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/ 40
R 121835Z MAY 04
FM CPA BAGHDAD
TO SECDEF WASHINGTON DC
SECSTATE WASHDC 0911
WHITE HOUSE NSC WASHDC
INFO IRAQ COLLECTIVE
UNCLAS BAGHDAD 000467
SENSITIVE
E . O. 12958 : N/ A
TAGS: EAID , EFIN, ETRD , EPE~ , PGOV , PHUM, IZ
Subject : QCPA 1130 : Administrator' s Weekly Essential
Services Report : May 1-7 , 2004
1 . (SBU) Summary . The Essential Services Report is one of
four Administrator ' s reports produced weekly by CPA-
Baghdad. CPA-Washington distributes all four
administrator ' s weekly reports - Security, Essential
Services, Economic , and Governance -
· with graphics via
email . The Economic , Governance, and abridged versions of
the Security and Essential Services reports will be posted
after 48 hours on the CPA website , www . cpa-iraq.org. The
full Security and Essential Services reports remain
sensitive but unclassified. Headlines of paragraphs 3 - 8
reflect goals in the coalition provisional authority
strategic plan. End summary.
2 . (SBU) Highlights
The seven-day average (May 1-7) of peak electricity
production was 3 , 766 MW .
Stock levels f o r a ll four major fuels (diesel , benzene ,
kerosene , and liquefied petro leum gas) are at seven days of
supply or better nationwide for the first time since
recording began in September 2003.
Si nc e May 200 3, t he CPA has established cell pho ne
service for 389 , 111 subscribers nationwide .

Provide Elec tric i t y Services that Meet National Needs
3 . (SBU) CPA tasks : Improve generating capacity to 6 ,000 MW
by June 1 , 20 04 ; fully implement policy on allocation of
electrical p ower ; publish draft of long term strategy ;
minimize sabotage and improve security.
The seven- day average (May 1-7) of peak electricity
production was 3 , 766 MW, a decrease of 7.5 percent from the
previous week . On May 1 , peak production hit a high for
the week at 4 , 071 MW . There was an increase of unplanned
generator outages which contributed to the decline .
The seven-day average (May 1-7) of total production of
electrical energy was 80 , 172 MWh per day , a decrease of 1 . 6
percent from the previous week . On May 4 , the t o tal hours
of electrical energy peaked for the week at 82 , 431 MWh .
This past week, an average of 855 MW (21 generators) of
generating capacity was on forced (unplanned) outage , and
an average of 1,326 MW (27 generators) was on scheduled
outage . Four (400 Kv) and nine (132 Kv) transmission lines
are currently out of service . Notable transmission line
repairs this w e ek: no rmal power service to Habbaniyah ,
(between Fallujah and Ramadi) was restored this week,
repairing battle damage that occurred approximately 14 days
ago . Normal power service also was restored to the select
regions of Karbala, which were without power for several
days due t o transmission sabotage that occurred
approximately 7 days ago.
The following chart represents the daily electric power
consumption broken down among the North, Central (including
Baghdad), and South regions. Per day during the reporting
period, the North , which represents 35 percent of the total
population , consumed an average of 821 MW or 22 percent of
total power consumption. The Central region, which
represents 25 percent of the total population , consumed
2 , 402 MW or 63 percent of total power . The South, which
represents 40 percent of the total population , consumed
570 MW or 1 5 perce nt o f total electricity consumption .
Reconstruct Communications and Postal Systems

