ORIGINAL: ENGLISH
REPORT OF THE SECRETARY-GENERAL PURSUANT TO PARAGRAPH 6
OF SECURITY COUNCIL RESOLUTION 1210 (1998)
1. Pursuant to paragraph 1 of Security Council resolution 1210 (1998) of
24 November 1998, a new 180-day period commenced at 0001 hours United States
Eastern Standard Time on 26 November 1998. The distribution plan for phase V
was approved by the Secretary-General on 11 December 1998.
2. The present report is submitted pursuant to paragraph 6 of resolution
1210 (1998), and provides information up to 31 January 1999 on the distribution
of humanitarian supplies throughout Iraq, including the implementation of the
United Nations Inter-Agency Humanitarian Programme in the three northern
governorates of Dahuk, Erbil and Sulaymaniyah. It also describes developments
in the implementation of the programme since the previous report, submitted to
the Council on 19 November 1998 (S/1998/1100).
II. REVENUE GENERATION, PROCUREMENT AND DISTRIBUTION TO END-USERS
A. Oil production and sale of petroleum and petroleum products
3. Since the beginning of the current phase and as at 31 January 1999, the oil
overseers and the Security Council Committee established by resolution
661 (1990) of 6 August 1990 have reviewed and approved a total of 79 contracts
involving purchasers from 22 countries, as follows: Algeria (2), Austria (1),
Belgium (1), Bulgaria (2), Canada (2), China (6), France (5), India (1),
Ireland (1), Italy (6), Kenya (1), Malaysia (1), Morocco (2), Netherlands (2),
Russian Federation (28), Spain (3), Switzerland (4), Turkey (5), United Arab
Emirates (1), United Kingdom of Great Britain and Northern Ireland (3), United
States of America (1) and Viet Nam (1).
4. The total quantity of oil approved for export under the above contracts
corresponds to approximately 277 million barrels for 180 days. It should be
noted that the average quantity of oil exported from Iraq increased from
1.75 million barrels per day during the previous 180-day period to 1.9 million
barrels per day during the current reporting period up to 31 January 1999.
Concurrently, during this phase, oil prices for Iraqi crude have decreased to
around $8.6 per barrel. At current prices, the total revenue projected for this
phase is estimated at $2.9 billion. After the deduction of the minimum pipeline
fee of $180 million and the distribution of remaining revenue according to the
percentages established in paragraph 34 (f) of my report of 25 November 1996
(S/1996/978), an amount of approximately $1.8 billion would be available to
finance the humanitarian supplies and the oil spare parts and equipment
authorized in resolution 1210 (1998).
5. As at 31 January 1999, the export of petroleum from Iraq under the current
phase was proceeding smoothly. Ninety-three liftings, totalling 119.3 million
barrels at an estimated value of $1,025 million, have been completed. About
45 per cent of the loadings have been made at Ceyhan (Turkey). It may be
recalled that, for the purposes of the arrangements set out in paragraph 6 of
resolution 986 (1995) of 14 April 1995, the larger share of the petroleum and
petroleum products should be exported via the Kirkuk-Yumurtalik pipeline, and
the remainder should be exported from the Mina al-Bakr oil terminal.
Accordingly, the Office of the Iraq Programme has initiated discussions on this
subject with the Permanent Mission of Iraq, and the Security Council Committee
will be kept informed thereon.
6. The oil overseers have continued to advise and assist the Security Council
Committee on the pricing mechanism, contract approvals and their modifications,
and other questions related to exports and monitoring under resolution 986
(1995) and all subsequent relevant resolutions.
B. United Nations Accounts pertaining to the Iraq Programme
7. The United Nations Accounts pertaining to the Iraq Programme are divided
into seven separate funds pursuant to paragraphs 8 (a) to (g) of Security
Council resolution 986 (1995). As at 31 January 1999, of the $5.256 billion
authorized under resolution 1210 (1998) for the 180-day period starting on
26 November 1998 (phase V), $459.2 million had been deposited into the account,
bringing the total oil sale since inception to $9,846.1 million. Annex I to the
present report shows the allocation of the total oil revenue among the various
funds and the corresponding expenditures as at 31 January 1999. Annex II shows
the number and value of the letters of credit pertaining to oil proceeds and
humanitarian supplies.
8. In paragraph 4 of its resolution 1210 (1998), the Security Council
requested the Secretary-General, inter alia, to review, by 31 December 1998, the
various options to resolve the difficulties encountered in the financial process
referred to in his report of 19 November 1998 (S/1998/1100). The Secretariat
undertook a thorough review and submitted a proposal to the Security Council
Committee on 11 February 1999 on advancing funds for food procured and delivered
to Dahuk, Erbil and Sulaymaniyah by the Government of Iraq.
C. Prioritization, processing and approval of applications,
delivery to Iraq and distribution to end-users
ESB (53 per cent) account
9. During the reporting period, the Office of the Iraq Programme
simultaneously processed applications for phases III, IV and V. In accordance
with the procedures of the Security Council Committee, the Secretariat continued
to circulate for its consideration and approval applications in advance of the
availability of funds, so long as oil revenue projections indicated that
sufficient funds would become available to fund all approved applications.
However, owing to the considerable imbalance between the value of contracts
signed by the Government of Iraq and projected revenues, circulation of
applications valued at approximately $500 million was held in abeyance while
consultations were held with the Government of Iraq to establish priorities with
respect to those applications.
10. As at 31 January 1999, 28 phase III approval letters valued at $34,270,671
were awaiting the availability of funds. For phase IV, 41 approval letters
valued at $32,086,752 were awaiting issuance. During the reporting period,
approval letters continued to be issued, as funds became available, through an
enhanced process of weekly consultations with the Government of Iraq. However,
the rate of issuance was adversely affected by the slow rate of reimbursement
from the ESC (13 per cent) account to the ESB (53 per cent) account for goods
notified as delivered to northern Iraq, as well as by the continuing impact of
low oil prices on escrow account funds for both phases.
11. In addition, it has not been possible to utilize fully the available funds
apportioned to the oil spare parts sector under phase IV owing to delays in the
submission to the Secretariat of applications for goods in this sector, as well
as to holds placed on 113 applications in the amount of $50,631,743. As at
31 January 1999, the Office of the Iraq Programme had received only $269 million
worth of applications, against a distribution plan allocation of $300 million.
No application for this sector has yet been received for phase V.
12. In the health sector, applications for pharmaceuticals continue to arrive
at the end of all phases and, for phase IV, account for as little as one third
of the applications submitted in this sector, as compared with those for medical
equipment. Submission of applications for pharmaceuticals under phase III is
still incomplete, while for phase V, as at 31 January 1999, only $2.3 million in
medical contracts had been received by the Office of the Iraq Programme towards
a Distribution Plan allocation of $219 million for this sector.
13. Once it became clear that oil revenues would be insufficient to fund
approximately $500 million in applications received under phase IV, the Office
of the Iraq Programme, in consultation with the Government of Iraq, developed a
mechanism to transfer to phase V a number of phase IV applications either
previously approved by the Security Council Committee or evaluated but not yet
circulated. As at 31 January 1999, 101 applications had been so transferred, of
which 34, all for foodstuffs, were subsequently approved by the Committee for
funding under phase V. However, given the shortfall in oil revenues now
projected for phase V, and in order to ensure that the value of applications
circulated is not in excess of anticipated revenues, circulation of the
remaining 67 transferred applications, which are for goods in the agriculture,
education, food handling and water and sanitation sectors, has been held in
abeyance pending the results of consultations being held by the Office of the
Iraq Programme with the Permanent Mission of Iraq on the urgency of adopting
revised sectoral allocations, bearing in mind that sufficient funds must be made
available to meet the priorities accorded by resolutions 1153 (1998) of
20 February 1998 and 1210 (1998) to the food/nutrition and health sectors, as
well as to oil spare parts.
ESC (13 per cent) account
14. With respect to the ESC (13 per cent) account, as at 31 January 1999, 390
applications valued at $105,229,787 had been funded under phase III. A total of
338 applications valued at $60,456,848 had been submitted under phase IV, of
which 304 applications valued at $60,301,757 were approved. Of the remaining
applications, 8 were made null and void, 4 were put on hold, 1 was awaiting
additional information prior to circulation and 21 were pending approval under
the no-objection procedures of the Security Council Committee.
