(b) (6)
To:
Subject: FW: MIM/MOE Start Work Notice
FYI.
From: ((b)(6)
Sent: Monday, July 05, 2004 6:07 PM
To: (b)(6)
Subject: MIM/MOE Start Work Notice
(b)(6
Marvels, whos and eat ha, sole, Seven pois wife to us at sie ex wilcomes of making
working at the MIM site.
Regards,
(b)(6)
Task Order Manager
Parsons - BHE_
(b)(6)
7/6/2004

Page 1 of 1
b)(6)
Sent:
Friday, April 30, 2004 8:00 PM
To:
(b)(6)
Cc:
Subject: Ministry of Industry and Minerals Site visit
(b)(6)
starting to look around. The security teams could not tell where it was coming from and cut short our visit.
We were actually on the front side where the scrap metal is rather than the side we were supposed to be on.
be fine if they will be working. We could leave here at 1200 and meet at the building around 1230 or so on
either day.
The contractor was wondering if there are more drawings available for the facility in addition to the three that
Firas provided. Also, do you have a copy of a FEST report for the building or any other information that would
be helpful? Since the contractor is working in the building I assume the entire building has been checked for
IEDs etc? Any additional insight you have regarding the facility would be greatly appreciated. Thanks. Jerry
(b)(6)
Coalition Provisional Authority - Program Mgmt Office
Buildings. Health & Education Sector Manager
(b)(6)
5/1/2004

Yahoo! Mail - (b)(6)
Page 2 of 2
As we discussed, we were at the Ministry building yesterday
and heard small arms fire just as we were starting to look
around. The security teams could not tell where it was coming
from and cut short our visit. We were actually on the front side
where the scrap metal is rather than the side we were supposed
to be on. The Design Build contractor would like to reschedule a
site visit as soon as possible. We heard Saturday and Sunday
are holidays and assume Monday may be the best time to visit
again. Could you confirm if it would be possible for Firas, Dr
Hameed or both to meet with the contractor on Monday? Sunday
would also be fine if they will be working. We could leave here at
1200 and meet at the building around 1230 or so on either day.
The contractor was wondering if there are more drawings
available for the facility in addition to the three that Firas
provided. Also, do you have a copy of a FEST report for the
building or any other information that would be helpful? Since the
contractor is working in the building I assume the entire building
has been checked for lEDs etc? Any additional insight you have
regarding the facility would be greatly appreciated. Thanks.
(b)(6)
Comton Provisional unhoris - Program Ten Onice
Buildings, Health & Education Sector Manager
(b)(6)
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(b)(6)

Yahoo! Mail (b)(6)
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Q Sent
Subject: RE: Ministry of Industry and Minerals Site visit
3 Bulk (42) (Empty]
Date: Fri, 30 Apr 2004 20:10:42 +0400
4 Trash [Empty)
From:
ta Add to
(b) (6)
Aadress Bool
Just Curious?
To: (b)(6)
CC:
See your Credit.
United deal
to/from Dulles
Make your Y! Mail
a VA fax machine!
----Original Message-----
From:
Sent: Friday, April 30, 2004 8:03 PM
To: (b (6)
Cc:
(b)(6)
Subject: RE: Ministry of Industry and Minerals Site visit
---Original Message---
From:
Sent: Friday, April 30, 2004 8:00 PM
To: (b) (6)
Cc:
(b) (6)
Subject: Ministry of Industry and Minerals Site Visit
(b)(6)
(b)(6)
5/1/2004

Page 4 of 5
(b) (6)
just noticed a few errors in this one. Thave fixed them and attached the right one.
Please let me know how long until we can have the information. We need to write the
order to the contractor by the end of February and will need a few days to write it. Thank
you.
----Original Message--
From: firas samir ((b)(6)
Sent: Wednesday, February 18, 2004 9:04 AM
To: (b) (6)
Subject: Re: PIF Sample 16 Feb
thank you (b)(6) 1 apreciate your cooperation.
regards / Firas
- wrote:
• (b)(6)
Please be to So i a que in sain, ye equire.
COALITION PROVISIONAL AUTHORITY
PROGRAM MANAGEMENT OFFICE
BAGHDAD, IRAQ
PROJECT IDENTIFICATION FORM
PROJECT TITLE
MINISTRY
RENOVATE HEADQUARTERS BUILD
INDUSTRY AND MINERALS
LOCATION (MUNICIPALITY)
LOCATION (GOVERNATE)
SECTOR / SUBSECTOR
CONTACT TELEPHONE
CONTAC
CONTACT PERSON & TITLE...
DR. HAMEED AL ANBARI
PUBLIC BUILDINGS
CPA PRIORITY
PROJEC
GPS END
GPS START
IN US C
(FORMAT DDD.DDDDD).
(FORMAT DDD. DDDDD).
N/A
N
E
E
FROM W
OTHER FUNDING
DATE
REQUESTED?
PROJECT IDENTIFICATION N°.
14 FEBRUARY 2004
OAATC001
PROJECT OBJECTIVE AND JUSTIFICATION (Note: Address coordination with other projects, if known.)
Repair and renovate one wing of the building previously known as the Ministry of Electricity buil
The building is a 10 story (plus ba:
administration offices of the Ministry of Industry and Minerals.
concrete column and beam structure with masonry exterior. It has been looted and severel
(Refer to the attached US Army Corps of Engineers Structural Site Assessment dated Octo
investigation will neel d to be completed to en! sure the facility structures are sound and safe. (
damage from looting. Upgrade all structural components, exterior finishes, site utilities, interior f
power and plumbing beyond what was previously provided. The building will also house the Minis
Repair and upgrade to the Ministry of Electricity portion of the building is not included in this proje
to be a property agreement in place between the Ministry of Industry and Minerals and the Ministr
to the issue of this task-order contract.
SCOPE OF PROJECT
Define
Provide total square meters to be renovated
Describe any particular site modifications desired
Describe any specific need: sanitary sewer, storm sewer, mechanical systems, wat
Provide floor plans on A3 or A4 paper of existing and desired layouts
If a contractor bid exists, attach a copy
2/25/2004

Page 5 of 5
COST ESTIMATE
UNIT COST
Unit/
#
CO
ITEM
QUANTITY
($ 0
Measurement
1
2
Do Not Complete: For PMO use.
3
Read only the mail you want.
Do you Yahoo!?
Yahoo! Mail SpamGuard - Read only the mail you want.
4 FlourS://
Square Meters:
• MIM NAS K W/ SEDAC
for 4 flours (no AC/reech),
<
2/25/2004

Page 2 of 5
co-located with the Ministry of Electricity...? It was on the supplemental funding list but
we have not received any supporting information from the ministry. Without the
information, we cannot write the contract. Other ministries on the priority list have
provided this information and will receive the funding if Industry and Minerals cannot
provide the information requested. We had been worked with the CPA Senior Advisor's
office for 2 months trying to get the information and were constantly delayed or derailed
by the lack of response from them. Now it is do or die, so to speak.
Obviously we never got the required information and need to know if we are going to get
it otherwise the funding will go to another ministry's project. However, if you don't need
the funding - a simple message indicating such will suffice. If the Ministry of Industry and
Minerals is still in need of a Headquarters' building - it best get rolling to provide the PMO
with the information we have been repeatedly requesting (this should be obvious in the e-
mails attached to this message).
Let me know if you need more clarification - we are in the palace and you are welcome
to stop by anytime to discuss - unfortunately, this won't delay the deadline for the
information but may help you to get on track with the project and define the needs further.
Hope that helps.
(b)(6)
--Original Message--
From: (b)(6)
Sent: Sunday, February 08, 2004 6:28 PM
unec
vie : HO Industry and Minera
What building are we referring too?... I am not familiar with the project... also
highly doubtful that I can get this information in 4 days....
(b)(6)
-Original Message..
From: (b)(6
ent: Sunday, rebruary vo, 2004 4:19 Pm
To:(b)(6)
Subject: RE: HQ Industry and Minerals
(b)(6)
my apologies, it is no wonder this was never followed up
on, I suppose. Still need the info ASAP. As you know, the contract for
the supplemental funding is expected to be awarded in 3 weeks and we
need to have this contract completed.
Thanx.
---Original Messaqg.asn
From (b)(6)
Sent: Sunday, February 08, 2004 4:16 PM
To: (b)(6)
Subject: RE: HQ Industry and Minerals
convenience. My number is still /h\/G)
information needed is not provided we will have to move to the
2/25/2004
-

Page 3 of 5
ext priority on our list that has provided the information. If yo
o longer need the supplemental funds for refurbishment pleas
send me a return message stating such.
Thank vou
(b)(6)
Project Architect
CPA/PMO
---Original Message-.
From: (b)(6)
CIV Ministry of Ind/Minerals
Sent: Thursday, December 04, 2003 9:21 AM
To (b)(6)
Subject: RE: HQ Industry and Minerals
The best way to get the information quickly is to call the person
charge of the renovation project at the ministry - his name
Haweed al Am bari, DG Design and Ind. Construction Dep
(b)(6)
I Williet him know that you will be calling and that you need the
information quickly!!!
I am going out of town this morning and will return on Sat..
Senior Advisor
(b)(6)
Ministry of Industry and Minerals
Coalition Provisional Authority (CPA)
Bagnuad, trau
(b (6)
---Original Message-..
From: firas samir | (b)(6)
Sent: Wednesdav. Febryary 25, 2004 9:50 AM
To: (b)(6)
Subject: RE: PIF Sample 16 Feb
(b)(6)
I contacted again Dr.Hameed Al-Anbari about this issue and he told me that the ministry doesnt
know any thing about this issue and he is just in responsable for rehabilitating the Ministry of
Industry building.(untill know there is no agreement between our Ministry and the Ministry of
electricity regarding this issue).
ras, when will the information be available? Is there a way I can collect it from you? We ar
inning short on time to get this completed. Thank you for your helo. Marr
-Original Message --
From: firas samir (b)(6)
Sent: Wednesday, February 18, 2004 9:24 AM
To: (hV(6)
Subject: RE: PIF Sample 16 Feb
I will try to provide you with the information ASP.
2/25/2004

Page 1 of 2
(b) (6)
From:-' firas samir (b)(6)
Sent:
Wednesday, February 18, 2004 9:24 AM
((b)(6)
To:
Subject: RE: PIF Sample 16 Feb
I will try to provide you with the information ASP.
(b)(6)
wrote:
I just noticed a few errors in this one. I have fixed them and attached the right one. Please let me knou
now long until we can have the information. We need to write the order to the contractor by the end of
February and will need a few days to write it. Thank you
---Original Message---
From: firas samir (b)(6)
Sent: Wednesday, February 18, 2004 9:04 AM
To: (h)(6)
Subject: Re: PIF Sample 16 Feb
thank you (b)(6), I apreciate your cooperation.
regards / Firas
b)(6)
prote:
In the block titled Scope of Work is the information we require. Please le me
know if you have any questions. Thank you. Marna
COALITION PROVISIONAL AUTHORITY
PROGRAM MANAGEMENT OFFICE
BAGHDAD, IRAQ
PROJECT IDENTIFICATION FORM
MINISTRY
PROJECT TITLE
RENOVATE HEADQUARTERS BUILDING
INDUSTRY AND MINERALS
LOCATION (MUNICIPALITY)..
LOCATION (GOVERNATE)
CONTACT E-MAIL
SECTOR / SUBSECTOR
CONTACT TELEPHONE
CONTACT PERSON & TITLE
PUBLIC BUILDINGS
DR. HAMEED AL ANBARI
GPS START
PROJECT COST
GPS END
CPA PRIORITY
(FORMAT DDD.DDDDD)
IN US DOLLARS
(FORMAT DDD. ODDDD)
N
N/ A
PROJECT IDENTIFICATION
FROM WHOM?
OTHER FUNDING
DATE
N°.
REQUESTED?
QAATC001
14 FEBRUARY 2004
PROJECT OBJECTIVE AND JUSTIFICATION (Note: Address coordination with other projects, if known.)
Repair and renovate
eing to supporte be a ministration builds of ene win try on is use and Mine Electricry
2/25/2004

