Lithuania hungry for Iraq reconstruction jobs

Lithuanian officials are initiating a push to encourage the country's firms to grab a piece of the billions of dollars' worth of contracts the U.S. government will be granting in its Iraq reconstruction efforts.

As coalition forces closed in on Baghdad in early April, Vygaudas Usackas, Lithuania's ambassador to the U.S.A., began laying the groundwork for companies to bid for work in the war-torn Middle Eastern country once the conflict ends and clean-up begins.

According to Usackas, the U.S. government is eager to award contracts to companies headquartered in countries that supported the war effort. Lithuania, along with Latvia and Estonia, pledged its political allegiance to the coalition in addition to lending logistical support.

"I have already met with officials in the U.S. administration and received a significant amount of interest," Usackas told The Baltic Times.

The financial stakes in the business of reconstruction are high. The U.S. Congress is set to allocate $3.5 billion for the renewal of Iraqi infrastructure, about 50 percent of which will most likely go to private subcontractors from countries around the world that voiced their loyalty to the U.S.- U.K.-led effort.

And with major industrial players such as France, Germany, and Russia out of the running, smaller countries like the Baltic states stand a chance to capture a piece of the reconstruction pie.

"Clearly, Lithuania most likely won't get one of the huge contracts," said Usackas. "But even a smaller or medium-sized one would be a comparatively large success," he said.

In addition to campaigning for Lithuanian business in Washington, D.C., Usackas' team has relayed information to relevant government and private agencies in Vilnius, such as the Foreign Ministry and the Lithuanian Builders' Association, making it more convenient for companies in the country to learn how to solicit contracts.

"We've already had 15 companies express interest in contracts for Iraq," said Jonas Jekinavicius, general director of the association.

"But right now, we're only at the beginning of the work that must be done. We're not yet at the stage where we've ironed out the details," he said.

Of the eight economic areas the U.S. government has earmarked for contracts, analysts speculate that Lithuania would be most likely to contribute in construction and engineering.

"They will be looking for companies with a good reputation in their home country and with experience in war reconstruction, and there are several construction companies in Lithuania that have both," said Usackas, referring to the role Lithuanian industry played in the rebuilding of Kosovo.

Jekinavicius agreed that construction companies would be the most attractive in terms of gaining contracts but pointed out that competition would be stiff.

"We have to remember how many other countries with qualified firms were a part of the coalition as well," he said.

"Turkish firms especially will have the added advantage of geographical proximity to Iraq in addition to having had extensive experience in the region," he warned.

The government-organized campaign to spread interest in the reconstruction process among Lithuanian firms is limited only to the dissemination of information and the securing of contacts in the U.S.A. Thus if business want in on the action, they must take an active role.

So far, however, enthusiasm from the private sector has been mixed.

"We have absolutely no intention to take part in this and do not wish to comment about it," said Antanas Butkus, general director of Kausta, Lithuania's largest construction firm.

"Why not?" said Stasys Zvinys, general director of the Moletai-based Molesta construction firm, which has been involved in some of the country's largest building projects.

"It's a matter of finding out about the details," he said.

Also, Lithuania is currently in the middle of an unprecedented construction boom, further complicating the possibility for the country's top firms to work abroad, said officials in the industry.

"But for our firm personally, we have more than enough contracts to keep us busy in the domestic market, and we'd have to weigh the logistical difficulty of working far away from Lithuania against the potential financial benefit," said Zvinys.

If Lithuanian firms do succeed in claiming a foothold in the Iraq reconstruction bonanza, they will most likely not be able to begin work for some time, due to factors from security concerns to the impending scorching summer weather in the Iraqi desert.

"The situation is too fragile to be able to forecast," said Usackas. "We're getting new information on a day-to-day basis."