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Iraq reconstruction made "significant progress"

Tue May 2, 5:44 AM ET

The reconstruction of Iraq has made "significant progress" in recent months despite "shortfalls and deficiencies," according to a Pentagon report.

Stuart Bowen, the special inspector general for Iraq reconstruction, said in a quarterly report published Monday that oil production remained below pre-war levels and that "Iraqis are not yet fully benefiting from their nation's enormous oil supply."

The report also says 67 percent of the 21 billion dollars for reconstruction had been spent, and only two billion dollars more need to be allocated.

"Although the story of Iraq reconstruction has been punctuated by shortfalls and deficiencies, the infrastructure overview ... presents a picture of significant progress achieved through a substantial US investment of time, talent, and tax dollars in Iraq's relief and reconstruction," the report says.

Oil production, which reached 2.18 million barrels per day in the last week of March, remains below the pre-war level of 2.6 million bpd and the goal of 2.3 million bpd set by the oil ministry, according to the report.

The oil industry however is riddled with corruption, made easier by the difficulty in accurately comparing oil production with oil sales.

The rebuilding of the sector of health is especially problematic: only six of the 150 planned health centers have been completed -- with 14 other sites near completion -- while 75 percent of the funds allocated for the purpose have already been spent.

"Moreover, the insurgency has reportedly been partly funded by corrupt activities within Iraq and from skimming profits by black marketers," the report read.

To work effectively during this "critical juncture" of Iraqi reconstruction "requires the US government to work closely with the Iraqi government and international donors to sustain the substantial US investment in Iraq's infrastructure," the report added.

The US Congress is currently considering an additional 3.2 billion dollars for Iraq's reconstruction as part of a supplemental budget.

The report comes three years after President George W. Bush landed on the deck of an aircraft carrier and, standing beneath a banner hailing "Mission Accomplished," declared an end to "major combat operations" in Iraq.

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