Bechtel wins new £988m Iraq deal

DESPITE a storm of protest over the number of Iraq contracts given to Bechtel, the US construction giant is to be awarded another worth $1.8bn (£988m) to rebuild the country's infrastructure.

The contract announced by the United States Agency for International Development (USAID) is for projects ranging from repairing power facilities and water and sanitation systems to the continued rehabilitation of airport facilities and additional work at the port of Umm Qasr.

USAID last April awarded Bechtel a $1bn contract that will run to December.

Democrats in particular have criticised the awards to the company that has strong ties to the Republican Party. Former Secretary of State George Shultz is a director. USAID said claims of favouritism were outrageous.

Meanwhile, the US Army has granted Vice President Dick Cheney's old firm Halliburton a waiver to continue to supply petrol to Iraq, despite a draft Pentagon audit finding the company had overcharged for the fuel. Army Corps of Engineers spokesman Ross Adkins said this was done to ensure fuel supply.

Halliburton subsidiary Kellogg Brown and Root will not have to give certified cost and pricing data relating to the contract.