Page 2 of 2
building is a 10 story (plus basement) reinforced concrete column and beam structure with
masonry exterior.
It has been looted and severely damaged by fire. (Refer to the attached US
Army Corps of Engineers Structural Site Assessment dated October 2003.) Special investigation
will nee! d to be completed to ensure the facility structures are sound and safe. Clean and repair
all damage from looting. Upgrade all structural components, exterior finishes, site utilities,
interior finishes and interior power and plumbing beyond what was previously provided. The
building will also house the Ministry of Electricity.
Repair and upgrade to the Ministry of
Electricity portion of the building is not included in this project. There will need to be a property
agreement in place between the Ministry of Industry and Minerals and the Ministry of Electricity
prior to the issue of this task-order contract.
Provide total square meters to be renovated
Describe any particular site modifications desired
Describe any specific need: sanitary sewer, storm sewer, mechanical systems,
Provide floor plans on A3 or A4 paper of existing and desired layouts
If a contractor bid exists, attach a copy
COST ESTIMATE
Unit/
Co
UNIT COST
QUANTITY
ITEM
Measurement
($ 0
Do Not Complete: For PMO use.
3
5
Read only the mail you want.
2/25/2004

APPLICATION TO USE PUBLIC PROPERTY
(CPA/ORD/06 Jul 2003/ FMT )
INSTRUCTIONS: In order to receive authorization to use public property, please
provide the following information, all questions must be answered, and submit
this application to Facility Management Team, CPA HQS Rm. B103/
914.360.4677/ . E-mail applications to al-badria.irg@orha.centcom.mil. Based
on the information provided, the Facility Manager will determine, based on the
CPA Administrator's priorities and policies, whether to allocate the property and
whether it will be Category 1 property subject to a Letter of Authority or Category
2 property subject to a License.
APPLICATIONS MUST BE TYPED AND EVERY QUESTION MUST BE
ANSWERED TO THE BEST OF THE APPLICANT'S KNOWLEDGE OR IT
WILL NOT BE ACCEPTED.
03/21/03
DATE OF APPLICATION:
DATE REQUIRED TO OCCUPY PROPERTY: 04/20/04 to 04/20/05
I. APPLICANT INFORMATION:
1. Organization:
Ministry of Industry and Minerals
Describe the nature of legal organization and, as applicable, the percentage
of private and public ownership:
100% publicly owned building
2. If a private entity, describe the activities of the private entity:
NA
4. Name of the Action Individual who represents the entity (include title,
phone number, and other contact information):
(h\/A)
(b)(6)
(b)(6)
5. If multiple organizations will be sharing a property, please provide the
above information for each organization that will use the property.
Include the conditions or terms of the sharing arrangements:
NA

II. PROPERTY INFORMATION:
6. Provide the grid coordinates for the property:
GPS starts N 33.3288, E 44.41695
GPS ends
MB45668, 87883
7. Provide an approximate size of building requested (square meters).
Not available
8. Provide the number of parking spaces:
100
a. Provide a written description of the property.
10 story building completed in 1980
b. If a building, state the number of stories/floors.
10 floors
c. Describe what the building is made of (i.e., brick, concrete, steel,
etc.).
Concrete
d. Provide information on any major thoroughfares and public
services located nearby, such as hospitals, courts, or police stations.
Ministry of electricity headquarter, Ministry of education
Headquarter
10.
Provide a description of the conditions of any building or other
structures on the property (any other assessments or surveys that
have been done on the property or the structure should be provided
as attachments):
Requires renovation including floor, suspended ceiling, electrical, mechanical
and plumbing
11. Provide any available information that identifies the property as public
property. Provide information on what the property was used for under the
former regime. It is important to include the government entity that is the
registered owner of the property, a description of the prior use of the
property, and any other situational details that you can ascertain.
Ministry of Industry and Minerals Headquarter

12. Provide an inventory of any movable property. This includes any
furnishings and equipment. Describe the condition of each item as good,
fair, or poor:
NA
13. Provide a description of why this property was chosen and whether any
other properties were considered:
Ministry headquarters suffered damage as result of looting and fire during the
war.
14. If any other properties were considered, provide a description of why
they were not the preferred properties: NA
15. If there are any current occupants in the property, how many are there
and what organization, if any, are they associated with? NA
III. USE INFORMATION:
16. Describe any capital improvement plans) for the property. This
includes costs, timing, and resources and supplies for capital
improvements:
Building will be restored to pre war condition.
17. What type of activities will be conducted on the property?
Administrative
18. How many people are expected to use the building?
Aprox 600

(b)(6)
SIGNED BIKE
PHONE NUMBER b)(6)
Signature of Directorate, Brigade Commander, Senior Advisor to the Minister or
Agency Head is Required.

-
Page 1 of S
(b) (6)
From:
(b) (6)
Sent:
Wednesday, February 25, 2004 10:09 AM
'firas samir'
To:
(b)(6)
Cc:
Subject: RE: PIF Sample 16 Feb
--Original Message-
From: (b) (6)
Sent: Tuesday, February 10, 2004 8:22 PM
To: (b)(6)
Cc:
Subject: RE: HQ Industry and Minerals
Had this discussion today with the Chief of staff at MIM... he confirmed the MoE as tenant for adjacent space.
if you do not receive closure
Anyway he will get on Dr Hameed to contact you. Please follow yup with (b)(6)
within a day or two... I depart on Friday for good
(b)(6)
•--Oriainal Messade--
From: (b)(6)
Sent: Monday, February 09, 2004 10:31 AM
To: (bY(6)
Subject: RE: HQ Industry and Minerals
Yes, that is the building and Electricity has already completed the refurbishment of 1⁄2 of the building. We
were there at the same complex a few weeks ago looking at the Ministry of Education and Higher
education complex. Has the Ministry of Industry and Minerals already refurbished their half of the
building?
----Original Message---
From: (b) (6)
Sent: Sunday, February 08, 2004 6:50 PM
To: (b)(6)
Cc:
Subject: RE: HQ Industry and Minerals
about the same building...
(b) (6)
----Original Message -----
Sent: Sunday, February 08, 2004 6:41 PM
To: (b)(6)
Subject: RE: HQ Industry and Minerals
The Ministry of Industry and Minerals Headquarters building - supposedly meant to be
2/25/2004

Ful#933
APPLICATION TO USE PUBLIC PROPERTY
(CPA/ORD/06 Jul 2003/ FMT
INSTRUCTIONS: In order to receive authorization to use public property, please
provide the following information, all questions must be answered, and submit
this application to Facility Management Team, CPA HQS Rm. B103/
914.360.4677/ . E-mail applications to al-badria.irq@orha.centcom.mil. Based
on the information provided, the Facility Manager will determine, based on the
CPA Administrator's priorities and policies, whether to allocate the property and
whether it will be Category 1 property subject to a Letter of Authority or Category
2 property subject to a License.
APPLICATIONS MUST BE TYPED AND EVERY QUESTION MUST BE
ANSWERED TO THE BEST OF THE APPLICANT'S KNOWLEDGE OR IT
WILL NOT BE ACCEPTED.
DATE OF APPLICATION:
03/21/03
DATE REQUIRED TO OCCUPY PROPERTY: 04/20/04 to 04/20/05
I. APPLICANT INFORMATION:
1. Organization:
Ministry of Industry and Minerals
Describe the nature of legal organization and, as applicable, the percentage
of private and public ownership:
100% publicly owned building
2. If a private entity, describe the activities of the private entity:
4. Name of the Action Individual who represents the entity (include title,
phone number, and other contact information):
(b)(6)
(b)(6)
(D)(6)
5. If multiple organizations will be sharing a property, please provide the
above information for each organization that will use the property.
Include the conditions or terms of the sharing arrangements:
NA

II. PROPERTY INFORMATION:
6. Provide the grid coordinates for the property:
GPS starts N 33.3288, E 44.41695
GPS ends
MB45668, 87883
7. Provide an approximate size of building requested (square meters).
Not available
8. Provide the number of parking spaces:
100
9.
a. Provide a written description of the property.
10 story building completed in 1980
b. If a building, state the number of stories/floors.
10 floors
c. Describe what the building is made of (i.e., brick, concrete, steel,
etc.).
Concrete
d. Provide information on any major thoroughfares and public
services located nearby, such as hospitals, courts, or police stations.
Ministry of electricity headquarter, Ministry of education
Headquarter
Provide a description of the conditions of any building or other
10.
structures on the property (any other assessments or surveys that
have been done on the property or the structure should be provided
as attachments):
Requires renovation including floor, suspended ceiling, electrical, mechanical
and plumbing
11. Provide any available information that identifies the property as public
property. Provide information on what the property was used for under the
former regime. It is important to include the government entity that is the
registered owner of the property, a description of the prior use of the
property, and any other situational details that you can ascertain.
Ministry of Industry and Minerals Headquarter

12. Provide an inventory of any movable property. This includes any
furnishings and equipment. Describe the condition of each item as good,
fair, or poor:
NA
13. Provide a description of why this property was chosen and whether any
other properties were considered:
Ministry headquarters suffered damage as result of looting and fire during the
war.
14. If any other properties were considered, provide a description of why
they were not the preferred properties: NA
15. If there are any current occupants in the property, how many are there
and what organization, if any, are they associated with? NA
III. USE INFORMATION:
16. Describe any capital improvement plan(s) for the property. This
includes costs, timing, and resources and supplies for capital
improvements:
Building will be restored to pre war condition.
17. What type of activities will be conducted on the property?
Administrative
18. How many people are expected to use the building?
Aprox 600

• .
(b)(6)
SIGNED B
V
(b)(6)
PHONE NUMBER
Signature of Directorate, Brigade Commander, Senior Advisor to the Minister or
Agency Head is Required.

MINISTRY OF INDUSTRY & MINERALS
From: Economy Dep.
Auditing Dep.
Administration Dep.
State Co. for Design & Construction (SCEDAC)
To: Mr.(b)(6)
Senior Advisor of the Ministry of Industry & Minerals.
(CPA)
Subject: Repair of MIM Building.
Dear (b)(6)
subject on 20your your request her the last meeting regarding the above
CPA / MIM
Dr. Garabed
Dr. Sami
DG / Planning Dep.
DG / MIM
Dr. Fathil
Mr. Emad
DG / Administration Dep.
DG / SCEDAC
Dr. Hameed
Mr. Jasim
Project Manager.
The following is a summary of the funds allocated to repair MIM building
after canceling the previous contract between MIM and SCEDAC signed on
8/13/2003 and considered nullified and void. Never the less MIM requested
SCEDAC to continue repairing MIM building depending on the availability
of funds from its own resources.
One: 170 000 USD
1- Economy Dep. Informed SCEDAC that a sum of 170 000 USD have been
allocated to repair the first three floors of MIM building.

2- On 10/13/2003 SCEDAC wrote to the Minister of MIM regarding the
above and the Minister instructed Econ. Dep. to transfer the sum of 170 000
USD i.e. 162 380 USD to the account of Administration Dep. for the repair
of the first three floors.
The balance of 7620 USD were used to buy furniture for the temporary MIM
building, 3 floor of Development Building (copy of letter no. 1396 dated
11/8/2003 enclosed).
4- SCEDAC received 162 380 USD from Administration Dep. as stated in
the receipt no.5192519 dated 11/12/2003.
Two: the sum of 1500 MID.
1- The Ministry of Finance (MOF) has allocated 3300 MID to MIM and
MOF agreed to transfer 1500 MID from the 3300 MID for
maintenance i.e. repair of MIM building and as stated in the letter no.
404/3006 dated 11/16/2003 (a copy of which is enclosed).
2- Minister of MIM agreed to transfer 500 000 USD to SCEDAC account
as down payment and to transfer an additional 500 000 USD but in stages
depending of the progress of work of repairing the first four floors
(excluding central air conditioning and the five lifts) approved by a central
committee from MIM and in accordance of the letter no.2637 dated
11/18/2003 (a copy of which is enclose) - to be obtained from
Administration Dep.

MINISTRY OF INDUSTRY & MINERALS
From: Economy Dep.
Auditing Dep.
Administration Dep.
State Co. for Design & Construction (SCEDAC)
To: Mr. Rick Ortiz, Senior Advisor of the Ministry of Industry & Minerals.
(CPA)
Subject: Repair of MIM Building.
Dear (b)(6)
In response to your request after the last meeting regarding the above
subject on 21st
'. 12. 2003 in the presence of:
Dr. Garabed
CPA / MIM
Dr. Sami
DG / Planning Dep.
Dr. Fathil
DG / MIM
Mr. Emad
DG / Administration Dep.
Dr. Hameed
DG / SCEDAC
Mr. Jasim
Project Manager.
The following is a summary of the funds allocated to repair MIM building
after canceling the previous contract between MIM and SCEDAC signed on
8/13/2003 and considered nullified and void. Never the less MIM requested
SCEDAC to continue repairing MIM building depending on the availability
of funds from its own resources.
One: 170 000 USD
1- Economy Dep. Informed SCEDAC that a sum of 170 000 USD have been
allocated to repair the first three floors of MIM building.

