Stabilizing and Rebuilding Iraq

Coalition Support and International Donor Commitments Gao ID: GAO-07-827T May 9, 2007

In March 2003, a U.S.-led multinational force began operations in Iraq. At that time, 48 nations, identified as a "coalition of the willing," offered political, military, and financial support for U.S. efforts in Iraq, with 38 nations other than the United States providing troops. In addition, international donors met in Madrid in October 2003 to pledge funding for the reconstruction of Iraq's infrastructure, which had deteriorated after multiple wars and decades of neglect under the previous regime. This testimony discusses (1) the troop commitments other countries have made to operations in Iraq, (2) the funding the United States has provided to support other countries' participation in the multinational force, and (3) the financial support international donors have provided to Iraq reconstruction efforts. This testimony is based on GAO's prior work and data collected for this hearing. Although we reviewed both classified and unclassified documents, the information in this statement is based only on unclassified documents. We completed this work in accordance with generally accepted government auditing standards.

As of May 2007, 25 countries were contributing 12,600 troops to multinational forces in Iraq. Compared with 145,000 U.S. troops, coalition countries represent about 8 percent of multinational forces in Iraq. From December 2003 through May 2007, the number of coalition troops decreased from 24,000 to 12,600; the number of coalition nations contributing troops decreased from 33 to 25. The United Kingdom, Poland, and Republic of Korea are responsible for leading operations in three of seven security sectors in Iraq. In addition, coalition troops have performed humanitarian, medical, and reconstruction missions. Some have provided combat capabilities, such as infantry and explosive ordinance capabilities. The United States has spent about $1.5 billion to transport, sustain, and provide other services for military troops from 20 countries other than the United States and Iraq. The United States used about $1 billion of the $1.5 billion to feed, house, and equip these countries. In terms of allocation by country, about $988 million, or 66 percent, was used to support Poland and the countries under its command, and $300 million, or 20 percent, supported Jordan for border operations and other activities. In addition to support for operations in Iraq, the United States, through the State Department, has provided about $1.9 billion in security assistance for military training and equipment to 10 coalition members and Jordan since 2003. As of April 2007, international donors had pledged about $14.9 billion for reconstruction efforts in Iraq. Some countries exceeded their pledges by an additional $744 million for a total of $15.6 billion. About $11 billion, or 70 percent, of these pledges are loans, with the remaining $4.6 billion in the form of grants. As of April 2007, Iraq had accessed about $436 million in loans and $3 billion in grants.



GAO-07-827T, Stabilizing and Rebuilding Iraq: Coalition Support and International Donor Commitments This is the accessible text file for GAO report number GAO-07-827T entitled 'Stabilizing and Rebuilding Iraq: Coalition Support and International Donor Commitments' which was released on May 9, 2007. This text file was formatted by the U.S. Government Accountability Office (GAO) to be accessible to users with visual impairments, as part of a longer term project to improve GAO products' accessibility. Every attempt has been made to maintain the structural and data integrity of the original printed product. Accessibility features, such as text descriptions of tables, consecutively numbered footnotes placed at the end of the file, and the text of agency comment letters, are provided but may not exactly duplicate the presentation or format of the printed version. The portable document format (PDF) file is an exact electronic replica of the printed version. We welcome your feedback. Please E-mail your comments regarding the contents or accessibility features of this document to Webmaster@gao.gov. This is a work of the U.S. government and is not subject to copyright protection in the United States. It may be reproduced and distributed in its entirety without further permission from GAO. Because this work may contain copyrighted images or other material, permission from the copyright holder may be necessary if you wish to reproduce this material separately. Committee on Foreign Affairs, Subcommittee on International Organizations, Human Rights, and Oversight, U.S. House of Representatives: United States Government Accountability Office: GAO: For Release on Delivery Expected at 2:00 p.m. EDT: Wednesday, May 9, 2007: Stabilizing And Rebuilding Iraq: Coalition Support and International Donor Commitments: Statement of Joseph A. Christoff, Director: International Affairs and Trade: GAO-07-827T: GAO Highlights: Highlights of GAO-07-827T, a testimony before the House Committee on Foreign Affairs, Subcommittee on International Organizations, Human Rights, and Oversight Why GAO Did This Study: In March 2003, a U.S.