FOR IMMEDIATE RELEASE
January 6, 2004
2004-001

USAID AWARDS IRAQ INFRASTRUCTURE II CONTRACT

WASHINGTON, DC - In support of the Coalition Provisional Authority's (CPA)
reconstruction efforts in Iraq, the U.S. Agency for International
Development (USAID) today announced the selection of a multi-million dollar
Iraq infrastructure repair and rehabilitation contractor, otherwise referred
to as the Iraq Infrastructure II contract, to Bechtel National, Inc. based
in San Francisco. Bechtel is teamed with the Parsons Corporation of
Pasadena, California. The contract award provides funding up to $1.8
billion over 24 months. Funding is subject to congressional notification
and availability of funds.

This contract will fund work similar to the work initiated under USAID's
current infrastructure contract in Iraq, which was awarded in April, 2003.
The Iraq Infrastructure II contract will fund a range of projects including:
repair of power generation facilities, electrical grids, municipal water

systems and sewage systems; continued rehabilitation or repair of airport
facilities; and additional dredging, repair and upgrading of the seaport at
Umm Qasr. The contractor will also repair and build government and public
facilities including schools, selected ministry buildings and major
irrigation structures, as well as restore essential transport links.

It is anticipated that Bechtel National, Inc. will work through
subcontractors on a number of these tasks after developing an implementation
plan in conjunction with USAID. Through all of its activities, the
contractor will work with the Iraqis to strengthen the local capability to
undertake infrastructure projects.

The Iraq Infrastructure II contract is part of the U.S. government's
reconstruction assistance to the Iraqi people, aimed at helping maintain
stability, ensuring the delivery of essential services, and facilitate
economic recovery. For more information on USAID's humanitarian relief

and reconstruction efforts in Iraq, as well as the actual Iraq
Infrastructure II request for proposal, please visit www.usaid.gov/iraq/.