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19 February 2004 - Engineering group Amec announced Wednesday that it has won part of a major contract to rebuild Iraq's infrastructure. The firm, based in Cheshire, UK will be the prime sub-contractor on the $154m deal secured by American counterpart Fluor.
The work will involve restoring damaged power stations in Baghdad, reconstructing a 132 kV transmission line in northern Iraq and restoring a water intake facility at a thermal power station in southern Iraq. Fluor and Amec will start work immediately on the contract and plan to have around 50 employees in the region in the near future. If further needs are identified, they may be asked to provide a full range of engineering and construction services.
Amec chief executive Sir Peter Mason said: "The task of restoring Iraq's vital infrastructure is absolutely critical if the country is to move forward and the Iraqi people are to achieve something approaching normal life." However, he added that the uncertain environment in Iraq, where contracts could change or be delayed at any time, meant the firm would take a cautious view of the value of contracts there. "We regard that any projections must be regarded as provisional at this stage," he said. Amec said safety would be of paramount importance during the work. It also said it would keep its own security services in addition to the security provided by the coalition forces.
California-based Fluor secured the work through a contract with the US Army Corps of Engineers, which will involve orders worth up to $1.5bn over the next five years. The two companies confirmed that through their joint venture, FluorAmec, they are bidding for other contracts linked to the rebuilding of Iraq. These involve power generation and transmission, water treatment, transport and other public works. Amec is also bidding for Iraqi reconstruction work through its existing contract with the US Air Force Centre for Environmental Excellence.
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