-led multinational force began operations in Iraq. At that time, 48 nations, identified as a ’coalition of the willing,“ offered political, military, and financial support for U.S. efforts in Iraq, with 38 nations other than the United States providing troops. In addition, international donors met in Madrid in October 2003 to pledge funding for the reconstruction of Iraq‘s infrastructure, which had deteriorated after multiple wars and decades of neglect under the previous regime. This testimony discusses (1) the troop commitments other countries have made to operations in Iraq, (2) the funding the United States has provided to support other countries‘ participation in the multinational force, and (3) the financial support international donors have provided to Iraq reconstruction efforts. This testimony is based on GAO's prior work and data collected for this hearing. Although we reviewed both classified and unclassified documents, the information in this statement is based only on unclassified documents. We completed this work in accordance with generally accepted government auditing standards. What GAO Found: As of May 2007, 25 countries were contributing 12,600 troops to multinational forces in Iraq. Compared with 145,000 U.S. troops, coalition countries represent about 8 percent of multinational forces in Iraq. From December 2003 through May 2007, the number of coalition troops decreased from 24,000 to 12,600; the number of coalition nations contributing troops decreased from 33 to 25. The United Kingdom, Poland, and Republic of Korea are responsible for leading operations in three of seven security sectors in Iraq. In addition, coalition troops have performed humanitarian, medical, and reconstruction missions. Some have provided combat capabilities, such as infantry and explosive ordinance capabilities. The United States has spent about $1.5 billion to transport, sustain, and provide other services for military troops from 20 countries other than the United States and Iraq. The United States used about $1 billion of the $1.5 billion to feed, house, and equip these countries. In terms of allocation by country, about $988 million, or 66 percent, was used to support Poland and the countries under its command, and $300 million, or 20 percent, supported Jordan for border operations and other activities. In addition to support for operations in Iraq, the United States, through the State Department, has provided about $1.9 billion in security assistance for military training and equipment to 10 coalition members and Jordan since 2003. As of April 2007, international donors had pledged about $14.9 billion for reconstruction efforts in Iraq. Some countries exceeded their pledges by an additional $744 million for a total of $15.6 billion. About $11 billion, or 70 percent, of these pledges are loans, with the remaining $4.6 billion in the form of grants. As of April 2007, Iraq had accessed about $436 million in loans and $3 billion in grants. Figure: U.S. and Coalition Troops in Iraq: [See PDF for Image] Source: GAO analysis of DOD and State data. [End of figure] [Hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-07-827T]. To view the full product, including the scope and methodology, click on the link above. For more information, contact Joseph A. Christoff at (202) 512-8979 or christoffj@gao.gov. [End of section] Mr. Chairman and Members of the Subcommittee: I am pleased to be here today to discuss U.S. support for non-U.S. coalition troops[Footnote 1] in Iraq and international donor support for reconstruction in Iraq. In March 2003, a U.S.-led multinational force began operations in Iraq. At that time, 48 nations (in addition to the United States), identified as a "coalition of the willing," offered political, military, and financial support for U.S. efforts in Iraq. In addition, international donors met in Madrid in October 2003 to pledge funding for the reconstruction of Iraq's infrastructure, which had deteriorated after multiple wars and decades of neglect under the previous regime. My testimony today discusses (1) the troop commitments other countries have made to the multinational force in Iraq, (2) the funding the United States has provided to support other countries' participation in the multinational force, and (3) the financial support international donors have provided to Iraq reconstruction efforts. This testimony is based on prior GAO reports and on data collected for this hearing. Although we reviewed both classified and unclassified documents, the information in this statement is based only on unclassified U.S. government documents. This limits the detail we can provide on coalition troop strength in Iraq since DOD classifies the specific troop levels for each coalition country that contributes to operations in Iraq. Accordingly, this statement only provides aggregate data on total coalition troop levels in Iraq. We obtained financial data on the funding the United States has provided to non-U.S. coalition troops operating in Iraq from the Departments of Defense (DOD) and State. For troop levels from coalition countries, DOD and State provided data for December 2003 to April 2007.