U.S. Department of State

Section 2207 Report to Congress
October 2008

This report covers activities from July 1 to September 30, the fourth quarter of Fiscal Year 2008. Project codes are generally listed as “closed” when substantial activity has come to an end. Financial activity may continue in a closed project code as final work continues or post-completion payments are made.

SECTOR: Security and Law Enforcement

Police Training and Technical Assistance
Project Code: 10000

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	1,800.9	1,800.9	-7.6	1,782.0
Obligated	1,799.3	1,789.7	-0.6	1780.7
Outlayed	1,661.9	1,738.8	+0.2	1746.8

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: This report reflects a reapportionment of $7.6 million from this project code, of which $5.3 million went to PC 06750 (Ministerial Capacity Building) and $2.3 million to PC 06700 (Governance).

Accomplishments Since the July Report:

• Financial activity continued as contractual claims and adjustments were concluded; construction is substantially completed.

Accomplishments Anticipated Next Quarter:

• Contract and financial closeout will continue.

Border Enforcement
Project Code: 11000 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	435.1	435.1	-2.8	427.0
Obligated	432.5	429.0	-	424.4
Outlayed	403.5	418.9	-	419.1

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: This report reflects an allocation of $2.8 million from this project code to PC 06750 (Ministerial Capacity Building). This project code was closed out in the April 2006 report.

Facilities Protection Service
Project Code: 12000 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	51.1	51.1	-	51.1
Obligated	51.0	48.8	-0.1	48.7
Outlayed	46.2	48.7	-	48.7

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: No change in allocation.

Iraqi Armed Forces Facilities
Project Code: 20000 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	728.8	728.8	-0.3	727.5
Obligated	728.8	727.6	-1.3	725.1
Outlayed	712.8	715.9	+2.4	719.8

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: This report reflects a reapportionment of $0.3 million from this project code to PC 06750 (Ministerial Capacity Building). This project code was closed out in the April 2006 report.

Iraqi Armed Forces Equipment
Project Code: 21000 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	608.6	608.3	-2.1	604.6
Obligated	608.5	604.0	-1.3	602.6
Outlayed	583.3	596.5	+1.1	602.1

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: This report reflects a reapportionment of $2.1 million from this project code to PC 06700 (Governance).This project code was closed out in the April 2006 report.

Iraqi Armed Forces Training and Operations
Project Code: 22000 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	419.4	418.1	-0.1	413.2
Obligated	419.3	413.3	-	413.2
Outlayed	389.2	410.5	-	413.1

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: This report reflects a reapportionment of $0.1 million from this project code to PC 06750 (Ministerial Capacity Building). This project code was closed out in the April 2006 report. 

Iraqi National Guard Operations and Personnel
Project Code: 23000 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	224.5	224.5	-2.2	222.2
Obligated	216.0	216.9	-1.9	211.8
Outlayed	200.3	206.6	-	207.2

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: This report reflects a reapportionment of $2.2 million from this project code to PC 06700 (Governance).This project code was closed out in the April 2006 report.

Iraqi National Guard Equipment
Project Code: 24000 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	89.4	89.4	-	88.5
Obligated	89.4	88.3	-	88.4
Outlayed	88.3	88.3	-	88.3

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: No change in allocation.This project code was closed out in the April 2006 report. 

Iraqi National Guard Facilities
Project Code: 27000 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	360.1	360.1	-0.1	359.3
Obligated	360.1	360.0	-0.8	358.5
Outlayed	346.1	344.0	-0.1	346.8

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: This report reflects a reapportionment of $0.1 million from this project code to PC 06750 (Ministerial Capacity Building).This project code was closed out in the January 2007 report.

Iraqi Security Forces Quick Response Program
Project Code: 26000 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	163.0	163.0	-	162.0
Obligated	163.0	161.8	-	161.8
Outlayed	156.4	159.1	-	159.3

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: No change in allocation. This project code was closed out in the January 2007 report.

Nonproliferation and Export Control and Border Security
Project Code: 09600 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	5.6	7.1	0.0	7.4
Obligated	5.5	5.5	+0.1	6.9
Outlayed	0.7	5.3	-	5.8

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of State, Bureau of International Security and Nonproliferation

Changes from the July Report: No change in allocation.

Accomplishments Since the July Report:

• Additional funds were obligated to provide assistance to the Ministry of Science and Technology to identify safe and appropriate replacements for irradiator technology for agricultural purposes.
• Continued to hold radioactive waste workshops for Iraqi agencies in cooperation with Texas Tech University and Sandia National Laboratory.
• Provided guidance to Iraqis on the dismantling of LAMA laboratory facility at Tuwaitha.

Accomplishments Anticipated Next Quarter:

• Install baggage and parcel X-ray scanning equipment at airports in Najaf, Mosul, Baghdad, and Basrah. The contractor is scheduling training and installation to be completed in the next quarter.
• In coordination with Customs and Border Protection, deliver 18 CT-30 detection kits to Iraqi enforcement agencies.

Focused Stabilization
Project Code: 08500 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	30.0	30.0	-	30.0
Obligated	30.0	30.0	-	30.0
Outlayed	0.2	6.0	-	30.0

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: U.S. Agency for International Development (USAID)

Changes from the July Report: No change in allocation. This project code was closed out in the July 2007 report.

Commander’s Humanitarian Relief & Reconstruction
Project Code: 28000 - CLOSED

Amount (in millions USD)	Previous Levels		Change from Last Quarter	Current Total
	End FY06	End FY07
Apportioned	86.0	86.0	-	86.0
Obligated	86.0	85.1	-	85.1
Outlayed	69.2	78.4	+3.2	81.8

NOTE: Obligation and Outlay Data are current as of December 31, 2007

Responsible U.S. Government Agency: Department of Defense, Multinational Force-Iraq (MNF-I)

Changes from the July Report: No change in allocation.

Accomplishments Since the July Report:

• Completed the Kamaliya sewer network project ($30.5 million). The project provides an independent sewer system consisting of 14 pump stations, trunk and lateral lines, which connect homes and businesses to the network. The project funnels 50,000 cubic meters (1.3 million gallons) of sewage per day away from populated areas to the Diyala River and services over 100,000 people.

Anticipated Accomplishments Next Quarter:

• Financial disbursements will continue as project closes out.

SECTOR: Justice, Public Safety Infrastructure, and Civil Society

Witness Protection Program
Project Code: 30000

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	36.0	36.0	-	36.0
Obligated	36.0	36.0	-	36.0
Outlayed	10.7	30.7	-	34.8

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agencies: Department of Defense and Department of State

Changes from the July Report: No change in allocation.

Accomplishments Since the July Report:

• Completed witness protection facilities co-located with Rusafa Regional Courthouse and the Basrah Courthouse. Facilities were turned over to the Higher Judical Council ($4,928,394).

Accomplishments anticipated next quarter:· Project has been completed.

Other Technical Investigative Methods
Project Code: 31000 – CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	1.2	1.2	-	1.2
Obligated	1.2	1.2	-	1.2
Outlayed	1.1	1.2	-	1.2

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agencies: Department of Defense and Department of State, with some funds transferred to the Department of Justice

Changes from the July Report: No change in allocation. This project code was closed out in the July 2006 report.

Penal Facilities
Project Code: 32000

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	87.0	87.0	-0.3	86.7
Obligated	87.0	87.8	+0.2	87.2
Outlayed	51.4	64.9	+0.7	72.8

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense –U.S. Army Corps of Engineers (USACE)

Changes from the July Report: This report reflects a reapportionment from this project code of $0.3 million to PC 06750 (Ministerial Capacity Building).