2- On 10/13/2003 SCEDAC wrote to the Minister of MIM regarding the
above and the Minister instructed Econ. Dep. to transfer the sum of 170 000
USD i.e. 162 380 USD to the account of Administration Dep. for the repair
of the first three floors.
11/8/2003 enclosed).
4- SCEDAC received 162 380 USD from Administration Dep. as stated in
the receipt no.5192519 dated 11/12/2003.
Two: the sum of 1500 MID.
1- The Ministry of Finance (MOF) has allocated 3300 MID to MIM and
MOF agreed to transfer 1500 MID from the 3300 MID for
maintenance i.e. repair of MIM building and as stated in the letter no.
404/3006 dated 11/16/2003 (a copy of which is enclosed).
2- Minister of MIM agreed to transfer 500 000 USD to SCEDAC account
as down payment and to transfer an additional 500 000 USD but in stages
depending of the progress of work of repairing the first four floors
(excluding central air conditioning and the five lifts) approved by a central
committee from MIM and in accordance of the letter no.2637 dated
11/18/2003 (a copy of which is enclose) - to be obtained from
Administration Dep.

Iraqi Reconstruction
and Development
Council
Memo
To:
Minister Mohamad T. Rahim
(b)(6)
From:
Date: April 11, 2004
Re:
Industry Ministry Report
On December 1, 2003 the PMO signed a contract with the
Construction and Design Company, one of Iraq's State owned
companies, to rehabilitate and reconstruct the MIM building.
The contract is to clean all debris from the whole building and
rehabilitate 4 floors out of 12 floors by April, 15th 2004.
Two weeks ago I conducted an inspection for the MIM
building. I found the following:
1. In accordance with the contract, debris should've been completely
removed from the entire building. My inspection found the contrary.
While they are working on the lower floors, upper ones have not been
cleaned. Cleaning debris from upper floors after rehabilitating the
lower ones is extremely hazardous.
2. Major construction work still need to be done, especially at the lower
levels. Construction schedule is behind and completion date in my
judgment will be few weeks late.
The contract line items are extremely over priced to start with.
After a price comparison analysis, the difference in price
between what the market and fair value of this contract and
the actual is approximately $361,000. Furthermore, price
discrepancies occurred for the following reasons:
• This effort was done by individuals secretly without the knowledge of
the responsible staff or any consultants for privacy reasons.

---
• Some items that couldn't be checked by more than one source were
neglected.
• Some items were duplicated and some were not clear in description.
The result of the price check is described in the following table:
Price
Items
Work Description
difference
$44,000.00
Electrical
2-2, 2-1
works
Air Ducts
$9,500.00
1, 2, 4
Sanitary Works
4, 7,
$28,000.00
$279,000.00
Civil Work
3,4,5,6,7,
9,10,13,1
7
TOTAL
$361,000.000 = ID 541,000,000.00
Taking all into consideration, we recommend the following:
1. Request time extension from PMO to avoid the penalty of ID 50,000
per day that will accumulate on the SOE.
2. Set up a committee to study to re-evaluate contract line item costs.
The committee should be neutral and professional, i.e. the Baghdad
University or the Technology University consulting engineering
bureaus and submit their final evaluation to the minister's office.
3. This committee should also be responsible for construction
management of this project. Contract quantities installed and monthly
payments should be inspected and approved by this committee also.
This committee should also submit a weekly report including work
progress, quality assessment and a copy of the deficiencies and
violations to the minister's office.
4. A project procedure standard should be set up and followed up for all
future projects.
• Page 2

CPA - PROGRAM MANAGEMENT OFFICE
Task Order Review Routing Slip
Task Order No.: BP-001 : OPT 2
Renovate Ministry of Industry & Minerals Headquarters Building
Task Order Name:
Submitted for Review by:
e-mail address:
(b)(6)
_(b)(6)
Date
Submitted
Date Returned
Initials
Comments
Approved
SPMO Review:
(b)(6)
Construction Management Review:
(b)(6)
curitv/Cultural Raviat
Public Affairs Review:
(h)(6)
Ministry Senior Advisor Review:
Name:
• (b)(6)
Ministry:
Transmitted to Ministry:
Name:
Logistics Review:
(b)(6)
Information Copy Sent to JCMEB:
Name:
Cost Estimate Preparation:
Cost
Estimate
(b)(6)
Attached
Project Summary Sheet Prepared:
date
by (initiais)
Tasking Letter Prepared:
date
by (initials)
Director of Programs Review:
Financial Review:
Notes:
1. Reviews are due three days after the date submitted.
H: Industry and Minerals reviewRouting Slip

TASK ORDER NAME:
Renovate Ministry of Industry & Minerals
Headquarters Buildings
BP-001 : OPT 2
TASK ORDER NO.:
PROJECT ID .NO(S).:
QAATCOOI
DATE OF ISSUANCE:
March 20. 2004
TYPE OF FACILITY:
Administrative - Headquarters Buildings
PROJECT LOCATION:
Baghdad. Baghdad
GPS COORDINATES:
i North:
¡ East:
TASK ORDER OVERVIEW:
Clean entire site. Design and renovate site utilities.
Design and renovate existing administrative
buildings. Design and install landscaping and
pavements.
PROJECTED START DATE:
April 1. 2004
Status: Property acquired by the Ministry of Ministry
LAND ACQUISITION STATUS
of Industry & Minerals through the CPA Program
Management Oftice
DESIRED COMPLETION DATE:
180-day performance period
PRIMARY POINT OF CONTACT:
(b)(6)
(SPMO PROJECT MANAGER)
RCMO PROJECT ENGINEER:
MINISTRY PROJECT LIAISON:

PROJECT FUNDING
Funding for this project will be provided by the Coalition Provisional Authority - Program
Management Office (CP.A-PNIO).
START OF WORK
Contractor shall not proceed with any procurement or construction without written approval by
P.MO of final scope and price.
SCOPE OF WORK: OPTION 2: Ministry of Industry and Minerals Headquarters:
The work covered by this Scope of Work consists of furnishing all labor. equipment. materials.
security: housing. travel. testing. inspection and permits required to perform the design.
construction. demolition, repair, operation and maintenance. inspection and supervision
necessary to complete the work herein.
and lavators
INTENT OF PROJECT:
The existing Ministry of Industry and Minerals Headquarters building has suffered severe looting
and fire. The intent of this project is to fully renovate the designated Ministry of Industry and
Minerals building and site to fully operational and usable facility for the Headquarter function.
All architectural. mechanical and
Floors 1. 2. 3 and 4 are currently under rehabilitation.
electrical is being repaired in these floors except for the air handlers! This project shall fully
renovate the Ministry of Industry and Minerals building excluding floors 1. 2. 3 and 4. However.
air handlers. fire alarm systems. exhaust systems. HVAC systems including water towers. boilers
and chillers for the entire building are included in this project. Roof work is not included. Other
buildings on the site will not undergo rehabilitation as part of this project. Equipment and
finishes shall be of basic style. neutral color and durable quality: meant only to provide for the
lasting and basic needs of the Ministry functions within. Any further demolition of other
facilities. decoration. artwork. or furnishings are expected to be provided by the future
occupants.
SPECIFIC SCOPE OF WORK:
Conduct a complete site investigation and develop comprehensive drawings and descriptions of
the existing site utilities and conditions. With this information provide a complete design
documenting recommended use of existing systems and integration of new systems. for approval
by the Sector Program Management Office (SPMO). which will meet the needs of the Ministry
of Industry and Minerals Headquarters and their users. All work under this contract must
comply with the applicable International Building Codes.
2

Site Work:
Demolition and Clean-Up: The entire site and designated buildings shall be cleared of
debris. Dirt. trash, dead or overgrown vegetation and unnecessary or inappropriate material shall
he removed. Contractor is responsible for providing covered and secured waste containers. All
debris. rubbish and construction waste shall be properly disposed of at appropriate landfills.
Remove andior repair
Sidewalks: Analyze sutliciency of existing sidewalk system.
existing sidewalk as necessary and design and construct new sidewalk sistem in coordination
and site design with emphasis on
security and accessibility.
with the final building
Reconstruction shall allow for maximum drainage to storm sewers.
Parking: Design and provide secured. paved parking within the boundaries of the site
for one hundred ( 100) vehicles.
Provide paint striping for delineation of the approved parking
design. Maximize drainage to storm sewers.
Fencing: Provide exterior site fencing for security against trespassers. Include personnel
and vehicle gates where appropriate.
Lighting: Design and install sufficient site lighting to illuminate walkways for safety
and the site for security. Site-lighting design for the facilities shall be energy efficient. low-heat
producing. and be prescribed so that no more than two (2) different types of bulbs will be used.
All exterior lighting controls shall be photovoltaic with a manual override.
Roads: Design and modify existing access roadways as necessary to provide necessary
parking. secure stand-off distances and site security without denying existing accesses 10 other
buildings on the site.
Civil:
Structural Repair: Evaluate and analyze the condition of all structural components including.
but not limited to: columns. beams. joists. walls. basement and footings. Notify the SPMO
immediately of any components that cannot be repaired. Repair all other components to no less
strength than the original components. including plumbing, sewer. and water. If repair cannot be
made inconspicuously. the SPMO must approve the proposed repair.
Architectural:
Demolition and Clean-Up: The entire buildings shall be cleared of debris. Dirt. trash and
unnecessary or inappropriate material shall be removed from the buildings and site. Contractor
is responsible for providing covered and secured waste containers. All rubbish and construction
debris shall be properly disposed of at authorized landfills.
General:
Doors (Floors 5 to 10): Replace all damaged doors and frames with new ones that most
closely match the existing doors and in accordance with the approved design and refinish the
remaining doors and frames. Exterior doors shall be the appropriate combination of aluminum
and tinted glass and provide maximum security against weather and theft. Interior doors shall be
wood with the exception of hazardous areas where steel shall be used. All doors shall be
lockable. All hardware shall be aluminum or chrome finish.
Windows (Floors 5 to 10): Replace all damaged windows with new that most closely
matches the existing windows and in accordance with the approved design. Fifty-percent (50%)
of all exterior windows shall be operable to allow for maximum ventilation within the facilities
3

yet able to be appropriately secured against wreather and theft. Window tinting or tinted glazing
shall be used for minimal interior heat-gain.
Exterior Walls:
The interior and exterior surfaces of exterior walls shall be
appropriately repaired and-or patched and tinted to match existing. Repairs should be
undetectable. Clean and smooth the interior surface of the walls for painting. Ensure exterior
walls are weather-light.
Interior Walls (Floors 5 to 10): The interior partitions walls shall be removed and
replaced with new. Interior walls shall be of standard construction with a paintable finish. Tiled
walls should be treated the same as "Floors:" (in this section).
Ceilings (Floors 5 to 10): Suspended: Remove existing suspended ceilings entirely.
Install new, matching. suspended ceilings as part of the final design. Suspended ceilings should
support and conceal any mechanical. electrical or communications systems installed above the
ceiling. Provide 10% additional ceiling tiles to the SPMO. Concrete or plaster ceilings: All
permanent ceilings as part of the final design shall be repaired and/or patched to a paintable
tinish. Repairs should be undetectable. Paint all concrete or plaster ceilings.
Floors (Floors 5 to 10): Repair all floors. floor or wall tiles. and steps with the same
methods and materials as the existing floor. tiling. and steps so long as they are part of the final.
approved design. If tiles and/or steps are more than forty-percent (40%) damaged and/or missing
within a space. replace entirely.
Base (Floors 5 to 10): Install base along all walls. Base should match floors to the
maximum extent possible.
Elevators: Use existing elevator shafts for new elevators to carry the maximum number
of occupants and stop on all floors (One freight and five passenger elevators).
Office Spaces/Meeting Rooms (Floors 5 to 10): All offices and meeting spaces shall be
finished in basic. neutral finishes. Walls shall be clean and smooth and painted with one coat of
primer and two coats of flat. opaque paint. Install suspended ceilings no less than 2400mm
above finished floor with flush mounted. covered. light fixtures. Ceiling fans shall be provided
in every office spaced not tarther apart than 6m on-center and be controlled by switches located
adjacent to lighting controls. Flooring shall be mosaic or terrazzo tile. securely grouted with a
smooth finish. Manually operated. interior. vertical window blinds shall be provided for all
exterior windows. Wooden office doors shall be provided with tempered glass windows so that
occupants will be visible from the corridor.
Toilet Rooms (Floors 5 to 10): Toilet rooms shall be finished in basic. neutral finishes.
Design shall include analysis of fixtures adequate to meet the Code. Walls shall be of securely
grouted. ceramic tile and
sealed to be waterproof. Ceilings shall be clean and smooth and
painted with one coat of primer and avo coats of flat. opaque paint. Flooring shall be mosaic or
terrazzo tile. securely grouted with a smooth and waterproof finish. Each water closet shall be
enclosed in private rooms lockable by thumb-turn locks on the interior with occupancy indicators
on the exterior. Urinals shall offer privacy screens as typically accepted. Provide standard toilet
paper dispensers with supplies readily available locally. Provide a wall-hung shelf above each
water closer and lavatory. Provide disposable towel dispensers with supplies readily available
locally: Provide sufticient exhaust and at least one floor drain for each toilet room. Lighting
may be ceiling or wall mounted and be controlled by a single wall switch. All hardware and
accessories shall be of neutral or chrome metallic finish.
4

