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Supplier Arrangements Following Termination of the

Oil-for-Food Programme on 21 November 2003


Pursuant to Security Council resolution 1483 (2003), the Office of the Iraq Programme will terminate its activities on Friday 21 November 2003. All subsequent responsibility for contracts will be transferred from OIP to the Coalition Provisional Authority (CPA) at that time.


The CPA has established a coordination centre in Baghdad to manage these activities from 22 November (www.cpa-iraq.org/oil_for_food/index.html). Inquiries may be submitted to the centre via email (oilforfood@baghdadforum.com) or by telephone (1 914 509 6888).


All inquiries regarding the status of contracts formerly processed by OIP should be directed to the CPA Coordination Unit.


Contracts prioritized for delivery to Iraq with approved, amended, contracts


The list of prioritized and amended contracts details 2,790 contracts which have been prioritized for delivery to Iraq and for which the United Nations agencies and programmes have concluded amendments approved by the Office of the Iraq Programme.  All approved amendments have been forwarded to the United Nations Treasury so that a letter of credit may be issued or revised in accordance with the amendment. Although the processing deadline for amendments has passed, the UN Treasury will continue to issue and process amendments to letters of credit after 21 November 2003. Similarly, all queries concerning changes, amendments and extensions of letters of credit for prioritized and amended contracts should be sent directly to the UN Treasury.

To contact UN Treasury: TreasuryInquiries@un.org  or fax 1-917-367-2116.


Contracts prioritized for delivery to Iraq without amended contracts


The table of prioritized and non-amended contracts lists 251 contracts which have been prioritized for delivery to Iraq but for which the UN agencies and programmes were unable to finalize contractual amendments prior to OIP’s processing deadline.  The case files for these “live” contracts will be transferred by the relevant UN agencies and programmes to a CPA team of negotiators.  The CPA team will contact suppliers and negotiate amendments to the listed contracts in due course.


Prioritized contracts with amendments not approved by OIP


The list of unapproved amended contracts details 19 contracts for which the UN agencies and programmes had concluded amendments which OIP was unable to approve by the 21 November 2003.  The case files for these contracts will also be transferred to the CPA negotiations team for further action.


Contracts removed from the list of amendable contracts


The table of contracts removed from the list of amendable contracts identifies reasons why 728 prioritized contracts were not amended prior to termination of the Oil-for-Food Programme.  The UN agencies will transfer case files for contracts in this category to the CPA. It should be noted that the “relative utility” of such contracts has not been affected by their removal from the list of amendable contracts and suppliers should contact the CPA Coordination Centre if they wish to reactivate negotiations concerning these contracts. Reasons for the removal of contracts from the list of amendable contracts are detailed in Column X of the spreadsheet.    


Contracts of questionable utility


The list of contracts considered not to have relative utility pursuant to paragraph 16 (b) of Security Council resolution 1483 (2003) details 762 approved and funded contracts which have not been prioritized for delivery to Iraq.  As cited in resolution 1483, action concerning contracts in this category is postponed until an internationally recognized, representative of the Government of Iraq is in a position to determine whether such contracts shall be fulfilled. Please note that the table is divided into three categories as follows:


Category A: Approved and funded contracts of questionable utility, as agreed in the tri-partite review process between UN agencies and programmes, the CPA and Iraqi ministries; 


Category B: Approved and funded contracts where there was no unanimity amongst

participants in the tri-partite process concerning relative utility, and;


Category C : Approved and funded contracts where the Iraqi ministries refused to deal with the concerned suppliers in further contract implementation at this stage, due to their allegedly unsatisfactory performance.    


Approved,funded and unapproved contracts with small balances


OIP has identified a number of contracts with small balances pending delivery (less than 5 per cent).  Suppliers were requested to express any interest in shipping the remaining goods.  Only a small number of suppliers responded in connection with this request.  The remaining 709 contracts are specified in the table of approved and funded contracts with small balances.   


Approved and unfunded contracts


The prioritization process carried out in accordance with paragraph 16 (b) of resolution 1483 pertains to approved and funded contracts for which an approval letter had been issued by OIP.  In cases where an exceptional need was identified the Committee established by Security Council resolution 661 (1990) approved the prioritization of previously unfunded contracts. 


The table of approved and unfunded as well as unapproved contracts details all contracts which were not eligible for prioritization unless an exceptional need for the goods was determined. 


OIP has supplied CPA and the Iraqi Ministries with copies of all approved and unfunded as well as unapproved contracts in the event that Ministries wish to pursue them in the future.  


Payment and authentication arrangements


The United Nations Treasury and BNP Paribas will continue to effect payments for goods delivered to Iraq after 21 November 2003.


Cotecna S.A. will continue to authenticate the arrival of goods, on behalf of CPA and the Iraqi Ministries.  The revised authentication mechanism will remain in place unless CPA advises otherwise.  For further information regarding the revised authentication mechanism please see the notice to suppliers concerning revised authentication procedures and recent deliveries to Iraq (16 October 2003)


Any inquiries regarding the authentication of goods should be directed to the CPA coordination team.


Suppliers should also regularly monitor the CPA web site

(www.cpa-iraq.org/oil_for_food/index.html), for any revisions to the authentication arrangements.   



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