WASHINGTON (Reuters) - A contract to reconstruct Iraq (news - web sites)'s war-torn power generation facilities, water and sewage systems has been awarded to Bechtel Group Inc., the U.S. Agency for International Development said on Thursday.
The initial $34.6 million contract, which may be extended to the repair of hospitals, schools and other government buildings, could rise to as much as $680 million over 18 months, USAID said.
Bechtel, a privately held engineering, construction and technical services company headquartered in San Francisco beat out a competing bids from home-town rival Fluor Corp.
Foreign companies have complained that they cannot be prime contractors under USAID's Iraq program, although the agency has repeatedly said non-U.S. firms can be subcontractors.
"It is anticipated that Bechtel will work through subcontractors on a number of these tasks after identifying specific needs," USAID said Thursday in a statement.
The infrastructure work is the largest Iraq contract to be awarded by USAID so far. Smaller contracts to run Iraq's Umm Qasr port, restock schools, bolster local government and assist USAID in its Iraq planning effort have already been awarded.
The 105-year-old Bechtel helped build the Hoover Dam in the 1930s and 50 years later completed work on the Channel Tunnel linking England and France.