15. As a result of ongoing implementation of the information system set out in
paragraph 53 (h) of my report of 1 February 1998 (S/1998/90), during the
reporting period intensified liaison continued between the Office of the Iraq
Programme and United Nations agencies and programmes, in conjunction with
reporting by the independent inspection agents upon the arrival in Iraq of
commodities financed by the ESC (13 per cent) account.
16. During the reporting period, Lloyd's Register continued to serve as the
United Nations independent inspection agents authenticating the arrival of
humanitarian supplies at the entry points in Al-Walid, Trebil, Umm Qasr and
Zakho. After international tendering, on 31 December 1998, the firm of Cotecna
Inspection S.A. was contracted to replace Lloyd's Register as the United Nations
independent inspection agents, effective 1 February 1999.
17. In paragraph 53 (j) of my report of 1 February 1998 (S/1998/90), I
requested the United Nations independent inspection agents to enhance their
capacity to perform quality tests within the shortest period technically
feasible, as well as to perform quality tests inside Iraq. Discussions continue
with the Government of Iraq concerning the Office of the Iraq Programme's
request for permission to set up a mobile laboratory at Trebil. During the
reporting period, independent inspection agents continued to report on the
arrival of humanitarian supplies procured under the United Nations Inter-Agency
Humanitarian Programme for the three governorates of Dahuk, Erbil and
Sulaymaniyah.
18. In January 1999, the first oil spare parts and equipment procured under
resolutions 1153 (1998) and 1175 (1998) of 19 June 1998 began arriving in Iraq.
Under the monitoring mechanism established pursuant to resolution 1175 (1998),
Saybolt Nederland BV, in conjunction with Lloyd's Register, began operations to
ensure effective monitoring of oil spare parts and equipment inside Iraq.
19. Observations by international staff during this reporting period were
interrupted by two temporary relocations, in mid-November and mid-December, of
United Nations observers to Amman for a total of 11 calendar days. In addition,
there were 15 days of United Nations and Government official holidays, leaving a
total of 55 days for observation and related activity. The effect of these
disruptions on agency observations differed slightly from agency to agency.
20. World Food Programme (WFP) sectoral observers experienced some delays in
data collection on commodity movements in the 15 governorates, although agent
and household spot-checks continued to be conducted by national observers. All
observation activities by both national and international staff were suspended
during the air strikes. During an additional three weeks following the air
strikes, international staff members were restricted to observations in areas
where it was possible to make daily trips from Baghdad. In spite of these
disruptions, WFP observers for the first time reached their objective of making
contact with every food agent in the 18 governorates. The disruptions affected
the Food and Agriculture Organization of the United Nations (FAO) observation
schedules to a similar extent. In spite of the disruptions, FAO sectoral
observers were able to complete three inquiries, one each on end-user profiles
for agri-machinery, for animal health and for poultry. Two of these were done
jointly with United Nations observers.
21. In addition to the disruptions caused by the air strikes, observation in
the education sector was also limited by staff shortages in the Ministry of
Education and the consequent lack of escorts. Observers from two agencies and
two programme units were obliged to share the services of four escorts, and for
nearly half of the three-month period, the Ministry of Education escorts were
not available. Assessment visits were conducted at 54 schools.
22. During the reporting period, the Government has agreed to a United Nations
Children's Fund (UNICEF) proposal to undertake a National Child and Maternal
Mortality Survey which involves participation from the Ministry of Health, the
Central Statistics Office, UNICEF and the World Health Organization (WHO).
Preparations for the survey have begun, with the arrival in late January 1999 of
an international consultant from the London School of Hygiene and Tropical
Medicine. The sample size will include 24,000 households in centre/south, to be
interviewed by 80 interviewing teams, over a period of 20 days, beginning on
20 February 1999. UNICEF staff from the north will participate in the training
session although a similar study in the north is not being undertaken at the
present time.
IV. PROGRAMME IMPLEMENTATION: EFFECTIVENESS,
EQUITABILITY AND ADEQUACY
Food
23. As at 31 January 1999, foodstuffs and food handling equipment valued at
$2,982,711,116 had arrived in Iraq since the beginning of the programme, of
which an amount worth $2,557,818,438 was distributed to end-users in the centre
and south of the country. A total of $436,516,575 worth of supplies for this
sector arrived during the reporting period, and supplies worth $386,719,509 were
distributed in the 15 governorates. The focus of activity in this sector during
phase V is to provide a food basket of 2,200 kilocalories per person per day to
every registered individual.
24. The programme review undertaken in January 1998, and the supplementary
report which followed (S/1998/90), recommended an increase in the caloric value
of the food basket to 2,463 kilocalories per person per day. In phase IV, the
Government distribution plan proposed a food basket which would provide
2,300 kilocalories per person per day, and in phase V, the Government
distribution plan proposed a food basket which provided 2,200 kilocalories per
person per day. The phase IV food basket was expected to go beyond the
phase III food basket by adding full cream adult milk powder and weaning cereal,
but these supplements did not arrive in sufficient quantities to permit
distribution. It was only in January 1999, the final month of the reporting
period, that stocks were sufficient to permit their distribution in the basket
for the first time. The Government has increased the monthly handling fee paid
by consumers to food agents from ID 105 to ID 150 to compensate for the costs of
distributing these additional items.
25. From November 1998 to January 1999, the food basket provided an increase of
daily kilocalories per person per day from 1,955 to 2,002. There was a modest
increase in kilocalories per person per day over the time period, but none of
the monthly food baskets met the targets of phases I, II or III. In all three
months, insufficient stocks of pulses kept the baskets at sub-target levels.
26. Distributions continued regularly during the air strikes in mid-December
with only minor delays reported from two Baghdad warehouses. The destruction of
the storehouse in Tikrit, which contained 2,600 tons of rice, did not affect
December 1998 distributions to Salah Al Din governorate, as immediate measures
were taken by the Government to transfer rice directly from points of entry to
local food agents. In fact, WFP observers noticed a slight improvement in the
efficiency of food distributions during the months of November and
December 1998.
Health and nutrition
27. As at 31 January 1999, medicine and supplies valued at $540,694,863,
procured under the bulk purchase arrangement, had arrived in Iraq since the
beginning of the programme, of which an amount worth $225,061,346 were
distributed to end-users in the centre and south of the country. During the
reporting period, a total of $116,557,726 worth of supplies for this sector
arrived, of which $41,335,467 were distributed. The focus of activity in this
sector has been to provide a broad range of medicines and medical and dental
equipment, and to support the distribution of these supplies.
28. WHO tracks the availability of essential drugs by observing the number of
days when they are not available for any given month. The number of days when
standard drugs are not to be found at a selection of health centres dropped from
an average of 24 days during August 1998 to 8 days in December 1998. Drugs
continue to be rationed for outpatients and health centres, however, and while
the drugs delivered to health facilities may last longer, WHO reports that the
quantities delivered to health centres are still only one third of the overall
quantity required to meet real needs. Antibacterial drugs rarely last more than
half of the time between deliveries to health centres.
29. Three factors combine to explain these shortages. One is slow contracting
by Kimadia, the Iraqi state company for drug imports. WHO reports that Kimadia
attempted to computerize the ordering process at the start of phase IV and
brought in new people, but their lack of experience with computers only further
delayed the ordering process.
30. A second and more serious factor is the slow pace of distribution from Kimadia central warehouses to the governorate warehouses, and further to health centres. As of 31 January 1999, approximately $275 million worth of medicines and medical supplies had accumulated in warehouses, which is more than half of all supplies that arrived in the country for all phases. The quantity of medical equipment in warehouses is alarmingly high. According to information provided by United Nations observers, only 15 per cent of all medical equipment received by the warehouses has been distributed. Follow-up visits to sites receiving the equipment found that only 2 to 3 per cent had actually been installed. As a consequence, stocks in warehouses have exceeded their capacity.
