– 14 June 2002)
On 13 June 2002, the
Secretary-General advised the President of the Security Council of his
approval of the distribution plan for phase XII, as submitted by the
Government of Iraq. The plan is
based on a foreseen budget of over $5.08 billion for the purchase of
humanitarian supplies and equipment in 25 sectors, including food, health,
agriculture, education, electricity, telecommunications, transport, housing,
water and sanitation, among others. Phase
XII distribution plan indicates 10 new sectors, namely, constructions, industry, labour and social affairs, Board of
Youth and Sports, information, culture, religious affairs, justice, finance
and Central Bank of Iraq. The
plan constitutes the basis for the contracting of goods by the Government of
Iraq with suppliers of its own choosing.
Phase XII runs from 30May to 25 November 2002.
terms of Iraqi oil exports during the week under the United Nations
oil-for-food programme, the volume remained sluggish, with only two liftings
at the loading terminal of Mina al-Bakr, totaling 3.1 million barrels.
There were no liftings at the second authorized loading terminal of
Ceyhan. The week’s exports
netted an estimated €71 million (euros) or $67 million in revenue, at
current prices and rate of exchange, bringing the total estimated revenue in
phase XII to €331 million or $313 million.
The average price of Iraqi crude oil was approximately €22.85 or
$21.55 per barrel.
are now 95 oil purchase contracts approved by the United Nations oil overseers
in phase XII, including 17 new contracts approved during the week in review.
This covers over 184 million barrels of oil, of which 104 million
barrels are for Basrah Light and 80 million barrels for Kirkuk crude.
Iraq, so far in this phase, has exported 14 million barrels of oil.
to a funding shortfall, currently 964 humanitarian supply purchase contracts,
worth more than $2.24 billion,
although approved by the United Nations, cannot be further processed.
The sectors where funds are lacking are food handling with over $367
million, electricity with $341 million, food with $334 million, housing with
$314 million, agriculture with $270 million, health with $176 million,
telecommunication/transportation with $173 million, water and sanitation with
$115 million, education with $99 million and oil spare parts/equipment with
the beginning of the programme on 10 December 1996, Iraq has generated an
estimated $38.6 billion and €17.9 billion ($15.9 billion) in revenue from
the export of over 3 billion barrels of oil.
With 72 percent of the oil proceeds allocated to the humanitarian
programme, some $35.4 billion worth of contracts for the purchase of various
humanitarian supplies and equipment have been both approved by the Security
Council’s 661 sanctions committee and “fast-tracked” by the Office of
the Iraq Programme (OIP), including about $3.2 billion worth of oil industry
spare parts and equipment. To date, some $22.8 billion worth of supplies and
equipment have been delivered to Iraq, including $1.4 billion worth oil spare
parts and equipment, while another $10.4 billion worth of supplies and
equipment, for which funds have been available, are in the production and
delivery pipeline, including $1.7 billion worth of oil industry equipment.
the week, the 661 Committee released from hold 23 contracts worth $45 million,
while placing on hold 19 new contracts worth $33 million.
There are currently 2,123 contracts on hold for the purchase of
humanitarian supplies and equipment, valued at just under $5.2 billion,
including 1,448 contracts worth about $4.5 billion for humanitarian supplies
and 675 contracts worth $730 million for oil industry spare parts and
Paragraph 18 of the new set of procedures
for the processing and review of contracts for humanitarian supplies and
equipment under Security Council resolution 1409 (2002) requires that
contracts currently on hold be divided into two categories.
The first category would comprise contracts that contain “dual use”
item(s), as determined by the United Nations Secretariat experts, which will
be returned to the submitting Mission or United Nations agency for possible
re-submission under the new procedures. The
second category would include all other contracts currently on hold and will
be re-circulated by OIP under the new procedures.
It is foreseen that upon the completion of these processes, there will
no longer be contracts on hold.