Accomplishments Since the July Report:

• Modification was awarded and began to dewater the foundation site at the Nasiriyah Prison Phase III ($7,546,055) project. Scheduled completion date is Aug 2009. (Note: Some phases of Nasiriyah prison were supported with INCLE funds from the Bureau of International Narcotics and Law Enforcement Affairs.)

Accomplishments Anticipated Next Quarter:

• Continue construction on Nasiriyah Prison Phase III ($7,546,055)
• Continue with contract and financial closeout.

Reconstruction and Modernization of Detention Facilities
Project Code: 33000

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	205.6	205.6	-9.5	183.7
Obligated	205.6	168.6	-	182.7
Outlayed	88.6	131.3	+0.1	153.7

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agencies: USACE, Department of State, and Department of Justice

Changes from the July Report: This report reflects a reapportionment of $9.5 million from this project code to PC 06700 (Governance).

Accomplishments Since the July Report:

• Refined statement of work for the Ramadi Prison (approximately $24 million) and developed the independent government estimate.
• Identified land ownership issue with the selected Ramadi Prison site and began working to resolve issue with the Government of Iraq.

Accomplishments Anticipated Next Quarter:

• Resolution of the Ramadi Prison land ownership issue and solicitation of the project.

Facilities Repair
Project Code: 13000 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	86.9	87.0	-2.9	82.2
Obligated	86.4	84.5	-	82.0
Outlayed	72.0	80.7	-	81.2

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: This report reflects an allocation of $2.9 million from this project code to PC 06700 (Governance).Activities for thisproject code were completed in the October 2007 report.

Fire Service
Project Code: 14000

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	115.0	115.4	-0.4	115.0
Obligated	115.0	114.9	-0.6	113.8
Outlayed	100.6	108.9	+0.5	113.7

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: This report reflects a reapportionment of $0.4 million from this project code to PC 06750 (Ministerial Capacity Building).

Accomplishments Since the July Report:

• Continued financial activity as contractual claims and adjustments were concluded.

Accomplishments Anticipated Next Quarter:

• Contract and financial closeout will continue.

Demining
Project Code: 09500 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	83.2	83.2	+1.3	84.5
Obligated	83.2	83.2	-	83.2
Outlayed	73.5	83.2	-	83.2

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of State

Changes from the July Report: The project code was closed out in the January 2008 report. This report reflects an allocation of $1.3 million to this project code from PC 15000 (Public Safety Training and Facilities). Program activities also continue with support under other budget headings than IRRF.

Accomplishments Since the July Report:

• A demining grant was issued in the amount of $1.3 million to an Iraqi NGO.

Public Safety Training and Facilities
Project Code: 15000 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	186.4	186.0	-1.3	182.3
Obligated	186.3	183.4	-	181.9
Outlayed	173.3	181.6	-	181.9

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: This report reflects an allocation of $1.3 million from this project code to PC 09500 (Demining).This project code was closed out in the April 2006 report.

National Security Communications Network
Project Code: 25000 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	106.5	106.5	-0.1	110.4
Obligated	106.5	106.5	+3.9	110.3
Outlayed	104.6	105.3	-	106.0

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: This report reflects an allocation of $0.1 million from this project code to PC 06750 (Ministerial Capacity Building).This project code was closed out in the July 2006 report.

Accomplishments Since the July Report:

• Awarded contract for delivery of First Responder Radios to support the Ministry of Health (MOH).

Rule of Law in Iraq
Project Code: 06500

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	71.2	71.2	-5.5	65.7
Obligated	71.1	71.1	-	64.3
Outlayed	40.6	51.3	-	60.2

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agencies: Department of State; Federal Bureau of Investigation, Department of Justice; and Department of Defense

Changes from the July Report: This report reflects a reapportionment of $5.5 million from this project code to PC 06700 (Governance).

Accomplishments Since the July Report:

• Continued financial activity as contractual claims and adjustments were concluded; construction is substantially completed.
• Began construction of Ramadi Rule of Law complex.
• Continued to upgrade security at four courthouses throughout Iraq.
• Provided support to witness security camps before turning them over to GOI.

Accomplishments Anticipated Next Quarter:

• Continue contract and financial closeout.
• Continue construction of Ramadi Rule of Law complex.
• Continue courthouse security upgrades.

Investigations of Crimes Against Humanity
Project Code: 05000 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	128.0	128.0	-	127.3
Obligated	127.1	127.1	-	124.1
Outlayed	68.6	108.5	-	120.0

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agencies: Department of Justice (with funds transferred from Department of Defense and Department of State) and Department of Defense

Changes from the July Report: No change in allocation.

Accomplishments Since the July Report:

• Construction activity under this project code is substantially complete ($124.1 million).
• Financial activity is pending close-out.

Accomplishments Anticipated Next Quarter:

• Complete financial close out.

Judicial Security and Facilities
Project Code: 09000

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	157.2	157.6	-	157.6
Obligated	152.3	153.4	+0.6	159.6
Outlayed	104.4	123.7	+2.2	145.3

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: No change in allocation.

Accomplishments Since the July Report:

• Completed construction of the Rusafa Regional Courthouse and transferred facility to the Higher Judicial Council ($8,238,991).
• Completed Basrah Regional Courthouse and transferred facility to the Higher Judicial Council ($8,906,677).
• Awarded a $1.2 million contract to provide a Judicial Security assessment.

Accomplishments Anticipated Next Quarter:

• Continue construction on Hillah Regional Courthouse ($6,916,215) with completion scheduled for December.

Democracy-Building Activities
Project Code: 06000

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	1,001.8	1,003.1	-	1,027.9
Obligated	1,001.5	996.1	+1.0	997.3
Outlayed	851.8	970.1	+1.0	986.1

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agencies: Department of State, Bureau of Democracy, Human Rights, and Labor (DRL) and Office of International Women’s Issues and USAID

Changes from the July Report: No change in allocation.

Accomplishments Since the July Report:

• Held 58 workshops for civic activists and members of governorate councils on changes in the roles and responsibilities of the governorate councils. Approximately1,500 participants were introduced to the new council structure, the internal decision-making process, as well as the importance of women’s participation in the political process.
• Conducted election campaign training for 160 women provincial council candidates in 12 governorates. Participants were trained on topics including campaign management, message development, media relations, debating skills, budgeting, and communications.
• Aired radio programs in Babil, Diwaniya, Karbala, Najaf, and Wasit, which promoted political participation among women.
• Sponsored printing of 150,000 posters, 100,000 election-awareness brochures, 60,000 informational booklets, and a monthly newsletter in support of women’s participation in the political process.
• Provided tailoring courses for 31 women in Baghdad.
• Provided computer skills training courses for 22 women in Baghdad.
• Provided trauma relief training and leadership seminars in multiple locations to 41 female students.
• Created a manual on reconciliation and dialogue.
• Awarded a grant to hold a religious minority conference.

Accomplishments Anticipated Next Quarter:

• Provide travel and logistical support to the Office of International Women’s Issues in support of short-term training to Iraqi women peace-builders.
• Continue to provide tailoring, computer and trauma relief courses in Baghdad.

Marla Ruzicka Iraq War Victims Fund
Project Code: 06050 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	30.0	30.0	-	30.0
Obligated	30.0	30.0	-0.1	29.9
Outlayed	17.8	26.3	-	29.8

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: USAID

Changes from the July Report: No change in allocation. This project code was closed out in the July 2006 report, but program activities continue with ESF support.

