Doing Business in Iraq
Iraqi S&T Ministry Briefing
By
Nov 14, 2003, 09:36

To: Attendees at Iraqi S&T Ministry Briefing (11/11/03)
From: Jim Jatras, Venable LLP
Subject: Summary of Briefing, Handouts

On behalf of the Venable law firm and of my colleagues, thank you for attending the briefing by the Ministry of Science and Technology (MoST)
held at our offices yesterday (11/11/03). I am sure you share my
gratitude to Minister Omar and his advisors for giving us the benefit of their time and expertise. Please feel free to pass this message on to other parties you believe may be interested, and to contact me for any follow-up.

The following is a short summary of the briefing. Attached for your convenience are handouts distributed during the meeting (1) the 14-page MoST Strategic Plan (MS Word format), and (2) the two-page summary, which
includes contact information for Dr. Hamza and Mr. Popps (fax). Mr. Popps
indicated he will remain in the Washington area for the next few weeks to conduct follow-up meetings with firms on MoST's behalf.

The briefing was conducted by the following:


1. The head of the delegation, Dr. Rashad Mindan Omar, the Minister of Science and Technology. Dr. Omar was appointed Minister of Science and Technology by Iraq's Governing Council.


2. Dr. Khidhir Hamza, the former head of Iraq's nuclear weapons program. A U.S. trained nuclear physicist by profession, Dr. Hamza is a well known bestselling author (Saddam's Bombmaker), lecturer, and media commentator.
Dr. Hamza is currently the Senior Advisor to MoST; and


3. Mr. Dean Popps, Esq. is a Department of Defense SES level employee who was recruited to work at the CPA in Baghdad from a lengthy career in management and business. He is now Deputy Senior Advisor to MoST.


The delegation's principal objective in Washington at this briefing and at other meetings here was: to identify research and to develop projects designed to restore and improve Iraq's infrastructure and industrial base; to work with public and private industry, government agencies, and educational institutions to lead scientific and technological development; and to seek mentoring relationships and partnerships with appropriate institution s. We believe yesterday's meeting helped MoST to meet that objective.


MoST employs over 8,000 persons including the majority of the former
regime's top scientists, engineers, and technicians. Some 3,000 have
PhDs. Located next to the University of Baghdad at the Jadriyah Science
Complex in downtown Baghdad, the Ministry represents the very best hope for a new, peaceful, scientific and technologically progressive Iraqi society. The Ministry was created out of the former regime's 52 Military Industrial Commission (MIC) research and development companies. It is organized into six major enterprises. In turn, the major enterprises are organized into related functional areas, which are described further in the attached Strategic Plan. Within each of the enterprises, goals, and objectives have been established. The major enterprises are:
Energy Research and Development
Environmental Protection
Center for Industrial Development
Information and Electronics Technology
Agriculture and Food Technology
Materials and Chemistry Center
Water Research Center


The delegation stressed the following points:


1. Opportunity knocks for U.S. firms with Iraqi personnel: MoST can supply a key element in a three-point business strategy for U.S. firms looking to do business in Iraq and the Middle East: (1) the opportunity created by regime change in Baghdad, (2) the American companies' expertise and resources, and (3) the available expertise and talent of the MoST personnel.


2. Top personnel for low cost: MoST scientists, engineers, and technicians are of the very highest professional calibre -- many with advanced degrees from top U.S., UK, and European universities. They are available for wages that are quite low by American standards (monthly salaries in the hundreds, not thousands of dollars) but which would represent a major rise in living standard for them and an important boost to the local economy.


3. Support for U.S. policy goals: The Coalition Provisional Authority
(CPA) -- the U.S.-supported ruling authority in Iraq, the goals of which MoST supports and with which MoST has multiple points of access -- has four principle objectives, or "core foundations." These are in order of priority, though all are being pursued simultaneously:
Security – establishing a secure and safe environment
Essential services – restoring basic services to an acceptable
standard
Economy – creating the conditions for economic growth
Governance – enabling the transition to transparent and inclusive
democratic governance


4. Value to U.S. firms seeking contract opportunities: Firms partnering with MoST, or incorporating MoST personnel into proposals or submissions on RFPs, benefit from (1) lowered costs due to the advantageous conditions of availability of the Ministry's scientists, engineers, and technicians; and
(2) the awareness of the contracting entities (including CPA, USAID, and the Corps of Engineers) that U.S. firms' employment of MoST personnel helps meet the policy goals itemized above. Both of these may be considered important enhancements vis-a-vis competitors not cooperating with MoST.


5. Flexibility of business arrangements: MoST is not frozen into any particular business model in negotiating deals with U.S. firms. Ministry personnel do not need to remain employees of MoST but may become employees of new private enterprises that may be spun off as part of a business plan.
The Minister and his staff have wide legal latitude in negotiating arrangements to suit the U.S. partner's needs. MoST may also negotiate MOUs with a firm on a contingent basis to employ MoST personnel on a contract should the firm submit a winning bid.


6. Security: Among the most important factors to be taken into account by firms seeking business and contracting opportunities in Iraq are security arrangements. MoST has access to security personnel (including demobilized army and police) who can be incorporated into the security component of business plans and contract proposals.


More information is available in the attachments. You may contact me with questions or for assistance. Venable is a full-service law firm with numerous practice groups (including specialized expertise corresponding to MoST's functional areas, such as environment and water, IT, telecommunications, food and drug, pharmaceuticals, agriculture, and many
others) that can assist with arranging meetings with relevant parties, negotiating transactions, drafting contracts and MOUs, and other needs.


Jim Jatras
Partner, Venable LLP (Legislative and Homeland Security groups)
202 344-8308
jgjatras@venable.com
https://www.venable.com/attorney.cfm?attorney_id=300



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