31. The delays in distributing medical supplies, resulting in accumulations in
warehouses, are due in part to the lack of modern managerial tools, poor working
conditions within the warehouses and the lack of transport for moving the
supplies to health centres. They are also due, in part, to the rigid hierarchy
in the Ministry of Health administration which makes it difficult for
functionaries to approve deliveries without approval of superiors, and this
takes time. A variety of sources, including WHO, suggest that stockpiling seems
to have increased following September 1998, when tensions mounted, and superiors
may have deliberately withheld supplies in anticipation of emergency needs.
32. A third factor is the apparent tendency for physicians to over-prescribe
certain types of medicine, particularly antibiotics. The Ministry of Health,
with logistical support from the Ministry of Trade, has begun to issue drug
cards, to be distributed with food ration baskets, and these cards will limit
the number of outpatient consultations eligible for drug prescriptions to six
consultations per family member per year. Since a recent report, based on
Ministry of Health data, found that the average number of consultations among
Iraqis is three per year, and since drug card rationing applies only to
outpatient consultations for non-chronic illnesses, the drug card programme is
unlikely to affect access to health services or medicines. The drug cards are
intended to reduce the incidence of healthy individuals obtaining drugs without
sufficient medical justification.
33. The extent of malnutrition is a critical factor in the health of the
population. According to the nutrition status surveys conducted by UNICEF in
collaboration with the Ministry of Health, the prevalence of general
malnutrition in the centre/south has changed very little in the past two years.
General malnutrition (weight for age) was found to occur in 14.1 per cent of
infants in 1996, in 14.7 per cent of infants in late 1997 and 14.7 per cent of
infants in the most recent survey of October 1998. General malnutrition among
children under five in the centre/south was found to occur in 23.4 per cent of
children in 1996, in 24.7 per cent of children in 1997 and in 22.8 per cent of
children in the most recent survey of March 1998. While there has been no
significant reduction in general malnutrition among infants or among children
under five, previously rising prevalence rates have stabilized, albeit at an
unacceptably high level.
34. In order to implement a targeted nutrition programme, the enhanced
distribution plan provides for $8 million worth of high protein biscuits for
pregnant and lactating women, as well as for 1,500 tons of therapeutic milk,
valued at about $8.7 million, for malnourished children under five years of age.
As at 31 January, the Ministry of Health, after considerable delay, and numerous
reminders from the Office of the Iraq Programme, had signed contracts for only
$1,692,100 worth of high protein biscuits. These contracts have not yet been
submitted to the Secretariat. As at 31 January 1999, contracts for only
260 tons of therapeutic milk, valued at about $1.5 million, had been submitted.
Water and sanitation
35. As at 31 January 1999, supplies to the water and sanitation sector in the centre/south valued at $54,638,206 had arrived in Iraq since the start of the programme, of which an amount worth $19,801,778 had been installed at sites or delivered to end-users. A total of $17,408,213 worth of supplies for this sector arrived during the reporting period, and supplies worth $3,819,159 were installed or delivered. The focus of activity in this sector has been to improve the quantity and quality of water in urban areas by maintaining existing treatment sites and by providing a minimal level of inputs for operating urban sewage networks. In rural areas, the focus of activity has been to slow the deterioration of the network of compact units for smaller scale water treatment.
36. There are 218 treatment plants serving water users in urban areas and
1,191 compact units serving water users in rural areas. A total of 924 pumps
have been delivered to 476 of these two types of water treatment sites, covering
25 per cent of all the sites throughout the 15 governorates including the city
of Baghdad. A smaller number of circuit breakers and other supplies have been
provided, and in the treatment plants, which have received a combination of
pumps, circuit breakers and other supplies, the output of water in litres per
person per day has increased modestly. The provision of pumps, chlorinators and
circuit breakers means that more water is produced at the treatment sites, but
power outages, which have exceeded what was anticipated during the reporting
period, diminish the effect of the inputs. Furthermore, the quality of the
distribution network of pipes is deteriorating rapidly, resulting in losses of
water and an increase in water contamination. United Nations observers estimate
a loss, through underground leakage, of as much as 55 per cent and, because
there is no "leak detection equipment", these leaks go undetected and are
therefore not repaired. A related outcome is the loss of water purification
chemicals.
37. A UNICEF study estimates that at present around only 41 per cent of the
rural population has access to clean water. The percentage of the total
population with access to clean water was estimated at 92 per cent in 1989 and
78 per cent in 1995.
38. The 924 pumps that have been distributed constitute only a third of all
pumps that have arrived in the country. The remaining two thirds are in
storage. Overall, only 35 to 40 per cent of the supplies received in the
country for the water and sanitation sector have been brought to sewage stations
or water sites. The anticipation of emergency needs by stockpiling, in this
sector as in other sectors, appears to be a persistent problem, and this is one
of the factors contributing to the slow pace of delivery. UNICEF and the United
Nations Office of the Humanitarian Coordinator for Iraq have repeatedly referred
to the non-availability of cash funds as another explanation for the delays in
distributing and installing supplies. The General Establishment for Water and
Sewage (GEWS) central warehouse is capable of unloading only one truck per day,
and United Nations observers report that, with the recently increased number of
in-country arrivals, trucks are lined up waiting to unload their freight. The
recent increase in arrivals has increased the pressure on storage facilities and
reduced handling efficiency, and this has contributed to delays in conveying
supplies to treatment sites.
39. The quality of water distributed to consumers has not improved to any
extent, since the deteriorating network and an increase in illegal connections
allows contamination of water after it leaves the treatment plants. Aluminium
sulphate is a crucial element in water treatment, but the amount delivered under
phase I has been depleted. A contract to purchase 2,000 tons submitted by the
Baghdad Water and Sewage Authority (BWSA) has been on hold by the Security
Council Committee since June 1998, because of questions about the contract. It
should be noted, however, that another contract for 6,000 tons was subsequently
approved. Although locally produced alum sulphate is available, UNICEF reports
that it is of such poor quality that the BWSA and GEWS authorities are reluctant
to use it. Where they are obliged to use it, they avoid installing new alum
dosing pumps to keep from damaging them with the poor quality aluminium
sulphate.
40. A total of 60 vertical pumps and 51 submersible pumps, which had previously
been received, have been installed during this reporting period in various
locations throughout Baghdad, as well as jetting vehicles and high pressure
cleaning machines. Cesspit jetting units, cesspool emptier tankers and backhoe
loaders have been provided to GEWS for areas outside Baghdad in order to clean
sewage networks. In some cities, however, such as Hilla and Kerbala, operations
have stopped since the lack of gas masks and gas detection equipment has
resulted in frequent accidents. United Nations observers report large amounts
of raw sewage being discharged into rivers as filters and pipes are clogged.
The treatment plants visited by United Nations observers and UNICEF are reported
to function well below internationally accepted standards, and because of the
lack of sufficient supplies, they are expected to deteriorate further.
41. Ongoing monthly testing of water quality by the Ministry of Health has
shown that water quality improved modestly in the course of 1998. The country-wide totals show a drop in percentage of contaminated samples, from 12 per cent
in the first quarter to 5 per cent in the fourth quarter. The percentage of
samples with insufficient chlorine dropped in 1998 from the first quarter levels
of 22.5 per cent to a third quarter level of 15 per cent, but rose again to
22.5 per cent in the fourth quarter.
Agriculture
42. As at 31 January 1999, supplies to the agriculture sector valued at
$98,073,021 had arrived in Iraq since the start of the programme, of which an
amount worth $33,657,180 had been installed at sites or delivered to end-users.
A total of $41,171,498 worth of supplies for this sector arrived during the
reporting period, and supplies worth $10,027,567 were installed or delivered.
The focus of activity in this sector has been to provide farm inputs, to conduct
aerial spraying campaigns, to provide ground spraying chemicals and animal
vaccines to farmers, and to rehabilitate poultry production facilities.
