§ Mr. Bercow
To ask the Secretary of State for International Development if ho will make a statement on responsibility for the management of the Development Fund for Iraq. 
§ Hilary Benn
Under the United Nations Security Council resolution 1546 (8 June 2004) resources in the Development Fund for Iraq (DFI) are managed and disbursed solely at the discretion of the Interim Iraqi Government. The International Advisory and Monitoring Board (IAMB) continues its work as an audit oversight body for the DFI. The IA MB oversees audits conducted by international accounting firms of (i) oil export sales, (ii) the accounting for the proceeds from oil export sales, (iii) the DFI financial statements, and (iv) the disbursement procedures for DFI resources.
In March 2004 the IAMB approved the Coalition Provisional Authority's appointment of KPMG to conduct audits in two stages: first for DFI activities up to the end of December 2003, which reported on 15 July; and second for the six months to 28 June 2004, on which KPMG expects to report in early October 2004. As with the first stage audit reports, the IAMB will make the reports of the second stage available on its website (http://www.iamb.info).
Oil export sales and DFI operations after 28 June 2004 will be examined by external auditors to be appointed by the Government of Iraq. The IAMB will work with the Government of Iraq to ensure the early appointment of appropriately qualified external auditors.
§ Mr. Bercow
To ask the Secretary of State for International Development what the current levels of(a) water and (b) electricity provision in Iraq are; and what the targets for improvement in the next 12 months are. 
§ Hilary Benn
Estimates suggest that immediately after the 2003 conflict, 60 per cent. of in ban and 30 per cent. of rural populations had access to safe water. In October 2003, the United Nations and World Bank's Needs Assessment of Iraq proposed a 2007 target of increasing water access in urban areas by 30 per cent., and in rural areas by 45 per cent., from immediate post-conflict levels. Considerable work has taken place since May 2003 to improve the quantity, quality and reliability of water supplies.
Programme Contract cost (£) Programme details Emergency Public Administration Programme (EPAP) 3,181,205 This programme provides capacity building support to the Iraq public administration. Activities include the provision of long and short-term technical advice, support and training to key central ministries, to enable them to begin the process of re-establishing effective and accountable government in Iraq Technical Support to the Coalition Provisional Authority (CPA) South 491,406 Provision of technical experts to the former Coalition Provisional Authority in southern Iraq in the areas of economic reform and justice. This work completed on 28 June following the handover of sovereignty to the Iraqi Interim Government Total 3,672,611
In Basra the water supply situation remains difficult but is now better than before the 2003 conflict. Informal estimates by the former Coalition Provisional Authority (South) indicated that, in the south, coverage increased by 10 per cent. to 15 per cent. from May 2003 to July 2004. Major infrastructure work which is mainly US funded is planned over the next year. United Nations agencies are providing up to 800,000 litres of drinking water per day to vulnerable groups and inhabitants of rural areas. Drinking water is also sold by bottle or tanker. The restoration of 14 Basra Governorate water treatment plants is on schedule for completion by the end of October 2004.
In Baghdad, civil engineering work has now been completed at three wastewater treatment plants. The UN is operating water tankers and supplying water purification tablets to meet shortfalls. Water specialists from the USA are working with local government officials in Baghdad Municipality's water department to improve water treatment throughout the city.
The supply of electricity in Iraq has improved since May 2003. Production now averages 4,750 MW, compared with the pre-conflict level of 4,400 MW. Most of Iraq is now receiving between nine and 15 hours of electricity daily.
Significant programmes of long-term rehabilitation of electrical infrastructure are being undertaken alongside planning for the expansion of generating capacity with new plants. However, security problems continue to slow the progress of reconstruction and make precise forecasting difficult. The Interim Iraqi Government has set a target of 6,000 MW by the end of 2004. The United Nations and World Bank's Needs Assessment proposed a target of 8,760 MW by 2007.
§ Mr. Carmichael
To ask the Secretary of State for International Development how much funding his Department has allocated to the Adam Smith Institute for work in relation to the reconstruction of Iraq; what the nature of the work is; and if he will make a statement. 
§ Hilary Benn
DFID has not allocated any funding to the Adam Smith Institute for work in relation to the reconstruction of Iraq.
DFID has contracted the consultants Adam Smith International Ltd. (ASIL) to provide services to assist with reconstruction in Iraq as follows:1523W