PROGRESS REPORT ON KEY INITIATIVES, JULY 28, 2005

C O N F I D E N T I A L SECTION 01 OF 04 BAGHDAD 003162

SIPDIS

E.O. 12958: DECL: 08/01/2015
TAGS: EAID ELTN ENRG EPET PREL IZ
SUBJECT: PROGRESS REPORT ON KEY INITIATIVES, JULY 28, 2005

REF: A. ANKARA 2912

B. BAGHDAD 2362 AND PREVIOUS

C. BAGHDAD 2534

D. BAGHDAD 2785

E. BAGHDAD 2962

F. KIRKUK 91

Classified By: Deputy Chief of Mission David M. Satterfield for reasons

1.4 (b) and (d)


1. (C) Following is Embassy Baghdad's latest update on the
status of Key Initiatives. See reftels for prior updates.

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ELECTRICITY AND OIL
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2. (C) Status:

-- Generation: Iraq Electricity - During the reporting
period, the last 7-day average peak generation for Iraq was
4,733 megawatts (MW) while the 7-day average total daily
generation decreased significantly by 6,756 MW to 105,413
megawatt hours (MWh) per day. The decrease is due to the
downing of a tower on July 18 that resulted in a loss of as
much as 600 MW over the next two days. The 7-day average
hours of electric power nation-wide was 12 hours during the
reporting period. Demand rose to 8,503 MW, an increase of
211 MW from the previous reporting period.

-- Generation: Baghdad Electric Power. During the same
period, the average peak availability for Baghdad was 1,255
MW of electric power with total average distribution at
26,333 MWh per day - a 19% decrease. This decrease is also
due to the downed tower on July 18. Baghdad's power
availability averaged 11 hours per day, consuming an average
of 25% of the country's output. Although the Ministry of
Electricity (MoE) reports a feeder rotation schedule that
varies between 3.0 to 3.5 hours of electricity on, and 3.0 to
2.5 hours off, Baghdad residents reported a rotation of 1
hour on: 5 hours off as the norm.

-- Summer Action Plan: This is a six-point plan to help the
MoE achieve the goal of 5500-5800 MW production this summer.
Baghdad South Unit 1A is currently on-line adding 100MW to
the national grid. Coordination amongst donor agencies
continues to ensure that the plan remains on track despite
fuel and security constraints.

-- Transmission: On July 18, the Bayji to Baghdad West #1 400
KV power line at tower 319 was interdicted. This resulted in
a loss of approximately 600 MW of power from the North and
West to the Baghdad area. The line was re-energized and
synchronized with the installation of an emergency tower in
its place. Although full repair of the line was expected to
be complete by July 28, additional interdictions have
resulted in further losses of power and have pushed back the
repair timeline.

-- Import of Power: Imports of power that began flowing two
weeks ago from Syria, Turkey, and Iran have resulted in an
average of 283 MW of additional power. Imports from Syria
remain erratic and unreliable. It is important to note that
these imports are excluded from contributing to the national
grid due to frequency and phasing disparities, but instead
are distributed to island circuits near border cities that
locally consume the power. Since Iraq's grid operates below
50 megahertz (MgHz),these countries will not allow Iraq to
import the supplied power directly into its grid.

-- Fuel Supply: Fuel shortages continue to restrict
generation levels at operational plants. MoE is currently
receiving about 3.5 million liters of fuel per day (ml/d),
which is insufficient for planned generation this summer.
The estimated completion date for repairs on the C-7 natural
gas pipeline, which supplies fuel to the Mosul, Doura, and
Taji power plants, is unknown. Until then, plants in all
three areas will operate at a reduced capacity.

Oil Update:

-- Oil Production and Exports: For the week ending July 25,
crude oil production averaged about 2.1 million barrels of
oil per day (bpd) with oil exports averaging 1.5 million bpd.
The average daily demand for diesel, kerosene, liquefied
petroleum gas (LPG),and gasoline is 18.8 million liters, 3.4
million liters, 4,300 tons, and 20.1 million liters,
respectively. The average daily imports for diesel,
kerosene, LPG, and gasoline are 8 million liters, 2 million
liters, 2,000 tons, and 13 million liters.

-- MoE and MoO Joint Meeting: The Ministry of Oil (MoO) and
Ministry of Electricity (MoE) continue with their weekly
meetings to ensure that the fuel supply needed for electrical
generation in Iraq is met. The focus of the meetings has been
on determining ways to meet the short-term summer spike in
demand for electricity caused by increased use of air
conditioners throughout Iraq.

-- Crude oil exports: The estimate for 2005 export revenue
increased from $11.2 billion to $11.7 billion.
For the reporting period:
-- Baghdad average hours of electric power: 11 hours per day
during the second week of the reporting period, a decrease of
3 hours from the first week of the reporting period.

-- National average hours of electric power: 12 hours per day
during the second week of the reporting period, a decrease of
2 hours from the first week of the reporting period.

-- Total peak-electrical output for Iraq is 4,733 MW.

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JUDICIAL AFFAIRS
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3. (C) Status: Central Criminal Court of Iraq (CCCI)

-- The Higher Juridical Council (HJC) has now assigned a
total of 19 investigative judges to the CCCI-Baghdad (up from
seven in April). This increase in judges and staff has
created a shortage of office space, which should be addressed
in the pending renovation of the courthouse. The renovation,
originally due to begin in early July, is now delayed one
month due to contracting issues. The renovation will begin
with exterior security improvements.

