Iraq seeks to ease donors' concern over transition

"As some friends touched on this matter, I would like you to know more about that," Mehdi al-Hafidh, Iraq's interim minister of planning and development, told representatives from 25 countries and multilateral organisations that pledged 33 billion dollars towards Iraqi reconstruction in Madrid in October.

He said the Governing Council was set to announce "shortly, some sort of understanding on the fundamental law that will govern the country," until general elections are held at the end of 2005.

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As the minister spoke here, Iraqi leaders battled back home to draw up a temporary constitution after members of the interim Governing Council clashed over the role of Islamic clerics in family law.

It was unclear whether the members would meet the midnight deadline set in a November agreement to clear the way for Iraqi sovereignty at the end of June.

But Hafidh said there "was no going back" on the date of June 30 for the transfer of power from the US-led coalition to an interim Iraqi government.

"We are very much committed to this process, because we know this will enable you to be more encouraged to assist the country," he said.

The World Bank, which along with the United Nations is managing trust funds through which non-US donor money will be channeled to Iraq, said Wednesday that the uncertain political climate, the absence of a sovereign power and insecurity may slow the transfer of pledged money to the country.

Hafidh has come to Abu Dhabi with a list of 700 projects that he said need urgent funding of four billion dollars over the next 12 months.

The World Bank said Wednesday he was probably going to secure 500 million dollars by June 30.

Meanwhile, Iraq issued an urgent appeal yesterday for donor countries to disburse four billion dollars for 700 priority projects this year, at the opening of a donor conference in the Emirati capital, Abu Dhabi.

"Our needs are enormous and urgent," said interim minister of planning and development cooperation, Mehdi al-Hafidh. "It is high time the promises made in Madrid were honoured," he told dozens of representatives of donor countries and international organisations who pledged 33 billion dollars in the Spanish capital last October.