At a meeting at the White House on Tuesday, December 30 a tentative compromise agreement was arrived at on the broad parameters of how the money will be spent.

· $4 billion will be held back until the U.S. cedes political control to an interim Iraqi government, expected in the summer of 2004.

o These funds will be doled out by agencies within a newly opened U.S. Embassy in Baghdad where Admiral Nash is expected to work once the transfer of authority is completed.

Admiral David Nash's PMO office will now directly oversee work valued at approximately $5 billion, to be awarded in the coming months.

o New documents on these contracts are expected to come out over the next several weeks and companies will be given 30 days to submit formal bids.

$6 billion is expected to be spent during 2004 to enhance Iraq's security services and rebuild the country's army.

· $2 billion will go to USAID for reconstruction projects.

· Approximately $1 billion will go to USACE.


The Administration is supposed to submit a detailed plan to Congress on how it plans to spend the $18.6 billion in Iraq by Monday, January 5. If that happens, we should have more detailed information on Monday, but it is unlikely that the deadline will be met.