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12/22/2004:

"U.S. Contractor Pulls Out of Reconstruction Effort in Iraq"

WASHINGTON — For the first time, a major U.S. contractor has dropped out of the multibillion-dollar effort to rebuild Iraq, raising new worries about the country's growing violence and its effect on reconstruction.

Contrack International Inc., the leader of a partnership that won one of 12 major reconstruction contracts awarded this year, cited skyrocketing security costs in reaching a decision with the U.S. government last month to terminate work in Iraq.

"We reached a point where our costs were getting to be prohibitive," said Karim Camel-Toueg, president of Arlington, Va.-based Contrack, which had won a $325-million award to rebuild Iraq's shattered transportation system. "We felt we were not serving the government, and that the dollars were not being spent smartly."

Although a few companies and nonprofit groups have pulled out of contracts in Iraq because of security concerns, Contrack's is the largest to be canceled to date, U.S. officials said. The move has led to fears that Iraq's mounting violence could prompt other firms to consider pulling out, or discourage them from seeking work in Iraq, further crippling reconstruction.
Full Article: latimes.com