U.S. Institute of Peace
Project Code: 07000 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	10.0	10.0	-	10.0
Obligated	9.9	9.9	-	9.8
Outlayed	9.5	9.7	-	9.8

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible Agency: U.S. Institute of Peace

Changes from the July Report: No change in allocation. This project code was closed out in the January 2007 report.

SECTOR: Electricity

U.S. assistance in the electrical sector is focused on the completion of electric reconstruction projects, and the transition of responsibility to the GOI of efforts to rebuild, expand, and maintain a robust electrical network. U.S. agencies and the embassy’s Iraq Transition Assistance Office (ITAO) are working closely with the Ministry of Electricity (MOE) to improve electricity delivery.

The ITAO four-member Ministerial Advisory Team (ITAO/MAT) has made over 50 formal trips to MOE Headquarters, Baghdad South, and Erbil to provide over 3,000 person-hours of training and capacity development to the MOE’s middle management and staff during the last 12 months. These trips have been supplemented by at least weekly visits to various MOE offices in Baghdad to maintain and strengthen ties with MOE staff at all levels, and encourage their involvement in ITAO/MAT activities. This team has conducted over 35 training/capacity development sessions at MOE Headquarters. Formal training and direct hands-on support have been provided in power system analysis in Baghdad and Erbil, which included the provision of the necessary software and training on its use, and the development of the MOE network models for systems studies.

ITAO MAT also established a training classroom facility at Baghdad South in order to provide a dedicated classroom facility and have now installed a ‘Virtual Classroom’ facility within classroom. This is an enhanced VTC link to allow specialist training to be undertaken with the trainer located in the UK and the trainees at Baghdad South. This facility has been used to deliver specialist power system dynamic stability study training delivered by a power systems specialist in the UK to MOE trainees at Baghdad South.

USAID, at the request of the Oil Ministry, is now providing assistance to facilitate the commissioning of the Zubair Gas Plant for the production of liquefied petroleum gas and fuel gas. This gas gathering and treatment plant will enable the harvesting of a significant portion of the flared gas associated with oil production in Iraq’s Southern oil fields. If all Iraqi oil fields were subject to flared gas processing up to an estimated 800 million standard cubic feet per day of gas could drive up to 3,500 megawatts of generator power worth $9 billion per year. The Zubair Gas Plant, to be commissioned before the end of the year, is expected to recover flare-gas valued at about $1 billion per year.

The increase in Iraqi security forces, the surge of Coalition Forces, and the completion of key USG-funded electrical infrastructure security protection projects have reduced the number of interdictions of electricity transmission lines and fuel pipelines. Demand for electricity has continued to rise as the Iraqi economy grows. At the same time, optimal fuels for the efficient operation of power generation plants remain in short supply and the weakened infrastructure continues to cause unplanned outages. These obstacles often negatively affect consumers’ perception of improvements made in the electricity sector despite the increase in output over the last several months. However, recent polling data suggests that the public is beginning to note the improvement.

Significant efforts to uphold Iraq’s electrical generation and transmission capacity including rehabilitation, new construction, and a robust operations, maintenance, and sustainment (OMS) program, brought electricity supply levels to an all-time daily record of 125,200 megawatt hours (MWh) on October 12, 2007. Supply subsequently declined as generation units were taken offline for normal seasonal maintenance, however, supply has continued to exceed previous-year levels. The average daily output for the first nine months of 2008 exceeded output in the same period of 2007 by an average of nearly 10 percent despite drought conditions that have reduced hydroelectric output.

Focus for the next quarter will be on the following areas:

• New Generation: A USG contract for the Qudas Expansion Project continues to make progress, including substantial completion of the design, engineering work, and delivery of a majority of the equipment and materials to the site. This project will add as much as 180 megawatts (MW) of new generation to the Baghdad area, where the demand is highest.
• Operations & Maintenance (O&M): The long-term success of reconstruction relies heavily on the ministry’s ability to execute effective OMS programs. OMS efforts help reduce rates of machine degradation, extend machine longevity, and institutionalize a proactive O&M culture throughout the ministry. This quarter the average daily peak supply reached 5,538 MW, a new post-war record, with average daily electricity supply reaching 110,000 megawatt hours (MWh). Nationwide, there is an average of 12 daily hours of power after meeting demands from essential services, up from 10.9 last quarter. The OMS effort will be transitioned to the GOI.
• Budget Execution and Contract Development: Among GOI ministries, the MOE is comparatively effective in executing its capital budget. The MOE has spent at least 71 percent of its 2007 capital budget on new projects and has obligated or committed an additional amount equal to that. Recently, the MOE secured additional electric power equipment, including a $480 million purchase of equipment and installation services from General Electric Company.
• Improved Transmission Grid Reliability: The U.S. embassy is assisting the MOE in improving the reliability of the national transmission grid, which will distribute more power from the north and south and improve supply to Baghdad.
• Capacity Development and Ministerial Advisory Team: ITAO partnered with the MOE to establish a ministry-led Ministerial Advisory Team (MAT) to implement sound business and regulatory practices within the MOE and attract the capital necessary to rebuild Iraq’s utility infrastructure. The Minister of Electricity sanctioned a joint working group that has been organized into subject matter clusters (finance and budget; contracting, procurement, and legal management; tariffs; and certification, assurance, and regulation) and is assisted by expatriate subject matter experts. USACE/Gulf Region Division (USACE/GRD) provided a workshop on construction project management, warehouse inventory, maintenance management, and transmission network for 1,784 MOE personnel during June-August 2008.
• Asset Recognition and Hand Over: U.S. agencies are working together to transfer custody of U.S.-provided capital assets to the Iraqi government. This process will provide the Ministries of Electricity, Finance, and Planning with the information needed to budget for the sustainable life of capital assets.
• Fuel Issues: As generation projects are commissioned and brought on line, the issue of fuel supply grows increasingly critical. The Ministries of Electricity and Oil are developing plans for further pipeline additions and associated equipment at the power facilities to ensure the adequate quantity and quality of fuels. One project includes West Qurna, where the Ministries of Electricity and Oil agreed to use flared gas in a gas turbine based power plant. The COR is poised to approve a special appropriation of $500 million to the Ministry to purchase refined petroleum products to fuel power generators.
• New GOI Generation Projects: With logistical and security support from MNF-I, the U.S. mission continues to work in partnership with the MOE to facilitate management and technical assistance in completing key generation projects to add a total of almost 2,000 MW in new generating capacity. Projects include:
  • Samarra Power Plant generators, to add 340 MW operating on heavy fuel oil.
  • Najaf Power Plant, to add 246 MW operating on natural gas.
  • Baghdad South Power Plant, to add 400 MW operating on heavy fuel oil.
  • Haditha Power Plant, to add 230 MW operating on heavy fuel oil.
  • Hurriah Power Plant, to add 60 MW operating on heavy fuel oil.
  • Baghdad North generator, to add 55 MW operating on heavy fuel oil.
  • Khayrat Power Plant, to add 600 MW operating on heavy fuel oil.
  • Yousifiyah Power Plant rehabilitation to add 600 MW.
• Unplanned Outages and Delays: Power for Baghdad has continued to lag behind the rest of Iraq for the past year, partially due to the inability to transfer power from large plants in northern, southern, and western Iraq. More than 75 percent of transfers that have taken place during the quarter have come from southern generating plants. Within the last quarter the MOE has completed the construction of 400kV and 132kV transmission lines to the newly energized Al-Rasheed substation in southwest Baghdad. These transmission lines will increase the reliability of power to that part of the city. The OMS program has improved both the availability and reliability of generation plants. OMS plants experienced fewer outages in 2008 by a monthly average of 17 percent. Due in large part to the progress in security, the MOE has experienced enhanced transmission line availability since the previous report. Grid fragility due to interdictions has been decreased, and when necessary line repairs take less time to accomplish.
• Transitional Support: Mission elements will re-focus efforts toward providing consultancy, legal, and administrative (budget) services to assist the Iraqis with assuming responsibility of the electrical infrastructure.