Water Closets (Floors 5 to 10): No less than fifty percent (50%) of the water closers
shall be commercial-grade. "Western-style" floor- or wall-mounted fixtures.
Lse existing
"Oriental-style" water closets to the maximum extent possible if determined to be repairable or
replaceable and in fewer than 50%o of the water closet locations.
Lavatories (Floors 5 to 10): Lavatories shall be commercial grade pedestal-style with
lever-handle. center-set faucets. All plumbing components exposed to view shall be polished
chrome or chrome plated.
Kitchen Areas (Floors 5 to 10): Kitchen and or break areas shall be finished in basic, neutral
finishes. Walls shall be of securely grouted, ceramic tile and sealed to be waterproot. Ceilings
should be clean and smooth and painted with one coat of primer and two coats of flat. opaque
paint. Flooring shall be mosaic or terrazzo tile. securely grouted with a smooth and waterproof
finish. Cabinets shall pre-manufactured wood to match interior doors and be provided with
neutral. aluminum or chrome-metallic hardware. Countertops shall be neutral. durable and solid-
surface. Provide a stainless steel sink and associated plumbing. Each kitchen and/or break area
shall be provided with a minimum of one floor drain. Provide power for a minimum of one full-
sized refrigerator and other. typical non-heat producing kitchen appliances.
Common Areas/Hallways (Floors 5 to 10): Common areas shall be tinished in basic. neutral
finishes. Install new. aluminum handrails in all stairwells. Permanent ceilings and walls should
be clean and smooth and painted with two coats of flat. opaque paint. Flooring shall be mosaic
or terrazzo tile. securely grouted with a smooth and waterproof finish. Lighting should be
appropriate for the space usage. Permanent. neutral-colored room and directional signage shall
be provided with room numbers in Arabic and emphasis given to visitor way-finding. A space
for room definitions to be personalized by the user shall also be provided on room signage.
Mechanical, Storage and/or Janitorial Spaces (Floors 5 to 10): Mechanical. Storage and/or
Janitorial spaces shall have basic lighting. neutral paint and concrete or tiled floors. They shall
have proper fire detection and exhaust systems. Janitorial spaces shall be provided with floor-
mounted mop-sinks. Mechanical rooms shall have floor or trench drains.
Mechanical: All mechanical design and construction must comply with the International
Mechanical Code unless otherwise approved in writing by the SPMO. Install new and complete
heating. ventilation and air-conditioning systems. Work will include all condensing units. air
handling units. coils. piping. ventilation and exhaust fans. grilles. registers. ductwork. hangers.
straps. insulation and fasteners. Design Criteria:
HVAC Design Conditions:
Summer: to 46 degrees Celsius (C) Dry Bulb (DB) and 21 C Wet Bulb (WB)
Winter: to 0C DB
Indoor Design Conditions:
Summer cooling: to 24 C with 50% Relative Humidity (RH)
Winter heating: to 21 C.
Heating and Air Conditioning: Design and install a new and complete heating.
ventilation and air-conditioning system utilizing single-manufacturer systems. Electric heating
and cooling units shall be factory-assembled and located on slab-on-grade or roof mounted. If
located on-grade. maintenance clearance. theft and sand protection shall be provided. Air
5

handling units shall be located within mechanical equipment rooms with adequate maintenance
clearance.
Exhaust and Ventilation: Provide outside air ventilation as required by the Code.
Provide exhaust fans with gravity dampers in Toilet Rooms. Break Areas. Mechanical Rooms.
Mecting Rooms and other areas. as required. Air intakes shall be located as high as possible to
minimize sand and dirt infiltration. Equipment shall be selected for performance in desert
environments and minimal noise levels.
Ductwork and Associated Components (Floors 5 to 10): Ductwork shall be
constructed and installed as per Sheet Metal and Air Conditioning National Association
(S.VIACN.A-L:S.) Standards. Ductwork and associated components shall be concealed within
finished spaces and provide proper airflow and temperature control throughout the facilities to
include fittings, grilles. registers and.or diffusers.
Return ductwork not routed within an air
conditioned space shall be insulated. All supply duerwork shall be insulated.
Thermostats (Floors 5 to 10): Thermostats shall be located away from heat-producing
equipment and or windows and be easily accessible. Design and install appropriate HVAC
zones and controls for the occupancy and for approval of the SPMO.
Electrical:
All electrical design and construction must comply with the International
Electrotechnical Commission Standards unless approved in writing by the SPMO.
Interior Electrical Service (Floors 5 to 10): Install new and complete building electrical
power and lighting system to include commercial grade wiring. panels. breakers. switches.
outlets. junction boxes. connectors and fixtures. Use existing raceway's and/or conduit to the
fullest extent possible adhering to the Code. Conduit and associated wiring components shall be
concealed within finished spaces. Panel board shall be circuit-breaker equipped and designed for
Lighting, Ceiling Fans and Outlets (Floors 5 to 10): Provide new lighting. switched
power outlets and lighting switches as required by the occupancy types. All covers shall be
matching chrome-plated with beveled edges. Lighting design for the facilities shall be energy
efficient. low-heat producing, readily available in Iraq and be prescribed so that no more than
four (+) different types of bulbs are required
Design and provide a new data
Communications Service (Floors 5 to 10):
communication system within the buildings. System shall include permanent connection ports in
all office and meeting areas.
Emergency Lighting (Floors 5 to 10): Design and install emergency exit lighting
system with battery backup.
Fire Alarm System: Install new and complete tire alarm system to include all pull
stations. horns. alarms. conduit. connectors. conductors. devices and other associated material
and equipment with battery backup.
Plumbing: All plumbing design and construction must comply with the International Plumbing
Code unless approved in writing by the SPMO.
Interior Plumbing (Floors 5 to 10): The plumbing system shall be installed and/or
repaired complete with necessary fistures. fittings. traps. valves. drains and accessories to be
fully operational and free of leaks. Piping shall be connected to exterior service lines as codes
and standards require to a reliable public water source and to a sanitary sewer or septic system.
6

Water piping shall be routed parallel to the building lines and be concealed in all finished spaces.
Provide insulation to control sweating.
Sewer (Floors 5 to 10): Design and renovate or install a functional and complete
burlding sanitary sewer system to include all piping. fittings. hangers. straps. flanges. traps.
drains. vents and fixtures. Sump pumps and or lift stations shall be installed as design deems
appropriate to adequately move all potential waste
Water (Floors 5 to 10): Design and install a new and complete building water
supply system to include all piping. fittings. hangers. straps. valves. faucets and fixtures.
Elevated water storage shall be repaired. improved and/or replaced to provide adequate water
supply to the facilities.
Hot Water Heaters (Floors 5 to 10): All new commercial hot-water heaters
shall be electric and be able to provide a minimum of 49 degree Celsius (C) hot water to all sinks
and lavatories within thirty seconds of faucet opening. Hot water heaters shall be located in
Mechanical Rooms or Janitorial Spaces unless otherwise approved by the SPMO.
ADDITIONAL REQUIREMENTS:
Codes and Standards: All new and renovated work must comply with the following codes and
standards and their references. The publications to be considered shall be those of the most
recent editions. These standards are included to establish a level of quality expectation. The
Contractor may propose equipment. material. and works that meet the intent of the publications
listed here. provided documented justification requests for such alternates are submitted and
approved by the SPMO.
IBC
International Building Code. ICC
IEBC
International Existing Building Code, ICC
International Electrotechnical Commission
IEC
National Fire Protection Association
NFPA
/ SMACNA
Sheet Metal and Air Conditioning Contractor's National
Association
IMC
International Mechanical Code
IPC
International Plumbing Code
Design: The work shall include property survey. design of all site civil work and utilities:
architectural. structural. mechanical. plumbing. electrical (including backup generator power).
life safety. and communications design. Design work shall include:
a. Schematic Design Documents (30% Design)
b. Design Development Documents (65% Design)
c. Construction Documents. including drawings and specifications (95% Design)
7

The schematic design. design development. construction documents. and final construction
documents shall be submitted to the SPMO. The design submittals shall consist of
specitications. drawings. design analssis. Calculations and other items as indicated in this Scope
of Work. The Contractor shall not begin a phase of the design process until written approval has
been received from the SPMO regarding the previous phase.
Schematic Design Submittal (30%): The purpose of this submittal is primarily to
insure that the contract documents and design analysis are proceeding in a timely manner and
that the design criteria are being correctly interpreted. The submittal
shall consist of the
following:
Preliminary Design Analysis
Outline Construction Specifications
• Construction Drawings consisting of (at a minimum): Existing and proposed site plan.
architectural plans. building elevations. and building sections.
• Preliminary Construction Cost Estimate
Design Development (65%): The purpose of this submittal is primarily to insure design
is proceeding that the design criteria are being correctly interpreted. Notice to proceed with
approved work may be given atter review of this submittal. The submittal shall consist of the
following:
•
Updated Design Analysis
Draft Construction Specifications
•
Construction Drawings consisting of (at a minimum): Proposed site plans.
architectural plans. elevations. typical wall sections. structural plans. mechanical
HVAC and plumbing plans. system flow diagrams. electrical one line diagram.
electrical lighting and power plans (including fire alarm and communications). and
typical details.
• Lipdated Construction Cost and Fixed Price Proposal
Construction Documents (95%): The purpose of this submittal is primarily to approve
the finalized design and give notice to proceed with all phases of construction. The submittal
shall consist of the following:
• Complete Design Analysis. Include all backup material previously submitted and
revised as necessary: All Design Calculations shall be included. The Design Analysis
shall contain all explanatory material giving the design rationale for any design
• Complete Construction Specifications including testing and commissioning
specifications and approval plan.
• Completed Construction Drawings. The Contract Drawings submitted for Final
Review shall include the drawings previously submitted which have been revised and
completed. as necessary: The Design Contractor is expected to have completed all the
coordination checks and have the drawings in a design complete condition. The
drawings shall contain all the details necessary to assure a clear understanding of the
work throughout construction

Final "-As-Built" Design and Construction Documents (100)
•
All items issued in the 95% submittal with incorporation of government comments
and as-built construction revisions
• All Operation and Maintenance Manuals
• All Certified Warranties
Design Analysis
The Design Analysis document shall be a bound At-sized paper document. The Design
Analysis shall include a written explanation of the project design which is expanded and revised
(updated) as the design progresses. The design analysis shall contain explanatory material giving
the design rationale for any design decisions which would not be obvious to an architect or
engineer reviewing the drawings and specitications. The design analysis shall contain the criteria
for and the history of the project design. including pertinent research. Design Calculations shall
be included in the design analysis. Narrative descriptions of design solutions shall also be
included. Written material may be illustrated by diagrams and sketches to convey design
concepts. Catalog cuts and manufacturer's data for all equipment. fixture and hardware items
shall be submitted. Copies of all previous design phase review comments shall be included with
each submission of the design analysis. An anticipated construction schedule timeline shall be
included in the Design Analysis.
Design Calculations: Calculations shall be in English or metric units as deemed
appropriate by the designer to meet the requirements of the design. Quantities on the contract
drawings stated in metric units shall also be stated in metric units in the design analysis.
The design calculations shall be presented in a clean and legible form incorporating a title
page and index for each volume with the Design Analysis. A table of contents shall be furnished
when there is more than one volume. The sources of loading conditions. supplementary sketches.
graphs. formulae, and references shall be identified. Assumptions and conclusions shall be
explained. Calculation sheets shall carry the names or initials of the computer and the checker
and the dates of calculations and checking. No portion of the calculations shall be computed and
checked by the same person.
Automatic Data Processing Systems (ADPS) are used to perform design
calculations. the design analysis shall include descriptions of the computer programs used and
copies of the ADPS input and output summaries. When the computer output is large. it may be
divided into volumes at logical division points. Each set of computer printouts shall be preceded
by an index and by a description of the computation performed. If several sets of computations
are submitted. they shall be accompanied by a general table of contents in addition to the
individual indices. The description which must accompany each set of ADPS printouts shall
include the following.
• Explain the design method. including assumptions. theories and formula.
•
Include applicable diagrams. adequately identified.
•
State exactly the computation performed by the computer.
•
Provide all necessary explanations of the computer printout format. symbols. and
abbreviations.
•
L'se adequate and consistent notation.
Provide suflicient information to permit manual checks of the results.
9

