Of the $52.8 billion made available to Iraq, $43.57 billion of it has actually been obligated to specific projects, and $39.54 billion has been spent. The Obama administration has asked for $800 million for the 2010-2011 Fiscal Year. There is also $1 billion in supplemental funding for 2010 and $1.5 billion in 2012. The reconstruction effort is already winding down as only $58 million of the $1 billion in 2010 money has been obligated as of September 2009, and only $300,000 has been spent. That’s largely the result of the beginning of the withdrawal of U.S. forces. With less troops out in the field and the planned drawdown of the Provincial Reconstruction Teams, there are fewer opportunities for new projects to be planned. The Special Inspector General for Iraq Reconstruction (SIGIR) estimates that by 2012-2014 all of the money currently in the pipeline for Iraq will run out. After that the U.S. will continue to provide aid, but not in the large amounts that it has in the past.
The largest chunk of reconstruction funds ended up going to security. In total, $24.52 billion was allocated for various security endeavors, with $20.72 billion actually being spent. Creating a new Iraqi Army is considered the one success of the U.S. effort. There are 245,000 Iraqi soldiers, and over 400,000 police. They now have control of all of Iraq’s 18 provinces, are in the lead of the country’s counterinsurgency program, and the Army is considered competent enough to handle internal security. The police are more open to political and local influences, thousands have not been trained, and are still considered a work in progress. Both forces remain almost completely dependent upon the U.S. for logistics and procurement however, and Iraq is not capable of protecting itself from outside threats.
In comparison, $21.2 billion was spent on the economy and government. $12.36 billion was allocated for infrastructure, $7.28 billion for governance, and $1.56 billion for the economy. Of that, $18.83 billion has actually been spent. The sectors that got the most money were electricity, $5.16 billion, water and sanitation $2.74 billion, government capacity $2.50 billion, oil and gas $2.06 billion, and developing democracy and civil society $2.03 billion.
There is still over $11.6 billion in on-going projects. Baghdad has the most with $2.92 billion, followed by $543.46 million in Basra, $362.23 million in Tamim, and $1.11 billion across the country. In terms of sectors, there is $5.07 billion in electricity projects, $3.08 billion in water and sanitation, $1.77 billion in oil and gas, $1.27 billion in transportation and communication, and $467.97 million in governance and infrastructure.
Reconstructing Iraq’s infrastructure and government has run into many problems. While things like electricity production is at an all time high, it is still not meeting demand. There are also millions of dollars worth of projects that are either not operating at capacity or have been abandoned because Iraqis cannot staff, supply, or afford them. Most importantly, just over half of the money got diverted to security rather than developing the country.
Overall, the SIGIR believes that the U.S. failed in this endeavor because of a lack of pre-war planning and coordination, bad contracting practices, and building projects that Americans wanted, not Iraqis. Another major problem was that the lack of security derailed many projects, and led to huge cost overruns. That’s seen in the fact that as the reconstruction effort winds down, more money was spent on the Iraqi military and police than the economy or government. There are some successes like the Iraqi Army, but many continuing problems like the lack of adequate services. The U.S. invasion ended the dictatorial rule of Saddam, but the $52.8 billion reconstruction effort is leaving behind a rather typical, dysfunctional Third World country.