[Footnote 2] However, the departments did not have information on coalition troops in Iraq from March to November 2003. We determined that the data we did receive were sufficiently reliable for estimating the U.S. contribution in support of coalition troops and the number of troops contributed by other countries. We obtained data on international contributions to Iraq reconstruction from the Department of State, the United Nations, and the World Bank. We determined that the data were sufficiently reliable for these purposes. We conducted our work in accordance with generally accepted government auditing standards. Summary: As of May 2007, 25 countries were contributing 12,600 troops to multinational forces in Iraq. Compared with the 145,000 forces from the United States, other coalition countries represent about 8 percent of multinational forces in Iraq.[Footnote 3] From December 2003 through May 2007, the number of non-U.S. coalition troops decreased from 24,000 to 12,600, and the number of coalition nations contributing troops to military operations decreased from 33 to 25.[Footnote 4] Although the numbers of these troops are declining, three countries--United Kingdom, Poland, and Republic of Korea--are responsible for leading operations in three of seven security sectors in Iraq. In addition, coalition troops have performed humanitarian, medical, and reconstruction missions. Some troops have provided combat capabilities, such as infantry and explosive ordnance capabilities. The United States has spent about $1.5 billion to transport, sustain, and provide other services for military troops from 20 countries other than the United States and Iraq. The United States used about $1 billion of the $1.5 billion to feed, house, and equip these troops. In terms of allocation by country, about $988 million, or 66 percent, was used to support Poland as the commander of Multinational Division (MND)- Central South. However, the support provided Poland was not solely for its own troops, but for those from other countries under its command. In addition, $300 million, or about 20 percent, supported Jordan for border operations and other activities. In addition to support for operations in Iraq, the United States has provided about $1.9 billion since 2003 for military training and equipment to 10 coalition members and Jordan. State Department security assistance programs provided this additional assistance. As of April 2007, international donors have pledged about $14.9 billion in support of Iraq reconstruction. In addition, some countries exceeded their original pledges by about an additional $744 million for a total of $15.6 billion, according to State Department. About $11 billion, or 70 percent, of these pledges are loans, with the remaining $4.6 billion in the form of grants. As of April 2007, Iraq had accessed about $436 million in available loans and $3 billion in grants. Background: In March 2003, the United States--along with the United Kingdom, Australia, and other members of the coalition--began combat operations in Iraq. The original "coalition of the willing" consisted of 49 countries (including the United States) that publicly committed to the war effort and also provided a variety of support, such as direct military participation, logistical and intelligence support, over- flight rights, or humanitarian and reconstruction aid.[Footnote 5] The term "coalition of the willing" refers to those countries that declared political support for the war effort; not all of these countries contributed troops to multinational operations. Between December 2003 and May 2007, 39 countries (including the United States)--some of which were not original coalition members--provided troops to support operations in Iraq. Three sources of funding help support non-U.S. coalition troops in Iraq: coalition support funds, lift and sustain funds, and peacekeeping operations funds. First, the Emergency Wartime Supplemental Appropriations Act of 2003[Footnote 6] authorized DOD to use up to a certain amount of its operations and maintenance funds to reimburse countries for the logistical and military support they provided to U.S. military operations in Iraq. DOD refers to these funds as coalition support funds. Congress has continued to make such funds available in each subsequent fiscal year. Second, DOD's