HL Deb 12 November 2003 vol 654 cc203-4WA
Lord Lester of Herne Hill

asked Her Majesty's Government:

Whether existing and future contracts to repair Iraq's oil sector have been and will be made on the basis of open competition tendering; and, if not, why not. [HL5255]

The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Sainsbury of Turville)

Contracts for rehabilitation and reconstruction of Iraq's oil sector are currently the responsibility of the US Army Corps of Engineers (USACE). An initial contract was placed with KBR, part of the US Halliburton, without competitive tendering. This was based on the fact that KBR had an existing contract with the USACE, won previously under open, competitive tender. We understand that this contract was extended to cover oil facility repair work which had to be completed in the short term and that a competition would be held as soon as possible to replace this. An open, competitive invitation to tender for two contracts-one covering repairs in northern Iraq and another for the south-was issued by the USACE in July this year. Following changes to the scope of this work, awards are now expected in December.