43. A recent FAO end-user survey in six governorates gives evidence of a
downward trend in yields of farm production and illustrates the dilemmas faced
by farmers. The survey estimates a 30 per cent drop in crop production. The
crops surveyed include maize, wheat, barley, sorghum and vegetables. Crops in
Diyala and Baghdad governorates suffered the absence of quality seeds and
fertilizer, as well as insufficient irrigation water owing to frequent power
outages. Without the proper inputs, farmers in Ninawa and Tameem lost a large
proportion of the maize crop to rodents, another portion to poor soil fertility
and still more to insufficient water. Farmers in the southern governorates, who
rely on irrigation, suffer the effects of power cuts on water usage. They rely
likewise on electric pumps to drain unused irrigation water, and rising water
tables are affecting root zones and increasing soil salinity. Irrigation
channels are rarely cleaned, and the loss of water through poorly maintained
watercourses results in rising water tables. These factors are expected to
increase in severity and, compounded by the lack of 1998/99 winter rainfall,
will probably affect crop production further in the coming season.
44. Accurate figures on animal populations are not available to United Nations observers. Government figures indicate an increase, but estimates made by FAO and United Nations observers suggest the opposite. A recent outbreak of foot and mouth disease, reported by the Department of Animal Health and confirmed by FAO observation, has affected approximately 1 million cattle and sheep and is causing high mortality among offspring from infected mothers. Unchecked, the epidemic has the capacity to substantially reduce animal productivity. Only two batches of vaccines, ordered under phases I and IV have been made available, amounting to approximately 500,000 doses. This is not enough to contain the outbreak, and FAO's estimate of the cost for procuring sufficient vaccines and facilities is in excess of 15 million. Even if sufficient vaccines could be made available, which is unlikely, trucks and cold storage units are also required to contain the spread of disease. Following an outbreak in 1996, screw-worm fly infestation continues to seriously affect human and animal health.
45. The provision of pesticides, herbicides and bee-keeping equipment
continues, although the coverage remains limited to less than 10 per cent of the
needs. Accurate figures on cultivated areas and crop needs are inaccessible.
Most of the chemicals ordered in phases III and IV did not arrive in time for
optimal application. None of the 11 pesticide items ordered under phase III
arrived in time, and only half of the 8 items ordered under phase IV arrived in
time for optimal application. One factor affecting the timeliness of delivery
was the inability to synchronize the delivery by suppliers and transporters with
seasonal needs. Fifty per cent of all agro-chemicals which arrived in the
country were in storage as of the end of the previous reporting period, and
though the amounts in storage have declined, they are still high. In an attempt
to improve accessibility and to speed up distribution of chemicals to farmers in
phase V, the responsibility for selling agro-chemicals to farmers in the
15 governorates is being given to private agents.
46. Poultry production is becoming an increasingly important sub-sector of the
agricultural programme in the centre/south. Beginning in phase IV, eggs were
imported for broiler production and hatched in previously abandoned hatcheries;
the chickens were given to poultry farmers, sent to slaughterhouses and
subsequently sold through cooperatives in the market at subsidized prices. A
total of 17 consignments containing 180,000 eggs each were received, consigned
to hatcheries and, as of 31 January 1999, yielded 2,297 tons of frozen poultry
meat. The meat is sold at distribution points at a subsidized price, which is
approximately one half of the market price, and this makes the meat available to
a wide spectrum of the population. The losses from the first cycle of
deliveries amounted to 37 per cent of the original delivery of 3,060,000 eggs.
These losses, in the initial cycle, are higher than international standards for
a number of reasons related to the unique situation in Iraq. The present
challenge is to resolve some of the logistical problems by arranging for the
arrival of inputs in a synchronized manner. This would involve submitting all
the necessary components as a package and approving them as a package.
Electricity
47. As at 31 January 1999, electrical equipment valued at $80,913,115 had
arrived in Iraq since the start of the programme, of which an amount worth
$79,482,431 had been distributed to installation sites in the centre and south
of the country. A total of $36,643,825 worth of supplies for this sector
arrived during the reporting period, and supplies worth $35,648,431 have been
distributed to installation sites. The focus of activity in this sector has
been the delivery of electrical equipment to 21 power plants and to the four
maintenance departments for each of the electricity distribution authorities
with the objective of slowing the deterioration of the system by meeting
emergency requirements.
48. Power outages increased from the summer's average of 4 to 6 hours per day
to more than 10 hours per day for Baghdad in January 1999, in spite of the fact
that outages typically diminish during the winter months. A sequence of
incidents accounts for increased load shedding. A failure in one of the circuit
breakers in the Baiji power plant(Salah Al Din governorate) resulted in a
prolonged shut-down of the entire plant, and at present, only two of the six
units have returned to operation. One of the units at the Mussayib power plant
(Babylon governorate) with an output capacity of 300 MW was forced to shut down
indefinitely as a result of the failure of a number of blades in a turbine.
Recent reports from Nassiriya power plant (Thi Qar governorate) indicate a
partial shut down. A failure in one of the substations in Salah Al Din resulted
in a brief loss of power to the entire province. The United Nations Development
Programme (UNDP) estimates that the losses from the Mussayib power plant alone
reduced the national operating capacity by 9 per cent, and further estimates
that the cumulative albeit temporary effect of the recent breakdowns was to
reduce the 1998 operating capacity of the national grid by as much as
25 per cent.
49. At the same time, power demands have increased as a result of population
growth and the consequent increase in household connections. The average daily
demand in August 1998 increased by 4.7 per cent over August 1997, adding to the
increasing gap between supply and demand. UNDP reports that the gap between
supply and demand, which stood at approximately 800 MW in 1996, has now almost
doubled to 1,500 MW. The deterioration of the system plus the increase in
demand indicates the decreasing capacity of the inputs financed by resolution
986 (1995) to keep pace with system decline.
50. Reports of the severity of the impact of these extended power cuts have
indicated the insufficiency of humanitarian supplies in this sector. For
example, large losses in the number of chicks hatched from broiler eggs,
recently imported as part of the poultry production project, have been
attributed to the lack of power for regulating temperature in the hatcheries.
One of the obstacles to carrying out vaccination campaigns for animals has been
the absence of cold storage. In Qadissiya and Diyala, power authorities have
attempted to limit power cuts to pumps used for irrigating and draining lands,
in order to prevent crop losses. These are only a selection of instances
illustrating how power outages have affected productive activities in a range of
sectors. Implementers in many sectors are ordering generators. Fifty-nine
diesel generators with a total capacity of over 20 MW have been ordered and
approved for the water and sanitation sector. A total of 393 diesel generators
with a combined capacity of 205 MW have been ordered and approved for food
handling.
51. Twenty-five mobile diesel generators ordered for the electricity sector are
still on hold in spite of the fact that the Government has accepted conditions
for their use. These generators are required for rural areas where there are no
alternative power sources. Overall, the pace of implementation increased in the
reporting period, as the proportion of all approved supplies distributed for
installation increased from 37 to 55 per cent. The recent approval, in
particular, of an additional six gas turbine units to be installed by the end of
August 1999 at the Mullah Abdullah plant will provide an additional 220 MW to
the national grid.
Education
52. As at 31 January 1999, education supplies valued at $27,367,748 had arrived
in Iraq since the start of the programme, of which an amount worth $8,887,826
was distributed to the south and centre of the country. A total of $7,562,401
worth of supplies for this sector arrived during the reporting period, and
supplies worth $1,162,459 were distributed. The focus of activity in this
sector has been to provide materials for school rehabilitation, materials for
repairing school plumbing facilities, classroom furniture, school stationery
supplies, teaching aids, physical education supplies and materials for the
rehabilitation of the Ministry of Education printing press. The activity in
phase V is expected to focus principally on the procurement of classroom
furniture and the rehabilitation of printing presses.
53. Implementation summaries, which track the movement of commodities in and
out of warehouses, show that the value of commodities ordered under phases I to
III which arrived in the country increased from 60 per cent of the approved
amount to more than 75 per cent during the reporting period. But, over the same
time period, the increase in the value of goods leaving governorate warehouses
for distribution to schools was less than 3 per cent.
54. The shortage of escorts to be supplied by the Ministry of Education
severely limits the United Nations observation coverage. The number of escorts
available has been reduced to four, contrary to previous assurances by the
Ministry of Foreign Affairs that sufficient escorts would be made available, and
these four are to be shared among two United Nations observation units and two
agencies. The Humanitarian Coordinator is raising this issue with the Ministry
of Education.
