Rebuilding Iraq: International Donor Pledges for Reconstruction  
Efforts in Iraq (18-DEC-07, GAO-08-365R).			 
                                                                 
At an October 30, 2007, hearing before the subcommittee on U.S.  
efforts to secure, stabilize, and rebuild Iraq, several members  
requested additional information on international donors' pledges
to reconstruction and stabilization efforts in Iraq. This	 
correspondence provides updated information on the amounts of	 
loans and grants pledged by each donor country, as well as the	 
status of those pledges.					 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-08-365R					        
    ACCNO:   A79032						        
  TITLE:     Rebuilding Iraq: International Donor Pledges for	      
Reconstruction Efforts in Iraq					 
     DATE:   12/18/2007 
  SUBJECT:   Foreign aid programs				 
	     Foreign financial assistance			 
	     Foreign governments				 
	     Foreign loans					 
	     Grants						 
	     International organizations			 
	     International relations				 
	     Iraq War and reconstruction			 

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GAO-08-365R

   

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December 18, 2007

The Honorable Nita M. Lowey
Chair
The Honorable Frank R. Wolf
Ranking Member
Subcommittee on State, Foreign Operations, and Related Programs
Committee on Appropriations

House of Representatives

Subject: Rebuilding Iraq: International Donor Pledges for Reconstruction
Efforts in Iraq

At an October 30, 2007, hearing before the subcommittee on U.S. efforts to
secure, stabilize, and rebuild Iraq, several members requested additional
information on international donors' pledges to reconstruction and
stabilization efforts in Iraq.^1 This correspondence provides updated
information on the amounts of loans and grants pledged by each donor
country, as well as the status of those pledges.

As of October 2007, international donors have pledged about $16.4 billion
in support of Iraq's reconstruction since 2003.^2 Of this amount, about
$10.8 billion--or about 66 percent--is in the form of loans. The Iraqi
government has entered into agreements to use nearly $2.2 billion of the
pledged loans, as of October 2007. Donors also have pledged $5.6 billion
in grants, to be provided multilaterally or bilaterally. Donors have
provided about $4.8 billion of this amount as of October 2007. Appendix I
provides additional information on the loans and grants pledged by each
donor country and the contributions provided as of October 2007.

We obtained data on donor pledges and contributions to Iraq reconstruction
from the United Nations (UN), the World Bank, and the Department of State.
We reviewed UN and World Bank documents on pledges and multilateral
contributions and met with cognizant UN and World Bank officials. To
obtain information on bilateral grants and loans, we reviewed UN and World
Bank trust fund documents and met with State Department officials. The
information we have provided is sufficiently reliable for the purposes of
a broad comparison of overall totals for grants and loans in relation to
the pledged amounts. While the information provides a reasonable depiction
of donor contributions in terms of loans and grants, some of the
individual country information may not fully reflect differences in
exchange rates between amounts pledged and grants provided in foreign
currencies, or incorporate all the bilateral grants or loans that have
been made. Our work was conducted in accordance with generally accepted
government auditing standards.

^1See Securing, Stabilizing, and Rebuilding Iraq: GAO Audits and Key
Oversight Issues, GAO-08-231T (Washington, D.C.: Oct. 30, 2007).

^2U.S. and Iraqi funding for reconstruction efforts is not included in
this total.

If you have any questions about this information, please contact me at
202-512-8979 or by e-mail at [8][email protected] . Other key
contributors to the report include Muriel Forster, Monica Brym, Dorian
Herring, Elizabeth Repko, Aniruddha Dasgupta, and David Bruno.

Joseph A. Christoff
Director, International Affairs and Trade

Appendix I: International Donor Pledges for Iraq Reconstruction

Many nations and various international organizations are providing
multilateral and bilateral assistance to support efforts to rebuild Iraq.
As of October 2007, donors have pledged, or provided in excess of the
amounts pledged,^3 about $16.4 billion for Iraq reconstruction. (Table 1
provides a breakdown of pledges by loans and grants for each donor
country.) The majority of this amount, about $13.6 billion, was pledged at
the October 2003 donor conference in Madrid.

