News Search Search this site or the web powered by FreeFind Site search Web search Story archive		January 8, 2004, Scotsman FIRMS RISK LOSING IRAQ MILLIONS Gethin Chamberlain Diplomatic Correspondent BRITISH firms risk missing out on hundreds of millions of pounds worth of contracts for the reconstruction of Iraq because they have failed to sign up for two trade shows where dozens of other countries will be competing for the deals. Billed as "the largest commercial opportunity in recent history", the chance to secure a share of the billions of dollars on offer has attracted interest around the world. The Outreach 2004 show opening in Jordan next week is being marketed as the first post-war, United States government-supported trade fair in the Middle East focused on the regeneration of business in Iraq. It also has the backing of the Coalition Provisional Authority (CPA), which currently runs Iraq, and the major US firms already awarded multi-billion -dollar contracts, which will also be present at the Rebuilding Iraq 2004 show that opens in Kuwait the following week. But while German, Italian, Indian and even Romanian companies are flocking to the shows in the hope of securing a share of the business, Britain's attendance is minimal. In Kuwait alone there will be more than 100 Italian firms, 54 German, 30 Indian, 19 Bulgarian and 35 from Denmark. Britain will be represented by just ten companies. US corporations have not relied on their natural advantage in securing contracts from their own government. Firms including Bechtel, Microsoft, Boeing and Smith & Wesson have taken stands at the show in Jordan, while Britain's only representative will be the government-backed UK Trade and Investment group. Giles Hazel, the organiser of the Outreach 2004 event, said British firms risked missing out on reconstruction contracts by staying away. "Amman is the traditional entry point for trade into Iraq," he said. "Obviously we are disappointed that UK companies have not signed up. It is certainly a great attraction for US companies that the US government is supporting this event." He said the CPA was keen to hold a trade show in Baghdad, although firms were deterred by the security situation, and he pointed out that the Jordan event had the support of the major US companies awarded contracts in Iraq and of the CPA and the US government. "They are the ones who give out the money, and we will have Iraqi companies there as well." Organisers of the Outreach show are promoting it as an opportunity to do business in post-war Iraq. In its promotional material, Outreach urges companies to "join Bechtel and other companies from the US, the Middle East and around the globe to exhibit your products and services, learn the requirements for subcontractors and partners, and meet other companies as part of the largest commercial opportunity in recent history". The US government plans to spend about dollars 12.7 billion (GBP 7 billion) this fiscal year and dollars 5.8 billion the following year on reconstruction projects. It is estimated that about dollars 50 billion worth of contracts will eventually be available to companies bidding to rebuild Iraq's infrastructure. Scott McLean, the spokesman for UK Trade and Investment, defended the attendance at the trade shows, saying they did not offer guarantees of contracts. "It could be that big companies could be negotiating without going to the big trade shows," he said. He said there was a strong British interest in both events and about 90 British firms had attended an event organised by the Jordanian-American Business Association in December to promote trade and investment between the US and Arab countries. He added that about 60 UK firms would be attending a conference running alongside the Kuwait trade show. "We would reject absolutely that UK companies are not playing their part in the reconstruction work. They have our backing for these trade events," he said. And a spokesman for the CBI said it was unfair to criticise UK companies for failing to attend the trade shows when 16 per cent of the initial contracts for reconstruction work in Iraq had been awarded to UK firms.
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