annual Appropriations Act[Footnote 7] in 2005 authorized DOD to use funds from its operations and maintenance accounts to provide supplies and services; transportation, including airlift and sealift; and other logistical support to coalition forces supporting military and stability operations in Iraq. DOD refers to these funds as lift and sustain funds. This authority has also been continued in subsequent appropriations acts. According to a DOD official, both coalition support funds and lift and sustain funds are used for any requirements that could be appropriately paid for from operations and maintenance accounts, including airlift, sealift, and sustainment services such as feeding and billeting for coalition troops, among other things. In addition, a DOD official stated that both of these funds are used to support nations whose economic conditions prevent them from fully funding their troops' presence in Iraq. The key distinction between the coalition support and the lift and sustain funds is that coalition support funds are used to reimburse countries for costs they incur, and lift and sustain funds are used to reimburse U.S. military departments for services they provide to support eligible countries. Third, the State Department provided peacekeeping operations (PKO) funds in 2003 and 2004 to provide basic supplies and equipment such as armor and medical supplies to coalition troops in Iraq. These funds were used to make initial equipment purchases for countries participating in Polish and U.S.-led divisions in Iraq. Many nations and various international organizations are supporting the efforts to rebuild Iraq through multilateral or bilateral assistance. U.N. Security Council Resolution 1511 of October 16, 2003, urged member states and international and regional organizations to support the Iraq reconstruction effort. On October 23-24, 2003, an international donors conference was held in Madrid, with 76 countries, 20 international organizations, and 13 nongovernmental organizations participating. Troop Contributions from Coalition Members Have Declined and Represent a Small Percentage of Total Forces: As of May 2007, 25 coalition nations were contributing about 12,600 troops to multinational force operations in Iraq. This compares to the 145,000 U.S. troops in Iraq, for the same time period. See figure 1 for a comparison of U.S. and coalition troops from December 2003 through May 2007. Figure 1: U.S. and Coalition Troops in Iraq: [See PDF for image] Source: GAO analysis of DOD and State data. [End of figure] Non-U.S. coalition troops represent about 8 percent of multinational forces in Iraq as of May 2007. Although the coalition has trained and equipped about 331,000 Iraqi army and police forces, we do not include Iraqi security forces (ISF) in our analyses. As we have reported, these data provide limited information on the forces' capabilities, effectiveness, and loyalties. For example, DOD reported in March 2007 that the number of ISF forces present for duty is one-half to two- thirds of the number trained and equipped.[Footnote 8] In addition, the number of coalition forces has declined by 47.5 percent--from 24,000 in December 2003 to 12,600 in May 2007, as shown in figure 2. Figure 2: Non-U.S. Military Forces in Iraq: [See PDF for image] Sources: DOD and State Department. [End of figure] Although the number of troops is declining, three countries--the United Kingdom, Poland, and the Republic of Korea--have led operations in three of seven security sectors in Iraq (see figure 3). Figure 3: Organization of Multinational Force-Iraq: [See PDF for Image] Source: GAO analysis of DOD and Multinational Force-Iraq documents. [End of figure] Since July 2003, the United Kingdom has led operations in one of the seven sectors--Multinational Division-Southeast--in southern Iraq in the area around Basra. As of October 2006, coalition troops in this sector were from Italy, Japan, Australia, Romania, Denmark, Portugal, Czech Republic, and Lithuania. Since that time, Italy and Portugal have withdrawn troops from military operations in Iraq.[Footnote 9] The United Kingdom has provided the largest number of non-U.S. coalition troops, peaking at 46,000 from March through April 2003, then declining to 7,100 in November 2006. British forces have conducted combat operations to improve the security environment and have trained Iraqi security forces, among other things. They had sustained 147 fatalities as of May 1, 2007. The United Kingdom announced that it will begin withdrawing troops in 2007 but has pledged to maintain a presence in Iraq into 2008. Poland has led operations in the MND-Central South, which is south of Baghdad, since September 2003. As of May 2007, non-U.S. coalition troops in this sector were from Poland, Armenia, Bosnia, Denmark, Kazakhstan, Latvia, Lithuania, Mongolia, Romania, El Salvador, Slovakia, and Ukraine. Poland's highest troop level was 2500, declining to 900 by October 2006. Poland's troops have conducted joint combat operations and performed humanitarian, medical, advisory, and training missions, and have sustained 20 fatalities. The Republic of Korea has led operations in MND-Northeast from Irbil City in the area north of Kirkuk since September 2004. Their peak number of troops was 3,600 troops in that year but declined to 1,600 in March 2007. Their missions have included medical, humanitarian, and reconstruction efforts. The Republic of Korea's government is to draw up a timetable in 2007 for withdrawing its troops from Iraq. The number of contributing countries has decreased from 33 in December 2003 to 25 in May 2007.