Generation
Project Code: 40000 

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	1,736.0	1,740.0	-4.0	1,752.2
Obligated	1,705.2	1,672.0	+24.9	1,739.1
Outlayed	1,216.6	1,475.0	+50.3	1,650.9

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense, USACE

Changes from the July Report: This report reflects an allocation of 4.0 million from this project code to PC 06700 (Governance).

Accomplishments Since the July Report:

• Completed refurbishment of two TM 2500 Mobile Units at Baiji power plant in Salah ad Din province, adding 40MW to the Grid ($14.5 million).
• Commissioned Topping Plant and six turbines at Mussayib power plant in Babil province, adding a potential 270MW to the grid ($28 million).
• Awarded a contract and a grant to provide international legal and technical advice to the MOE.
• Extended the USG funded O&M program into October.

Accomplishments Anticipated Next Quarter:

• Resolve outstanding punch-list work items to be completed by contractor in multiple power plants throughout Iraq for the Remote Monitoring System and close out contract ($10.4 million).
• Complete Mullah Power Plant rehabilitation of Units 1 and 3 in Kirkuk province, adding another 60MWh to the grid ($37.2 million).
• Complete the commissioning of the Topping Plant and GT’s 7 and 8 at Mussayib in Babil province resulting in an additional 90MW to the grid ($28 million).

Transmission
Project Code: 41000

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	1,103.2	1,087.0	-6.5	1,068.5
Obligated	1,035.0	991.0	+8.3	1,009.1
Outlayed	450.0	771.8	+20.7	957.3

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: This report reflects an allocation of $6.5 million from this project code: $5.0 million to PC 06750 (Ministerial Capacity Building) and $1.5 million to PC 05500 (Property Claims Tribunal).

Accomplishments Since the July Report:

• Continued the Nassriya 132kV substation new extension in Dhi Qar Province ($1.9 million).
• Continued the Agarguf 132kV line (five towers) in the Baghdad region ($905k). Continued construction of the Ramadi 132kV substation in Al-Anbar Province ($29.8 million).
• Continued the Fallujah 132kV substation rehabilitation in Al Anbar Province ($14.8 million). Continued the Shatra 132kV substation new extension in Dhi Qar Province ($9.3 million).
• The Haditha and Baiji 400kV substation bays refurbishments in Anbar Province ($6.5 million) were terminated for the convenience of the U.S. Government.
• Continued construction of the Farabi and Jamila 132kV substations in the Baghdad region ($48.1 million).
• Completed construction of the Al-Qaim (phosphate plant) 132kV substation rehabilitation in the Al Anbar Province ($6.6 million).
• Continued the construction of the Diwaniyah 132kV substation in Qadisiyah Province ($25.2 million).
• Awarded two contracts and a grant to provide international legal and technical advice to the MOE and to assess security requirements for protecting critical transmission infrastructure.

Accomplishments Anticipated Next Quarter:

• Complete the Nassriya 132kV substation new extension in Dhi Qar Province ($1.9 million).
• Complete the Agarguf 132kV line (five towers) in the Baghdad region ($905k).
• Complete construction of the Ramadi 132kV substation in Al-Anbar Province ($29.8 million).
• Complete the Fallujah 132kV substation rehabilitation in Al Anbar Province ($14.8 million).
• Complete the Shatra 132kV substation new extension in Dhi Qar Province ($9.3 million).
• Continue construction of the Farabi and Jamila 132kV substations in the Baghdad region ($48.0 million).
• Complete construction of the Diwaniyah 132kV substation in Qadisiyah Province ($25.2 million).
• Complete construction of the Diyala Al Ameen 400kV OHL ($8.0 million).

Distribution Network Infrastructure
Project Code: 42000

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	1,229.7	1,227.5	-	1,211.5
Obligated	1,196.9	1,185.5	+4.3	1,182.4
Outlayed	881.1	1,103.2	+2.7	1,169.5

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: No change in allocation.

Accomplishments Since the July Report:

• Completed the Mahalla 307 Network rehabilitation in the Baghdad region ($6.0 million).
• Completed construction of the Al-Salem 33kV OHL feeder in the northern region ($2.2 million).
• Continued construction of the Buhriz 33/11kV substation in Ba’quba Province ($1.7 million).
• Completed construction of the Diyala-Nofal 33/11kV substation in Diyala Province ($3.5 million).
• Completed construction of the Lahim-Samarra 33/11kV substation in Salah ad Din Province ($1.2 million).
• Awarded a contract to assess private electrical generation network and a grant to assess communications technologies for controlling electricity dispatch.

Accomplishments anticipated next quarter:

• Complete the construction of the Buhriz 33/11kV substation in Ba’quba ($1.7 million).

Automated Monitoring and Control System
Project Code: 43000 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	127.0	127.0	-1.0	126.0
Obligated	116.0	113.6	+1.0	114.6
Outlayed	74.5	113.1	-	113.6

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense, USACE Gulf Regional Division

Changes from the July Report: This report reflects an allocation of $1.0 million from this project code to PC 03500 (Market Based Reforms). This project code was closed out in the July 2007 report.

Security
Project Code: 45000 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	43.6	43.6	-	43.6
Obligated	43.6	43.6	-0.1	43.5
Outlayed	43.5	43.5	-	43.5

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: No change in allocation. This project code was closed out in the January 2006 report.

SECTOR: Oil Infrastructure

IRRF-funded reconstruction projects in the oil sector were physically completed in December 2007. Program efforts in early 2008 have concentrated on contract close-out actions, final material delivery, and demobilization. The last of the design-build contractors left Iraq in December; the remaining procurement orders were delivered in April 2008. The USACE/GRD’s Oil Sector Program Management support and design-build contractors were demobilized in January 2008, with remaining personnel consolidated into the USACE/GRD Energy Sector.

Responsibility for final contract close-out actions, which may result in minor changes in obligations and outlays, has shifted to the Joint Contracting Command-Iraq. These actions will continue for the next several quarters.

Oil Infrastructure
Project Code: 50000

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	1,719.2	1,719.2	+3.6	1,722.8
Obligated	1,599.6	1,540.6	+11.2	1,603.0
Outlayed	1,136.1	1,473.7	+3.1	1,575.7

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: This report reflects a reapportionment of $3.6 million to this account from PC 90000 (Nationwide Hospital and Clinic Improvement).

Accomplishments Since the July Report:

• Continue contract closeouts and resolution of claims; processed a Request for Equitable Adjustment (REA) to settle sub-contractor claims.

Accomplishments Anticipated Next Quarter:

• Continue with contract closeouts and resolution of claims.

Emergency Supplies of Refined Petroleum Products
Project Code: 51000 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	5.5	5.5	-	5.5
Obligated	5.0	5.0	-	5.0
Outlayed	4.3	5.0	-	5.0

NOTE: Obligation and outlay data are current as of September 30, 2008. \

Responsible U.S. Government Agency: Defense Energy Support Center

Changes from the July Report: No changes in allocation. This project code was closed out in the April 2006 report.

