OilforFood Program Transition 661 Committee Update

1
Oil-for-Food Program Transition661 Committee
Update

• 17 November 2003
• New York, NY
• Ambassador Steven Mann, OFF Transition
  Coordinator, CPA
• Robert von Tersch, OFF Transition Team, CPA

2
Handover Process Northern Governorates

• High Points
• All elements are in place for a successful
  transition on November 21
• Iraqi operational capacity is adequate they will
  take control of their affairs
• CPA will augment management capacity in key areas
• WFP to continue in advisory role assisting in
  warehouse and food distribution management

3
South/Central

• Transition plans proceeding
• Coordination Center established
• Transition/logistics
• Communications
• Security
• Iraqi involvement paramount

4
Contract Processing

• Virtually 100 of the approved and funded
  contracts have been reviewed for prioritization
• Over 80 have been sent forward for further
  processing by the relevant UN agencies.
• The various UN agencies have completed nearly 90
  of their task.
• Contract prioritization resulted from detailed
  exchanges among the tripartite partiesIraq, CPA,
  and the UN Iraqis were at the center of these
  decisions.
• Meeting their reconstruction needs -- as advanced
  by them -- served as the primary rationale
  throughout the process.
• UN should continue the renegotiation process
  until the 21st of November in line with the
  Sanctions Committee request that contracts can be
  prioritized until that point.
• Coalition will honor its commitments regarding
  approved and funded contracts with relative
  utility as stated in UNSCR 1483.

5
Public Distribution SystemKey Issues

• PDS will continue post 21 November
• Continuity for the Iraqi people
• Continuity for suppliers
• Food pipeline with 1 month buffer will be secured
  by
• Bringing forward existing contracts
• Signing new contracts

6
Public Distribution SystemWFP Role

• MOU with WFP to ensure delivery of SCR 1483
  goods, as well as procurement and delivery of
  critical buffer stocks
• They will
• Co-ordinate delivery of food to designated points
• Procure and deliver additional commodities to
  provide essential buffer stock for PDS.
• Capacity building with MOT in the areas of
  shipping, procurement, commodity tracking and
  pipeline management
• WFP role will be phased out of operational
  involvement in PDS in June 2004

7
Public Distribution SystemThe North

• PDS commodities will be provided through Ministry
  of Trades central delivery and procurement
  mechanism in Baghdad (which will be managed by
  WFP temporarily).
• Food Departments will arrange transport of goods
  from distribution points to 3NGs, warehousing,
  and distribution to food agents.
• WFP will provide technical staff to support the
  Food Departments for 3-6 months.
• Will ensure food for the most vulnerable.

8
Coordination Center

• Allay supplier concerns regarding the flow of OFF
  goods.
• Provide OFF goods movement oversight, both
  outside and inside Iraq using freight management
  software.
• Constant and increasing Iraqi involvement.
• Support from Coalition experts in
  transportation/logistics, communication, and
  security.
• Correspond on a daily basis with the UN mandated
  border authentication points.

9
1 Manufacturer
2 Shipper
WFP

Cotecna, S.A.
Alert flow with World Food Program (WFP)
Trans
Min
Sec
CC
Border Team
CC Coordination Center Trans
Transportation Min Ministry Representatives Sec
- Security
10
Authentication And Payment
5 Manufacturer
Shipper

3 Coordination Center
4 UN Treasury/BNP
2 Border Teams (Min reps)
1 Cotecna, S.A.
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Coordination Center Contact
http//www.cpa-iraq.org/oil_for_food/index.html

• Welcome to the CPA Oil for Food Transition Page
• Building the market structure that promotes
  private business.
• Our telephone number is 914.509.6888To send a
  fax, use the same number.Our email address
  isoilforfood_at_baghdadforum.com
• We regret that we cannot address questions
  regarding previous contract negotiations.
• Helpful Links
• Shipping terms explainedhttp//www.iccwbo.org/ind
  ex_incoterms.asp
• United Nations Office of the Iraq Program
  homepagehttp//www.un.org/Depts/oip
• United Nations Joint Logistics Centrehttp//www.u
  njlc.org/content/index.phtml/itemId/5478
• World Food Programhttp//www.wfp.org

12
Freight Management

• Teams at each border point enter data
• Coordination center views data via web
• Logisticians manage traffic in real time
• Customers (ministries, suppliers) gain ownership
  in the system through accessing the web and
  through e-mail alerts sent by operators

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Coordination Center Process

• Call comes in routed to Iraqi representative
• Logged DTG topic resolution etc
• Action freight alert Database personnel gets
  paper (need it)
• Database personnel acts on WebFreightPro from
  paper and files paper in open order file
• End of day open order review and audit

15
OFF Post-transition Data Flow
16
Freight ManagementMeasures of effectiveness(Cust
omer)

• Where is the shipment?
• When will it be received?
• the above within one phone call
• To whom is damage reported?
• What if the freight doesnt arrive on time?

17
Security Plan

• Border location will be provided by a contracted
  security company
• Route security will be provided by a contracted
  security company
• Warehouse security will be provided by Ministry
  Force Protection Service

18
OFF Authentication

• CPA GOAL
• Continue uninterrupted authentication after 21
  November
• Authenticate in accordance with Letters of Credit
  Terms Conditions
• Address authentication problems under OFF Program
• Contract with COTECNA INSPECTION S.A.
• COTECNA CONTRACT
• Assign UN contract to CPA (22 November through 31
  December)
• Most efficient means for uninterrupted
  authentication
• Scope of work remains unchanged from current UN
  contract
• New contract with COTECNA (1 January through 30
  June)
• Complete authentication in Umm Qasr port
• Increased Iraqi capacity building

19
Conclusion

• 21 NOVEMBER OFF PROGRAM TRANSITION
• UNSCR 1483 timeline met
• Challenges addressed via Iraqi, CPA and UN
  coordination and pragmatic approach
• End of an important chapter in Iraq
• Beginning of a new chapter for the Iraqi people
  movement from OFF involvement to economic
  self-sufficiency

Questions