Most donor nations have pledged assistance in the form of grants, either
multilaterally or bilaterally.^4 However, the majority of the amount
pledged is in the form of loans, primarily from Japan ($3.4 billion), the
World Bank ($3 billion), the International Monetary Fund (IMF) (up to
$2.55 billion), and Iran ($1 billion).

Table 1: International Donor Pledges for Iraq Reconstruction, by Grant and
Loans

(in thousands of U.S. dollars), as of October 2007

Donor: *Australia; 
Total pledged and/or provided in excess of pledge: 77,270; 
Pledge offered in the form of grants: 77,270; 
Pledge offered in the form of loans: 0; 
Grants provided [A: 51,270; 
Loans provided: 0. 

Donor: Austria; 
Total pledged and/or provided in excess of pledge: 5,480; 
Pledge offered in the form of grants: 5,480; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 1,800; 
Loans provided: 0. 

Donor: Belgium; 
Total pledged and/or provided in excess of pledge: 5,890; 
Pledge offered in the form of grants: 5,890; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 5,881; 
Loans provided: 0. 

Donor: Bulgaria; 
Total pledged and/or provided in excess of pledge: 640; 
Pledge offered in the form of grants: 640; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 530; 
Loans provided: 0. 

Donor: *Canada; 
Total pledged and/or provided in excess of pledge: 187,470; 
Pledge offered in the form of grants: 187,470; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 200,490; 
Loans provided: 0. 

Donor: China; 
Total pledged and/or provided in excess of pledge: 31,500; 
Pledge offered in the form of grants: 31,500; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: Not available; 
Loans provided: 0. 

Donor: Croatia; 
Total pledged and/or provided in excess of pledge: 333; 
Pledge offered in the form of grants: 333; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 333; 
Loans provided: 0. 

Donor: Cyprus; 
Total pledged and/or provided in excess of pledge: 120; 
Pledge offered in the form of grants: 120; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 120; 
Loans provided: 0. 

Donor: Czech Rep; 
Total pledged and/or provided in excess of pledge: 14,660; 
Pledge offered in the form of grants: 14,660; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 6,250; 
Loans provided: 0. 

Donor: Denmark; 
Total pledged and/or provided in excess of pledge: 61,950; 
Pledge offered in the form of grants: 61,950; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 18,825; 
Loans provided: 0. 

Donor: *European Commission; 
Total pledged and/or provided in excess of pledge: 921,305; 
Pledge offered in the form of grants: 921,305; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 970,000; 
Loans provided: 0. 

Donor: Estonia; 
Total pledged and/or provided in excess of pledge: 80; 
Pledge offered in the form of grants: 80; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 80; 
Loans provided: 0. 

Donor: Finland; 
Total pledged and/or provided in excess of pledge: 8,834; 
Pledge offered in the form of grants: 8,834; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 8,830; 
Loans provided: 0. 

Donor: *Germany; 
Total pledged and/or provided in excess of pledge: 4,150; 
Pledge offered in the form of grants: 4,150; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 10,000; 
Loans provided: 0. 

Donor: Greece; 
Total pledged and/or provided in excess of pledge: 7,148; 
Pledge offered in the form of grants: 7,148; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 7,148; 
Loans provided: 0. 

Donor: Hungary; 
Total pledged and/or provided in excess of pledge: 1,670; 
Pledge offered in the form of grants: 1,670; 
Pledge offered in the form of loans: 0; 
1,670; 
Loans provided: 0. 

Donor: Iceland; 
Total pledged and/or provided in excess of pledge: 3,000; 
Pledge offered in the form of grants: 3,000; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 3,000; 
Loans provided: 0. 

Donor: India; 
Total pledged and/or provided in excess of pledge: 10,000; 
Pledge offered in the form of grants: 10,000; 
Pledge offered in the form of loans: [Empty]; 
Grants provided [A]: 10,000; 
Loans provided: 0. 

