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Security, contractor costs hurt program

BAGHDAD, July 29 (UPI) -- A U.S. government probe shows Iraq's infrastructure reconstruction is being hampered by security costs and generous awards to contractors, says a report.

The reports were prepared by the Government Accountability Office and the Office of the Special Inspector General for Iraq Reconstruction, The Washington Post reported Friday.

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The Post said the $60 billion has been committed by the United States, Iraq and international donors to restore water, electricity and health services in that country.

However, high security costs are eating up a great deal of this amount, causing the scale back or abandonment of some reconstruction projects.

The government does not know how much it spends on private security contractors in total, the GAO said. The Pentagon estimates there are 60 private security firms with as many as 25,000 employees in Iraq.

A Pentagon spokesman blamed the continuing insurgency for the higher security cost. "It is a fact of life, one which cannot be wished away," he said.

The GAO praised the completion of projects that have helped to restore services such as rehabilitating oil wells and refineries and increased electrical generation capacity.

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