GLOBAL RESUMES NORMAL OPERATIONS AT BAGHDAD

UNCLAS BAGHDAD 003792

SIPDIS

DOT FOR FAA

E.O. 12958: N/A
TAGS: EAIR ECON ETRD PGOV PREL IZ
SUBJECT: GLOBAL RESUMES NORMAL OPERATIONS AT BAGHDAD
AIRPORT


1. (U) Summary: Following GOI assurances of partial
payment of $12.5 million on claimed arrears, Global
Risk Securities (GRS) resumed full operations at
Baghdad International Airport (BIAP) at 0600 hours
September 10. All flights - civilian, commercial, and
military - are operating normally. Post received
verification that the payment was made September 13,
clearing the way for Global and the Ministry of
Transportation (MOT) to begin negotiations on the
remaining arrears and a future contract. End summary.

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Background
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2. (U) On September 9 at 0600 hours, Global Risk
Strategies suspended its operations at BIAP,
effectively closing the airport to all civil and
commercial flights. The military side of the airport
remained open to military flights and pre-selected
civil reconstruction flights on a priority basis.


3. (U) Global has been working at BIAP since February
of 2005 without a signed contract. It had received no
payment for its services from the GOI since then until
September 13 in spite of repeated promises from MOT.
Global claims it is owed $23 million in arrears and is
demanding a new contract within 10 days.


4. (U) During Global's operations stand-down, the MNF-I
at BIAP raised its security posture and was ready to
take over the perimeter and checkpoint security
stations. The civilian terminal was closed and pre-
selected reconstruction flights diverted to the
military runway. USAF air traffic controllers operated
the tower during this period. Global employees
remained at their security posts throughout the stand-
down, but closed BIAP checkpoints to the public and
halted all passenger screening and processing
operations in the BIAP civilian terminal.


5. (SBU) Global raised the matter with Deputy Prime
Minister Chalabi, who, in collaboration with the
Minister of Finance and U.S. Embassy personnel, reached
the settlement leading to the partial payment of
arrears to Global and its resumption of operations.

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Current Situation
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6. (U) Post has received verification that the wire
transfer for the partial payment of $12.5 million did
go through September 13. Now Global will try to set a
date to begin negotiations with the MOT to resolve
Global's outstanding claims and reach an agreement on a
new contract. Chalabi has said at least four security
companies are interested in providing security services
at BIAP.

Satterfield