SECTOR: Water Resources and Sanitation

During the past quarter, work continued on water sector construction, including Fallujah Wastewater System, Sadr City R3 Water Supply, Eastern Euphrates Drain, Balad Rooz Water Supply System, Mishkhab Water Treatment Plant, and Nasiriya Drainage Pump Station. Al Wahda Water Treatment Plant upgrades, Diyala Weir, and Balad Rooz Water Treatment Plant projects were completed. ITAO and USACE/GRD continued program closeout activities for IRRF II, identifying potential de-obligations and re-obligating funds to ensure completion of projects in progress.

Potable Water
Project Code: 60000

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	1,454.5	1,404.7	-21.8	1,382.8
Obligated	1,413.6	1,308.2	+9.9	1,343.2
Outlayed	943.1	1,205.1	+7.9	1,290.3

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: This report reflects an allocation of $21.8 million from this project code: $10 million to PC 06700 (Governance) and $1.8 million to PC 03500 (Market Based Reforms) and $10.0 million to PC 06750 (Ministerial Capacity Building).

Accomplishments Since the July Report:

• Completed construction of the Balad Rooz Water Treatment Plant ($16.7 million grant agreement with the Ministry of Municipalities and Public Works).
• Completed rehabilitation of the Wahda Water Treatment Plant ($17.6 million).
• Continued construction of Meshkab Water Supply grant agreement project ($23.9 million).
• Awarded Sadr R3 Water Treatment Plant Residual Sludge Lagoons Grant with the Iraqi Ministry of Water Resources ($4.1 million).
• Continued operations, maintenance, and technical support for Nasiriyah Water Treatment Plant.

Accomplishments Anticipated Next Quarter:

• Completion of Sadr R3 Water Treatment Plant.
• Continued operations, maintenance, and technical support for Nasiriyah Water Treatment Plant.

Water Conservation
Project Code: 61000

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	28.8	28.8	-0.1	28.4
Obligated	26.2	25.8	-	25.8
Outlayed	25.3	25.6	-0.1	25.5

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department ofDefense

Changes from the July Report: This report reflects a reapportionment of $0.1 million from this project code to PC 06750 (Ministerial Capacity Building).

Sewerage
Project Code: 62000

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	281.8	281.8	-5.0	275.8
Obligated	269.4	262.6	+9.3	265.8
Outlayed	173.0	213.9	+3.0	233.8

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: This report reflects a reapportionment of $5 million from this project code to PC 06750 (Ministerial Capacity Building).

Accomplishments Since the July Report:

• Continued construction of the Fallujah Wastewater System Phase II project ($70 million).

Accomplishments Anticipated Next Quarter:

• Completion of two of the three collection areas and the main trunk line for the Fallujah Wastewater System.

Other Solid Waste Management
Project Code: 63000 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	10.9	10.9	-0.1	10.5
Obligated	10.6	10.3	-0.2	10.0
Outlayed	7.1	8.5	-	10.0

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: This report reflects an allocation of $0.1 million from this project code to PC 06750 (Ministerial Capacity Building).This project code was closed out in the January 2008 report.

Pumping Stations and Generators
Project Code: 64000

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	179.9	200.3	-4.0	191.3
Obligated	165.5	158.6	-	177.1
Outlayed	96.3	145.9	+0.1	160.5

NOTE: Obligation and outlay data are current as of September 30, 2008.

• The current obligated amount includes $0.7 million of expired funds.
• The current outlayed amount includes $0.3 million of expired funds.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: This report reflects an allocation of $4 million from this project code to PC 06700 (Governance).

Accomplishments Since the July Report:

• Continued construction of the Nasiriyah Drainage Pump Station Grant Agreement project ($20.0 million).
• Extended Nasiriyah Drainage Pump Station Grant Agreement project until November 30.

Accomplishments Anticipated Next Quarter:

• Completion of Nasiriyah Drainage Pump Station Grant Agreement project.

Irrigation and Drainage Systems
Project Code: 65000 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	7.4	7.4	-	7.4
Obligated	7.0	7.0	-	7.0
Outlayed	7.0	7.0	-	7.0

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Reporting: No change in allocation. This project code was closed out in the July 2006 report.

Major Irrigation Projects
Project Code: 66000

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	54.3	54.3	-	54.3
Obligated	53.7	53.5	-	53.2
Outlayed	5.9	13.8	+13.3	37.9

NOTE: Obligation and outlay data are current as of September 30, 2008.

• The current obligated amount includes $0.1 million of expired funds.
• The current outlayed amount includes $0.1 million of expired funds.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: No change in allocation.

Accomplishments Since the July Report:

• Continued construction of the Eastern Euphrates Drain (EED) grant agreement project ($38.5 million).

Accomplishments Anticipated Next Quarter:

• Complete financial close out of this project code.

Dam Repair, Rehabilitation, and New Construction
Project Code: 67000

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	78.6	78.6	0.0	68.8
Obligated	77.3	76.1	+9.6	67.6
Outlayed	18.8	46.0	+1.1	55.5

NOTE: Obligation and outlay data are current as of September 30, 2008.

• The current obligated amount includes $0.4 million of expired funds.
• The current outlayed amount includes $0.4 million of expired funds.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: No change in allocation.

Accomplishments Since the July Report:

• Completed construction of the Diyala Weir Grant Agreement with the Ministry of Water Resources ($5.5 million).
• Awarded contract for Mosul Dam colloidal grout mixers ($9.9 million).

Accomplishments Anticipated Next Quarter:

• Issue Notice to Proceed on Mosul Dam grout mixers.

Umm Qasr/Basrah Water Supply Project
Project Code: 68000

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	34.9	34.9	-3.2	31.7
Obligated	33.6	28.8	+0.5	30.5
Outlayed	19.9	21.0	-	24.8

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: This report reflects an allocation of $3.2 million from this project code to PC 03500 (Market Based Reform).

Accomplishments Since the July Report:

• Awarded contract for Basrah Sweetwater Canal Enhancements ($0.6 million).

Accomplishments Anticipated Next Quarter:

• Award maintenance contract for Basrah Sweetwater Canal backup generators.

SECTOR: Transportation and Telecommunications

Civil Aviation
Project Code: 70000

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	80.2	80.2	-1.0	88.6
Obligated	78.6	77.7	-	86.0
Outlayed	50.3	63.8	+0.9	78.5

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: This report reflects an allocation of $1 million from this project code to PC 06750 (Ministerial Capacity Building).

Accomplishments Since the July Report:

• Completed and certified the ongoing aviation infrastructure at Basrah International Airport. A preliminary flight check of Instrument Landing System (ILS) confirms Category II capability ($2.3 million).
• Continued installation of Thales Star 2000 radar ($16.1 million).
• De-scoped water treatment plant and used the amount to fund remaining radar work.

Accomplishments Anticipated Next Quarter:

• Complete installation and commission of the Thales Star 2000 radar ($16.1 million).

Umm Qasr Port Rehabilitation
Project Code: 71000

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	43.4	43.4	-0.1	43.0
Obligated	43.1	42.6	-	42.5
Outlayed	36.4	40.7	-	42.0

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: This report reflects an allocation of $0.1 million from this project code to PC 06750 (Ministerial Capacity Building).

Accomplishments Since the July Report:

• Continued the Nelcon crane refurbishment study.

Accomplishments Anticipated Next Quarter:

• Complete the repair and commissioning of the Nelcon cranes.

Railroad Rehabilitation and Restoration
Project Code: 72000

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	197.1	197.1	-	194.5
Obligated	196.1	196.4	+1.2	197.8
Outlayed	135.2	148.2	+2.5	180.4

NOTE: Obligation and outlay data are current as of September 30, 2008. Note that the use of additional expired funds allows the obligation of funds in excess of the level of funds initially apportioned to this project code. See footnote in the IRRF Status of Funds table in this report’s executive summary.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: No change in allocation.


