Since taking over administration of the country, the CPA has spent upwards of $2,500 million on reconstruction. The US Agency for International Development (USAID) has almost fully committed its original $1,700 million budget. Additional money has come from the seized funds of the old regime, and the UK's Department for International Development (DFID).

The CPA has also drawn on funds from the Development Fund for Iraq, which is composed mostly of the residual proceeds from the old UN oil-for-food programme and oil revenue. About $1,000 million was made directly available by the fund, with a further $300 million estimated to have come from crude exports.

Bechtel of the US, which is handling the $680 million capital reconstruction programme, received in August an additional $350 million to fund emergency work to bolster power generation. Yet, future reconstruction work is dependent on the CPA securing new funds from the US government and international donors. The $1,500 million phase-2 capital reconstruction programme about to be tendered by USAID is contingent on additional funding being made available (see page 15).

US President Bush is seeking in excess of $20,000 million from US congress to support the CPA. CPA chief administrator Paul Bremer said on 12 September in an official statement to the Iraqi people: 'The president of the US is asking congress to invest in your future, the way the US invested in the future of Europe more than 50 years ago.' Spending on power and water will account for almost 50 per cent of the funds potentially open to the CPA.

Final touches are also being made to the Iraqi budget for 2004, which according to a CPA source will be based on an estimated revenue forecast of $20,000 million for the full year. A clearer picture on funding is expected to emerge after the international donor conference scheduled for late October in Madrid. Resolving the issue of Iraq's outstanding international debt, which is estimated to top $100,000 million, will be high on the agenda.

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