Status of Major U.S. Reconstruction Funds
| Area | Sector | Allocated | Obligated | Expended |
| Security | Equipment | $7.29 bil | 6.82 bil | 6.03 bil |
| Training | $6.11 bil | $5.68 bil | $5.45 bil | |
| Infrastructure | $5.81 bil | $5.55 bil | $4.84 bil | |
| Sustainment | $2.55 bil | $2.41 bil | $2.17 bil | |
| Rule of Law | $1.50 bil | $1.48 bil | $1.27 bil | |
| Related Activities | $1.27 bil | $1.15 bil | $0.97 bil | |
| Subtotal | $24.52 bil | $23.09 bil | $20.72 bil | |
| Infrastructure | Electricity | $5.16 bil | $4.99 bil | $4.86 bil |
| Water and Sanitation | $2.74 bil | $2.63 bil | $2.47 bil | |
| Oil and Gas | $2.06 bil | $1.92 bil | $1.91 bil | |
| General Infrastructure | $1.25 bil | $1.24 bil | $1.24 bil | |
| Transportation and Communication | $1.15 bil | $1.09 bil | $0.99 bil | |
| Subtotal | $12.35 bil | $11.88 bil | $11.47 bil | |
| Governance | Capacity Development | $2.50 bil | $2.29 bil | $1.91 bil |
| Democracy and Civil Society | $2.03 bil | $2.04 bil | $1.66 bil | |
| Public Services | $1.93 bil | $1.91 bil | $1.73 bil | |
| Humanitarian Relief | $0.82 bil | $0.82 bil | $0.75 bil | |
| Subtotal | $7.28 bil | $7.06 bil | $6.04 bil | |
| Economy | Economic Governance | $0.82 bil | $0.80 bil | $0.74 bil |
| Private Sector Development | $0.74 bil | $0.74 bil | $0.57 bil | |
| Subtotal | $1.56 bil | $1.54 bil | $1.32 bil | |
| TOTAL | $45.72 bil | $43.57 bil | $39.54 bil |
Remaining Infrastructure Projects by Province
| Province | Electricity | Water and Sanitation | Oil and Gas | Transporta- tion and Commun- ication | General Infra- structure | Total |
| Baghdad | $1,504.22 mil | $755.31 mil | $40.6 mil | $282.17 mil | $341.68 mil | $2,923.97 mil |
| Basra | $543.46 mil | $238.32 mil | $558.55 mil | %171.8 mil | $8.39 mil | $1,520.52 mil |
| Tamim | $362.23 mil | $42.87 mil | $187.39 mil | $21.09 mil | $8.47 mil | $622.05 mil |
| Dhi Qar | $106.67 mil | $399.69 mil | $0.43 mil | $21.42 mil | $13.06 mil | $541.26 mil |
| Salahaddin | $311.19 mil | $59.51 mil | $71.52 mil | $65.75 mil | $7.37 mil | $515.36 mil |
| Anbar | $251.58 mil | $188.88 mil | - | $70.15 mil | $3.92 mil | $514.53 mil |
| Ninewa | $118.74 mil | $126.87 mil | $0.08 mil | $66.06 mil | $6.97 mil | $318.72 mil |
| Iirbil | $102.54 mil | $201.67 mil | $0.08 mil | $5.07 mil | $2.46 mil | $311.82 mil |
| Diyala | $80.66 mil | $143.47 mil | $2.89 mil | $23.79 mil | $6.24 mil | $257.05 mil |
| Muthanna | $15.02 mil | $189.79 mil | $0.07 mil | $19.12 mil | $3.87 mil | $227.87 mil |
| Babil | $121.65 mil | $47.63 mil | - | $36.01 mil | $3.49 mil | $208.78 mil |
| Najaf | $72.79 mil | $60.84 mil | - | $14.26 mil | $4.43 mil | $152.31 mil |
| Qadisiya | $86.78 mil | $30.46 mil | - | $21.75 mil | $2.65 mil | $141.63 mil |
| Maysan | $76.31 mil | $20.26 mil | $0.06 mil | $14.06 mil | $6.32 mil | $117.01 mil |
| Wasit | $45.38 mil | $30.21 mil | - | $19.18 mil | $10.23 mil | $105.01 mil |
| Karbala | $46.99 mil | $39.0 mil | - | $4.88 mil | $1.58 mil | $92.45 mil |
| Dohuk | $61.4 mil | $8l.34 mil | - | $0.93 mil | $7.63 mil | $78.3 mil |
| Sulaymaniya | $49.03 mil | $15.28 mil | - | $2.98 mil | $1.06 mil | $68.35 mil |
| Nationwide & Regional | $1,115.1 mil | $487.18 mil | $916.14 mil | $418.14 mil | $28.16 mil | $2,964.71 mil |
| TOTAL | $5,071.73 mil | $3,085.58 mil | $1,777.81 mil | $1,278.6 mil | $467.97 mil | $11,681.69 mil |
SOURCES
Cordesman, Anthony, “Assessing the Readiness of the Iraqi Security Forces,” Center for Strategic and International Studies, 8/12/09
Special Inspector General for Iraq Reconstruction, “Hard Lessons,” 1/22/09
- “Quarterly Report to the United States Congress,” 10/30/09
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