Accomplishments Since the July Report:

• Continued progress on the Iraqi Computer Base Train Control (CBTC). Field testing of CBTC was completed and successful.
• Completed Fallujah station and housing rehabilitation contract.
• Continued progress on Digital Microwave Communication Radio Network backbone for CBTC system.

Accomplishments Anticipated Next Quarter:

• Complete financial close out of this project code.

Iraq Telecommunications and Postal Corporation
Project Code: 74000 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	20.1	20.1	-	20.8
Obligated	20.0	20.0	-	20.0
Outlayed	16.2	19.3	-	19.9

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: No change in allocation. The project code was closed out in the January 2008 report.

SECTOR: Roads, Bridges and Construction

Public Buildings Construction and Repair
Project Code: 81000 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	124.8	124.8	-0.3	123.6
Obligated	124.5	123.4	-	122.6
Outlayed	120.5	121.9	-	121.9

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agencies: Department of Defense and USAID

Changes from the July Report: This report reflects an allocation of $0.3 million from this project code to PC 06750 (Ministerial Capacity Building).This project code was closed out in the April 2006 report.

Roads and Bridges
Project Code: 82000

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	208.8	208.8	-22.0	181.8
Obligated	202.0	197.4	-31.6	159.2
Outlayed	74.6	111.4	+3.4	135.7

NOTE: Obligation and outlay data are current as of September 30, 2008.

• The current obligated amount includes $1.8 million of expired funds.
• The current outlayed amount includes $1.6 million of expired funds.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: This report reflects a reapportionment of $22 million from this project code: $2 million to PC 06700 (Governance) and $20 million to PC 03500 (Market Based Reforms).

Accomplishments Since the July Report:

• Completed grant agreement project with the GOI for construction of Sheikh Saad Bridge ($4.9 million).
• Completed grant agreement project with the GOI for construction of Kufa Bridge ($7.8 million).
• Scope was reduced on three grant agreement road projects with the GOI including Samawa - Diwaniya second carriageway ($6.2 million), Baghdad-Kirkuk second carriageway north segment ($15.2 million), and Baghdad-Kirkuk second carriageway south segment ($13.8 million).
• Completed Muthanna Village Roads Segment 4 Al Majid ($2.9 million).

Accomplishments anticipated next quarter:

• Complete Al Amarah - Al Maymunah second carriageway ($6.1 million)
• Complete Babil road number 80 ($4.5 million)

SECTOR: Health Care

Nationwide Hospital and Clinic Improvement
Project Code: 90000

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	466.3	452.3	-6.6	440.3
Obligated	449.7	430.4	+3.2	434.6
Outlayed	317.2	390.6	+2.8	412.3

NOTE: Obligation and outlay data are currently as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense, Department of State

Changes from the July Report: This report reflects a reapportionment of $6.6 million from this project code: $2 million to PC 01600 (Agriculture); $3.6 million to PC 50000 (Oil Infrastructure); and $1 million to PC 03500 (Market Based Reform).

Accomplishments Since the July Report:

• Turned over remaining primary healthcare centers to MOH.
• Provided grant to begin oncology training to Iraqi health professionals.
• Completed refurbishment of three hospitals: Al Awaiya Children’s Hospital, Karkh Maternity Hospital, and Nassriya Maternity Hospital.

Accomplishments Anticipated Next Quarter:

• Finish hospital elevator installation and turn over to MOH.
• Finish refurbishing Al Alwaiya Maternity Hospital.

Equipment Procurement and Modernization and Training
Project Code: 92000

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	268.2	282.2	-	283.7
Obligated	268.2	250.5	+10.2	271.1
Outlayed	180.8	238.0	+0.6	249.6

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense, Embassy Health Attaché

Changes from the July Report: No change in allocation this quarter.

Accomplishments Since the July Report:

• Completed delivery of medical equipment and furniture for five primary health clinics (PHCs).
• Completed 22 medical equipment installations.
• Completed 37 medical equipment training sessions for the MOH PHC staff.
• Transferred funds to the Center for Disease Control (CDC) to begin disease monitoring program.

Accomplishments Anticipated Next Quarter:

• Complete equipment installations and training for remaining construction-complete PHCs.
• All remaining equipment (from deprogrammed sites) will be turned over to MOH and delivered to designated MOH warehouse.

Basrah Children’s Hospital (I)
Project Code: 91000 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	50.0	46.9	-	46.9
Obligated	49.0	45.7	-0.1	45.5
Outlayed	35.7	45.3	-	45.2

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: USAID

Changes from the July Report: No change in allocation. This project code was closed out in the January 2007 report.

Basrah Children’s Hospital (II)
Project Code: 91500

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	34.4	41.1	-	41.1
Obligated	34.4	34.8	+1.3	41.5
Outlayed	0.0	16.4	+4.0	36.5

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: No change in allocation.

Accomplishments Since the July Report:

• Continued construction on the Basrah Children’s Hospital (BCH).
• Completed 93 percent of construction on the main building, mechanical, and electrical plant buildings, and installation of windows and doors.

Accomplishments Anticipated Next Quarter:

• Complete all IRRF-funded construction.
• Install and integrate 20 percent of bio-medical equipment.

SECTOR: Private Sector Development

Expand Network of Employment Centers
Project Code: 01000 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	8.0	8.0	-	8.0
Obligated	8.0	8.0	-	8.0
Outlayed	7.9	8.0	-	8.0

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: USAID

Changes from the July Report: No change in allocation. This project code was closed out in the January 2006 report.

Vocational Training
Project Code: 02001 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	72.1	72.1	0.0	71.1
Obligated	72.0	69.8	+1.0	70.9
Outlayed	71.1	69.5	-	69.9

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: USAID

Changes from the July Report: No change in allocation. This project code was closed out in the April 2006 report.

Accomplishments since the July Report:

• Awarded Task Order to provide technical/vocational training to Iraqi Electrical Sector staff.

Business Skills Training
Project Code: 02500

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	40.0	40.0	-	40.0
Obligated	39.9	39.6	-	39.9
Outlayed	33.2	38.9	-	39.3

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of Defense

Changes from the July Report: No change in allocation.

Accomplishments Since the July Report:

• Completed testing of local area network system for electronic trading on Iraq’s stock exchange.
• Connected the stock exchange’s wide area network.
• Completed settlement bank procedures for the exchange and the depositary and ensured IT connections.

Accomplishments Anticipated Next Quarter:

• Complete the testing of the wide area network.
• Complete certification all personnel for use of automated system.
• Begin preparations for dematerialization of listed companies.

Micro, Small, and Medium Enterprises
Project Code: 03000

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	41.1	41.1	0.0	51.6
Obligated	41.1	41.1	-	41.1
Outlayed	36.2	40.8	-	40.8

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of the Treasury, with funding transferred to the Overseas Private Investment Corporation (OPIC)

Changes from the July Report: No change in allocation.

Accomplishments Since the July Report:

• Disbursed the last pending loan for the medium enterprise program, which provides $70 million in capital to Iraq companies. The capital for this phase is fully committed.
• Continued to identify additional loan recipients among small and medium enterprises (SMEs) and agribusiness enterprises for the second phase of the program. This program now includes a loan available to one of the Iraqi Private Banks for them to create a SME portfolio.
• OPIC’s Board of Directors approved a third loan program to focus only on SMEs.