Construction Specifications: Specifications shall be prepared in accordance with the
Construction Specifications Institute (CS!) format. The Contractor's specifications shall include.
as a minimum. all applicable specification sections referenced by the CSI.
During the course of design. the Contractor shall specify specilic proprietary materials.
equipment. systems. and patented processes by trade name. make. or catalog number.
Specitications shall include required quality control and shall further indicate all testing
to be conducted by the Contractor. its subcontractors. vendors and'or suppliers.
Ambiguities, indefinite construction specification requirements (e.g.. highest quality:
workmanlike manner. as necessary. where appropriate. as directed etc) and language open to
interpretation are unacceptable.
Incorporation of SP.MO review comments shall be considered and implemented.
Drawings: Drawings are a requirement of each submittal. Complete. thoroughly
checked and coordinated contract drawings shall be submitted. All drawings shall be prepared
for metric size sheets to be legible and scaleable.
Computer Assisted Design and Drafting (CADD) are required for all work related to this
contract. The CADD deliverables shall meet industry standard and be in a format utilizing the
latest version of AutoCAD.
Symbols and abbreviations shall be internationally recognized.
The drawing package shall be divided into the following proposed divisions:
Discipline Designation
Discipline
C
Civil
XE
Exterior Electrical and Communication
XM
Exterior Mechanical
A
Architectural
Structural
M
Mechanical Design
P
Plumbing. Process and Piping
FP
Fire Protection and Life Safety
E
Electrical. Communications and Power
The scales indicated on the following list shall. in general. be used for all drawings. The
Contractor may. at its option. make exceptions to scales indicated. if approved in writing by the
SPMO.
a.
Site. Grading and Utility Plans - 1:500 Key Plans - As large as practical
b.
Floor Plans - Minimum size 1:100. Floor plans for all disciplines shall be the same
scale.
Cross Sections - 1:10
c.
d.
Details - As required for clarity and explanation or intent
All volumes of drawing prints shall be firmly bound and shall have covers of heavier
bond than the drawing sheets.
The first sheet of each volume in a set shall be a cover sheet. In general. the second sheet
shall be the first index. Multiple index sheets may be required. depending on the project size.
Each index sheet shall be signed and stamped by a principal of the Design Contractor.
10

For each submittal. legends of symbols and lists of abbreviations shall be placed on the
drawings. They shall include all of the symbols and abbreviations used in the drawing set. but
shall exclude any symbols and abbreviations not used.
To facilitate the location of project elements and the coordination of the various
disciplines' drawings. all plans shall indicate a column line or planning grid. and all floor plans
(except structural plans) shall show room numbers.
If the plan of the building must be placed on two or more sheets in order to maintain
proper scale. the total plan shall be placed on one sheet at a smaller scale. Appropriate key plans
and match lines shall appear on segmented drawings. Key plans shall be drawn in a convenient
location and shall indicate the relative location of the represented plan area by crosshatching.
Testing & Inspection:
Mechanical: Provide final HVAC testing. adjusting. balancing and commissioning
reports indicating a less than 10% deviation within each space in comparison to the original
design. Testing shall be performed in accordance with the Mechanical Code.
Electrical: Electrical system and generator testing indicate a less than 10% deviation
from design. Testing shall be conducted and approved in accordance with the Electrical Codes.
Fire alarm system testing shall be conducted and approved in accordance with the National Fire
Protection Association Standards.
Plumbing: Final plumbing and sewer pressure testing reports shall indicate a less than
10% deviation from design. All testing shall be performed in accordance with the Plumbing
Code.
Submittals:
Submit all designs. design changes. drawings. specifications. and manufacturer's submittals.
training manuals and training procedures. quality control procedures and safety and security and
environmental protection procedures to the SPMO or Resident/Project Engineer. as specified
below. At time of negotiations. the Contractor and SPMO will determine number and type of
copies of each submittal required to be submitted. Submit items at the time so determined by the
SPMO and documented on the Contractors schedule. All submittals shall include a cover letter to
the SPMO on or before the date so indicated by the contracior's schedule. Submit reports as
required by the SPMO on all project related issues to the SPMO. SPMO will provide design
review comments and approval within 14 calendar days.

Submit the following to the SP.WO and Residem/Project Engineer for review and approval:
Design and Construction Submittals: reviews will be conducted as specified in this
scope of work with coordination of the SPMO.
Equipment, Fixture, Finishing and Hardware Submittals: shall be submitted to the
resident project engineer to review and approve or disapprove within three (3) business days.
Equipment submittals must be accompanied by the related design analysis and calculations.
Schedules and Progress Meetings: submit progress and construction schedules along
with bi-weekly progress meeting minutes to the SP.MO within 3 business days of the progress
meeting or when there is a schedule change.
Quality Control Plan: Contractor shall perform all quality control throughout duration
of design. construction. installation. and testing and commissioning. Contractor's approved
quality control plan submitted within one month after mobilization to the site shall be followed.
Resident/Project Engineer will review the Quality Control (QC) plans and monitor all QC
activities.
Contractor will perform factory witness tests of primary components and be
responsible for all testing at the site.
Commissioning Plan: Contractor shall prepare a commissioning plan and submit it to
the SP.MO for review and approval. A Take-Over-Certificate, signed by the resident/project
engineer and a representative of the Ministry. will be issued to Contractor after all of the following
tasks have been completed:
•
Final inspection of Project by SPMO.
• Resolution and completion of final punch list items.
• Delivery and acceptance of final as-built drawings and operation and maintenance
manuals.
Environmental Protection Procedures: Contractor shall prepare an Environmental
Protection Procedure Plan and submit it to the resident/project engineer for review and approval.
Safety Plan: Contractor shall prepare a Safety Plan and submit it to the resident/project
engineer for review and approval.
Security Plan: Contractor shall prepare a Security Plan and submit it to the SPMO for
review and approval.
Preventive Maintenance Plan: Contractor shall prepare a Preventive Maintenance Plan
and submit it to the SPMO for review and approval. This Plan shall identify Manufacturer's
information and recommendations for preventive maintenance on all installed equipment.
Training Manuals: Contractor will be responsible for providing a minimum 3 hours of
training on each (1) HVAC. (2) Electrical. (3) Generator (4) Plumbing, and (5) Fire Alarm
systems and components. Contractors shall provide Training Manuals for the components
systems.
Submit the following to the Resident/Project Engineer for review and approval:
Construction Inspection Reports
Testing and Inspection Reports
Coordination Memoranda
Coordination with Resident/Project Engineer:
The Resident Project Engineer will be informed at least seven day's in advance of the following
activities:
12

Major utility shutdowns
•
Major equipment and/or system testing
•
HVAC and piping system balancing
Equipment start-up and commissioning
Ready for final inspection
Training
Conversion to Fixed-Price Task Order:
It is the intent of P.MO to negotiate a fixed price for this Task Order upon completion of the 65%
design.
Deliverables:
Provide all site assessments and designs with calculations and CADD drawings (where
applicable). Provide as-built drawings. training manuals. warranties. preventive maintenance
plans. and Operations and Maintenance manuals. in English. Arabic. and Kurdish (where
applicable).
Operation and Maintenance Manuals:
Provide 3 copies of legible Operation and Maintenance manuals for all new equipment. finishes.
fixtures and hardware bound and cataloged in CSI format on At sized paper.
Warranties:
Provide and certify manufacture warranty(s) for all materials. systems and equipment after
Provide a 12-month contractor-certified construction
issuance of the Take-Over-Certificate.
warranty for all construction and construction-related components. Provide a 20 year contractor-
certified construction warranty for new roofing system. Provide and certify warranties in the
name of the appropriate Iraq Government Ministry.
13

ATTACHMENT I: OPTION 1 - LOCATION MAP
2201
3 046*
14

ATTACHMENT 2: OPTION 1 - PHOTOGRAPHS
(NOT FOR BIDDING)
w321
MANIA!!
191727017-92
11771
Pin ther
- Rear
Building
• 1.
HI
Building 2 - Side
15

-32
Building Interior (typical)
Building 1 Exterior -Ground Floor
16

ATTACHMENT 3: OPTION 1 - FLOOR PLANS
(DESIRED SCHEMATIC LAYOUT FROM MINISTRY)
Schematic Floor Plans available in AutoCAD format. Contractor shall field verify all
conditions and dimensions.
17

Montmia Industy + Mineralo
RSCO Protective Security Mission Survey
One of the more difficult tasks facing the RSCO office is trying to project the
number of protective details that will be required to allow for efficient operations
following transition to a U.S. Embassy on July 1, 2004.
In an effort to understand what the requirements will be, the RSCO is requesting
that each office that will be represented in the U.S. Embassy complete the
following matrix. We understand that it may be difficult to project the exact
requirements. However, a "best guess" for planning purposes will allow for initial
staffing and requirements planning.
Estimated number of personnel
1
assigned to your office.
Estimated number of personnel
assigned to your office that will
2
require movements outside the
Green Zone as a function of their job.
Does your office anticipate having
regular "home to work" travel
requirements outside of the Green
Zone. If so, estimate the number of
personnel that will require this type of
transportation. This includes, for
3
example, personnel that may be
required to work in a ministry outside
of the Green Zone on a daily basis.
In the notes section below please
indicate the approximate number of
5
personnel traveling to each site.
List all of the anticipated locations
нім
За
that will require "home to work"
Baghdad S0ES
transportation. (i.e. MOI, MOD, etc.)
Estimated number of unique
missions outside of the Green Zone
< 1 dady
on a daily basis. A "mission" is
4
defined as a movement with any
number of Embassy personnel. This
would not include daily "home to
work" mission requirements.

Estimated number of missions
outside of Baghdad on a weekly
<1
basis. (do not include overnight
travel
Estimated number of overnight
6
<1
missions outside of Baghdad on a
weekly basis.
Estimated number of personnel
requiring transportation to/from the
<1
7
airport every week. Based on
anticipated R&R, TDY and rotation of
personnel assigned to your office.
Estimated number of monthly VIP
trips hosted by your office that will
2-2
require a dedicated protective detail
8
provided by the SO. This includes
senior department/agency officials,
cabinet level officials and members
of congress.

10, a
Lin. I hope that the info you obtained will help your mission.
obtained everything that we have on the MOI.
Quara oil refinery.
They make the
They are slated to make Asphalt.
They have two new
Tar that binds the rocks together to make asphalt.
boilers that were delivered to them by Turkey contractors.
had two huge storage tanks to hold the raw
material that makes the tar.
The manager states that they will be operational in a week. It is the
opinion that they could not be operational until alot more
modernization is completed. The factory has been idle since Iran/Iraq
War in 1982.
The plant was built in 1954.
None of the other equipment
to support the Tar making procedure has been repaired.
All of the workers and
Went to the State owned Sulfur factory.
We arrived at 13:15.
managers left at 12:00.
The plant in one work
has not been
The only thing that they are doing is
escavating raw sulfar. All of the processing plants operations appear
to be stopped.
There appears to be
two large deposits of sulfar on the
site. We will contact the managers to obtain more information.
The enviromental
team states that both plant need million of dollars to
bring the companies up to even safe standards if not international
standards.
If you have any quidance or a plan that we in Mosul could help
facilitate please let us know.
Thanks (b)(6)
Hello ma'am, There
a property called the Jabr Rubber Factory
The issue is,
The factory was destroyed by unknown reasons.
that I have an NGO,
Task Force Freedom/Red Creasent want to revitalize
a property and build a medical clinic, school and a factory of some
type to help the people of Mosul. I am tasked to find the owner of the
to aquire the property for the people who now
occupy the site.
They are Displaced Citizens. How and or who do I talk
This is a short fuse
to to make this happen.
The NGO want to
move on this quickly for reason I can't discuss on
the net. If you can
assist, I would
appreciate it. Thank you for your help.
I am scheduled to come to Baghdad as long as transportation works out
on the 24th of April. I would like to meet with you and your team.
Thanks again
Thank you for the information. This is what I need to go back to the
NGO and try to find
another site. If any of you have suggestions, I
will gladly accept them.
Thanks again. (b)(6)
Original Message -----
From:
((b)(6)
Date:
fonday,
April 12, 2004 3:17 pm
Subject: RE: Jabr Rubber Factory
> (b)(6)
• I am referring your message to (b (6)
who handles
› mattersrelated to the military
Industrial companies for this
I should
> office.
> tell you, however, that the rules we operate under with regard to

