Risk is still the key factor in Iraq
Posted: 8 August 2003
British ex-pats and contractors are still awaiting the
answer to the Iraqi question. When will there be opportunities with
the reconstruction program?
Iraq has barely been off the front pages for the last six months.
Through the long build up to war, the short conflict period and
the now lingering aftermath, coverage has been extensive but actual
information has been sparse when it comes to the reconstruction
program.
The role of the UK, the role of expatriate contractors and the
timescale for actual activity remain shrouded in uncertainty.
For most British businesses and contractors the picture painted
of Iraq depends on who you talk to.
Iraqi businesses looking for British partners have been advocating
travel to Baghdad as soon as possible as the only way to establish
a presence in the area. The foreign office, however, continues to
advise against ‘all but the most essential travel to Iraq’.
Some have opted for meeting with potential partners in Amman or
Kuwait City, Others have met with representatives in the UK to establish
links. Iraqis will consistently argue that the only way to develop
opportunities is to get into Baghdad and feel your way around.
At their original subcontractors briefing in Washington DC, Bechtel’s
Tom Elkins told hopeful subcontractors to ‘get into the theatre’.
Whilst Bechtel have maintained a completely arms length attitude
to subcontractors (secure yourself, insure yourself, arrange your
own travel etc) they have made it perfectly clear that those who
win subcontracts will be those who have connections on the ground
and are operating inside Baghdad and Basra.
The recent MEED conference in London brought a large number of
interested parties together for an update on the range of issues
affecting British companies seeking to become involved in the reconstruction
projects.
Among these companies is Halcrow, whose chairman Tony Allum recently
undertook a scoping visit to Baghdad and reported a generally positive
experience.
The trouble for the average person is distinguishing between those
who have had successful visits because of the precautions they have
taken and those who have simply been lucky and might easily have
suffered serious problems had their luck run differently. Gary Wood
spoke at the conference on the subject of personal security.
His company Janusian, part of the Risk Advisory Group, originally
travelled from Amman to Baghdad in a taxi and started the ball rolling
from there. They are now escorting delegations via their secure
villa in Baghdad.
The message to those who would make money from the reconstruction
remains the same. The sooner you’re in Baghdad, the more money
you will make. Where you stand on the enormous personal risk is
a matter for you.
As regards professional risk, the water is yet muddier. Establishing
a valid contract within Iraq is fraught with difficulty and it seems
that very few small firms will take the risk with partners that
they potentially have no legal recourse in the event of problems.
For those companies who are seeking, or have already been awarded,
subcontracts the key issue becomes staffing the projects. An Iraqi
labour force is essential. A major Kuwaiti firm recently learned
a harsh lesson when it tried to bring in foreign nationals to work
in Iraq. The newly free Iraqi population are exercising their right
to free speech with great gusto when it comes to attempts to hire
external labour.
Bechtel recently completed its first project in Iraq, a four lane
bypass to a crucial highway in western Iraq.
The Al Mat bypass work was done by Al-Bunnia Trading Company of
Baghdad, the first Iraqi subcontractor signed up by Bechtel as part
of its commitment to use Iraqi labour forces.
The riots sparked by the Kuwaiti contractor have sent a very clear
message to the international community. Use Iraqis to as great an
extent as possible and you will be welcomed. Attempt to use non
Iraqis and the possibility exists that you could face very active
resistance.
As most recruitment agencies have understandably declined to become
involved in Iraq, it leaves British subcontractors without a connection
to the Iraqi workforce. Only web based staffing solutions company
EPCglobal have tackled this area as Communications Manager Richard
Spragg explains.
“It became clear to us in April that connecting potential
subcontractors with Iraqis on the ground would be the best way to
secure a revenue stream in Iraq.” He says.
“We have created a means to provide this link. We are certain
that by developing relationships with Iraqi recruitment bodies we
are in a strong position to assist potential subcontractors in fulfilling
their responsibilities in the employment of Iraqi staff. We also
have 16,000 applications to our website for provisional vacancies
from engineers across the globe.”
So whilst solutions are available for practical matters of security
and recruitment, it will be mitigating the risk involved in travel
to the country and setting up contracts that will continue to present
the biggest challenge for those interested in working in the new
Iraq, whenever it emerges from its present state.
Richard Spragg
PR & Communications Manager
EPCglobal
www.epcglobal.com
Posted by Richard Price,
Editor Pipeline Magazine
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