4. (SBU) CPA tasks : Build Iraq' s First Responder Network ;
establish independent regulatory agency; upgrade Iraqi
telephone and postal company (ITPC) network for
interoperability; build transmission component data network
for Iraq, including international gateways ; restructure
ITPC and its business operations; upgrade and modernize
postal systems; upgrade ITPC outside plant for increased
subscriber capacity a nd use.
Baghdad Digital Network : 2650 handhelds , 350 mobile
stations , and 45 base stations have been installed and are
operational for the Police . For the Baghdad fire+
department , 200 handhelds , 55 mobile stations, and 25 base
stations have been installed and are operational. For
Baghdad Emergency Medical Technicians (EMTs) , 50 handhelds
have been installed and are operational .
Nationwide Iraqi Police Service: 700 handhelds , 204
mobile stations , and 12 base stations have been installed
for the Iraqi Police Service.
Department of Border Enforcement: 210 mobile stations
have been received and 125 have been installed for the
Department of Border Enforcement.
The State Owned Internet Company currently has over
43 , 000 d i al-up subscribers in Baghdad. There was limited
service pre-war and now , approximately 11,000- 12,000 new
subscribers are added per week .
Since May 2003, CPA has reinstated landline telephone
service for 178 , 409 subscribers in Baghdad, including 7,159
this past week.
The following paragraphs delineate the number of
landline and cell phone subscribers in Iraq, and compare
them to pre-war estimates . The chart below shows the
number of active landline subscribers in April 2003, the
current number of active landline subscribers , the number
of landline subscribers reinstated post-conflict (since May
2003) , and the number of formerly active landline
subscribers who remain without service (excluding the three
Northern governorates) .
The three major cell phone companies in Iraq (Asia
Cell , Iraqna, and Atheer in the North , Central, and South
respectively) continue to enroll new cell phone
subscribers . Cell phone subscribers total 389 , 111
nationwide . CUrrently, in Mosul , Sulaymaniyah , and Kirkuk ,
there are 162 ,021 cell phone subscribers. In Baghdad,

there are 170,000 cell phone subscribers; and in Basra , Al
Kut, Amarah , Samawah, and Nasiriyah there a re 45 , 090 cell
phone subscribers. Sana Tel , which operates in
Sulaymaniyah, has 12,000 subscribers.
There are now 766 , 709 active landline telephone
subscribers in Iraq, comp~red to 833,000 subscribers pre-
war . The total number of telephone subscribers in Iraq,
including the cell phone subscribers, is 1 , 155 ,320 , which
is 38.7 percent greater than the number of active landline
subscribers pre- war. Cell phone service was very limited
pre-war .
The following chart shows the percentage of operational
landline telephone subscribers compared to the number of
active subscribers in April 2003.
The penetration rate (the number of active landline
telephone subscribers as a percentage of the population) is
2.82 percent vs . 3 . 1 percent pre-war (using an estimated
population of 27,139,021). Note: this is an updated figure
from previous reports. Source: Iraqi Central Statistical
Organization 1997 Census, (assuming 3% annual growth).
The following map and table show the penetration rate
for cell phone users based on current availability from the
cell phone companies. Note: the map and table only include
areas where cell phone service currently exists .
Improve Quality and Access to Healthcare
5. (SBU) CPA tasks : Develop health care organizations,
management, and infrastructure; train health care
professionals; secure system; public health;
pharmaceuticals logistic support; strategic communications .
The ~nistry of Health 24 hour Operations Center
continues to respond to the fluctuating situations in the
country. CPA officials traveled to the proposed site of
Displaced Civilian (DC) camp last Saturday to assess needs
and capabilities . The Ministries of Transportation ,
Municipalities and Public Works, and Displacement &
Migration, are also heavily involved in the planning for
any d . isplaced civilians.
CPA continues
procurement teams
medical supplies.
to integrate the training of special
for the purchase of pharmaceuticals and
The special procurement teams are being

integrated into the emergency drug purchase efforts so they
will have the full range of ·procurement options available
both in the short and long term. Deliveries of the initial
$5 million purchase should begin within the next two weeks.
Provide Food Security for All Iraqis
6 . (SBU) CPA tasks : Enhance capacity of Ministry of
Agriculture ; assure supply of inputs ; strengthen research
system; ensure adequate stocks for Public Distribution
System (PDS) ; monitor food security; hand over
administration of system in the north; initiate reform of
rations basket; environmental initiatives.
The following char.t shows the current PDS stocks and
scheduled commodity arrivals as a percentage of total
requirements from April until transition on July 1 . The
CPA goal is to provide sufficient ration stocks for July ,
plus · a three-month buffer. On the graph below, 100 percent
of opening stocks in each commodity category indicates that
this goal has been achieved. CPA has procured substantial
additional shipments of most food basket commodities; they
are not shown as these shipments will arrive after July 1.
Note: Oil for Food (OFF) unconfirmed contracts are
those contracts for which a valid letter of credit exists
but no shipping documentation has yet been received by the
Oil for Food Coordination Center. As OFF contracts are
fulfilled they are replaced by the Ministry of Trade (MOT)
and World Food Program (WFP) procurement.
The Ministry of Trade (MOT) recently concluded the
procurement of 200,000 metric tons of wheat under their
first procurement cycle (MOT-1) for the PDS. CPA continues
to work closely with the MOT to conclude procurements under
MOT-1 and begin the second phase of procurements (MOT-2) .
Once contracts for MOT-2 are in place, there will be
sufficient quantities of commodities in the PDS through
December , 2004 plus a 3-month buffer.
The pulse ration has been reduced to one kg per person
for the months of May and June . There are no rations
planned for the months of July, August, and September.
Lentils are traditionally taken out of the food basket
during the summer and this year will be replaced by tomato
paste and processed cheese . Tea rations were decreased
recently due to a missed shipment in April.