[Footnote 10] Figure 4 shows the countries that have contributed troops between 2003 and 2007. According to State Department officials and government press releases, the decline in the number of troops can be attributed to completion of missions, domestic political considerations, and the deteriorating security condition in Iraq. Figure 4: Non-U.S. Coalition Countries Providing Troops to MNF-I, December 2003 Through May 2007: [See PDF for image] Source: GAO analysis of DOD data. [End of figure] As the figure shows, eight countries withdrew their troops from Iraq during 2004. For example, in mid-April 2004, the new government of Spain announced that it would withdraw its 1,300 troops from Iraq. The government withdrew the troops much earlier than the United States expected, after violence escalated in the Spanish area of operations in Iraq. Shortly thereafter, Honduras and the Dominican Republic announced they would also withdraw their national contingents from the multinational force, which they did the same year. The United States Has Provided about $1.5 Billion to Support Coalition Troops in Iraq: Some countries that have provided troops to the multinational force in Iraq are not financially able to support those troops in the field for extended periods of time or may need assistance in preparing their troops for this type of operation. Since 2003, the United States has provided about $1.5 billion to 20 countries. Of the $1.5 billion spent to support these troops, about $725.9 million was reimbursed to countries, and about $702 million was reimbursed to U.S. military departments that provided support to non-U.S. coalition troops. See table 1 below for the total amount of support provided for non-U.S. coalition troops in Iraq. Table 1: Total Amount Provided for Coalition Nations in Iraq, by Type of Funding and Fiscal Year (dollars in millions): Coalition support[A]; FY 2003: $151.7; FY 2004: $274.3; FY 2005: $245.6; FY 2006: $54.3; Total: $725.9. Lift and sustain[B]; FY 2003: $0.0; FY 2004: $0.0; FY 2005: $483.3[C]; FY 2006: $219.0; Total: $702.3. Peacekeeping operations[D]; FY 2003: $50.0; FY 2004: $16.0; FY 2005: $0.0; FY 2006: $0.0; Total: $66.0. Total; FY 2003: $201.7; FY 2004: $290.3; FY 2005: $728.9; FY 2006: $273.3; Total: $1,494.2. [A] These are DOD-managed funds that are reimbursed to countries for support they provided to operations in Iraq. [B] These are DOD-managed funds that are reimbursed to U.S. military departments for support they provided to coalition troops in Iraq. [C] According to a DOD official, this number is relatively larger than the others because it represents costs incurred between 2004 and 2005, and was largely attributable to costs associated with preparing an operating base for MND-Central South. [D] These are State-managed funds. [End of table] Since 2003, the departments used about $1 billion of the approximately $1.5 billion (71.5 percent) for sustainment services such as food, supplies, and base operations services such as communications and equipment. The departments used the remaining funds to support other operational requirements: * About $212 million to support Jordan's border operations; * About $43 million to support hospital operations; and: * About $125 million to support lift requirements. Nineteen coalition nations and Jordan received support from these funds.[Footnote 11] As displayed in table 2, Poland received the largest amount of support--about $988 million, or 66 percent of total funding--for requirements sustained in its capacity as Commander of the MND-Central South sector. However, the support provided Poland was not solely for its own troops but for the coalition troops under its command--Armenia, Slovakia, Denmark, El Salvador, Ukraine, Romania, Lithuania, Latvia, Mongolia, Kazakhstan, and Bosnia-Herzegovina. Table 2: U.S. Support to Non-U.S. Coalition Troops from March 2003 through March 2007, by Country (dollars in millions): Country: Poland [A]; Total: $988.4; Percent: 66.2. Country: Jordan; Total: $295.0; Percent: 19.7. Country: Other Nations; Total: $123.3; Percent: 8.3. Country: Georgia; Total: $63.1; Percent: 4.2. Country: Ukraine; Total: $12.5; Percent: .8. Country: United