Donor: Iran; 
Total pledged and/or provided in excess of pledge: 1,005,000; 
Pledge offered in the form of grants: 5,000; 
Pledge offered in the form of loans: 1,000,000; 
Grants provided [A]: Not available; 
Loans provided: Not available. 

Donor: Ireland; 
Total pledged and/or provided in excess of pledge: 3,530; 
Pledge offered in the form of grants: 3,530; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 1,825; 
Loans provided: 0. 

Donor: *Italy; 
Total pledged and/or provided in excess of pledge: 835,620; 
Pledge offered in the form of grants: 235,620[B]; 
Pledge offered in the form of loans: 600,000; 
Grants provided [A]: 350,000; 
Loans provided: 0. 

Donor: Japan; 
Total pledged and/or provided in excess of pledge: 4,914,000; 
Pledge offered in the form of grants: 1,414,000; 
Pledge offered in the form of loans: 3,500,000; 
Grants provided [A]: 1,491,550; 
Loans provided: 1,562,000. 

Donor: Republic of Korea[C]; 
Total pledged and/or provided in excess of pledge: 400,000; 
Pledge offered in the form of grants: 200,000; 
Pledge offered in the form of loans: 200,000; 
Grants provided [A]: 200,000; 
Loans provided: 0. 

Donor: Kuwait; 
Total pledged and/or provided in excess of pledge: 500,000; 
Pledge offered in the form of grants: 500,000; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 135,000; 
Loans provided: 0. 

Donor: Lithuania; 
Total pledged and/or provided in excess of pledge: 30; 
Pledge offered in the form of grants: 30; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 30; 
Loans provided: 0. 

Donor: Luxembourg; 
Total pledged and/or provided in excess of pledge: 2,559; 
Pledge offered in the form of grants: 2,559; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 2,559; 
Loans provided: 0. 

Donor: Malta; 
Total pledged and/or provided in excess of pledge: 27; 
Pledge offered in the form of grants: 27; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: Not available; 
Loans provided: 0. 

Donor: Netherlands; 
Total pledged and/or provided in excess of pledge: 12,885; 
Pledge offered in the form of grants: 12,885; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 12,900; 
Loans provided: 0. 

Donor: *New Zealand; 
Total pledged and/or provided in excess of pledge: 6,110; 
Pledge offered in the form of grants: 6,110; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 6,110; 
Loans provided: 0. 

Donor: *Norway; 
Total pledged and/or provided in excess of pledge: 23,710; 
Pledge offered in the form of grants: 23,710; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 23,710; 
Loans provided: 0. 

Donor: Oman; 
Total pledged and/or provided in excess of pledge: 3,000; 
Pledge offered in the form of grants: 3,000; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: Not available; 
Loans provided: 0. 

Donor: Pakistan; 
Total pledged and/or provided in excess of pledge: 2,500; 
Pledge offered in the form of grants: 2,500; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 600; 
Loans provided: 0. 

Donor: *Portugal; 
Total pledged and/or provided in excess of pledge: 600; 
Pledge offered in the form of grants: 600; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 600; 
Loans provided: 0. 

Donor: Qatar; 
Total pledged and/or provided in excess of pledge: 100,000; 
Pledge offered in the form of grants: 100,000[D]; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 27,500; 
Loans provided: 0. 

Donor: Saudi Arabia; 
Total pledged and/or provided in excess of pledge: 500,000; 
Pledge offered in the form of grants: 500,000; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 87,000; 
Loans provided: 0. 

Donor: *Slovenia; 
Total pledged and/or provided in excess of pledge: 420; 
Pledge offered in the form of grants: 420; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 334; 
Loans provided: 0. 

Donor: *Spain; 
Total pledged and/or provided in excess of pledge: 248,000; 
Pledge offered in the form of grants: 248,000; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 213,700; 
Loans provided: 0. 