55. A Ministry of Education survey in 1997 and 1998 stated that 3,981 or
53 per cent of 7,572 primary schools required rehabilitation. United Nations
observers surveyed 54 schools, equally distributed throughout nine governorates,
and reported that 83 per cent of the schools visited required rehabilitation.
This was considerably more than the number provided in the Ministry of Education
survey. The United Nations observer survey reported that 30 per cent of the
schools visited required plumbing repairs, 53 per cent did not have enough desks
and 80 per cent of them had no staff furniture. The one common feature of the
two surveys is the indication of the urgent requirement for desks.
56. United Nations observers visited 17 primary schools and found that desks
had been distributed to 9 schools, blackboards to 15, fluorescent tubes to 10
and physical education supplies to 2. Where installation was required, it had
only been done in rare instances. Overall, the slow pace of delivery for inputs
to this sector is, as previously reported, due to the absence of transportation
as well as to the lack of resources for installation. Forty trucks were
presumed ordered under phase III, but the Ministry of Education recently
rejected the truck contract because of a difference between the suppliers'
specifications and those of Ministry. Other offers are being negotiated.
57. The very modest contribution that the inputs to this sector are making to
the quality of education is a matter of concern and will be addressed in the
upcoming assessment.
Food
58. As at 31 January 1999, foodstuffs valued at $391,611,557 had been
distributed to the three northern governorates under the bulk purchase agreement
with the Government of Iraq since the start of the programme. A total of
$64,423,086 worth of foodstuffs for this sector was distributed during the
reporting period. The focus of activity, which in this sector parallels that in
the centre/south, is to provide a food basket of 2,200 kilocalories per person
per day, during each of the six months in phase V, to every registered
individual.
59. The market prices for commodities in the food basket are lower in the north
and have dropped continually over the duration of the programme. As food prices
decline, and access to food increases, the dependency on the food basket
decreases for the majority of consumers. Consumers in the north continue to be
more critical of the food basket, but it has been established that these
complaints relate more to local taste than to the actual quality of most items
supplied in the basket. Consumers in the north also deplete their food rations
more slowly, indicating that alternative sources of food are more accessible in
the north than in the centre/south and that the consumers rely consequently less
on the food rations programme.
60. There has also been an apparent difference in the efficiency of food ration
delivery between the centre/south and the north. A recent survey showed that
while 97 per cent of the consumers in the centre/south receive their food
rations on time, only 77 per cent do so in the north. In response to these
observations, WFP fielded a mission to the north to determine the source of the
delays of food basket delivery. The mission concluded that the differences are
principally due to the way that the questions about timeliness have been posed.
Subsequent surveys will provide a more accurate picture of the timeliness of
delivery by refining the way timeliness is elicited from consumers.
61. The occurrence of acute and general child malnutrition in the north is
discussed under health and nutrition. These reductions are due in part to the
targeted nutrition programme, managed by UNICEF in conjunction with Department
of Health and aimed at identifying and directly treating malnourished children
in the north. They are also due to a complementary programme, managed by WFP,
for distributing supplementary ration baskets to malnourished children and their
families. In consultation with UNICEF and local health authorities, given the
reduction in the prevalence of acute malnutrition and the presence of other
supplementary nutrition programmes, WFP has decided to reduce the caseload
accordingly and refocus its programme to target the chronically malnourished
children more specifically. The extent of this reduction is yet to be
determined.
Health and nutrition
62. As at 31 January 1999, medical equipment and nutrition supplies procured
directly by WHO, UNICEF and WFP and valued at $42,815,245 had arrived in the
three northern governorates. Medical equipment and nutrition supplies valued at
$4,844,681 arrived during the reporting period. With the addition of medicines
procured under the bulk purchase agreement with the Government of Iraq, health
inputs valued at $63,883,913 have been distributed since the start of the
programme. During the reporting period, medicines, medical equipment and
nutrition supplies valued at $14,300,437 were distributed. The focus of
activity in this sector has been to maintain a reliable flow of medicines and
medical equipment as well as to provide therapeutic milk and high protein
biscuits to malnourished children and pregnant and lactating mothers.
63. Observers report very few if any shortages of essential drugs, including
those for chronic illnesses. WHO indicates that the supply of drugs in the
north is sufficient to meet genuine demand. The shortages which do exist are
judged to arise from patients who visit physicians without legitimate complaints
or from physicians who over-prescribe. A recent study in Erbil on a sample of
prescriptions has shown that antibiotics plus paracetamol are prescribed in
50 per cent of all cases.
64. Local authorities, furthermore, scrutinize medicines and medical supplies
received by their governorates to ensure they are receiving their share from
Kimadia. They regularly seek information about arrivals at Kimadia in order to
make the best use of available medicines.
65. WHO has completed the renovation of one water quality control laboratory
and partially completed the renovation of two others. Four nursing schools, two
in Erbil and one each in the two other northern governorates, have been
renovated. The internal medicine department and the x-ray facilities at the
teaching hospital in Erbil have been renovated. WHO has also supported many
training activities to upgrade the skills of health personnel in data analysis,
in epidemiological surveillance, in primary health care and in water quality
monitoring.
66. The latest in a series of nutritional status surveys conducted by UNICEF
and the Department of Health shows that the prevalence of general malnutrition
is continuing its downward trend. The prevalence of malnutrition among children
under five was 12 per cent (average for 18 governorates) in 1991. It rose in
the north to 25.8 per cent in December 1994, then dropped to 19.3 per cent in
August 1996 and subsequently declined steadily to its present level of
13.6 per cent in November 1998. The prevalence of acute malnutrition for
children under five has likewise declined from 4.2 per cent in December 1994 to
2.7 per cent in April 1998 to 1.7 per cent in November 1998. However the
prevalence of chronic malnutrition, while dropping from 37.3 per cent in 1994 to
26.3 per cent in 1996, has remained at about 24 per cent over the past six
months.
67. While the prevalence of malnutrition has declined in the three northern
governorates, it remains high in the centre/south. The fact that the per capita
value of inputs in the north significantly exceeds that in the centre/south
provides one explanation for the increasing difference between them.
Water and sanitation
68. As at 31 January 1999, supplies to the water and sanitation sector valued
at $47,243,671 had arrived in the three northern governorates since the start of
the programme, of which an amount worth $33,110,336 had been installed at sites
or delivered to end-users. A total of $11,305,666 worth of supplies for this
sector arrived during the reporting period, and supplies worth $7,548,803 had
been installed or delivered. The focus of UNICEF's activity in this sector has
been to improve the quantity and quality of water in urban areas by regular
maintenance of existing treatment sites and pipe networks and by introducing new
facilities in rural areas for improving sanitation and clean water access. WHO,
in collaboration with UNICEF, monitors levels of water contamination.
69. UNICEF continues its programme of maintaining treatment plants, replacing
defective pumps, and surveying and repairing leaks in the distribution network
in urban areas. A total of 232 pumps have been replaced and of these, 90, or
nearly 40 per cent, have been replaced in the past three months. Repairs and
extensions of over 60 km of pipes have been completed, and of this, 40 km or
66 per cent, have been completed in the past three months. A total of
34 generators/transformers have been installed or made available to provide
back-up power for pumping stations. The supply of chlorine and alum sulphate is
ample, and this combination of inputs has served to provide increasing
quantities of treated water to the urban population.
70. As part of the water and sanitation sector, WHO collaborates with the
Department of Health in testing water samples at the point of treatment, and
recent tests show progressive improvement. The incidence of bacteriological
contamination has dropped from 24 per cent of test samples six months ago, to
13 per cent of samples three months ago, to 10 per cent of samples in the most
recent round of testing.
71. UNICEF has undertaken 270 rural water projects involving the drilling and
flushing of wells, and of these 200 have been completed. A total of 13 rural
sanitation projects are under construction, and 600 individual toilets are being
installed. The need for rural water projects evolves as settlements are
rehabilitated, and UNICEF works closely with the United Nations Centre for Human
Settlements (Habitat) to update these needs and meet them. The formation of
rural water committees has, in principle, provided for local maintenance of
facilities and for disseminating information on personal hygiene and the proper
disposal of sewage. UNICEF has estimated that the water projects have increased
the availability of clean water from about 25 litres per person per day to
50 litres per person per day.