Kingdom; Total: $5.6; Percent: .4. Country: Romania; Total: $3.0; Percent: .2. Country: Bosnia; Total: $2.0; Percent: .1. Country: Mongolia; Total: $1.3; Percent: .1. Country: Total; Total: $1,494.2; Percent: 100. Source: GAO analysis of DOD and State data. Note: Of the U.S. support to other nations ($123 million), $114 million was reimbursed to U.S. military departments by DOD. The data were not arrayed by allocations to specific countries. [A] This funding was not solely for Poland but for the troops from nations operating under its command. [End of table] According to a DOD official, as a matter of policy, it confined its support to those coalition countries that they deemed were less capable of absorbing the costs associated with participating in operations in Iraq. However, one exception to this policy was the decision in 2005 to reimburse the United Kingdom about $5.6 million for improvements it made to Royal Air Force (RAF) Base Akritori on Cyprus to accommodate U.S. requirements for lift and refueling needs. Jordan was the next largest recipient of support, receiving reimbursement or services worth about $300 million for border operations and other activities. It is important to note that the United States also has provided security assistance funds to develop and modernize the militaries of several countries contributing to operations in Iraq. Security assistance has included military equipment, services, and training. From fiscal year 2003 through 2006, the United States provided about $525 million in security assistance to 10 countries contributing troops to Iraq.[Footnote 12] In addition, since 2003, the United States has provided Jordan about $1.34 billion in security assistance. International Donors Have Pledged Billions of Dollars for Reconstruction Efforts in Iraq: International donors have pledged about $14.9 billion in support of Iraq reconstruction. In addition, some countries exceeded their pledges by providing an additional $744 million for a total of $15.6 billion, according to the State Department. Of this amount, about $11 billion, or 70 percent, is in the form of loans. As of April 2007, Iraq had accessed about $436 million in loans from the International Monetary Fund (IMF). The remaining $4.6 billion is in the form of grants, to be provided multilaterally or bilaterally; $3.0 billion has been disbursed to Iraq. See table 3 for pledges made at Madrid and thereafter for Iraq reconstruction. In addition, 16 of the 41 countries that pledged funding for Iraq reconstruction also pledged troops to the multinational force in Iraq. Table 3: Donor Pledges for Iraq Reconstruction (dollars in thousands): Donor: Australia; Madrid Pledges: 45,590; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 28,680; Total: 74,270. Donor: Austria; Madrid Pledges: 5,480; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 0; Total: 5,480. Donor: Belgium; Madrid Pledges: 5,890; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 0; Total: 5,890. Donor: Bulgaria; Madrid Pledges: 640; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 0; Total: 640. Donor: Canada; Madrid Pledges: 187,470; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 0; Total: 187,470. Donor: China; Madrid Pledges: 25,000; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 6,500; Total: 31,500. Donor: Croatia; Madrid Pledges: 0; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 333; Total: 333. Donor: Cyprus; Madrid Pledges: 120; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 0; Total: 120. Donor: Czech Republic; Madrid Pledges: 14,660; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 0; Total: 14,660. Donor: Denmark; Madrid Pledges: 26,950; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 35,000; Total: 61,950. Donor: European Commission; Madrid Pledges: 235,620; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 685,685; Total: 921,305. Donor: Estonia; Madrid Pledges: 80; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 0; Total: 80. Donor: Finland; Madrid Pledges: 5,890; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 2,944; Total: 8,834. Donor: Germany; Madrid Pledges: 0; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 4,150; Total: 4,150. Donor: Greece; Madrid Pledges: 3,530; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 3,618; Total: 7,148. Donor: Hungary; Madrid Pledges: 1,240; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 430; Total: 1,670. Donor: Iceland; Madrid Pledges: 2,500; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 500; Total: 3,000. Donor: India; Madrid Pledges: 10,000; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 0; Total: 10,000. Donor: Iran; Madrid Pledges: 5,000; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 1,000,000; Total: 1,005,000. Donor: Ireland; Madrid Pledges: 3,530; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 0; Total: 3,530. Donor: Italy; Madrid Pledges: 