Accomplishments Anticipated Next Quarter:

• Continue to receive applications and approve loans for the SME tranch of the program.
• Increase the total loans outstanding in the sub-agribusiness tranch of the program to service this important sector in Iraq.
• Receive funding for the third loan program and begin to provide loans from this additional tranch of funds.
• Execute grant for the third loan program and begin to provide loans to SMEs from this additional tranche of funds.

Institutional Reforms
Project Code: 01500

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	89.0	89.0	+0.5	89.5
Obligated	88.9	88.9	+0.6	89.5
Outlayed	66.1	79.8	-	85.5

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agencies: Department of Commerce; Department of Energy, Office of Policy and International Affairs; Department of the Interior, Minerals Management Service

Changes from the July Report: This report reflects an allocation of $0.5 million to this project code from PC 08400 (Post Conflict Reintegration Office).

Accomplishments Since the July Report:

Department of Commerce, Commercial Law Development Program (CLDP):

• Finalized training proposal and outline for a workshop, to be held in Baghdad, for 14 lawyers and engineers from the Ministry of Oil’s (MOO) Petroleum Contracts and Licensing Directorate. The workshop will focus on international best practices in the drafting of durable contracts for cooperation with IOCs.
• Finalized proposal for judicial capacity building program in cooperation with Rule of Law team.

Department of Energy (DOE), Office of Policy and International Affairs

• Redirected efforts to finalize a project with the National Association of Regulatory Utility Commissioners by engaging the MOE, ITAO, and the Tatweer Energy Group. DOE and embassy officials continue to provide support to the MOE, but have no plans to finalize any projects.
• Met with Iraq’s Director General of Daura Refinery to identify DOE areas of support on building a renewable energy capability.

Department of the Interior, Minerals Management Service (MMS)

• Completed planning and consultations with MOO on comprehensive MMS technical assistance workshop to be held next quarter ($120,000) for approximately 24-30 MOO delegates. Twelve to 18 MOO candidates will be selected during the workshop for future shadowing and on-the-job training in the United States. Activity was not completed in July due to the inability of MOO delegates to secure Egypt travel visas.
• Interagency agreement between MMS and Department of State was extended through FY 2010.

Accomplishments Anticipated Next Quarter:

Department of Commerce, Commercial Law Development Program (CLDP):

• Workshop, to be held in Baghdad in early winter 2009, in cooperation with the MOO's Petroleum Contracts and Licensing Directorate (PCLD). The workshop shall train 14 lawyers and engineers from the PCLD on international best practices in the drafting of durable contracts for cooperation with IOCs.
• Continue to work with the embassy’s Rule of Law team to provide technical assistance in judicial curriculum development.
• Conduct meetings with the Higher Judicial Council in order to design a technical assistance program for training Iraqi judges on commercial law matters.

Department of Energy (DOE), Office of Policy and International Affairs

• Provide the MOO with advice and contracting support for potential utilization of renewable energy devices, including wind turbines and solar power.
• Continue to offer assistance with developing a National Energy Strategy.

Department of the Interior, Minerals Management Service (MMS)

• Comprehensive assistance workshop will be conducted.
• First 60-day on-the-job training sessions will commence with revenue management in Lakewood, CO; resource evaluations in New Orleans, LA; and field operations/inspection in Camarillo, CA.

Agriculture
Project Code: 01600

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	112.8	112.8	+2.0	121.0
Obligated	112.7	112.5	+0.2	113.0
Outlayed	95.0	110.7	-	111.6

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agencies: Department of Agriculture and OPIC

Changes from the July Report: This report reflects a reapportionment of $2 million to this project code from PC 90000 (Nationwide Hospital and Clinic Improvement).

Accomplishments Since the July Report:

• Completed phase one of the Iraq Agricultural Extension Revitalization (IAER) program. Twenty-one extension training sessions have been conducted and over 600 Iraqi extension agents have received certificates for successful completion.
• Awarded contract to support a small pilot Ag Extension program in Wassit.
• Held meetings with the MOA to gather input and involve the GOI in the planning of IAER Phase II.
• A pilot project, the Maadin Farmers CoOp was initiated, to include the establishment of the management structure and business processes.
• Disbursed first round of OPIC funds for agribusiness and SME enterprises under second IMMDF facility.

Anticipated accomplishments next quarter:

• IAER phase two will gear up to embark on training-the-trainer program providing advanced extension training in the United States to about 80 Iraqi extension specialists.
• A senior level stakeholders’ conference will be held in Baghdad in November 2009 bringing together the Ministries of Agriculture, Water Resources, and Higher Education with USDA/Washington and the IAER consortium of U.S. land grant universities.
• Continue to identify additional loan recipients among agribusiness enterprises and SMEs for the second IMMDF facility.

Market-Based Reforms
Project Code: 03500

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	98.9	107.5	+27.0	135.0
Obligated	98.8	98.6	+3.0	110.5
Outlayed	67.0	94.4	-	107.0

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: USAID

Changes from the July Report: This report reflects an allocation of $27 million to this project code: $1 million from PC 43000 (Automated Monitoring and Control Systems); $1.8 million from PC 60000 (Potable Water); $3.2 million from PC 68000 (Umm Qasr Basrah Water Supply Project), $20 million from PC 82000 Roads and Bridges, and $1.0 million from PC 90000 (Nationwide Hospital and Clinic Improvement)

Accomplishments Since the July Report:

• Issued grant for Phase II of the Organization for Economic Cooperation and Development’s Investment Program for capacity-building work on investment policies to create an economic enabling environment.
• Obligated additional funds toward the USAID Economic Growth Program (EGP).

Iraq Debt Forgiveness
Project Code: 04500 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	352.3	352.3	-	352.3
Obligated	352.3	352.3	-	352.3
Outlayed	352.3	352.3	-	352.3

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of the Treasury

Changes from the July Report: No change in allocation. This project code was closed out in the April 2005 report.

SECTOR: Education, Refugees, Human Rights and Governance

Migration and Refugee Assistance
Project Code: 04000

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	186.0	209.1	-	209.1
Obligated	185.9	208.9	-	208.8
Outlayed	134.0	178.8	+1.3	203.0

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agencies: Department of State, Bureau of Population, Refugees, and Migration (PRM)

Changes from the July Report: No change in allocation.

Accomplishments Since the July Report:

The following are examples of activities undertaken this quarter through PRM’s international organization partners and NGO partners assisting Iraqi refugees in Jordan, Syria and Lebanon.

• Took steps to address the sanitation concerns at the Al-Waleed camp for Palestinian refugees. On-site management and relocation of the camp to a new site will improve conditions in the coming months. Worked closely with Ministry of Displacement and Migration to provide ID cards to the 11,000 Palestinians remaining in Iraq.
• Continued efforts to identify and implement durable solutions for the Sudanese asylum seekers near Al Rutba in Anbar Province, including possibly movement to a camp in Romania pending eventual third country resettlement.
• Broadened the scope of activities for detainees, conducting a first visit to one of the largest detention facilities under the authority of the Iraqi Ministry of Justice.
• Focused on the needs of women who have become heads of household after the men on whom they depended were killed, went missing or were detained. Distributed food and hygiene items to some 3,800 displaced families in Shula settlement and Sadr City in Baghdad, the Saad Camp in Baquba, and several villages in Diyala, Sulaymaniyah, and Ninawa governorates.

Accomplishments Anticipated Next Quarter:

• Complete financial close out of this project code.