Agriculture
72. As at 31 January 1999, supplies to the agricultural sector in the three
northern governorates valued at $66,406,437 had arrived since the start of the
programme, of which an amount worth $48,517,583 had been installed at sites or
delivered to end-users. A total of $10,033,099 worth of supplies for this
sector arrived during the reporting period, and supplies worth $7,231,333 were
installed or delivered. The focus of FAO activity in this sector has been to
provide a range of agricultural inputs including machinery, pumps, seeds and
fertilizer, to conduct plant protection and animal vaccination campaigns, to
implement an afforestation programme and to rehabilitate poultry production
facilities.
73. According to WFP and FAO, the distribution of food rations has reduced
local demand for food crops and, in turn, adversely affected the agricultural
economy. Wheat yields in the 1998 season increased by 25 per cent over the
previous year. Approximately 107,031 tons of wheat, or 30 per cent of the total
production of 355,935 tons, had been sold to the Government as of
30 September 1998. A large proportion of production, however, remains unsold,
and even though production costs have been reduced by the provision of inputs
from FAO, many farmers are experiencing income losses as market prices fall for
food basket items. The market price for wheat dropped from $88 per ton in
January 1998 to $56 per ton in November 1998. Farmers have adapted by changing
their cropping pattern: between 1997 and 1998 there was been a 10 per cent
reduction in land under wheat production, a 29 per cent reduction in land under
rice production and a 46 per cent increase of land under barley production. WFP
and FAO are concerned about the impact of the food ration programme on
agricultural production and look forward to raising this issue in the assessment
exercise.
74. Animal populations continue to benefit from the provision of vaccines
against a number of diseases, including foot and mouth disease. Vaccination
coverage against the disease was sufficient for cattle in Dohuk and
Sulaymaniyah, but the prohibitive cost of the vaccines to FAO and local
authorities has made continued vaccination impossible. A shortage of vaccines
in Erbil was experienced in December 1998. The region is experiencing a new
outbreak of foot and mouth disease along with a newly occurring disease (PPR)
and containing them requires urgent attention.
75. Eight forestry nurseries have been established in the three governorates,
whose central purpose has been to reforest areas affected by soil erosion. They
are particularly intended for areas surrounding the catchment basins for the two
dam reservoirs in order to halt silting. Preparation for afforestation and soil
conservation activities are currently under way.
76. Inputs to irrigation maintenance have emerged as one of the principal
subsectors in phase V. They include the distribution of pumps, the creation of
small networks of lined canals and the rehabilitation of groundwater resources
by redrilling wells. The project has provided irrigation facilities for nearly
2,000 farm families.
77. The level of inputs per capita financed by resolution 986 (1995) is six
times greater in the north than in the south/centre. It should be noted,
however, that the agricultural producers in the north do not benefit from the
governmental subsidies received by those in the centre and south. Of the total
inputs approved for the north in phases I to III up to 31 December 1998,
63 per cent had been distributed to farmers in the north as compared with
57 per cent in the centre/south. The greater efficiency of delivery in the
north is attributable to the fact that inputs are approved as a package (instead
of in piecemeal fashion) and to the presence of a cash component. Greater per
capita investment and more efficient administration has permitted wider
coverage. Spraying against the Sunn Pest has reached 62 per cent of the cropped
areas and FAO has estimated that previous losses, which in some years rose as
high as 70 per cent of crops, have now been reduced to 11 per cent. FAO has
reported that before the inputs financed under resolution 986 (1995), only 25
out of the 600 broiler farms in operation in 1990 remained, but after the
programme of inputs, 270 had been reactivated.
Electricity
78. As at 31 January 1999, electrical equipment valued at $19,173,791 had
arrived in the three northern governorates since the start of the programme, of
which an amount worth $8,596,861 had been distributed to installation sites. A
total of $5,056,759 worth of supplies for this sector arrived during the
reporting period, and supplies worth $4,798,831 were distributed to installation
sites. In addition, work on contracts valued at $4.8 million was completed.
The focus of activity in this sector has been to arrest the deterioration in the
distribution and transmission networks as well as to rehabilitate the two
hydropower plants at Dokan and Derbandikhan dam.
79. The spillway gates and their anchorage at the Derbandikhan dam have been
repaired. Repairs to the intake gates and the leaking turbine draft tubes of
the Derbandikhan hydro plant are expected to be completed in two months. Work
will begin on the hydro generation equipment of the Dokan dam in February 1999.
Some of the rock bars downstream of the Derbandikhan dam have been removed.
This has increased the generation capacity by 1 or 2 per cent. Four 2.2 MW
diesel generators have arrived in Erbil and once installed, they will provide
emergency power supply to water pumping stations and hospitals.
80. None of the $42.3 million worth of equipment for which contracts were
signed in phases II and III have arrived in the country, although 90 per cent of
the material ordered in phase I has reached the installation sites. The late
arrival of materials continues to plague implementation, and the temporary
solutions which some consumers have taken in order to obtain power have resulted
in damage to protection devices and transformers.
81. The absence of rainfall this season in the north poses the greatest threat
to power supply, because the reservoir levels at the Dokan and Derbandikhan dams
are perilously low. There is very little snow in those areas of Turkey and the
Islamic Republic of Iran which normally feed the catchment areas during spring
run-offs. The rainwater inflow into the reservoirs has been 20 per cent of the
seasonal average for the past 40 years, and one may expect that the generation
capacity of the dams will be reduced by the same proportion. Low water levels
will also diminish the supply of water to the irrigation system in the central
governorates. For the coming month, power is available in Erbil and
Sulaymaniyah for only two hours per day. A joint planning meeting between the
local authorities recently considered limiting the supply of power to households
in order to extend the hours of availability.
82. There were a number of days in Dahuk during December 1998 and in the first
week of January 1999 when the customary 30 to 40 MW power supply was cut to
10 MW. This was barely enough for water pumps in the town of Dohuk, it was
insufficient to meet the requirements of Azadi hospital, and it left most
households with no water or electricity during this period. No explanation has
been provided.
Education
83. As at 31 January 1999, education supplies valued at $29,235,999 had arrived
in the three northern governorates since the start of the programme, of which an
amount worth $20,246,201 was delivered to schools and printing presses. A total
of $7,082,784 worth of supplies for this sector arrived during the reporting
period, and supplies worth $5,701,217 were delivered to schools and printing
presses. The focus of activity in this sector has been the rehabilitation of
primary and secondary schools, the building of a limited number of new schools,
the provision of student and teacher desks along with other educational
supplies, support for teacher training centres, assistance for expanding
printing press facilities and support for universities.
84. The production and distribution of 111,612 student desks and 3,000 staff
desks by UNESCO for phases I to III has been completed. Under the separate
programmes of UNICEF and UNESCO, 241 schools have so far been rehabilitated,
which amounts to little more than 10 per cent of the total of 2,373 primary and
secondary schools. Since the chalk factory commissioned by UNESCO in phase I
has still not arrived, UNESCO has purchased 2.5 million pieces of chalk for
distribution to schools. The total of 18,500 education kits ordered under
phases I and II has been delivered, but the number was insufficient since it was
based on 1997 enrolment figures. The number of students has increased more than
expected and the shortfall of education kits will be made up by drawing on
resources from phase III.
85. The increase in enrolment levels observed in the previous report continues.
According to local authorities, enrolment rates in some schools have increased
by 20 per cent, which is considerably more than the target increase of
5 per cent.
86. UNESCO has altered the emphasis of its programme from phases I to III to
provide more support for printing secondary school textbooks and for providing
resources to the three universities in the region. These resources have
included photocopiers, periodicals and other technical teaching aids.