> disposition of government assets are very strict and that
> transition of
is out of the question and even leasing can be subject to
> ownership
Not to discourage you, but you are not on an easy
question
> legal
can tell you more.
> path. (b)(6)
> VR
}(b)(6)
Thank you Sir, I do need to make it clear that the NGO rep states that
they do not want to buy the property, he just wants to donate fixing
build medical clinic, and build a School.
the factory, build houses,
He and the NGO want to give this to the people who are squatting on the
If the people who are on the land can obtain ownership, or a
property.
100 year lease, mabe that is a way to do it. If this makes it any
this could work.
better to swallow, may be
I want to thank everyone
who has helped in this matter. If there any question, please contact me
This is a project that the NGO want to report back that the
any time.
land is cleared and they can start the process of coordination with CPA
and the Ministries.
Thanks ana
(b)(6)
Oricinal Message
(b) (6)
Date:
Monday,
April 12, 2004 5:08 pm
Subject: RE: Jabr Rubber Factory Property
(b) (6)
there are a few avenues available to pursue the NGO's
request.
(workingthe MIC
> I've cc'dl(b)(6)
(lawyer), (b)(6)
> issues)
(Private Sector Development's lead on
and (b)(6)
> SOEs) :
› - Leasing: The NGO may lease the property. This has to be a very
> transparent process with exact language on improvements, bids, etc.
> - Management Contract: The NGO may offer bids to an outside
> company to
> manage the Iraqi organizations (depending on expertise) who will
> in turn
> run the clinic, etc.
> - Joint venture:
More aggressive and also requires high level
> approval (I believe Amb Bremer level).
All require a lot of seein tease ence come ret
provisionsright now for foreign ownership.
it the minist ande out he s because caributed
> dissolved and there is a pending
• into other ministries or sent to a holding company). In this
> case, I
> improvise...
> Swing by when you're in town. We're in room $107...

>
I/
>
MBY
>
> (b)(6)
> Chief of Staff
> Office of Private Sector Development
> Coalition Provisional Authority
›Baghdad. Traa
(b)(6)
Bridina
.MYA
(b) (6)
>
Sent
Mondav. April 12. 2004 4:15 PM
> To: (b)(6)
› Subject: Jabr Rubber Factory Property
Hello, Sir I know you got Carbon Copied on this subject, if you
>
have any
guidance on this issue I would appreciate it. I been warned off this
property, but may be there is an other location that may b
viable.
I am going to Baghdad on the 24 thru 26. if possible, I would
like to
introduce myself and obtain any guidance on your mission that I can
> assist in Mosul. I feel limited in my position to help in Mosul
> due to
› limitations on thing I could or can do. Thanks again sir for your
> time.
(b) (6)

erostr
Security Support Information Sheet
General: Multi-National Force Iraq (MNFI) has responsibility for providing general
protection support for top IIG members and other officials. This support includes Quick
Reaction Force support, medical evacuation support and relocation of family members
in the event of an imminent or current threat. The below paragraphs outline support and
procedures to make a request.
1. MNFI is prepared to respond to emergency situations as follows:
a. QRF: MNFI is prepared to provide Quick Reaction Force support. This support
will respond to immediate threats against the Minister and his/her family. QRF support is
requested by calling the 15 Cavalry Division Joint Coordination Center at the following
numbers: (b)(6)
b. MEDEVAC: In the event of serious injury to the Minister, medical evacuation can
be requested. Medical evacuation will be requested through the 1st Cavalry Joint
Coordination Center.
C.
Relocation of Family Members: MNFI will temporarily relocate the Minister and
his or her immediate family members for a short duration because of a threat to his
residence or his family. It is the responsibility of the Minister to coordinate for a
secondary location to house himself and family members.
2. Telephones: Ministers will be provided THURAYA phones. These phones can be
used to contact the 15* Cavalry Division Joint Coordination Center to request either
QRF, MEDIVAC or family relocation support. Request each Minister Advisor Team
provide one person to receive training on the use of these phones. MNFI will provide a
time and place for this training and issue one phone to be given to each Minister.
3. POC for this Information Paper is (b)(6)
DSN: (b)(6)

Hajim Al-Hassani
Minister of Industry & Minerals (MIM)
Priority Issues:
Power to SOE Factories: The Minister of Electric has issued a Memorandum
advising that power will be shut or reduced to the Industrial Sector of the country
beginning 15 June. The MIM was just beginning to get some traction with its
cement, fertilizer and other infrastructure critical factories. Tens of thousands of
people will be sitting idle with the reduced power and construction materials
needed for the US Supplemental construction projects will need to be imported.
Security of MIM Headquarters: The bulk of the Ministry is currently located in
three temporary facilities and it is preparing to move back into the former
Headquarters that has been repaired. The local neighborhood is not particularly a
good one and this environment has serious security concerns, including large
abandoned buildings next to and around the MIM Headquarters.
Preparation of the 2005 Budget: It is critical that the Ministry prepare a realistic
and comprehensive Ministry Headquarters budget for the year. The budget is
due to Minister of Finance on/about 15 June. Additionally, it is time to exercise
proper oversight on the 60 State Owned Enterprises (located in almost 200
different locations) for each of their respective 2005 budgets.
Long Term Projects
Ministry Reorganization: The organization of the Ministry and the operation
thereof must be overhauled. The concept, development and way ahead has been
completed in the form of a report by DFID and previously approved by the former
Minister. Minister al-Hassani needs to review the strategic plan, make whatever
changes he feels are necessary and start implementation. Additionally, the
current Ministry Directors General staff is weak.
Redundant & Ghost Employees: As part of the strategic plan, this issue must
be addressed. It is an incredible drain on both the country's financial assets and
negatively affects the ability of an SOE to become financially independent. Re-
training programs are being developed through other ministries (ie. Ministry of
Labor & Social Affairs). S to the ghost workers, funding has just been allocated
for an SOE employee Identification Plan which has every indication of exorcising
ghost employees. The Minister will have to give top down support to the
implementation of the ID card program for it to succeed.
Capital Projects and Prioritization: Viable SOEs must get up and operational.
In addition to power requirements, many lack repair and spare parts, major
capital equipment. and qualified and motivated leadership. Although the intent

over the long term will likely be privatization, the better the targeted SOEs are
operating, the better value the Iraqi people will get when the asset is sold or
leased.
Staffing Status
Authorized five technical consultants: Senior Consultant, Technical Consultant
for industrial Development and SOE Transition, Technical Consultant for
Financial Management, Technical Consultant for Personnel & Training and Legal
Consultant.
who will be
The Senior Consultant position is already filled with (b)(6)
in that position through October 2004, at a minimum (possibly January 2005)
unless Minister al-Hassani determines that he'd prefer someone else.
Candidates for the other positions are being sought and interviewed at this time.
.........

Cement Companies
tragi Cement Company.
Kirkuk Cement Plant
Two million tons operating at very low capacity
requires overhaul
requires electric power currently 10-12 MW is available and unstable
Power requirements 35 MW.
Max. capacity reached in 2002 35% of design capacity.
Kubaisa Cement Plant
Two million tons design capacity.
electric power 10 MW unstable, only one furnace is
operating. Power requirements 43 MW
Max. capacity reached in 2002 is about 42% of design capacity
good quality of cement.
all million tons
Al-Qaim Cement Plant
One line requires overhaul.
10 MW being provided
power requirement 22.5 MW
Max. Capacity reached about 45% of design capacity.
good quality of cement.
Falluja White Cement
300 000 tons / year of white
Two lines are available, the third line requires overhaul.
3.5 electric power for grinding mills.
power requirement 10 MW.
Max. capacity reached in 2002 is about 60% of available
capacity.
Remarks on Company's
In 2002 total production achieved is about 2.25 Million
production
tons of cement, currently production is very low and
doesn't exceed 30-40 thousand tons per month.

Southur Calment 2x
Company, t
2200 000 Tons / year
Operating at low capacity because of power limitations
about 12 000 Tons / month.
electric power required 7 MW, available 3MW
New Kufa
A1.8 Million Tons design Capacity
Two of the four furnaces requires rehabilitation
grinding mill and other machines requires rehab.
actual production is about 35 000 tons / month
Electric power required 29 MW, available & MW
Karbala Cement Plant. 2
2 million tons design capacity
requires overhaul with major problem in power supply.
production is very low based on cement grinding hours.
Electric power required 35 MW, available 6 MW
Muthana Gerrent Planti 2 Million Tons Design capacity
One line is operating and requires rehab.
Current production limited because of power limitations.
electric power required 35 MW, available & MW.
Sadat Al-Hindia
NOT 200 000 Tons / year design capacity
An old Plant, requires rehab and upgrading
Current production 300D Tons / month only
Electric Power required 22 MW, available 3-5 MW.
Only grinding facilities up to 500 000 Tons / year
not operating because of lack in electricity power and
Traw materials.
Electric power required 10 MW, availabie power 3.0 MW
A-Ninook piant
Russian line / 45D 000 Tons per year (damaged and
Remarks"!
The Company produced 3.6 Million Tons in 2002 and can raise
production in case of provision of electric power and explosives and
needs funds for rehab. & upgrading.

Badoosh Cement Plant Old Badoosh 1a0 000 Tons / year design capacity.
New Badoosh 500 DOD Tons / year design capacity.
Badoosh Extension 1 Million Tons per year deskgn capacity.
Capacity utilized is about 35%
Power reguirement 55 MW, available power 12-15 MW.
Sinia:Cement Pantie
3200 tons / day design capacity.
available capacity 1 million tons.
requires rehab. & upgrading.
Max. design capacity utilization in 2002 i5 44%
Power requirement 35 MW, available 10 MW.
Hammam AHAit Ni: Old Hamma / 200 000
New Hammam 350 000
reguires overhaul & upgrading.
Max. Capacity utilization 35%.
Power raguired 15 MW. available 5 MW.
Capacity utiled. / In 2002 tatal production achieved was 1.4 million tons
current production 800 000 - 100 D00 tons per month.
ri:.

2003
Northern Cement Company.
Northern Cement Company
50000
120000
100000
40000
- Clinker
80000
30000
•- Revenues
Production
60000
20000
-- Cement
-- Cash flow
TONS
40000
Production
10000
20000
0
0
March
Months
Months
Revenues
Sales
Cement Production
Clinker Production
Cash flow
Months
Electricity
Employees
Tons
TONS
MID
MID
TONS
KWH
1014.2
10685115
79149
Jan.
1240.5
8645
55695
2160
77652
1362.6
92290
1413.3
2160
Feb.
11159
12459150]
1704
62196
1177.2
12000
2160
March
8396460
62012
415
345
1829.9
59.2
2160
0
56025
April
0
1084.3
372.8
5799
13376
782865
2160
May
June
13944
665.6
672.1
25839
2130
14325
1882440
537.9
1204.7
27439
25822
33685
2132
3485970
July
5426190
40194
34111
48547
1541.5
610.9
2134
Aug
60000
2598.1
6804270
50000
1475
57843
2134
Sept.
8622045
2552.4
Oct.
63867
45461
104768
2772.2
2134
42078
49688
38294
43125
3075.5
2134
Nov.
5680530
Dec.
35596|
62904
4558.234
27062
7026.639
3653370
2554

actual a
Plarined 2nd
hall of 2003
production
395 000
414 696
Clinker
411 200
502 054
Cement
Sales
493 662
411 200
The Company requires
a khan up trang of plans.
The Company is able to continue financing its activities.

Southern Cement Company
Southern Cement Company
60000
3500
3000
50000
2500
40000
→- Cement Production
2000
30000
→ Revenues
- Clinker Production
Lime Production
1500
- Cash Flow
20000
1000
10000
O
500
1
Months
Months
Lime Production
Cash flow
Month
Electricity
Cement Production Clinker Production
# of employees Revenues
Tons
MID
MID
3 Tons
MWh*1000
Tons:
0
0
0
0
0
543.514
5294
July
0.2
3321
0
5294
517.21
326.067
Augast
3.5
25667
9934
5294
506.386
152.836
4859
Sept.
8.7
Oct.
5294
47878
52464
1999.435
2255
10.541
6.1
Nov.
5294
39021
35089
574.986
2669.79
1350
Dec.
0
3190.903 875.945
27232
5329
Problems
Electric power
Production lines rehab. And upgrading
Fuel, Benzene, Deisel shortage.
Labour Force should be reduced.
Total Co. Sales 9.236 Billion ID..
Company Requires:
electric power and upgrading of plants & rehab.