Commission for the Resolution of Real Property Disputes
Project Code: 05500

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	10.0	10.0	+1.5	11.5
Obligated	10.0	10.0	+1.5	11.5
Outlayed	10.0	10.0	-	10.0

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of State – Bureau of Population, Refugees, and Migration

Changes from the July Report: This report reflects a reapportionment of $1.5 million to this project code from PC 41000 (Transmission). This project code was closed out in the January 2007 report.

Accomplishments Since the July Report:

• Issued grant to provide technical assistance and training to the members or staff of the Iraqi Commission for the Resolution of Real Property Disputes.

Accomplishments Anticipated Next Quarter:

• Complete financial close out of this project code.

Governance
Project Code: 06700

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	40.0	40.0	+45.6	103.7
Obligated	40.0	40.0	+19.1	59.1
Outlayed	39.7	39.8	-	39.4

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: USAID, Department of State, and the Treasury Attaché.

Changes from the July Report: Additional funds were reprogrammed into this project code to address emergent requirement, reopening this code. Reapportionments to this code this quarter totaled $45.6 million, including: $2.3 million from PC 10000 (Police Training and Technical Assistance); $2.1 million from PC 21000 (Iraqi Armed Forces Equipment); $2.2 million from PC 23000 (Iraqi National Guard Operations and Personnel); $1 million from PC 08400 (Focused Stabilization); $9.5 million from PC 33000 (Reconstruction and Modernization at Detention Facilities; $2.9 million from PC 13000 (Facilities Repair); $5.5 million from PC 06500 (Rule of Law); $4 million from PC 40000 (Generation); $10 million from PC 60000 (Potable Water); $4 million from PC 64000 (Pumping Stations and Generators); and $2 million from PC 82000 (Roads and Bridges).

Accomplishments Since the July Report:

• Awarded a grant geared at providing technical assistance and advice to the GOI’s law-making institutions in their effort to review and amend the 2005 Iraqi Constitution, and enact constitutionally mandated implementing and other priority legislation.
• Included in the scope of work of the grant is support of the Embassy anti-corruption policy, including liaising with international partners, building the capacity of Iraqi institutions to combat corruption, promoting transparent systems, and supporting awareness of the dangers of corruption.
• Awarded additional funds to the USAID Local Governance Program, to expand the current effort.
• The Embassy Public Finance Management Action Group (PFMAG) was created to assist key ministries with eliminating bottlenecks and improving business processes, resulting in improved budget execution and delivery of essential services.
• A number of contractual vehicles were obligated in an effort to provide Subject Matter Experts (SMEs) to the Ministries.
• Expanded the Budget advisor staff to six from one to provide technical assistance to Provincial Reconstructions Teams (PRTs), provincial and ministerial officials, and the Finance Committee of the Council of Representatives. Accomplishments included organizing five Iraqi-led budget execution workshops for ministerial and provincial officials, supporting the inclusion of foreign military sales language in the 2009 Budget Law, and conducting two budget and budget execution conferences for PRTs.

Accomplishments Anticipated Next Quarter:

• Complete financial close out of this project code.

Ministerial Capacity Building
Project Code: 06750

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	20.0	20.0	+31.0	53.0
Obligated	20.0	20.0	+6.8	23.0
Outlayed	0.0	9.6	-	12.4

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agencies: Department of State – Iraq Transition Assistance Office; USAID

Changes from the July Report: Reapportionments to this code this quarter totaled $31 million, including: $5.3 million from PC 10000 (Police Training and Technical Assistance); $2.8 million from PC 11000 (Border Enforcement); $0.3 million from PC 20000 (Iraqi Armed Forces Facilities); $0.1 million from PC 22000 (Iraqi Armed Forces Training and Operations); $0.1 million from PC 27000 (Iraqi National Guard Facilities);$0.3 million from PC 32000 (Penal Facilities); $0.4 million from PC 14000 (Fire Service); $0.1 million from PC 25000 (National Security Communications Network); $5.0 million from PC 41000 (Transmission); $10 million from PC 60000 (Potable Water); $0.1 million from PC 61000 (Water Conservation); $5 million from PC 62000 (Sewerage); $0.1 million from PC 63000 (Other Solid Waste Management); $1 million from PC 70000 (Civil Aviation); $0.1 million from PC 71000 (Umm Qasr Port Rehabilitation); and $0.3 million from PC 81000 (Public Buildings Construction and Repair).

Accomplishments Since the July Report:

• Additional funds were obligated to continue the USAID Ministerial Capacity program (Tatweer).

Accomplishments Anticipated Next Quarter:

• Complete financial close out of this project code.

Banking System Modernization
Project Code: 08000 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	30.0	30.0	-	34.0
Obligated	30.0	30.0	-	30.0
Outlayed	27.9	29.9	-	29.9

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agencies: Department of the Treasury and Department of Defense

Changes from the July Report: No change in allocation.

Accomplishments Since the July Report:

• Assigned additional staff to the Treasury Attaché Office to support Banking Reform initiatives focused at both the Central Bank of Iraq (CBI), and banking reform in general.

Accomplishments Anticipated Next Quarter:

• Complete financial close out of this project code.

Post Conflict Reintegration
Project Code: 08400

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	-	2.2	-1.5	0.7
Obligated	-	-	-	-
Outlayed	-	-	-	-

NOTES: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: USAID

Changes from the July Report: This report reflects a reapportionment of $1.5 million from this project code $1 million to PC 06700 (Governance) and $0.5 million to PC 01500 (Institutional Reform). This project code was closed out in the April 2006 report.

Accomplishments Since the July Report:

• Funds in this project code have been de-obligated and will be made available for reprogramming.

Accomplishments Anticipated Next Quarter:

• Complete financial close out of this project code.

Human Rights
Project Code: 09500a

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	15.0	15.6	-	15.6
Obligated	15.0	14.9	-	14.9
Outlayed	12.0	14.0	-0.1	14.7

NOTES: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of State – DRL

Changes from the July Report: No change in allocation.

Accomplishments Since the July Report:

• Held a workshop for human rights NGOs in order to strengthen ties within this community, link them to other stakeholders, and inform them about the status of the Human Rights Commission.
• Convened several workshops for the Human Rights Committee in the COR on legislative analysis and drafting.

Accomplishments Anticipated Next Quarter:

• All DRL IRRF grants for human rights ended as of September 30.

Education
Project Code: 06300

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	90.5	101.9	-	101.9
Obligated	90.3	89.0	-	100.6
Outlayed	85.1	88.0	-	89.2

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: Department of State

Changes from the July Report: No change in allocation. This project code was closed out in the July 2005 report.

Accomplishments Since the July Report:

• Accepted plans for a $10.2 million equipment and machinery purchase for the Central Utilities Plant at the American University of Iraq in Sulaymaniyah (AUI-S).
• Signed a $9.9 million Federal Assistance Award (FAA) grant with the AUI-S Board of Trustees for the equipment and machinery.
• Signed a $300,000 Interagency Acquisition Agreement with USACE/GRD to monitor the project and validate payments in accordance with the FAA terms and conditions.

Accomplishments Anticipated Next Quarter:

• Begin disbursements for the AUI-S equipment and machinery as the project progresses.

Civic Programs
Project Code: 06600 - CLOSED

Amount (in millions USD)	Previous Levels		Change in This Quarter	Current Total
	End FY06	End FY07
Apportioned	10.0	10.0	-	10.0
Obligated	10.0	10.0	-	10.0
Outlayed	10.0	10.0	-	10.0

NOTE: Obligation and outlay data are current as of September 30, 2008.

Responsible U.S. Government Agency: USAID

Changes from the July Report: This project code was closed out in the July 2005 report.