Office of the Iraq Programme Oil for Food

12 April 1999

Oil-for-Food Background Information

Update for the week 3 to 9 April 1999

The Security Council's 661 Committee has approved a contract to provide Iraq with vaccines to combat an outbreak of foot and mouth disease.

In February, the Food and Agriculture Organization expressed alarm about an epidemic of livestock diseases, including foot and mouth disease, saying "the multitude of diseases afflicting livestock in Iraq threatens the health of people living in infested areas and could seriously undermine food security in the countries of the Near East". The FAO urged timely procurement of vaccines.

Underlining the urgency of the situation, the contract, with an Indian company, provides for delivery within 90 days of the issuing of a letter of credit which normally occurs shortly after the contract is approved by the Security Council committee. The contract for one million doses of foot and mouth vaccine was received by the Office of the Iraq Programme on 28 March and circulated to the 661 Committee on 1 April. It was put on hold on 8 April and the OIP was advised late on 12 April that the hold had been lifted.

In Phase IV of the oil for food programme, the Committee has approved 658 contracts for $1.466 billion worth of humanitarian supplies. As of 9 April there were 51 contracts worth $149.8 million on hold. Many of these are for equipment and spare parts to improve Iraq's electricity generation and distribution network. Phase IV involves the use of revenues from the export of oil between 30 May and 25 November 1998.

When contracts are placed on hold by a member of the 661 Committee, the OIP is often able to facilitate the lifting of holds, usually by providing additional technical details or information about end use.

In the past week, one major contract came off hold: it was for $22 million of gas turbine equipment and spare parts from the United Kingdom. The Committee also approved a $35 million contract with a French company for the provision of transport equipment including 110 trucks.

For Phase V (26 November 1998 to 24 May 1999), the Committee has approved 1.02 billion worth of humanitarian supplies and put on $24.9 million on hold.

In the reporting period from 3 - 9 April, OIP received 34 oil spare parts contracts for $14,588,545. The OIP has received so far 637 oil sector contracts with a total value of $334,716,861 to be funded under the provisions of resolutions 1175 (1998) and 1210(1998).

In the same period, the 661 Committee approved six contracts for $2,606,750 worth of oil industry spare parts and equipment. Two of these contracts were released from hold. This brings the total number of oil sector contracts approved so far to 410 worth $240,900,044. Three oil sector contracts were put on hold last week worth $616,368. At present, there are 99 contracts on hold worth $34,399,868.

During the week to 9 April, Iraq exported 16.4 million barrels in 12 loadings. The estimated revenue was $211 million dollars. So far in Phase V Iraq has exported 257.3 million barrels (average 1.91 million bpd) for revenue estimated at $2524 million (average of $9.81/barrel).

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Produced for media and public information – not an official United Nations Document
For further information please contact Hasmik Egian, OIP - NY, 1.212.963.4341

Oil-for-Food Background Information		Update for the week 3 to 9 April 1999 The Security Council's 661 Committee has approved a contract to provide Iraq with vaccines to combat an outbreak of foot and mouth disease. In February, the Food and Agriculture Organization expressed alarm about an epidemic of livestock diseases, including foot and mouth disease, saying "the multitude of diseases afflicting livestock in Iraq threatens the health of people living in infested areas and could seriously undermine food security in the countries of the Near East". The FAO urged timely procurement of vaccines. Underlining the urgency of the situation, the contract, with an Indian company, provides for delivery within 90 days of the issuing of a letter of credit which normally occurs shortly after the contract is approved by the Security Council committee. The contract for one million doses of foot and mouth vaccine was received by the Office of the Iraq Programme on 28 March and circulated to the 661 Committee on 1 April. It was put on hold on 8 April and the OIP was advised late on 12 April that the hold had been lifted. In Phase IV of the oil for food programme, the Committee has approved 658 contracts for $1.466 billion worth of humanitarian supplies. As of 9 April there were 51 contracts worth $149.8 million on hold. Many of these are for equipment and spare parts to improve Iraq's electricity generation and distribution network. Phase IV involves the use of revenues from the export of oil between 30 May and 25 November 1998. When contracts are placed on hold by a member of the 661 Committee, the OIP is often able to facilitate the lifting of holds, usually by providing additional technical details or information about end use. In the past week, one major contract came off hold: it was for $22 million of gas turbine equipment and spare parts from the United Kingdom. The Committee also approved a $35 million contract with a French company for the provision of transport equipment including 110 trucks. For Phase V (26 November 1998 to 24 May 1999), the Committee has approved 1.02 billion worth of humanitarian supplies and put on $24.9 million on hold. In the reporting period from 3 - 9 April, OIP received 34 oil spare parts contracts for $14,588,545. The OIP has received so far 637 oil sector contracts with a total value of $334,716,861 to be funded under the provisions of resolutions 1175 (1998) and 1210(1998). In the same period, the 661 Committee approved six contracts for $2,606,750 worth of oil industry spare parts and equipment. Two of these contracts were released from hold. This brings the total number of oil sector contracts approved so far to 410 worth $240,900,044. Three oil sector contracts were put on hold last week worth $616,368. At present, there are 99 contracts on hold worth $34,399,868. During the week to 9 April, Iraq exported 16.4 million barrels in 12 loadings. The estimated revenue was $211 million dollars. So far in Phase V Iraq has exported 257.3 million barrels (average 1.91 million bpd) for revenue estimated at $2524 million (average of $9.81/barrel).
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