Figures for rice a rrivals are uncertain due to the
unpredictability of offlo ading of vessels in Umrn Qasr .
Delivery of large quantities of rice in the coming month
will begin to build buffer stocks.
In the meetings in Amman this past week , CPA
representa tives r e a ched agreement on logi stics f o r the
importation of more than one million metric tons of
commodities over the next three months . Plans were also
finalized to create an Iraq logistics cell in Rome staffed
by Iraqis and to put in place a new inventory management
system.
Reconstitute Oil Infrastructure
7. (SBU) CPA tasks: Production/exports; product supply;
security; structural reform.
The graph below shows the daily crude oil production in
Iraq over the past nine months. The dashed black line is
the current production target goal of 2 . 5 million barrels
per day (MBPD) .
For the week of May 1-7 , the estimated average total
crude oil production was 2.42 MBPD (.407 MBPD in the south
and 2.011 MBPD in the north). The average crude oil export
for the past 30 days was 1.823 MBPD . The average price
received for crude oil exports was approximately $28 . 50 per
barrel.
Through the combined efforts of the Iraqi Ministry of
Oil and Coalition Forces, it is now possible to pump
benzene through the pipeline from Hammam Al Allil (Mosul)
south to Baiji. This will help move product south and
alleviate the backlogs of trucks in the north .
This past week , the two pipelines supplying crude oil
to the Daura Refinery (Baghdad) from the north and south
were sabotaged, causing the refinery to shut down 6 May .
The 18" pipeline from the south into Daura was sabotaged
and was repaired by the Iraqi Pipeline Company on May 4 .
However , the same 18" line was hit in multiple locations on
May 5 . Repairs t o a 16" pipeline from the north were
completed by TD Williamson on May 6 . However , another hit
to a 12" line occurred on May 5 but was repaire d May 9 .
Crude oil is flowing into Daura refinery from the north as
of 10 May , and it is estimated to take 3 t o 5 days t o start

up at approx 40% of n o rmal c apacity s i nce that is the
maximum that can be supplie d from the nort h.
Aircraft for the Aeri al Surveillance Miss ion , which is
part of the oil security plan , landed in Iraq on May 1 .
These aircraft will remain in Baghdad for approximately
five t o seven days to allow personnel to in -proc~ss and
install a dditional equipme nt before moving on to their
final operating base. Current estimated date of the first
mission is May 10 . Flight operations mostly take place at
night .
Diesel imports from the Defense Energy Support Center
(DESC) had a record day on May 2 : approximately 11 . 2
million liters imported from Turkey. The previous record
was approximately 11.0 million liters on April 29. Storage
remai ns full in the Multinational Brigade North (MNB-N) , as
interdiction of main supply routes to Baghdad prevent
product movement southward. Backup of product flow has
caused a glut of tanker trucks in the north awaiting
download (approximately 4 0 million liters) . DESC
temporarily paused product loading in Turkey to allow the
supply chain to catch up . Product delivery is scheduled in
the near term via pipeline , which will free storage and
allow truck movements to resume .
The following table shows the four main fuels in Iraq
(diesel, kerosene, liquefied petroleum gas [LPG], and
· gasoline) , the estimated t otal national daily demand for
each, and the percentage of fuel supply that is on hand
(weekly average) ou~ of total demand. LPG projected
consumption figures were adjusted to reflect the most
curre nt Ministry of Oil e stimates .
·Daily demand is now
estimated at 4 , 800 metric tons, up from 4 , 500. Kerosene
estimated daily demand decreased to 5 million liters , due
to warmer weather.
The graph below shows the total daily supply (domestic
production plus imports) for each of the four refined fuel
products as a percentage of estimated domestic demand over
the past six months .
The graph below shows the seven day average, cumulative
total and revenue for crude o il exports .
The chart below shows the days of supply on hand as of
May 7 for each of the four main fuel products in Iraq. The
CPA goal remains to have 15 days of supply (DOS) for each
fuel on h a nd nationwide . CPA met this target for kerosene .

