UPDATE ON BASRAH INTERNATIONAL AIRPORT

C O N F I D E N T I A L SECTION 01 OF 02 BASRAH 000103

SIPDIS

SIPDIS

E.O. 12958: DECL: 6/17/2016
TAGS: PGOV PREL ECON EAIR EAID IZ
SUBJECT: UPDATE ON BASRAH INTERNATIONAL AIRPORT

REF: A) 05 BASRAH 130, B) 05 BASRAH 136

BASRAH 00000103 001.2 OF 002


CLASSIFIED BY: Ken Gross, REGIONAL COORDINATOR, REO BASRAH,
DEPARTMENT OF STATE.
REASON: 1.4 (b),(d),(e)




1. (U) Summary: The Memorandum of Understanding (MOU) between
the Governments of the UK and Iraq was extended for a second
time to June 30, 2006. The second extension occurred because
certification of the air traffic controllers (ATCs) is still
pending, a shortage of fire trucks, issues with the water
treatment facility and the lack of functioning generators. The
main issue with completing planned and deferred projects is lack
of funding. Current operations at the airport consist of 100
scheduled flights per month. The airport employs 375 employees,
and revenues are covering all salary costs and beginning to turn
a profit. However, all revenue is sent to Baghdad and none is
used for renovation or maintenance of the airport. There are
still many issues at BIA, but if they can be overcome a
functioning international airport in Iraq's second largest city
would improve potential for growth. End summary.

ANOTHER EXTENSION GRANTED


2. (U) The original MOU between the UK and Iraq was originally
set to expire in August 2005; but at the last minute was
extended to March 31, 2006. The UK MOD badly desired the MOU to
sunset, but in light of inability to stand up fully the required
number of certificated air traffic controllers relented and
agreed to an extension from March 31 to June 30, 2006.


3. (U) The principle reason for the extension is that the ATCs
are qualified but have not been certified by the Iraqi Civil
Aviation Authority (ICAA). The Director of BIA, Abdul Razzak,
is encouraging the appropriate authorities in Baghdad to certify
them as soon as possible. The hold-up in certification is the
inability to coordinate the required physicals and medical
examinations for the ATCs by the Ministry of Transportation and
the Ministry of Health. All other requirements for
certification have been met. As soon as the seven ATCs are
certified by the ICAA there will be enough manpower to cover two
full daylight ATC shifts as required by the MOU.


4. (U) During a meeting with Abdul Razzak on May 29, he told
poloff that specifications for the airport indicate that the
airport should have four vehicles in the fire service.
Originally, the USG purchased and shipped a number of fire
trucks to Basrah at about $450K each. However, upon arrival it
was discovered that 2 of the trucks were the wrong type of fire
truck. The fire trucks that were purchased were suited for oil
fires and did not meet specifications for trucks needed at an
airfield. The shortage of fire trucks is another reason for the
extension. The BIA fire service is currently using a fire truck
on loan from the Iraqi Air Force, which will be returned when
they receive its own. IRMO is working to replace the
non-conforming trucks with proper vehicles but no delivery date
is yet known.


5. (U) Although the terminal and cargo facility are not covered
under the MOU, the Iraqi authorities will not take
responsibility for those buildings until they are refurbished to
the state they were in when the military moved into them in

2003. There is currently a US $500,000 project underway to fix
doors, paint, install carpet and windows and replace furniture.
Originally, the British wanted to return the control of the
terminal and cargo shed to Abdul Razzak with the promise of
repairs, but he refused to accept transfer until the renovations
were completed. The renovation project is expected to be
finished before June 30. At the last BIA Development Conference
held on May 14, the Chairman noted that funding for projects as
well as availability of power and water were the real issues for
the airport. However, he was optimistic that the various
agencies involved were working together to coordinate funding
strategies and projects would move forward.

