Cablegate: Update On Raytheon Payment for Biap Radar

This record is a partial extract of the original cable. The full text of the original cable is not available.

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

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