In Visit, Powell Pledges to Speed Flow of Funds

BAGHDAD —  During a surprise visit to Iraq, Secretary of State Colin L. Powell pledged Friday to accelerate the release of billions of dollars in U.S. reconstruction funds to jump-start Iraq’s economy and win support for American efforts here.

Powell spent the day meeting with new U.S. Ambassador John D. Negroponte, interim Iraqi President Ghazi Ajil Yawer and other government leaders, who told Powell that Iraq desperately needed faster access to more than $18 billion in funds approved by Congress last year to repair infrastructure for oil production and electricity, among other things.

To date, less than half a billion dollars of the U.S. money has been spent.

“We want to speed up the flow of funds,” Powell said at a news conference in Baghdad. “We want to show the Iraqi people that the money is being used for their benefit.”

Powell gave no details about how the U.S. would proceed to release the cash.

Iraqi Deputy Prime Minister Barham Salih said he expected $9 billion in funds to be allocated by the end of the year.

Distribution of the funds has been held up by bureaucratic delays and worsening security, which has prompted private contractors to withdraw their workers from Iraq. During the last four months, nearly 70 foreigners have been kidnapped, including many employees of foreign companies involved in the reconstruction.

Of nearly 200 proposed oil-related projects, less than half have begun, officials said.

During a meeting with Powell, representatives from the Public Works, Planning and Housing ministries expressed frustration at the delays and encouraged the secretary to focus on projects employing large numbers of people. Iraq’s unemployment rate is as high as 50%.

“We need to generate projects that use labor rapidly,” Powell said. “It has taken us a while to put in place our contract procedure. It takes time. Most of that work is now behind us.”

Iraqi officials hope that the money will help the nation’s economy and reduce violence.

“Reconstruction and security are two sides of the same coin,” Powell said.

“Reconstruction is our top priority,” said Ministry of Planning spokesman Abdul Zahra Hindawi. “Once the reconstruction starts, it will address the unemployment. Once people have jobs, the security will get better. People will have jobs and will feel more satisfied.”

During his daylong visit, Powell praised the new Iraqi government and warned its neighbors, particularly Iran, to refrain from interfering in Iraq’s affairs.

“It’s important to note the leaders of Iraq are very courageous,” Powell said. “They put themselves at risk every day. We have to make sure that these insurgents understand that we will not be deterred.”

In recent weeks, some Iraqis have blamed the government of Iran for instigating terrorism and unrest in Iraq. The new Iraqi defense minister, Hazem Shaalan, has been particularly outspoken in his criticism.

Powell stopped short of linking Iran to the unrest but said the U.S. was monitoring Iran’s involvement.

“We are uneasy about some of the actions Iran is taking in the south,” Powell said.

U.S. and Iraqi officials say Iran has been assisting conservative Shiite Muslim groups in southern Iraq, providing them with money and supplies.

Powell’s visit -- the first by a high-ranking Bush administration official since the U.S. handed over power to Iraqis on June 28 -- was viewed as a show of support for the new government as it attempts to build international credibility. Iraqi Prime Minister Iyad Allawi met with Powell on Thursday in Saudi Arabia.