CURRENT CAPACITY AND OPERATIONS


6. (U) The commercial airport is open from sunrise to sunset
seven days a week. The airport currently has 100 scheduled
flights per month. June marks BIA's one-year anniversary of
renewed commercial operations. When the airport first re-opened
a year ago, it was only running six scheduled flights per month.
There are three commercial operators provide service into and
out of BIA: Iraqi Airways, Jupiter Airlines and Royal Jordanian
Airlines. From Basrah, passengers can fly to Baghdad, Dubai and
Amman.


7. (U) The airport currently has 375 government employees
working in various sections of the airport including
immigration, customs, a medical center, a meteorological center,

BASRAH 00000103 002.2 OF 002


a bank, fuel supply and other sectors. The Department of Border
Enforcement handles security for the airport, and has 158
officers stationed at BIA with the hope of increasing that
number to 240 in the near future. The airport's revenues cover
all salary costs and recently began to turn a profit. All
revenue is sent to the Ministry of Finance in Baghdad and none
of the revenue is used for reconstruction or maintenance of the
airport. The tower continues to use British military
communications equipment; the Iraqis do not have any of their
own. Replacement communication equipment are included in
planned IRMO projects.


8. (SBU) A contentious issue between MND-SE and BIA authorities
is the water treatment facility. The treatment facility, as
well as the pipes to distribute the water, are quite old and in
need of renovation. There have been several projects to repair
various portions of the treatment facility, but the work was
reportedly less than excellent, and unless the plant is
renovated properly, the system will not work. The projects have
been stalled due to lack of funding. BIA's current water
treatment facility that water from a nearby canal and treats it
and then stores it in a reservoir. The British military pulls a
large volume of processed water from the reservoir for its use.
During a meeting with REO poloff on May 29, Abdul Razzak
explained that 40 percent of the treated water is kept to fight
fires and that 60 percent is potable water. He complained that
the military takes 80-90 percent of the potable water for its
own use. (Note: IRMO Transportation Officer based at BAS puts
the number closer to 60 percent; IRMO does have a planned
collaborative project, with some UK funding to renovate the
water treatment facility. The plant is critical for cooling,
provision of fire suppression water, as well as the
aforementioned potable water supplies. End Note.)

REMAINING ISSUES


9. (SBU) According to Abdul Razzak, the four biggest issues
facing the airport are lack of navigation aid systems (NAVAIDS),
the need for runway lights and availability of both power and
water. There is an urgent need to sort out the issues with the
water treatment facility and the generators that provide water
and air conditioning to the terminals. Temperatures in Basrah
during the summer months reach 130 degrees Fahrenheit. The idea
of passengers waiting in a terminal without air conditioning is
a major concern. Funding is the major issue with completing
projects, and another is the lack of local contractors who have
the specialized expertise to do the work. According to Abdul
Razzak, funding for runway lights has been approved but he wants
to make sure that the contract goes to a company that is
specialized in putting in this type of equipment. He said that
this kind of expertise will have to come from outside of Iraq.
Planned future destinations from BIA include Tehran, Damascus,
Cairo and London. However, expansion of service is unlikely
until the airport fully meets international standards for
operational safety and security, and has expanded and completed
most renovations. A revised draft MOU, which would extend some
provisions of the existing MOU, has been provided to Mr. Razzak
for comment, but he has expressed uneasiness about the "phased"
transition it contains. The new MOU, if agreed, would extend
some provisions of the current MOU through the end of 2006.

COMMENT


10. (C) Comment: There are still many issues to be overcome at
BIA. A main issue is a lack of funding to complete the various
projects, including installation of a radar deferred in Fall

2005. Abdul Razzak wants to meet the requirements of the MOU to
take control of the commercial operations at the airport.
However, some of the intervening issues are contingent on things
that are out of his control. Although there is consensus in a
desire for the MOU to end on June 30, the safety and liability
issues related to transition of air traffic control to the
Iraqis are compelling reasons to move deliberately. The UK
appears to be moving in the right direction but it is unlikely
that all required issues will be sorted out in the next two and
a half weeks. The MOU likely will either be extended, or the new
draft will be negotiated and executed. There is no doubt that a
fully conforming, functioning international airport in Iraq's
second largest city would greatly improve Basrah's potential for
continued growth. End comment.
GROSS