Donor: Sweden; 
Total pledged and/or provided in excess of pledge: 33,000; 
Pledge offered in the form of grants: 33,000; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 18,600; 
Loans provided: 0. 

Donor: *Turkey; 
Total pledged and/or provided in excess of pledge: 60,000; 
Pledge offered in the form of grants: 60,000; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 27,500; 
Loans provided: 0. 

Donor: United Arab Emirates; 
Total pledged and/or provided in excess of pledge: 215,000; 
Pledge offered in the form of grants: 215,000; 
Pledge offered in the form of loans: 0. 
Grants provided [A]: 77,000; 
Loans provided: 0. 

Donor: *United Kingdom; 
Total pledged and/or provided in excess of pledge: 650,330; 
Pledge offered in the form of grants: 650,330; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 852,000; 
Loans provided: 0. 

Donor: *Vietnam; 
Total pledged and/or provided in excess of pledge: 700; 
Pledge offered in the form of grants: 700; 
Pledge offered in the form of loans: 0; 
Grants provided [A]: 700; 
Loans provided: 0. 

Donor: World Bank[E]; 
Total pledged and/or provided in excess of pledge: 3,000,000; 
Pledge offered in the form of grants: 0; 
Pledge offered in the form of loans: 3,000,000; 
Grants provided [A]: 0; 
Loans provided: 241,000. 

Donor: International Monetary Fund[E]; 
Total pledged and/or provided in excess of pledge: 2,550,000; 
Pledge offered in the form of grants: 0; 
Pledge offered in the form of loans: 2,550,000. 
Grants provided [A]: 0; 
Loans provided: 436,000. 

Total; 
Total pledged and/or provided in excess of pledge: 16,408,521; 
Pledge offered in the form of grants: 5,558,521; 
Pledge offered in the form of loans: 10,850,000. 
Grants provided [A]: 4,825,445; 
Loans provided: 2,239,000. 

Source: United Nations, World Bank, and State Department data.

Notes:

*Designates a country that provided additional funds, in excess of amount
pledged, or a country that did not pledge funds at the 2003 Donor
Conference but has provided funds to Iraq for reconstruction projects.

^aA portion of bilateral grants was provided as assistance in kind.

^bThis figure represents Italy's original pledge, which did not
distinguish between grants or loans at the time of the pledge. For the
purposes of this table, we have represented this amount as a grant. The
$600 million in loans represents an additional pledge Italy offered in
2007.

^cThe Republic of Korea offered in October 2007 to provide an additional
$200,000 in loans, according to the State Department.

^dThis figure represents Qatar's original pledge, which did not
distinguish between grants or loans at the time of the pledge. For the
purposes of this table, we have represented this amount as a grant.

^eWe have provided the lower range of planned lending by the World Bank
and the IMF. The World Bank pledged assistance ranging from $3 to $5
billion and the IMF pledged assistance ranging from nearly $2.6 to $4.3
billion.

^3Some donors have provided additional funds that exceed the amount they
pledged to provide.

^4The World Bank Group defines a pledge as an indication of intent to
mobilize funds for which an approximate sum of contribution is specified.

As of October 2007, Iraq had entered into agreements to access nearly $1.8
billion of available loans from Japan and the World Bank--nearly $1.6
billion from Japan and nearly $241 million from the World Bank for basic
infrastructure projects. In addition, the IMF has provided Iraq with $436
million in emergency post-conflict assistance to facilitate Iraqi debt
relief, but the Iraqi government has not drawn on this assistance. South
Korea and Italy also have offered loans to Iraq, according to a State
official.

Of the total grants, donors have provided about $1.7 billion
multilaterally to two trust funds, one run by the United Nations (UN)
Development Group and the other by the World Bank, and over $3.1 billion
in bilateral grants. Of the amount provided multilaterally to the UN and
World Bank trust funds, the UN had disbursed about $685 million while the
World Bank had disbursed about $109 million for reconstruction projects in
Iraq, as of October 2007.

(320566)

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