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UN Office for the Coordination of Humanitarian Affairs |
IRAQ: Oil-for-Food Programme closure deadline to be met as planned
ANKARA, 2 October 2003 (IRIN) - Alternative arrangements are being made in Baghdad to ensure that the UN-administered Oil-for-Food Programme is terminated on schedule by 21 November 2003. "In view of the reduction of staff in Iraq, alternative arrangements are being finalised in consultation with the Coalition Provisional Authority [CPA] and Iraqi authorities for the transfer of programme assets and activities," a spokesperson for the programme told IRIN on Wednesday.
"The programme will close on time and everyone, including the CPA, is working against the clock to ensure that this happens in the most orderly fashion to ensure the best possible outcome for the people of Iraq," the spokesperson added.
The Oil-for-Food Programme was established by the Security Council on 14 April 1995 and allowed the fallen regime of Saddam Hussein to sell oil for food and humanitarian supplies, thereby feeding almost 60 percent of the Iraqi population.
Earlier in the week, the UN issued a statement saying that deteriorating security and "tardy action" by the United States-run CPA could be a major blow to meeting the deadline for ending the Oil-for-Food Programme.
The statement followed a briefing delivered to the UN Security Council on Monday by Benon V. Sevan, the Executive Director of the Office of the Iraq Programme, on progress towards the phasing out of the programme.
However, he assured council members that despite chronic insecurity and the temporary withdrawal of UN international staff from Iraq, the programme would meet its closure deadline of 21 November.
"Most of our assumptions in developing our exit strategies have been constantly overtaken by events over which we have no control," he said, noting that the programme needed a minimum of 115 international staff in the northern governorates to meet its objectives for an orderly closure and transfer of assets and responsibilities to the CPA.
He explained that in the absence of the minimum number of required international staff, the only alternative course of action would be the transfer of assets and responsibility for the administration of any remaining activity under the CPA "as is", together with the relevant documentation.
Some 3.4 billion barrels of Iraqi oil valued at about US $65 billion were exported under the programme between December 1996 and 20 March 2003. Of this amount, 72 per cent of the total was allocated towards meeting humanitarian needs nationwide after December 2000. The balance went to: Gulf War reparations through a Compensation Fund (25 per cent since December 2000); UN administrative and operational costs for the programme (2.2 per cent) and costs for the weapons inspection programme (0.8 per cent).
Almost $28 billion worth of humanitarian supplies and equipment were delivered to Iraq under the Oil-for-Food Programme between 20 March 1997 and 20 March 2003, including $1.6 billion worth of oil industry spare parts and equipment.
Additional goods and supplies from the programme's $10 billion humanitarian pipeline are being delivered on a priority basis in consultation with the CPA, Iraqi representatives and UN agencies and programmes.
The World Food Programme's (WFP) emergency operation is due to end on 31 October, but the agency will continue to support the Public Distribution System (PDS) until this date, when it is expected that the Ministry of Trade (MOT) will again run the system. The PDS ensures the availability of all commodities through a network of outlets selling at fair prices.
During this interim period, WFP will work hand in hand with the MOT to hand over logistics functions, including pipeline management, the coordination of incoming shipments and renegotiation of Oil-for Food contracts. In the three northern governorates of Arbil, Sulaymaniyah and Dahuk, WFP is supporting the local authorities in order to integrate the PDS into the system adopted by the centralised MOT.
In accordance with Security Council Resolution 1483, WFP continues renegotiating oil-for-food contracts in the food and food handling sectors. As of 26 September, the dedicated Rome-based team had successfully renegotiated 243 food contracts equivalent to 2 million mt of food aid valued at some €789 million.
Simultaneously, a WFP team based in the Danish capital, Copenhagen, is working together with the United Nations Office for Project Services (UNOPS), on renegotiating transport and food-handling contracts. To date, 160 priority contracts have been approved for contract renegotiation, and suppliers have been contacted. Once these suppliers confirm their acceptance, contracts go through the renegotiation process.
Themes: (IRIN) Conflict, (IRIN) Health & Nutrition, (IRIN) Human Rights
[ENDS]
This material comes to you via IRIN, a UN humanitarian information unit, but may not necessarily reflect the views of the United Nations or its agencies. If you re-print, copy, archive or re-post this item, please retain this credit and disclaimer. Quotations or extracts should include attribution to the original sources. All materials copyright © UN Office for the Coordination of Humanitarian Affairs 2003
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