Security Council resolution 1483 (2003) - Prioritization of Contracts

Paragraph 16 of Security Council resolution 1483 (2003) authorizes the Secretary-General, in coordination with the Authority referred to in resolution 1483 (2003) and the Iraqi interim administration (when established), to continue the prioritization of contracts initiated by paragraph 4 (b) of Security Council resolution 1472 (2003). 

Pursuant to paragraph 16 (a) of resolution 1483 (2003), the prioritization process will focus upon funded contracts.  The table of approved and funded contracts, as at 1 October 2003,  details contracts, with goods yet to be delivered, in this category.

The United Nations agencies, the Authority and Iraqi experts are currently identifying which commodities are urgently required to meet the needs of the Iraqi people.  Once these needs have been assessed, the United Nations in coordination with the Authority, will select contracts for delivery. Contracts for the supply of priority items will be selected from the table of approved and funded contracts, as at 1 October 2003, based upon the date of issuance of the approval letter or other priority requirements specified by the United Nations or the Authority.

Suppliers of contracts selected for delivery will be contacted by a United Nations agency, and a contractual amendment will be negotiated.  The amendment will address any necessary changes in the delivery terms and will provide for issuance or revision of the letter of credit including an extension of the letter of credit, if required.  OIP will, simultaneously, issue extended approval letters when approving amendments to contracts in connection with which the letter of approval has or will expire before the goods have been delivered. Please note that suppliers should not request action in connection with letters of credit. 

OIP will publish, on a bi-weekly basis, lists of the contracts prioritized for delivery. 

Suppliers are advised that the prioritization process is based upon the needs of the Iraqi people and the order of funding of contracts, or other priority requirements.  OIP has provided the relevant parties with all information required to facilitate this task, and suppliers should refrain from attempting to influence the process, as the time taken to handle large volumes of incoming correspondence or inquiries will be detrimental to the efficiency of the prioritization process.

The Office of the Iraq Programme regrets that it is unable to respond to requests for information from companies or their representatives. The primary point of contact for companies is the Permanent Mission of their respective countries to the United Nations.

Determination of relative utility

Pursuant to paragraph 16 (b) of resolution 1483, the United Nations in coordination with the Authority and the Iraqi interim administration (when established) will determine the relative utility of all approved and funded contracts. Contracts determined to have relative utility but not processed by the United Nations before 21 November 2003 will be transferred to the Authority after that date for further processing.  Action in connection with contracts determined not to have relative utility will be postponed until an internationally recognized government of Iraq is in a position to make its own determination as to whether such contracts shall be fulfilled. 

Full lists of funded contracts with relative utility which have not been prioritized for shipment as well as those determined not to have relative utility will be issued by the United Nations at the end of the 6 month period.    

Approved but unfunded contracts

The table of unfunded contracts details approved contracts in connection with which the Office of the Iraq Programme has NOT issued an approval letter.  

Contracts in this category will only be prioritized, pursuant to paragraph 16 (a) of Security Council resolution 1483 (2003), if an urgent need is established in Iraq for the goods and they are not available for shipping amongst the contracts specified above which have been approved and funded.  Any unfunded contracts prioritized in this category will be selected on a first come first served order, based upon the date of approval of the application.

OIP has provided information concerning approved and unfunded applications, as well as approved and funded contracts, to the relevant parties.

Suppliers in receipt of requests to deliver goods not initiated by the United Nations

As detailed above, the United Nations, in coordination with the Authority and the Iraqi interim administration (when established) must determine whether goods may be prioritized for delivery.

Suppliers who may recently have received communications from Iraqi “ministries”,  urging them to deliver goods to Iraq, should refrain from taking action until the contract has been prioritized, relative utility determination has been made, a delivery schedule and location have been agreed and the necessary amendment to the contract and revisions to the letter of credit have been finalized. Otherwise, they will not be eligible for payment for the goods supplied from the United Nations Iraq account.

SUPPLIERS SHOULD NOT MAKE ANY ARRANGEMENTS TO SHIP GOODS UNLESS THEY HAVE REACHED AGREEMENT WITH AND RECEIVED SPECIFIC INSTRUCTIONS FROM THE RELEVANT UN AGENCY OR THE OFFICE OF THE IRAQ PROGRAMME