Contrack International, one of the largest U.S. contractors in Iraq, has announced it is withdrawing from the reconstruction effort. The company cited "skyrocketing security costs" as the basis for withdrawal.
Contrack's is the largest to be canceled to date, U.S. officials said. The move has led to fears that Iraq's mounting violence could prompt other firms to consider pulling out, or discourage them from seeking work in Iraq, further crippling reconstruction.
But, never fear:
U.S. reconstruction officials said the termination of Contrack's contract, which was not previously disclosed, would not hamper rebuilding. They said they were planning to put the contract up for rebidding, a process that could take months, and were hopeful that Iraqi firms would participate.
And:
"Even though the situation is difficult, even though the security environment is not what we'd like it to be, progress is being made," Charles Hess, director of the reconstruction office, said at the conference.
Phew! For a second there, it sounded like things weren't going well over there.
More details below.
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