For more than a year, the former Ba’ath Party stronghold of Siniyah was without its main thoroughfare for trade and commerce, but that all changed as the city’s Mayor officially opened Market Street during a ribbon-cutting ceremony July 26.

More than 40 shops and small businesses were forced to close due to the lack of business when the restriction of the road was announced in July of 2007.

The Joint Security Station located near the market area was vulnerable to vehicle-borne improvised explosive devices, causing Iraqi Security and Coalition forces to take measures ensuring the safety of the forces housed there.

Market Street was also closed due to the high levels of violence and the significant number of attacks the area was experiencing.

“Shop owners were anxious to reopen their shops,” said Capt. Aaron Billingsley, commander of U.S. forces in Siniyah.

The recent successes in Siniyah are directly contributed to the hard work of the joint efforts by the Iraqi Police, Iraqi Army, Sons of Iraq, City Council, Coalition forces and the people of Siniyah, Billingsley said. There is now an opportunity for them to improve the local economy in the city.

“There are micro-grants and micro-loans that will be offered to some of the shops,” said Billingsley. “This will help them expand their businesses and revitalize the economy.”

MNF-I

A large percentage of new businesses in the U.S. fail within the first year. Starting a business in Iraq is no different, if not harder, but with the help of Marines with Company F, 2nd Battalion, 3rd Marine Regiment, Regimental Combat Team 1, four Iraqi businessmen have hopes of beating the odds.

Senior leaders of the company met with the businessmen, a carpenter, a pharmacist, a car painter and a mechanic, July 7, at Gnather Iraqi police station and handed them each a micro-grant to help jump start their businesses. The grants were available as part of the Micro-grant Program, started by RCT-1 in an effort to improve the economy in its area of operations by supporting small business owners.

Approximately $10,000 was distributed among the four businessmen, who were chosen based on an assessment by Marines and IPs while on patrols.

“We had [business owners] fill out questionnaires,” said 1st Lt. Aaron Brusch, Executive Officer, Company F, 2nd Bn., 3rd Marines. “Out of the 50-plus questionnaires we received back, [leaders in] our company prioritized which of them seemed most likely to benefit from the grants.”

The store owners who applied for the grants were prioritized based on the type of service they provided, how much the grant could help each individual improve their business and how their improved business could contribute to the overall economy.

Each recipient was excited to receive the funds. All said they would either hire more workers or buy supplies they previously could not afford.

“I can’t explain how happy and grateful I am to the Marines for helping me and my business,” said Wassan Ahmed Ali. “This will greatly help me, and I appreciate the Marines for everything that they have done to help me and other Iraqis.”

Marines with the company later followed up with the business owners to see how much the grants really helped their businesses.

“All have either hired new workers, bought more supplies or expanded and improved their stores,” said Brusch.

DVIDS
By Cpl. Chadwick deBree and Cpl. Steven McGinnis
Regimental Combat Team 1

Two U.S.-military sponsored economic reconstruction programs are helping to put thousands of Iraqi citizens into productive jobs while boosting the country’s business activity, a senior U.S. military officer posted in Iraq said today.

In March 2007, Army Gen. David H. Petraeus, commander of Multinational Force Iraq, directed his officers to find ways to provide jobs and increased opportunities for economic expansion, entrepreneurship and skills training for the people of Iraq, recalled Army Maj. Gen. Timothy McHale, director of personnel, logistics and resources for Multinational Force Iraq.

The successful Iraqi First LOGCAP and Iraqi-Based Industrial Zone programs are direct results of Petraeus’ directive, McHale said.

“Both of these programs are focused on contributing to Iraq’s economic progress and security,” McHale pointed out.

The Iraqi First LOGCAP program provides a conduit for Iraqi businesses to sell their products and services to coalition customers, McHale explained.

“We are striving to put Iraqis first in purchase decisions,” McHale noted. LOGCAP, he said, is the name of the military logistics contracting and purchasing system.

LOGCAP is the coalition’s largest service contract in Iraq, and is a prime example and one of the programs in which Iraqi First is being applied, the two-star general said.

“We are working to direct more and more jobs supporting this contract to Iraqis,” McHale continued. “In addition, we are directing more purchases of products to Iraqi suppliers. The goal is to have Iraqi workers and Iraqi suppliers to be a significant part of our military logistics support.”

Today, about 3,700 Iraqi citizens are holding jobs as part of the Iraqi First-LOGCAP program, McHale said. At some installations, he noted, Iraqi citizens make up more than 50 percent of the work force.

“We are working every day to open up more jobs on more bases to Iraqi citizens, and we expect to add thousands of jobs over the next several months,” McHale said, noting Iraqis are working in skilled positions such as construction, carpentry, masonry, welding, plumbing, electrical work, well-drilling as well as many types of general-labor positions.

“Iraqis also have a growing presence in both professional and administrative positions,” McHale said. A new initiative, he noted, is exploring ways to hire Iraqis through Iraqi-government-sponsored vocational-technical schools.

The Iraqi First-LOGCAP program is also about buying Iraqi products for use on coalition bases, McHale said, noting the U.S. military in Iraq has bought more than $182 million worth of Iraqi products and services over the past year.

“While these products were available elsewhere, we chose to buy Iraqi goods and services,” McHale said. Buying Iraqi-made products creates new jobs for the people of Iraq, he observed. For example, he said, a recent business transaction with an Iraqi plastics factory resulted in the reopening of three plastic-bag production lines.

LOGCAP-affiliated purchases have involved more than 200 Iraqi vendors providing thousands of items and products, McHale said. Iraqi-supplied goods and services, include construction materials, metals, tools, heating and cooling equipment, as well as maintenance, laundry and food service and supply services.

Meanwhile, the Iraqi-Based Industrial Zone program, called IBIZ, continues to help Iraqi entrepreneurs to do business with the U.S. military, McHale said.

“IBIZ is a program that provides secure locations on or next to coalition-force bases for privately owned, small and medium sized Iraqi businesses employing Iraqi workers,” McHale explained. The program, he said, injects money into the Iraqi economy while boosting social stability by providing jobs to Iraqis so that they can support their families.

IBIZ-affiliated ventures employ more than 1,400 Iraqis with annual salaries totaling more than $10 million, McHale reported. Successful businesses that participate in the IBIZ program include building trades, vehicle-repair, retail shops, cement and asphalt, metal cutting, trucking and generator repair.

“We also create a work force and business foundation for transitioning support to the Iraqi security forces or to the society of Iraq,” McHale said.

The IBIZ program is growing, McHale said, noting it is now being implemented on 11 coalition bases, with plans to expand it to 14 bases this summer.

DoD
By Gerry J. Gilmore
American Forces Press Service