Stock levels for all four major fuels (diesel, benzene,
kerosene , and liquefied petroleum gas) are at seven days of
supply or better nationwide for the first time since
recording began in September 2003.
Restore Economically-Strategic Transportation Infrastructure
8. (SBU) CPA tasks: Enable the Iraqi Civil Aviation
Authority to run a civil aviation system, which will
support the country' s air transport needs; Enable Iraqi
civil aviation to prepare for international commercial
aviation and cargo service; enable Iraqi Port Authority
(IPA) to administer a port of call with intermodal
capabilities and inland container distribution ; enable
Iraqi Republic Railways (IRR) to provide domestic and
international passenger and freight capabilities; reform
civil service at ~nistry of Transportation.
The following graphs indicate the number of military
and civilian departures from Baghdad International (BIAP),
Mosul, and Basrah Airports. BIAP's civilian departures
climbed as a result of increased humanitarian assistance
flights and evacuations.
A U.S. Army Criminal Investigative Division (CID) team ·
visited the Port of Umm Qasr on May 6 to follow up on a
Port assessment conducted by the U.S. Navy in October , 2003
to evaluate the current operational situation. The
team was also interested in the theft of Army equipment
including a container of night vision goggles. The team
interviewed the commanders of the U.S. A~y ' s 113th
Movement Control Team and Surface Deployment and
Distribution Detachment and representatives from
Stevedoring Services of America (SSA) . The CID also
interviewed the Executive Officer of the Queen ' s
Royal Lancers and the Iraqi Port Security Manager. The CPA
Maritime Adviser and his deputy were interviewed and asked
to provide information on short and long term challenges
facing the Port, including the uncertainties associated
with the June 30 transition. The team was not able to tell
the Ministry of Transportation officials when the new
Port assessment would be available.
Possible evidence of corruption and extortion has
emerged at Abu Fulus (a port on the Iranian border) ,
including shots being fired and a small riot (40-50 people)
resulting in a broken gate and traders departing ~e to

threats of extortion. Due to possible corruption among
local security guards and CUstoms Police , the Ministry of
Transportation (MoT) staff in Umm Qasr requested that the
British military close Abu Fulus, and clear out the guards
and Customs Police. Over the course of approximately 3
weeks , the operation will involve securing Abu Fulus , re-
opening it with guards and CUstoms Police , and eventually
closing illegal locations in the nearby area.
The aviation team has initiated discussions with cargo
ground support providers operating at BIAP regarding the
need to rapidly establish the capacity to handle increased
reconstruction-related flights. This effort, which the
aviation team is coordinating with P.MO Logistics, will
probably serve as an inter~ solution to be eventually
replaced post-June 30 with competitively bid concessionary
arrangements for ground support. Select cargo handlers
will provide detailed proposals in early May.
A total of eight new Ukrainian-built locomotives out of
thirty have been received under the Oil-for-Food Project .
Unfortunately, only two had been fully inspected and
certified by the Russian technicians before the technicians
evacuated the country. The Iraqi Republic Railway (IRR) is
now attempting to do the work themselves but this is
proving difficult with the small amount of training
provided before the Russians left.
As reported by the Iraqi MoT, 13 buses (1 Daewoo
intercity and 12 Daewoo intracity) will depart May 9 from
the port of Kuwait to Baghdad comprising the second
shipment in the total contribution from the Korean
International Cooperation Agency (KOICA) . The first
shipment of 22 intercity buses arrived in Baghdad on April
29. The final shipment of 38 intracity buses is inbound
with an estimated arrival date of May 17. The total
contribution is .23 intercity, 50 intracity, and appropriate
spare parts.
CPA MoT staff, along with the Director General of
Private Company (taxis and mini-buses) and Operations
Manager of Passenger Transport Company, attended the first
meeting of the Baghdad Safety Council ' s Traffic Control
Committee. Discussion points included a common complaint
that buses stop along the road , not at bus stops- partly
explained by the fact that bus stops are inhabited by
squatters.
BREMER

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