Iraqi Cement Company.
18000000
16000000
14000000
12000000
10000000
→ Revenue
-- Cash Flow
0
July
Oct.
Dec.
Nov.
Sept.
Aug
Months
Kevenue
Electric Rowel
casa tow employees
KW
MID
MID
5898299
July
1252
26.133
261.3
26.133
1254
5403807
237.1
Aug.
1254
15304594
62.475
Sept.
132.2
2542054
Oct.
176.4
1249
596.881
Nov.
99.3
1688774
1043.36
1254
1011.67
Dec.
3194882
72.4
1259
Cash in bank (5.419 MID) + 670 834 USD (down payment for sulphur export)
250 000 USD (CPA's donation)
Remarks
Sulphur export
Quantity exported to Syria until the 31st of Dec. (929.5 Tons) and continuing at the rate of 250 tons/day.
A down payment of 260 000 USD received.

Northern Cement Company
Northern Cement Company
90000
month.
Production (Tons)
Sales (Tons)
80000
38760
32501
January
70000
45061
59212
February
60000
84984
79063
March
→ Production
55961
55904
50000
April
Total
226737
224709
40000
-=- sales
30000
20000
10000
Average price per Ton around 85 000 ID.
0
Чолі,
March
January
February
Months

Iraqi Cement Company.
Iraqi Cement Company
mghth (Production (rons) sales tons)
60000
13012
20400
January
12355
10742
February
March
49639
45854
50000 -
48238
April
34656
Total
125234
109662
40000
→ production
30000
- Sales
20000
10000
April
January February March
Month

Southern Cement Company
Southern Cement Co.
month i Production (Tons) Sales Tons
34488
39912
January
140000
50195
49006
February
120000
121245
March
106088
April
113255
111345
100000
Total
307540
317994
80000
→ Production
- Sales
60000
40000
20000
3
2
Month
Note: Total production for three Companies = 659511 Tons.
Total Sales For three Companies - 652365 Tons.
Average ince person:

Ministry of Industry & Minerals
Project Tracker -
COL Bien
1 Ministry Advisor
2 Ministry Strategic Plan
3 Ministry Reorganization
4 SOE Salary Issue
5 Post 01July04 hires
6 SOE Strategy (Way Ahead)
7 2004 Budget Issues
8 2005 Budget MIM
9 2005 Budget SOE's
10 Review Draft Labor Law
11 Review Draft Public Contracts Law
12 Capital Projects ID & Prioritize
13 Ba'ath Party (Employee) Issues
14 Frozen Accounts
15 Mixed Companies
16 Power Requirements / Fuel
Leasing Program Oversight
18 Patent, Copyright, Intellectual Property Issues
LTC Keller
1 FPS Budget
2 FPS Salary Distribution
3, Ministry Transition Planning, Event Coordination
4 FPS Emergency Response Plan
5 FPS Weapons/radios
6 CMO Database Manager
MIC TOA
8 MIC FPS transfer to MIM
9 MIM FPS POC for all actions/incidents
10 Boom Project
11 Fallujah Working Group rep from MIM & MIC
12 Movement Coordinator for PSD required trips
13 Ad hoc armorer and G4-scrounger
14 Ad hoc G-2, maps procurement officer
15 MIC poc for Iraqi Survey Group/Investigation
LTC Daigre
1 MIM $ SOE Employee ID Card
2 SOE's transfers from other Ministries
3 MIM Tenders tracking
4 ID SOE Corporate Board members
5 OFF Investigation Data Gathering
6 Training Primer
9 Real Property List, Locate, Title, Legal Discriptions
10 Motor pool Officer

Draft for Discussion
25/April/2004
Ministry of Industry & Minerals
Advisory Council
Minister
Central Staff
Inspector General
& Internal Audit
Directorate
Strategic Planning
Legal
IT & Data Bank
Finance
Personnel
Security
PR / Media
Deputy Minister.
eputy Minister
Andustry & Minerals
SOls &
development
Operations
SOE's Boards
Directors & mixed
Chemicals *
Industrial
Investment
SOE's Boards
Mining
development &
Regulation
Directors & mixed
Competitiveness
Promotion
Food *
SOE's Boards
Construction*
Domestic
Minerals
Market regulation
Technology
Directors & mixed
development
survey
Foreien
Product standards
Textiles *
SOE*s Boards
Benchmarking
Directors & mixed
& ISO
Exploration
Environmental
Industrial
Licensing
standards
estates
SOE's Boards
Engineering *
Export promotion
Directors & mixed
Social impact
assessments
Development
Industrial clusters
SOE's Boards
Metals *
licensing
Directors & mixed
Competition
commission
Human resources
development
SOE's Boards
Electric *
Directors & mixed
Fair trading agency
Others as
needed
* SIC Classification

We underline below the electric power supply to our cement plants knowing that
the under voltage and frequency are recurring many times every day and causing
damage to our equipment and plants stoppage.
1- Northern Cement Co.
During Peak (17-24 hrs)
Outside peak (1-16 hrs)
6MW
Sinjar
13MW
Badoosh
10 MW
10 MW
Hammam Aleel
4-5MW
10 MW
2- Iragi Cement Co.
During Peak (17-24 hrs)
Outside peak (1-16 hrs)
10 MW
Qaem
15 MW
Kirkuk
10 MW
15 MW
3 MW
Faluja, m
35 MW
[Kubaisa
16 Mco
10 MUS
3- Southern Cement Co.
During Peak (17-24 hrs)
Outside peak (1-16 hrs)
New Kufa
8 MW
14 MW
Old Kufa
3 MW
7 MW
=----------
UM Qasir
S MW currently stopped
Karbala
10 MW
17 MW
Muthana
10 MW
17 MW
Sadat Al-Hindia
3-4 MW
7 MW
tru
Kindly they to get the electricity people to control the voltage and to provide
constant load supply as currently these figures change every day.
13 / 5 / 2004
Dr. walid Khuder

COALITION PROVISIONAL AUTHORITY
BAGHDAD
INFO MEMO
The Administrator
FOR:
(b)(6)
_ Senior Advisor for Ministry of Industry & Minerals
FROM:
SUBJECT:
Ministry of Industry & Minerals Overview
A chart showing the organizational structure of the Ministry and the Minister's biography are
attached. StratCom will attach talking points and potential questions from the press and/or
Ministry employees.
Ministry's immediate post-transition plans include:
• Implementing the Ministry & SOE personnel database and
identification card program.
Validating the Ministry's employee payroll and the clearing of
•
*ghost' employees from the rolls.
Further rehabilitation of the Ministry Headquarters building.
Improvement of the Ministry's management structure to facilitate consistency and
accountability.
• Continue revitalization of the Ministry's SOEs.
Issues to be aware of:
• Many of the Ministry's State Owned Enterprises are not operating;
lack of electricity is the primary reason.
ATTACHMENTS:
Chart Reflecting the Ministry's Organizational Structure
Biography of the Minister
COORDINATION: StratCom (b)(6)

THE EVENT SCHEDULE FOR THE
Ministry of Industry and Minerals Transition
Baghdad, IRAQ
Tuesday, May 11
1020
Depart CPA Headquarters en route to motorcade
Motorcade
Lead
Limo
Principal
(b)(6)
Translator
Follow
DRIVE TIME: 5 Mins
1025
Depart Motorcade enroute to Baghdad Convention Center
Baghdad Convention Center
Baghdad, Iraq
10:30
Arrive at Baghdad Convention Center and proceed to cafeteria hold room
(Note: met by Minister Mohammed Tawfik Raheem
Sr. Adv. Lettie Bien)
EVENT:
Brief Meeting with Minister
NO PRESS; press set up in yard
INDOORS, cafeteria
BRIEF MEETING
DURATION: 15 minutes
PARTICIPANTS
Principal
Minister Mohammed Tawfik Raheem
(b)(6)
Translator
TRANSLATION: Consecutive
1035
Begin brief meeting
1050
Conclude brief meeting and proceed to podium on side of convention center garden
EVENT:
Transition Ceremony
OPEN PRESS
OUTDOORS, convention center garden
Remarks; transition event
DURATION: 25 minutes
ATTENDEES
Ministry staff
CPA Ministry of Industry and Minerals staff
PARTICIPANTS
1

Principal
Minister Mohammed Tawfik Raheem
(b)(6)
REMARKS; prepared
TRANSLATION: Consecutive
10:55
Begin ceremony
10:55 Introduction of Principal by Minister (3 min including translation)
10:58 Remarks by Principal [7 mins including translation]
11:05 Minister introduces Sr. Adv. to thank him [3 min including translation]
11:08 Comments by Sr. Adv. [5 mins including translation]
11:13 Closing remarks by Minister [7 mins including translation]
11:20 Remarks conclude and work ropeline of front row
Conclude ceremony, work ropeline and move to cafeteria for brief reception with staff
11:20
Brief Reception with Minister and Staff
EVENT:
NO PRESS
INDOORS, cafeteria
MINGLE
DURATION: 10 minutes
PARTICIPANTS
Principal
Minister Mohammed Tawfik Raheem
(b)(6)
Members of Industry and Minerals staff
TRANSLATION: Consecutive
11:25
Begin mingling
Presentation of gag gift
11:30
Conclude mingling, make farewells, and move to motorcade
11:35
Note: Minister moves to Press Avail back outside in garden
11:40
Motorcade departs for CPA
DRIVE TIME: 5 mins
Arrive at CPA HQ
11:45
2

1)
What does "sovereignty" mean to you? It means self government and taking decisions from
the Iragi point of view towards solution of internal problems and management of various
ministries.
How will life be different on July 1 for the average Iraqi? No difference at all. just
psychological difference, the success of the new government will depend on the
improvement of the security and also to gather people back to work and taking actions
against those who don't perform any work or do valid work:
Why is the Coalition transitioning full authority to Iraqi ministries now? So they can
depend on their selves to run their country and stop depending on the coalition in running
their country.
4)
What will Iraq look like in 5 years? We see a wonderful future for rag and development of
local industry and infrastructure and better living conditions for the Iragis. In 5 years Iraq
will be stable and it will be country number 3 after Egypt and U.A.E.
What shouldn't change after July 1%? The close relationship between the United States.
United Kingdom and Iraq to maintain the support to the new government and the
development of Iraq and to see the true democratic development in the country.
6)
What is your understanding of what government will look like and how it will function
between July 1 and January 2005? A transition government that should prepare everything
to the take over by the elected government after 2005.

I&A
Transition Ceremony - Ministry of Industry and Minerals
Q1: Why are Ministry's SOE's not privatized?
Al: Current laws in Iraq do not allow fro the privatization of State Owned Companies.
The Governing Council is looking at addressing this issue through legislation.
Q2: How can SOE's ever be privatized in light of the fact that they've traditionally
been subsidized by government?
2: Given their resources and expertise, many of the SOE's can be competitive in loca
nd regional markets. Iraq's reconstruction effort will be the driving force behin
demand.
Q3: How is safety and security in Iraq affecting the SOE's?
A3: Security issues have, at times, hampered the progress of the SOE's. To address this
issue the Ministry has recently increased the number of Facility Protection Personnel
from 6,000 to 10,000 which will significantly improve SOE security.
Q4: Some SOE's not operating because Coalition forces are occupying their
facilities. When will the Coalition leave and let Iraqis get back to work?
44: Commanders are occupying these facilities because they're strategically important
to maintaining safety and stability of Iraq. They will remove their forces from these site:
as security improves. The Coalition has done that in a number of cases already.
Q5: What is the future of private business in Iraq?
A5: Very promising. Iraq is well on its way to setting the stage for private sector
development with the creation of a new stock exchange, and laws enabling joint ventures,
banking and lending and private enterprise. Iraq is a nation rich in natural resources
quickly emerging into the world economy.