235,620; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 0; Total: 235,620. Donor: Japan; Madrid Pledges: 4,914,000; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 0; Total: 4,914,000. Donor: Republic of Korea; Madrid Pledges: 200,000; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 0; Total: 200,000. Donor: Kuwait; Madrid Pledges: 500,000; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 0; Total: 500,000. Donor: Lithuania; Madrid Pledges: 0; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 30; Total: 30. Donor: Luxembourg; Madrid Pledges: 2,360; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 199; Total: 2,559. Donor: Malta; Madrid Pledges: 27; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 0; Total: 27. Donor: Netherlands; Madrid Pledges: 9,420; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 3,465; Total: 12,885. Donor: New Zealand; Madrid Pledges: 3,350; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 2,760; Total: 6,110. Donor: Norway; Madrid Pledges: 12,870; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 10,840; Total: 23,710. Donor: Oman; Madrid Pledges: 3,000; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 0; Total: 3,000. Donor: Pakistan; Madrid Pledges: 2,500; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 0; Total: 2,500. Donor: Portugal; Madrid Pledges: 0; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 600; Total: 600. Donor: Qatar; Madrid Pledges: 100,000; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 0; Total: 100,000. Donor: Saudi Arabia; Madrid Pledges: 500,000; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 0; Total: 500,000. Donor: Slovenia; Madrid Pledges: 420; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 0; Total: 420. Donor: Spain; Madrid Pledges: 220,000; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 28,000; Total: 248,000. Donor: Sweden; Madrid Pledges: 33,000; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 0; Total: 33,000. Donor: Turkey; Madrid Pledges: 50,000; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 0; Total: 50,000. Donor: United Arab Emirates; Madrid Pledges: 215,000; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 0; Total: 215,000. Donor: United Kingdom; Madrid Pledges: 452,330; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 198,000; Total: 650,330. Donor: Vietnam; Madrid Pledges: 0; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 700; Total: 700. Donor: Lower end of planned World Bank lending; Madrid Pledges: 3,000,000; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 0; Total: 3,000,000. Donor: Lower end of planned IMF lending; Madrid Pledges: 2,550,000; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 0; Total: 2,550,000. Donor: Total non-US pledges and donations; Madrid Pledges: 13,583,087; Post-Madrid Pledges and Donations in Excess of Madrid Pledges: 2,012,434; Total: 15,595,521. Source: State Department. Note: Bolded countries also contributed troops to the multinational force. [End of table] Most Pledges Were in the Form of Loans: About $11 billion, or 70 percent, of the $14.9 billion pledged in support of Iraq reconstruction is in the form of loans. Pledging the majority of these loans were the World Bank ($3 billion), the IMF (up to $2.55 billion), Iran ($1 billion), and Japan ($3.4 billion), according to the State Department. In September 2004, the IMF provided a $436 million emergency post-conflict assistance loan to facilitate Iraqi debt relief.[Footnote 13] The World Bank has approved loans for $399 million from its concessional international development assistance program, which the Iraqis have not accessed.[Footnote 14] According to the State Department, the Iraqis lack a system for approving projects supported by donor loans, which has impeded efforts by the World Bank and Japan to initiate loan-based projects.[Footnote 15] In addition, Iraq has not yet accessed loans from Iran, according to the State Department. Further, according to IMF reporting as of February 2007, Iraq has received about $39 billion in debt reduction from commercial and bilateral creditors. Most Grants Have Been Provided: As of April 2007, international donors for Iraq reconstruction had pledged $3.9 billion in grants to be provided multilaterally and bilaterally. In addition, some countries exceeded their pledges by providing an additional $744 million, according to the State department. Of the total grants, donors provided about $1.6 billion multilaterally to two trust funds, one run by the U.N. Development Group (UNDG) and the other by the World Bank.