Press Release

19 November 2003

Oil-for-Food Programme

Status of Funds 19 November 2003 

Duration of Programme: December 1996 to 21 November 2003

Total value of oil exports: $65 billion.

Total oil income allocated to OFFP: $46 billion Balance allocated to Gulf War reparations through a Compensation Fund (25 percent since December 2000); UN administrative and operational costs (2.2 per cent); weapons inspection programme, UNMOVIC and IAEA (0.8 per cent). 

·         $38 billion to 15 governorates in south/central Iraq

·         $8.1 billion to three governorates in northern Iraq.

·         Unutilised funds will be transferred to the Iraq Development Fund as required under SCR 1483)  

Interest income of $2.7 billion to June 2003, all allocated for the procurement of humanitarian supplies. 

Expenditures: 

• Total value of humanitarian goods delivered (and suppliers paid): $31 billion +
• Total value of goods currently in humanitarian pipeline: $8.2 billion More than 86 per cent of these contracts signed by the previous government have been prioritized in consultations between the UN, Coalition Provisional Authority and Iraqi authorities; and about 91 per cent of the prioritized contracts have so far been renegotiated by UN agencies. The money for these contracts remains in the UN/Iraq account to be paid out after the UN has confirmed the supplies were delivered to Iraq.
• $3.6 billion approved for projects to be implemented by UN agencies for approved projects.
• $3 billion transferred from UN/Iraq account to the Development Fund for Iraq. The first $1 billion was transferred on 28 May 2003. Further transfers of $1 billion each were made at the end of October and on 18 November 2003.
• Approx.$1.6 billion in uncommitted funds are in UN/Iraq Account.

 Please note: Total expenditures do not reflect goods in transit or fluctuating currency exchange rates. Resolution 986 apportioned 2.2% of the oil revenue to cover UN administrative and operational costs of the programme. As of 11 June 2003, some $400 million remained in the 2.2% sub-account, of which $106.6 million will be needed during the phasing-out / termination period; $16 million will be kept as contingency, leaving $277.4 million for transfer to the Iraq Development Fund. The transfer has not yet taken place.

For additional information please contact: Ian Steele Tel. 212 963 1646  email: steelei@un.org