-- Eleven branch locations of the CCCI have been authorized:
Hillah, Kut, Tikrit, Najaf, Karbala, Baqubah, Basra, Amarra,
Sammawa, Diwaniyah, and Nasiriyah. According to the HJC,
Mosul is not yet secure enough to support a branch court.
This would reduce the caseload for CCCI-Baghdad.

--- The Embassy and MNFI are in the early planning stages to
support these branch courts, using the success of the Baghdad
CCCI as a model. The first step will be an assessment each
court's needs. This will determine follow-on support which
may include immediate physical and security improvements,
training for clerks and judges, and DOJ advisors as security
allows.

-- Safe housing for the CCCI judges remains a critical
problem. Work continues on the Al Hayatt apartment building
in the IZ, which will provide secure housing for several CCCI
judges and their families. The building should be ready in
approximately 40 days. The HJC is now seeking to place some
of its own judges in the Al Hayatt to the exclusion of some
CCCI judges.

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RULE OF LAW
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5. (C) Status: Iraqi Justice Integration Project (IJIP)

-- IJIP convened the inaugural Interministerial Integration
Commission meeting amongst the Minister of Interior, Minister
of Justce and President of the HJC. The purpose of the
Commission is to increase coordination amongst the MOI, MOJ
and Chief Justice, and initiate building the Iraqi capacity
to integrate police, courts and prisons. IRMO Senior
Consultant to the MOI opened the meeting, and IJIP
consultants reviewed the goals, benefits and activities of
justice integration. The Ministers and Chief Justice
officially agreed to the formal structure of the Commission
and related working groups, and provided their views on how
the project should move forward. They each expressed a
desire to improve their ability to share and obtain
information on the accused, as well as to improve human
rights. Although the Chief Justice wanted to include the
Ministry of Human Rights on the Commission, the Minister of
Interior stated that he feels the MHR should not exist and
that NGOs should monitor the justice system be
cause they are independent.

-- IJIP consultants are working with Rusafa prison officials
and the Ministry of Interior IT working group to help
establish automated connectivity between the Rusafa
detention processing facility and Baghdad police.

-- Judicial Integrity Project

-- INL continues to work with Iraqi judges to facilitate
their input into the constitution-drafting process. The
Chief Justice and other judges were concerned that the
initial draft of the constitution circulated this week did
not include enough protections for judges and created a
separate "constitutional court" rather than using the
existing Supreme Court.

-- INL briefed the constitution-drafting committee on the
legal implications surrounding use of Sharia law in the
constitution.

-- INL is supporing local judges in their effort to
establish an Association of Judges in Baghdad.

Rule of Law (ROL) Program Planning:

-- IRMO Senior Consultant to the MOI convened the inaugural
Embassy Rule of Law Task Force meeting. The Task Force
established a ROL working group (INL, DOJ and MNF-I - PME)
and ROL cell within the military that will provide
administrative and operational support to the Embassy on Rule
of Law. INL provided a list to MNF-I on areas that may
require military support, and will work with DOJ and MNF-I to
follow-up with implementation.

-- INL and DOJ continue to devise plan to support CCCI
expansion into the regions; including coordination with
military, provision of justice advisors and training and
equipping of judges and courts.

Donor Coordination

-- INL Rule of Law Coordinator and DOJ/OPDAT RLA attended the
IRRFI donors coordination meeting in Amman were Rule of Law
was designated as one of nine sector working groups (and one
of the first to be convened).


6. (C) Next Steps:

-- MOI, MOJ and the Chief Justice will nominate the IJIP
representatives for the Iraqi Integration Steering Committee.
The IJIP will memorialize agreements made at the Commission
meeting this week in an MOU.

-- INL will join with the UN, EU, UK and other donors to
engage with the Minister of Planning to encourage the timely
establishment of the uleof Lw sector working group. These
parties will also work to bring the MOI, MOJ and HJC into the
coordination process and encourage them to work with the
international community to obtain specific commitments for
Rule of Law needs in Iraq.

-- Support expansion of CCCI into the regions.

-- Devise additional activities to promote justice
integration at local and provincial levels.

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PRDC and PST
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7. (C) Status:

-- The Baghdad Provincial Reconstruction Committee (PRDC) met
twice during the reporting period with the Baghdad Provincial
Support Team (PST). The groups worked to finalize the list of
48 primary projects and four additional projects for
consideration of PST funding. Each project still lacks map
grid coordinates and respective Scopes of Work (SOW) for each
effort. The PRDC also agreed with the PST recommendation to
form a committee to review all aspect of project contracts.
This committee will work in close coordination with the
Baghdad PST/IRMO Office of Special Inspector General for Iraq
Reconstruction that reviews contractual obligations for IRMO.

-- IRMO continues to lead the PRDC effort with valuable
guidance from all of the regional representatives and a
monthly newsletter that keeps all PSTs apprised of nationwide
efforts.

-- CERF funds are still allocated for immediate use in eight
of the 15 provinces. However, commanders are waiting for the
delivery of PRDC Project Lists to determine if projects on
the list meet qualifications for CERP funding. At this time
the Baghdad PRDC is the only committee to have submitted a
list of projects. Projects must be submitted by 31 July in
order to be considered for CERF funding.


7. (C) Next steps:

-- Continue monitoring process, coordinating implementation
with the provinces, insuring communication with the
districts, and support initiatives to increase communication
with the national government, ministries, and the various
community governments in each of the provinces.

Khalilzad