US embassy cable - 05BAGHDAD3824

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Identifier:	05BAGHDAD3824
Wikileaks:	View 05BAGHDAD3824 at Wikileaks.org
Origin:	Embassy Baghdad
Created:	2005-09-15 18:37:00
Classification:	UNCLASSIFIED
Tags:	EAIR ECON ETRD PGOV PREL IZ
Redacted:	This cable was not redacted by Wikileaks.

UNCLAS BAGHDAD 003824 
 
SIPDIS 
 
E.O.: N/A 
TAGS: EAIR, ECON, ETRD, PGOV, PREL, IZ 
SUBJECT: UPDATE ON RAYTHEON PAYMENT FOR BIAP RADAR 
 
1. (U) Raytheon Corporation has a contract to install and 
commission a radar system at Baghdad International Airport. 
The original contract amount was $27.5 million and was a 
cost-plus contract.  The Ministry of Transportation (MoT) 
currently owes Raytheon $15.2 million -- $9.4 million for 
work completed and $5.8 million in overages.  Payment of 
this amount would close out all contract payments. 
 
2. (U) MoT has agreed to pay the $9.4 million to Raytheon by 
letter of credit (L/C).  To cover the $5.8 million of 
overages, IRMO Transportation and Joint Contracting 
Command-Iraq assisted Raytheon and MoT in creating a 
solution by which MoT would authorize $2.9 million in seized 
funds, IRMO would obligate $1.9 million in IRRF funding, and 
Raytheon would contribute the remaining $1.0 million. 
 
3. (U) After repeatedly engaging Deputy Prime Minister 
Chalabi and the MoT on the status of the payments, on 
September 14 Post received confirmation from the Senior 
Advisor to the Minister of Transportation that the Contracts 
Committee approved the use of $2.9 million in seized funds 
to pay the overage charges and also approved the $9.4 
million L/C. 
 
4. (U) Raytheon continues to work at Baghdad International 
Airport. 
 
Satterfield