1. 04_0001 Elias Semaan Iraq Infrastructure Reconstruction Project Update

2. 04_0001 2 CPA Sectors North Central Heartland South Program Goals

3. 04_0001 3 Program Goals U.S. Government Mandate Restoration of the country’s key infrastructure is a priority of the U.S. government’s effort to strengthen Iraq’s economy and ensure delivery of essential services to the Iraqi people. Bechtel’s Role Our contract, which runs through December 2004, is for emergency infrastructure repair and rehabilitation work in Iraq. Key Priority Bechtel intends to subcontract 90% of this work and is working to maximize the participation of Iraqis.

4. 04_0001 4 Mobilization Milestones MilestoneDate  Contract awardApril 17  Mobilize to NoVAApril 17  Mobilize to KuwaitApril 20  First entry into IraqApril 23  Begin dredging in Port of Umm QasrMay 8  Establish Baghdad pioneer campMay 20  Open Port of Umm Qasr to commercial traffic June 16  Submit Assessment Report & Recommended Implementation Plan June 25  Implementation Plan approved by USAID / CPA July 17

5. 04_0001 5 Staffing  As of December 28, 2003, 128 Bechtel personnel are in Iraqi offices and camps in Baghdad, Mosul, Basrah, and Al Hillah

6. 04_0001 6 Port of Umm Qasr  Port opened to commercial traffic on June 16  Dredging, wreck removal, and grain facility rehabilitation are complete  Port is open to ferry service from Dubai and to bulk ships delivering food and humanitarian supplies  450 jobs created, including employment by Iraqi Grain Board

7. 04_0001 7 Subcontracts  Over 10,000 companies from 100 countries have registered on Bechtel’s supplier portal  183 subcontracts awarded to date  128 subcontracts to 102 different Iraqi companies  Goal is to maximize participation of Iraqis, with 70% of subcontracted work going to Iraqi firms

8. 04_0001 8 Schools  USAID, with Bechtel’s assistance, rehabilitated 1,239 schools in less than 3 months  Met goal to complete work by start of the new school year  More than 30,000 local laborers at work at program’s peak  Approximately 1 million children returned to newly refurbished schools  Site visits and follow-up meetings continue, to ensure satisfactory work at all schools in Bechtel’s scope

9. 04_0001 9 Power  At the direction of USAID, Bechtel is reconstructing, repairing, rehabilitating, and upgrading Iraq’s power system  Work includes generation, transmission, and distribution; CPA Program support; and institutional strengthening of Iraq’s Ministry of Electricity  Working with other USAID and CPA contractors, restored generation to pre-conflict levels of 4,400 MW per day  Progressing toward target of 6,000 MW per day by summer 2004

10. 04_0001 10 Roads and Bridges  Bechtel is reconstructing three key bridges in Iraq: Khazir Bridge, Al Mat Bridge, and Tikrit Bridge  Four-lane Al Mat Bridge bypass completed in July 2003  Reconstruction work moving forward on all three priority bridges

11. 04_0001 11 Rail  Bechtel and Iraqi Republic Railways (IRR) are constructing a new European-standard rail line to improve freight transport service from the Port of Umm Qasr to the rest of Iraq  Five-fold increase in train service expected  Repairing IRR-owned equipment and workshops  Training IRR personnel in current industry practices

12. 04_0001 12 Airports  Bechtel is helping to restore critical infrastructure at Baghdad and Basrah International Airports  Baghdad airport ready to receive commercial flights  Work includes:  Providing emergency power  Installing communications systems  Installing security fencing and lighting

13. 04_0001 13 Water/Wastewater  The mission: Restore Iraq’s water and sanitation systems to ensure a reliable supply of potable water to the general public  Work includes restoring water and sanitation systems in Baghdad and six other urban centers across Iraq  Completed work on Safwan water supply system south of Basrah, restoring reliable potable water service to Safwan’s 40,000 residents  Ongoing wastewater treatment facility restoration work in Baghdad is helping improve sanitation service for 700,000 people

14. 04_0001 14 Telecommunications  Bechtel is working to restore connectivity to Baghdad area telephone subscribers, and to restore the fiber optic backbone to pre-conflict functionality  The program includes:  Installing containerized switches at 12 sites, allowing reconnection of 240,000 subscribers  Installing international satellite gateway in Baghdad to enable international calls  Restoring the country’s main north- south fiber optic backbone