Since 2003 the U.S. has spent $20 billion on efforts to rebuild Iraq's infrastructure. "Success in Iraq will be ... a combination of military success, political success and reconstruction. And they've got to go hand in hand," said President Bush in December. But a new U.S. report shows that of eight reconstruction projects recently audited, seven had notable problems.
MEDICAL Only eight of 142 planned primary-health-care centers are currently open. And pricey equipment is misused or not used at all. At an Erbil hospital, for example, a high-tech medical-waste incinerator has been dormant since the staff trained to use it left the hospital.
OIL AND GAS Oil output is down 25% from the last quarter of 2006 because of repairs to a key offshore terminal. Iraq has missed every production target since 2004; by the end of 2006, it was still not producing enough fuel to heat its homes, fuel its cars or power its factories.
WATER U.S.-funded projects are increasing potable-water capacity, but some efforts still lag: a Fallujah wastewater system is unfinished because of security conditions, and work was stopped on a $150 million Nassriya irrigation project because funds dried up.
TRANSPORTATION Repairs are complete at 92 of 98 rail stations. But nationwide an average of only 32 trains a week ran because of security concerns. Baghdad International Airport averaged 403 flights (military and civilian) a week, down from last quarter's 423.