[Footnote 16] Donors have provided about $1.1 billion to the UN trust fund and $455 million to the World Bank trust fund. As of March 2007, the UN has disbursed about $612 million to support, among other things, Iraq's elections, infrastructure projects, health and nutrition, agriculture and natural resources, and assistance to refugees. As of March 2007, the World Bank fund had disbursed about $96 million to support, among other things, capacity building, school rehabilitation and construction, and health rehabilitation. Donors provided about $2.3 billion in bilateral grants for Iraq reconstruction efforts. As of April 2007, these grants have funded more than 400 projects as reported by Iraq's Ministry of Planning and Development Cooperation.[Footnote 17] According to State, these projects include about $1 billion in grant assistance from Japan, $775 million from the United Kingdom, $153 million from Republic of Korea, $110 million from Canada, and $100 million from Spain. These funds have been provided as bilateral grants to Iraqi institutions, implementing contractors, and nongovernmental organizations for reconstruction projects outside the projects funded by the UN and World Bank trust funds. Mr. Chairman, this concludes my statement. I will be happy to answer any questions you or the members of the subcommittee may have. GAO Contacts and Acknowledgments: For questions regarding this testimony, please call Joseph A. Christoff at (202) 512-8979. Other key contributors to this statement were Muriel Forster, David Bruno, Monica Brym, Dorian Herring, Lynn Cothern, Judith McCloskey, and Mary Moutsos. FOOTNOTES [1] For purposes of this report, non-U.S. coalition troops do not include Iraqi security forces. [2] We obtained troop data for May 2007 from a publicly available document. [3] In addition to U.S. and other coalition troops, the number of Iraqi military and police forces trained and equipped by coalition members totaled about 331,000 as of May 2007. However, GAO has raised concerns about these numbers. See Stabilizing Iraq: Factors Impeding the Development of Capable Iraqi Security Forces, GAO-07-612T (Washington, D.C.: Mar. 13, 2007). [4] In addition to multinational force contributions, seven countries contribute troops to the NATO Training Mission in Iraq, which supports training of Iraqi security forces. As of May 2007, these countries were Hungary, Iceland, Italy, Netherlands, Portugal, Slovenia, and Turkey. [5] In March 2003, the White House reported the following countries in the coalition of the willing: Afghanistan; Albania; Angola; Australia; Azerbaijan; Bulgaria; Colombia; Costa Rica; Czech Republic; Denmark; Dominican Republic; El Salvador; Eritrea; Estonia; Ethiopia; Georgia; Honduras; Hungary; Iceland; Italy; Japan; Kuwait; Latvia; Lithuania; Macedonia; Marshall Islands; Micronesia; Mongolia; Netherlands; Nicaragua; Palau; Panama; Philippines; Poland; Portugal; Romania; Rwanda; Singapore; Slovakia; Solomon Islands; Republic of Korea; Spain; Tonga; Turkey; Uganda; Ukraine; United Kingdom; United States; and Uzbekistan. [6] Emergency Wartime Supplemental Appropriations Act of 2003, P.L. 108- 11. [7] Department of Defense Appropriations Act, 2005, P.L. 108-287. [8] See Stabilizing Iraq: Factors Impeding the Development of Capable Iraqi Security Forces, GAO-07-612T (Washington, D.C.: Mar. 13, 2007). [9] Italy and Portugal contribute trainers to the NATO training mission in Iraq. [10] The 25 contributing countries do not include the seven countries that provide troops to the NATO Training Mission. [11] The countries are Albania, Armenia, Azerbaijan, Bosnia, Czech Republic, El Salvador, Estonia, Georgia, Hungary, Poland, Ukraine, Macedonia, Mongolia, Nicaragua, Romania, Slovakia, Thailand, Tonga, and the United Kingdom. [12] These countries are Thailand, Bulgaria, Georgia, Hungary, Poland, Romania, Ukraine, Dominican Republic, El Salvador, and Honduras. [13] In addition to this loan, Iraq secured a $685 million Stand-by- Arrangement with the IMF in December 2005; however, the Iraqis have not drawn upon this support, according to the State department. [14] This loan is within a $500 million program for concessional international development assistance. [15] A proposed clause of Iraq's 2007 Budget Law that was intended to clarify matters for approving projects supported by donor loans was deleted by Iraq's Council of Representatives before the law was passed in final form, according to State department. [16] On March 20, 2007, at the (IRFFI) International Reconstruction Fund Facility for Iraq Donors Committee meeting in Istanbul, it was decided that the lifetime of the fund would be extended through December 2010 to allow adequate time to finance the existing projects through to completion. [17] The Iraqi Ministry of Planning and Development Cooperation tracks donor assistance in a recently established Donor Assistance Database. GAO's Mission: The Government Accountability Office, the audit, evaluation and investigative arm of Congress, exists to support Congress in meeting its constitutional responsibilities and to help improve the performance and accountability of the federal government for the American people. 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