87. UNICEF supported a child protection programme under the education sector
during phases III and IV. Since the inception of this programme, a combined
total of 535 social workers, teachers and care-givers have been trained with the
aim of improving the quality of services to disadvantaged children. The
services are provided through 25 residential home centres under the auspices of
the Department of Social Affairs. Training has also been given to 163 managers
and administrators in that Department. The training courses have resulted in an
improvement of care provided by participants, in a better database on
disadvantaged children in the region and in the creation of a separate detention
centre for juveniles. Support was provided for the development of 700 mine
awareness kits to be used in the classroom and for facilities for the production
of orthotics and orthoprosthetic devices for disabled children.
Rehabilitation of settlements
88. As at 31 January 1999, supplies and funds for the settlement rehabilitation
sector valued at $38,206,234 had arrived in the three northern governorates, of
which $18,354,402 was utilized or disbursed. A total of $6,124,158 worth of
supplies for this sector arrived during the reporting period, and supplies and
funds worth $4,903,452 were utilized or disbursed. The focus of activity in
this sector has evolved over the past 18 months from the building of shelters to
encourage displaced persons to return to their original villages, to a larger
scale programme for assisting displaced persons by reconstructing original
villages and by providing schools and other neighbourhood facilities for those
who remain in collective towns and semi-urban locations.
89. The approach of the United Nations Centre for Human Settlements in each
location chosen for rehabilitation is to develop a package of inputs in
consultation with local authorities. The package may include habitations and a
range of other facilities including roads, bridges, schools, water, water
supply, sanitation facilities and facilities for agriculture. Projects
therefore include a range of different construction activities. Out of 111
projects planned for phase IV, 8 were completed during the reporting period and
65 continue under active construction. A total of 576 projects were planned for
the whole programme up to 31 January 1999. Of these, 239 have been completed,
225 are under active construction and 112 are still in the planning and
tendering stage.
90. Schools and health facilities are the most prominent among the support
facilities provided to rehabilitated centres and villages. For phase IV,
20 schools out of a total of 30 planned for construction are either completed or
under active construction. For all four phases, 165 schools out of a total of
203 planned for construction are either completed or under active construction.
One of the principal difficulties has been the completion of health centres
faster than de facto local authorities and WHO can staff and equip them, or the
completion of schools faster than UNESCO can provide desks or de facto local
authorities can provide teachers. The United Nations Centre for Human
Settlements has attempted to respond by providing desks and other equipment in
order to put the facilities in operation.
91. The Centre is planning for an in-depth review of programme impact,
including the occupancy rate of constructed houses and the percentage of
relocation to reconstructed villages by inhabitants of collective towns. A
previous estimate has indicated that approximately 40 per cent of those in
collective towns with the option to return to villages have in fact returned.
Demining activities
92. As at 31 January 1999, supplies and funds for the demining programme valued
at $10,552,400 had arrived in the three northern governorates since the start of
the programme, of which an amount worth $8,160,526 was utilized or disbursed. A
total of $1,904,380 worth of supplies for this sector arrived during the
reporting period, and supplies and funds worth $3,091,289 were utilized or
disbursed. The focus of activity in this sector has been to identify existing
mine fields, train local deminers and field survey teams, carry out demining
operations and conduct mine awareness programmes.
93. The 12 survey teams continue to provide information regarding the size and
location of existing mine fields in the region. To date, these survey teams, in
collaboration with other demining organizations, have identified 2,368
minefields covering an estimated area of 212 square kilometres. The regional
survey, to be completed in six months, will make a database available specifying
the size and location, the land use, and the incidence of mine-related accidents
in identified mine fields.
94. During the reporting period, mine clearance was been completed on four
large mine fields covering an area of approximately 0.12 square kilometres.
These are the first four to be completed. Preparations are being made to return
these areas to local authorities and landlords, who are expected to return them
to their previous use, including crop production and grazing land. Mine
clearance continues in 20 other mine fields likewise covering land previously
used for crop production. The total area of land which has been cleared, or is
in the process of being cleared, is 2.3 square kilometres, an area which is a
little over 1 per cent of the estimated total mined area.
95. An additional four 37-man manual clearance teams were trained and fielded
during the reporting period, bringing the total number of individuals trained in
activities related to mine clearance to 285 during the past three months. Since
the beginning of the programme, 607 individuals have been trained in mine
clearance and related activities. Equipment problems, especially the lack of
communications equipment which is essential for safety, have reduced the pace of
work for the four new teams. In spite of this, the United Nations Office for
Project Services (UNOPS) reports that the overall pace of work increased three
fold during the reporting period and anticipates further increasing the pace
during the next few months. One of the project objectives, which is now
partially met, has been to build the capacity of a national team capable of
sustaining the programme of mine clearance over an extended period.
96. UNOPS funds and supervises two prosthetic limb centres, one in Halabja and
the other in Diana, which treated 686 patients, provided 198 prostheses and 40
walking aids during the reporting period.
97. In previous reports I have drawn the Council's attention to the gravity of
the humanitarian situation in Iraq and the limited scope of the humanitarian
programme pursuant to Security Council resolution 986 (1995). Accordingly I
have sought to encourage a wider range of complementary assistance from the
international community.
98. I welcome the establishment by the Council of the panels under the
chairmanship of Celso Amorim (Brazil), including the Panel on Humanitarian
Issues, "to assess the current humanitarian situation in Iraq and make
recommendations to the Council regarding measures to improve the humanitarian
situation in Iraq". The Chairman will have the full support and cooperation of
the Secretariat.
99. As the Council was informed in early January, the Office of the Iraq
Programme has initiated a wide-ranging review and assessment of the
implementation of the humanitarian programme over the past two years, including
the overall humanitarian situation. The review and assessment is being
undertaken with the full cooperation and participation of all United Nations
agencies and programmes involved in the implementation of the humanitarian
programme in Iraq, and information on the work in progress will be made
available to the Panel. The full report on the outcome of the review and
assessment is expected to be made available to the Council in late April 1999.
100. As is apparent from this and previous reports, various constraints are
preventing the full implementation of the programme as outlined in my
supplementary report (S/1998/90), endorsed by the Council in resolution
1153 (1998), which is aimed at a more effective response to the humanitarian
situation in Iraq.
101. With respect to the procurement of oil spare parts, I welcome the recent
positive developments within the Security Council Committee in reviewing further
applications that were placed on hold, and the considerable reduction in the
number of applications placed on hold. I would invite the Committee to expedite
the approval of the applications concerned. Nevertheless, I should like to
point out to the Council that even with an expeditious approval of all
applications, it is unlikely, in the view of Saybolt oil experts, that the
approved spare parts and equipment requiring a long delivery period will have a
significant impact on the export capacity of the Iraqi oil industry much before
March 2000.
102. Indeed, the most serious issue facing the implementation of the programme
at present is the growing shortfall in revenues required to implement the
approved distribution plan. It may be recalled that despite the increase in the
volume of exports of oil, the financial target of the $3.1 billion required for
the implementation of the enhanced distribution plan could not be met. In fact,
even with the October 1998 revision downwards of the funds allocated to various
sectors, amounting to some $2.2 billion, there was a shortfall of over
$264 million. Owing to insufficient phase IV revenues, approved applications
worth approximately $500 million could not be funded. Accordingly, the Office
of the Iraq Programme agreed to the Government's request to transfer selected
phase IV applications to phase V.
103. For the current phase, the revenue shortfall may reach some $950 million in
relation to the distribution plan approved in December 1998. As a result of the
projected shortfall of phase V funding, the Office of the Iraq Programme has
requested that the Government submit a revised allocation of funding for the
current distribution plan, bearing in mind the relevant provisions of Council
resolutions 1153 (1998) and 1210 (1998). In order to ensure that the value of
applications circulated under phase V does not exceed anticipated revenues,
circulation of the remaining applications for lesser priority sectors is
currently in abeyance pending agreement on revised allocations. The Office of
the Iraq Programme has stressed that such allocations should be in line with the
provisions set out in Council resolutions 1153 (1998) and 1210 (1998).
104. Regrettably, there seems little scope for optimism in regard to oil
revenues in the immediate future. The severity of the revenue shortfall in
comparison with the respective distribution plans and with the programme
outlined in my supplementary report (S/1998/90), submitted to the Council in
February 1998, requires the development within the distribution plan of costed
projects by United Nations agencies for the three northern governorates.
