UK welcomes provincial efforts to strengthen accountability, reconstruction and development in Southern Iraq

30 November 2006

Press Release

Luxor, Egypt - Provinces in southern Iraq have revealed that they have received national Iraqi funding for the first time, allowing them to spend around $US400 million (600 billion Iraqi Dinars (ID)) on reconstruction and development work during 2006. They anticipate these national funds will double in 2007.

Discussing development progress at a summit with senior advisers from the international donor community, 40 representatives of the Provincial Governments of Basra, Muthanna and Dhi Qar have outlined ambitious plans to build on donor efforts already underway in the provinces.

The summit is one of a series of events coordinated by the UK’s Department for International Development (DFID) and the UK-led Provincial Reconstruction Team (PRT) based in Basra. Delegates met to confirm how they will advance stability and security through the strengthening of good governance, the building of best-practice provincial institutions and by promoting conditions for economic development across southern Iraq.

In 2007, budgets in each province have been guided by a three-year Provincial Development Strategy (PDS) that show how the provincial authorities are taking the leading role in providing services that are more responsive to local needs and problems.

The institutional reforms discussed and agreed at Luxor will include putting in place new measures to strengthen local accountability and transparency by establishing a single unified treasury unit to manage all funds coming to the province, and the adoption of a clear separation of powers between the Council, the Governor's Office and the Technical Directorates.

Barb Hendrie, Head of DFID Iraq said:

“We are encouraged by the pace of this much needed governance reform and institutional capacity building by these provincial governments, who are now focussing on the core business of developing necessary services that will benefit the people they represent.

“Their efforts to promote transparent and accountable administration of the national Iraqi funds they have been given responsibility for, and linking their spending plans to clearly articulated strategies is also a welcome step forward. It will allow the Iraqi people to hold their provincial government to account for how their money is spent.

“The recent announcement that the UK will provide an additional £100 million for reconstruction aid in Iraq will ensure that ongoing technical assistance is available to build on the good work we have already witnessed.”

Speaking at the summit, Mr Gali Najam Muter, Chairman of the Basra Provincial Reconstruction and Development Committee (PRDC) said:

“Economic development and accountability are essential for sustainable stability in southern Iraq. In 2007, Basra expects to invest nearly $US400m on reconstruction and development. This is double to what we have spent this year, with our key priorities continuing to be improving the water, power and sanitation sectors.

“We will work very closely with the new Provincial Treasury and Accounting Office to help progress these projects, and if these projects can be achieved on the ground, the people of Basra will be very happy and aware of the efforts we are making.”