Ministry of Industry and Minerals
KEY MESSAGES
1. Revitalization of Iraq's Industrial sector is well underway
• A year ago, the industrial sector had been non-functioning. Neglect of Saddam
Hussein's regime, lack of principled management had taken it's toll. Just before the
war there was a collapse of management. Baathists and top management destroyed
evidence and looted offices leaving buildings decimated, and shutting down the
majority of SOE's.
Today: Majority of SOE's producing goods and services. Number of those goods are
central need items for rebuilding Iraq, including cement, iron, steel, chemicals,
carpets, pharmaceuticals and agricultural products. Management structure is in place
and functioning. There has been a thorough de-baathification of SOE's. MIM was
first Ministry to implement an IG program. The Minister is totally intolerant of
unethical practices for management and employees. He has not only helped rebuild
MIM, but rebuilt it atop a foundation of solid business practices and ethical
proceedings.
2. Iraq's industries are critical to safety and security of the country
• Iraq has largest commercially viable sulfur deposit in world. Mining it critical to
industry. Industry desperately needs sulfur for development of sulfuric acid, which
contributes to Health, Agriculture and Commerce. Pharmaceuticals, iron, steel,
automotive, pesticides, purification for specialized metals. Fences, rebar, buildings,
reinforcement for walls, gates; weapons, tractors, implements, irrigation pipe. Steel
supports oil industry - transport oil through metal pipes. One of first anti-biotics is
sulfur - still used some places.
FPS guard force of 10K people. Securing those sites helps secure safety and security
of Iraq. Infrastructure.
• Must be mined in responsible manner or harm local environment with acid rain.
3. The Employees of the Ministry are its greatest strength and asset
• MIM employees have extensive subject matter expertise, and extensive expertise in
the operation of machinery and in machinery processes. Employee inventiveness,
ingenuity and determination has been critical to bringing plants back online. For
example, in the petrochemical plant in Basrah employees creatively found ways to
improve efficiency of plant to get it operating. By internally reengineering their
production line they went from marginal output to now running at 100% capacity.
4. Competent and fair managers are now leading the Ministry
б
poised ho

• All managers speak consistently with one voice with respect to fairness, equity and
mission. CPA advisors to MIM have noted a significant difference in atmosphere of
the ministry. Employee voices are now heard, and there is no penalty for appropriate
questions.
• Educated - bring basis of preparation and critical thinking skills. Budgetary planning
for fiscal years 2004 and 2005 are complete.
• 1" Ministry IG system. IG has direct access to Minister and complete autonomy.
Minister is intolerant of corruption - unethical behavior and standards for fair
treatment of all employees.
YEAR AHEAD
1. Continued revitalizating, as well as development and expansion of the industry.
• Plans in place to increase productivity and market exposure
• As result of end of former regime and subsequent lifting of UN sanctions, Iraqi
industry now has the opportunity to export products and compete in the global
economy.
• Move into local and global market to make them competitive.
• MIM is a key piece of Iraqi economy which will help move it forward.
2. Developing business ventures between the companies and the private sector.
• Approaching sovereignty will enable Iraqi SOE's and companies to enter into
joint ventures and work with investors.
3. Further development and training of the Ministry's employees in order to
compete in the emerging Iraqi job market.
• Line managers to be trained in scheduling, coaching, mentoring, and developing
work force into a more competitive team.
CHALLENGES
•
Meeting the material and supply needs of the rapidly growing Iraqi economy during a
time of an increasingly competitive job market.
a) Must produce maximum industry output in order to meet the needs of Iraq
rebuilding process. PMO's $18 billion reconstruction projects alone will require
significant increase in jobs and production capability.
b) Other businesses have begun to enter Iraq. The MIM SOE's must compete in job
market for best Iraqi employees.

KEY FACTS
•
Ministry of Industry and Minerals is currently the largest single employer in Iraq.

- --. - - - •
THE EVENT SCHEDULE FOR THE
Ministry of Industry and Minerals Transition
Baghdad, IRAQ
Tuesday, May 11
Minister
enters office for office call
1210
Brief Office Call with Minister
EVENT:
NO PRESS; press set up in courtyard
INDOORS, office
BRIEF MEETING
DURATION: 15 minutes
PARTICIPANTS
Principal
Minister
Sr. Adv.
Translator
TRANSLATION: Consecutive
Begin office call
1210
Conclude office call and proceed to podium in courtyard
1225
Arrive at podium in CPA courtyard
12:30
Transition Ceremony
EVENT:
SMALL POOL
OUTSIDE, Courtyard
TRANSITION CEREMONY
DURATION: 20 minutes
ATTENDEES
Principal
Minister
Sr. Adv.
Approx. xxxx others from ministry
PARTICIPANTS
Principal
Minister
Sr. Adv.
REMARKS; prepared
TRANSLATION: Consecutive
12:30
Begin ceremony
12:30 Introduction of Principal by Minister [4 min including translation]
12:34 Remarks by Principal (8 mins including translation]
12:42 Minister introduces Sr. Adv. to thank him (4 min including translation]
12:56 Closing remarry MiSter 15 mind intrang translation)
1

12:57 Remarks conclude and work rope line
12:57
Conclude ceremony, work rope line and move to Ambassador's conference room for
reception
EVENT:
Brief Reception with Minister and Staff
NO PRESS; press to remain in courtyard for gift presentation and minister's press avail
INDOORS, Ambassador's conference room
MINGLE
DURATION: 10 minutes
PARTICIPANTS
Principal
Minister_
Sr. Adv.
35 members of staff???????
Translator
TRANSLATION: Consecutive
13:00
Begin mingling
13:00
Conclude mingling and move to gift presentation
EVENT:
Presentation of Gift
OPEN PRESS
OUTSIDE, Courtyard
DURATION: 5 minutes
PARTICIPANTS
Principal
Minister
13:05
Minister presents gift
13:10
Conclude presentation of gift and farewells and depart for office
Note: Minister (and Sr. Adv.) move to press avail
Arrive at Office
13:11
2

--
COALITION PROVISIONAL AUTHORITY
BAGHDAD
INFO MEMO
FOR:
The Administrator
(b)(6)
FROM:
Senior Advisor for Ministry of Industry & Minerals
SUBJECT: Ministry of Industry & Minerals Overview
A chart showing the structure of the Ministry and the Minister's biography is attached. Strat
Com will attach talking points and potential questions from the press and/or Ministry employees.
Ministry's immediate post-transition plans include:
• Implementing the Ministry & SOE personnel database and
identification card program.
• Validating the Ministry's employee payroll and the clearing of
'ghost' employees from the rolls.
• Further rehabilitation of the Ministry Headquarters building.
• Reorganization of the Ministry's management structure.
• Continue re-starting of the Ministry's SOEs.
Issues to be aware of:
• Many of the Ministry's State Owned Enterprises are not operating;
lack of electricity is the primary reason.
• Many ministry employees, including SOE employees, remain confused
bout the 11-tier salary plan and are disgruntled. These employees expecte
40% pay increase over the 4-tier plan
ATTACHMENTS:
Chart Reflecting the Ministry's Structure
Biography of the Minister
COORDINATION: Stra (b)(6)

THE EVENT SCHEDULE FOR THE
Ministry of Industry and Minerals Transition
Baghdad, IRAQ
Tuesday, May 11
1020
Depart CPA Headquarters en route to motorcade
Motorcade
Lead
Limo
Carruthers
Principal
Translator
Follow
DRIVE TIME: 5 Mins
1025
Depart Motorcade enroute to Baghdad Convention Center
Baghdad Convention Center
Baghdad, Iraq
10:30
Arrive at Baghdad Convention Center and proceed to cafeteria hold room
(Note: met by
Minister Mohammed Tawfik Raheem
b)(6)
EVENT:
Brief Meeting with Minister
NO PRESS; press set up in yard
INDOORS, cafeteria
BRIEF MEETING
DURATION: 15 minutes
PARTICIPANTS
Principal
Minister Mohammed Tawfik Raheem
Translator
TRANSLATION: Consecutive
1035
Begin brief meeting
1050
Conclude brief meeting and proceed to podium on side of convention center garden
EVENT:
Transition Ceremony
OPEN PRESS
OUTDOORS, convention center garden
Remarks; transition event
DURATION: 25 minutes
ATTENDEES
Ministry staff
CPA Ministry of Industry and Minerals staff
PARTICIPANTS
1

Principal
Minister Mohammed Tawfik Raheem
Sr. Adv.(b) (6)
REMARKS; prepared
TRANSLATION: Consecutive
10:55
Begin ceremony
10:55 Introduction of Principal by Minister [3 min including translation]
10:58 Remarks by Principal [7 mins including translation]
11:05 Minister introduces Sr. Adv. to thank him [3 min including translation]
11:08 Comments by Sr. Adv. (5 mins including translation]
11:13 Closing remarks by Minister [7 mins including translation]
11:20 Remarks conclude and work ropeline of front row
11:20
Conclude ceremony, work ropeline and move to cafeteria for brief reception with staff
Brief Reception with Minister and Staff
EVENT:
NO PRESS
INDOORS, cafeteria
MINGLE
DURATION: 10 minutes
PARTICIPANTS
Principal
Minister Mohammed Tawfik Raheem
(b)(6)
Members of Industry and Minerals staf
TRANSLATION: Consecutive
Begin mingling
11:25
11:30
Presentation of gag gift
11:35
Conclude mingling, make farewells, and move to motorcade
Note: Minister moves to Press Avail back outside in garden
11:40
Motorcade departs for CPA
DRIVE TIME: 5 mins
11:45
Arrive at CPA HQ
2

MINISTRY OF INDUSTRY & MINERALS
May 2004
KEY MESSAGESI ACCOMPLISHMENTS
1. Revitalization of Iraq's industrial sector is well underway
• A year ago, Iraq's industrial sector was non-functional. Neglect by Saddam
Hussein's regime, and lack of principled management had taken its toll on this
area of the economy. Just before the war there was a collapse of industrial
management. Ba'athists and top management destroyed evidence of
wrongdoing and looted offices leaving buildings decimated, and shutting
down the majority of State Owned Entities (SOE).
• Today, the majority of SOE's are producing goods and services. A number of
those goods are central need items for the rebuilding of Iraq, including
cement, chemicals, fertilizers, textiles, pharmaceuticals and food products.
•
Management structure is in place and functioning. There has been a
thorough de-ba'athification of SOE's. The Minister, Mohamad Tofiq Rahim, is
totally intolerant of unethical practices for management and employees. The
Ministry of Industry and Minerals (MIM) was the first Ministry to implement an
Inspector General (IG) program. The Minister not only helped rebuild MIM,
but rebuilt it atop a foundation of solid business practices and ethical
proceedings. The CPA Advisor's Office to MIM, particularly Senior Advisor
Lettie Bien, has been enormously supportive of all of these efforts,.
2. Iraq's industries are critical to safety and security of the country
Iraq has the largest commercially viable sulfur deposit in the world. Mining it
is critical to industry. Industry desperately needs sulfur for development of
sulfuric acid, which contributes to Health needs, Agricultural production and
various Industrial projects.
Facilities Protection Services (FPS) has a guard force of 10,000 people.
Securing those sites helps secure Iraq's industrial infrastructure.
• Factories must be managed in a manner that will not harm the local
environment.
3. The employees of the Ministry are its greatest strength and asset
• Employees have extensive subject matter expertise, and extensive expertise
in machinery operation and processes. Employee inventiveness and
ingenuity have been critical to bringing industrial plants back online. For
example, in the petrochemical plant in Basra employees creatively found
ways to improve efficiency of plant operation. By internally reengineering

--
their production lines they increased production and improved the quality of
their products.
4. Competent and fair managers are now leading the Ministry
• All managers speak consistently with one voice with respect to fairness,
equity and mission. CPA advisors to MIM have noted a significant difference
in atmosphere of the ministry. Employee voices are now heard, and there is
no penalty for appropriate questions.
• Managers are educated, and bring a basis of preparation and critical thinking
skills. Budgetary planning for fiscal years 2004 and 2005 are complete.
• First Ministry IG system. The IG has direct access to the Minister and
complete autonomy.
• Minister is intolerant of corruption and unethical behavior. He stands for fair
treatment of all employees.
YEAR AHEAD
1. Continued revitalization, as well as development and expansion of the
industry
Plans in place to increase productivity and market exposure
•
• As result of the end of the former regime and subsequent lifting of UN
sanctions, Iraqi industry now has the opportunity to export products and
compete in the global economy.
• Move into local and global market to make the industry competitive.
• MIM is a key piece of the Iraqi economy which will help move it forward.
2. Development of business ventures between companies and the private
sector
• Approaching sovereignty will enable Iraqi SOE's and companies to enter
into joint ventures and work with investors.
3. Further development and training of the Ministry's employees in order
to help the industry compete
• Line managers to be trained in scheduling, coaching, mentoring, and
developing work force into a more competitive team.
4. Meeting the material and supply needs of the rapidly growing Iraqi
economy

• Produce maximum industry output in order to meet the needs of Iraq
rebuilding process. PMO's $18 billion reconstruction projects alone will
require significant increase in jobs and production capability.
• Other businesses have begun to enter Iraq. The MIM SOE's must
compete in job market for best Iraqi employees.
KEY FACTS
• Ministry of Industry and Minerals is currently the largest single employer in
Iraq.