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[size=36]Parliamentary Transport Committee reveals major violations in Baghdad Airport rehabilitation project[/size]
Local | 11:34 - 10/13/2024
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Mawazine News - Baghdad
The head of the Parliamentary Transport and Communications Committee, Zahra Al-Bajari, revealed the existence of many violations in the Baghdad International Airport rehabilitation project, which was contracted with the International Finance Corporation as a consulting company for the project.
Al-Bajari explained that "the Council of Ministers decided to exempt it from the Government Contracts Law, which made the tender awarded directly to this institution without direct invitation to other companies."
Al-Bajari pointed out that "the contract includes a consultation in the amount of $500,000 for a year, when the Civil Aviation Authority was responsible for the airport.
According to Al-Bajari, the company does not have an office inside Iraq, which means that the funds allocated for the project will be transferred outside the country, which contradicts local laws that stipulate that the funds must be received inside Iraq since the project is within its territory."
She pointed to "another item related to the so-called (success fees), which the company requested at a rate ranging between 1.5% of the project value of $450 million, and accordingly the amount that the company will receive is estimated at about $7.25 million in addition to $500,000 as the value of the contract."
Al-Bujari considered "this clause illegal, as the success fees must be paid only after the project is implemented, while the current agreement stipulates that the fees must be paid only 30 days after contracting with any investment company to implement the project."
She added that "the arbitration process stipulated in the contract will be in London courts, which may cost Iraq large sums due to the high costs of arbitration in those courts." Al-Bujari raised "questions about the need to contract with a foreign institution to implement the airport rehabilitation project, at a time when there are Iraqi consulting institutions capable of implementing the project with the same efficiency as the consulting office at the University of Baghdad."
Al-Bujari expressed her "surprise at the project's exclusion from the instructions for implementing government contracts, and granting this institution many exceptions and violations in the agreement," wondering about "the reasons behind the continuation of this contract despite the clear violations."
Al-Bajari explained that "the Council of Ministers decided to exempt it from the Government Contracts Law, which made the tender awarded directly to this institution without direct invitation to other companies."
Al-Bajari pointed out that "the contract includes a consultation in the amount of $500,000 for a year, when the Civil Aviation Authority was responsible for the airport.
According to Al-Bajari, the company does not have an office inside Iraq, which means that the funds allocated for the project will be transferred outside the country, which contradicts local laws that stipulate that the funds must be received inside Iraq since the project is within its territory."
She pointed to "another item related to the so-called (success fees), which the company requested at a rate ranging between 1.5% of the project value of $450 million, and accordingly the amount that the company will receive is estimated at about $7.25 million in addition to $500,000 as the value of the contract."
Al-Bujari considered "this clause illegal, as the success fees must be paid only after the project is implemented, while the current agreement stipulates that the fees must be paid only 30 days after contracting with any investment company to implement the project."
She added that "the arbitration process stipulated in the contract will be in London courts, which may cost Iraq large sums due to the high costs of arbitration in those courts." Al-Bujari raised "questions about the need to contract with a foreign institution to implement the airport rehabilitation project, at a time when there are Iraqi consulting institutions capable of implementing the project with the same efficiency as the consulting office at the University of Baghdad."
Al-Bujari expressed her "surprise at the project's exclusion from the instructions for implementing government contracts, and granting this institution many exceptions and violations in the agreement," wondering about "the reasons behind the continuation of this contract despite the clear violations."
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