Accordingly, I would like to encourage the Government of Iraq to consider the
advantages of submitting costed annexes and projects as soon as possible.
105. In a letter dated 11 February 1999 addressed to the Chairman of the
Security Council Committee, the Executive Director of the Iraq Programme
submitted to the Committee a proposal pursuant to paragraph 4 of Council
resolution 1210 (1998) to address the problems created by the existing system of
reimbursement from the 13 per cent account to the 53 per cent account. I
recommend to the Committee that it consider favourably the proposal submitted by
the Secretariat. In terms of amounts to be reimbursed for food only, as at
31 January 1999, pending delivery of the supplies to WFP for the three
governorates in the north, $111 million had not been transferred from the
13 per cent account to the 53 per cent account under phases II to IV of the
programme.
106. In previous reports I have noted with growing concern the frequently long
delays in the distribution of supplies after delivery to government warehouses.
This is a matter that requires the urgent attention of the Government. While
the United Nations fully appreciates the logistical difficulties facing
individual ministries, I should like to recommend that the Government utilize
the resources available to ensure efficient distribution of the goods provided
under the programme throughout all sectors. It is also important for the
Security Council Committee to acknowledge that a humanitarian programme of such
magnitude requires a commensurate level of transport, communications and
material-handling equipment and to be ready to act favourably on requests for
essential logistic support.
107. While there is full recognition of the unsatisfactory health and
nutritional situation in Iraq, the slow pace of distribution of medicine and
medical supplies from Kimadia central warehouses to the governorate warehouses,
and further to health facilities, is a matter of serious concern. As at
31 January 1999, approximately $275 million worth of medicine and medical
supplies had accumulated in warehouses. It is also a matter of serious concern
that the bulk of the applications for targeted nutrition inputs under phases IV
and V have not yet been submitted to the Secretariat.
108. In regard to the three northern governorates, in order to take local
concerns more fully into account, the United Nations and the local authorities
have developed a programme consultation process, which I am pleased to note is
progressing well. In the centre and the south, effective programme management
also requires due attention to intersectoral linkages and coordinated planning,
as well as timely submission of applications and delivery of supplies.
109. As already reported to the Council, the observation activities of the
United Nations were severely disrupted due to the developments in November and
December 1998, which twice required temporary relocation of international staff
to Amman. Nevertheless, I am pleased to report to the Council that United
Nations international and national staff have performed their duties with
commendable commitment and professionalism.
110. In a letter dated 4 February 1999 addressed to the President of the
Security Council, I transmitted copies of an exchange of aides-mémoires between
the Government of Iraq and the United Nations, dated 4 and 5 January 1999,
respectively. The United Nations has consistently emphasized to the Iraqi
authorities the Government's responsibility under the relevant international
instruments to ensure the safety and security of all United Nations personnel in
Iraq. In the absence of assurances and taking into account the repeated
warnings by the Government of Iraq regarding the security and safety of United
Nations personnel of British and United States nationality, and acting on the
advice of the United Nations Security Coordinator, I decided, strictly on
security grounds and without prejudice to the position of principle communicated
in the aide-mémoire dated 5 January 1999, to withdraw from Iraq United Nations
personnel of British and United States nationality.
111. The United Nations continues to pursue this issue with the Government of
Iraq, and I do hope that in the very near future the Government will again be
able to fulfil its obligations under the relevant international instruments,
including the relevant provisions of Council resolution 986 (1995) and the
Memorandum of Understanding between the United Nations and the Government of
Iraq, dated 20 May 1996, and to ensure the safety and security of all United
Nations personnel, irrespective of their nationality.
1. As at 31 January 1999, of the $5.256 billion authorized under Security
Council resolution 1210 (1998), $459.2 million had been deposited into the
account for phase V, bringing the total oil sale since inception to
$9,846.1 million.
2. The allocation of total oil proceeds received from inception to date and
the corresponding expenditures are as follows:
(a) $4,944.7 million has been allocated for the purchase of humanitarian
supplies by the Government of Iraq, as specified in paragraph 8 (a) of Council
resolution 986 (1995). Letters of credit issued by the Banque Nationale de
Paris on behalf of the United Nations for the payment of those supplies for the
whole of Iraq amounted to $5,092.2 million under phases I to V, which includes
an amount of $147.5 million due for the reimbursement for bulk purchases made by
the Government of Iraq for northern Iraq and distributed by the United Nations
Inter-Agency Humanitarian Programme;
(b) $1,212.1 million has been allocated for the purchase of humanitarian
goods to be distributed in the three northern governorates by the United Nations
Inter-Agency Humanitarian Programme, as specified in paragraph 8 (b) of Security
Council resolution 986 (1995) and as revised in paragraph 2 of Council
resolution 1153 (1998). Expenditures recorded for humanitarian goods approved
by the Security Council Committee amounted to $835.8 million;
(c) $2,950.3 million has been transferred directly into the United Nations
Compensation Fund, as specified in paragraph 8 (c) of Council resolution
986 (1995). As at 31 January 1999, a total of $125.4 million had been allotted
to cover the operating expenditures of the Compensation Commission and an amount
of $1,901.6 million for payment of first, second, third and fourth instalments
of "A" and "C" claims;
(d) $206.5 million has been allocated for the operational and
administrative expenses of the United Nations associated with the implementation
of Council resolution 986 (1995), as specified in paragraph 8 (d) of the
resolution. Expenditures for administrative costs for all United Nations
entities involved in implementing the resolution amounted to $139.6 million;
(e) $70.0 million has been allocated to the United Nation Special
Commission for the Disarmament of Iraq (UNSCOM) for its operating expenses, as
specified in paragraph 8 (e) of Council resolution 986 (1995). Expenditures for
the Commission amounted to $52.7 million;
(f) $369.2 million(1) has been set aside for the transportation costs of
petroleum and petroleum products originating in Iraq and exported via the
Kirkuk-Yumurtalik pipeline through Turkey, in accordance with paragraph 8 (f) of
Council resolution 986 (1995) and in line with procedures adopted by the
Security Council Committee. Of that amount, $338.0 million has been paid to the
Government of Turkey;
(g) $93.2 million has been transferred directly to the escrow account
established pursuant to Council resolutions 706 (1991) of 15 August 1991 and
712 (1991) of 19 September 1991 for the repayments envisaged under paragraph 6
of Council resolution 778 (1992) of 2 October 1992, as specified in
paragraph 8 (g) of Council resolution 986 (1995) and subsequently in
paragraph 34 of my report of 25 November 1996 (S/1996/978).
Oil proceedsa | |||
Phase | Last deposit | No. of letters of credit | Value of letters of credit from oil sales (United States dollars) |
I | 27 June 1998 | 123 | 2 149 806 395.99 |
II | 2 January 1998 | 130 | 2 124 569 788.26 |
III | 30 June 1998 | 186 | 2 085 326 345.25 |
IV | 28 December 1998 | 280 | 3 027 147 422.35 |
V (Current) | As at 31 January 1999 | 136 | 1 347 080 779.12 |
Totals | 855 | 10 733 930 730.97 |
a Of the expected oil proceeds of $1,347,080,000.00, only $459,268,446.58
had been received as at 31 January 1999; oil proceeds may vary due to market
price fluctuations.
Humanitarian supply letters of credit for ESB (53 per cent) account
and bulk procurement | |||
Phase | No. of letters of credit opened | Value of letters of credit opened (United States dollars) | Bank payments made on delivery (United States dollars) |
I | 870 | 1 228 898 000.00 | 1 198 334 800.00 |
II | 538 | 1 192 931 000.00 | 1 102 179 400.00 |
III | 629 | 1 173 460 000.00 | 918 074 200.00 |
IV | 827 | 1 496 798 000.00 | 400 950 500.00 |
V (Current) | 0 | 0 | 0 |
Totals | 2 864 | 5 092 087 000.00 | 3 619 538 900.00 |
1. This amount is slightly below the one included in the report of 19 November 1998 (S/1998/1100), due to the fact that at that time, the required transfer of 30 per cent to the United Nations Compensation Fund (in accordance with the provisions of paragraph 8 (c) of Security Council resolution 986 (1995)), had not yet materialized for the income deposited in phase IV.