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Amid growing donor fatigue, Iraq asks allies for $88.2 billion to rebuild post-ISIL

The United States under President Donald Trump also seems uninterested in directly investing in Iraq's reconstruction

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KUWAIT CITY — Billions of dollars were pledged Wednesday at a donor conference for Iraq’s reconstruction after the country’s devastating war with the Islamic State of Iraq and the Levant, though the amounts announced still fall short of the $88.2 billion Baghdad is seeking.

The biggest pledge at the gathering in Kuwait came from Turkey, which announced $5 billion, while Kuwait’s ruling emir said his oil-rich nation will give $1 billion in loans and $1 billion in direct investments to help rebuild Iraq.

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Saudi Arabia pledged $1.5 billion while the Kuwait-based Arab Fund says Iraq will receive $1.5 billion in infrastructure aid in coming years.

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Qatar, which is embroiled in a diplomatic crisis with a quartet of Arab nations led by Riyadh, pledged $1 billion. The United Arab Emirates pledged $500 million, as did the Islamic Development Bank. Germany pledged 500 million euros and the European Union 400 million euros.

Members of a U.S.-led coalition fighting against the Islamic State group pose for a group photograph in Kuwait City, Kuwait, Tuesday, Feb. 13, 2018.
Members of a U.S.-led coalition fighting against the Islamic State group pose for a group photograph in Kuwait City, Kuwait, Tuesday, Feb. 13, 2018. Photo by Jon Gambrell/AP /AP

The announcement from Kuwait, which hosted the conference that ends Wednesday, was in many ways stunning as only a generation ago, Saddam Hussein invaded the small, oil-rich nation.

Kuwaiti Sheikh Sabah Al Ahmad Al Sabah’s offer showed the deep interest his nation has in making sure Iraq becomes a peaceful, stable country after the war against ISIL and the chaos that followed the 2003 U.S.-led invasion of Baghdad. Iraq also still owes Kuwait reparations from its 1990 invasion.

“This large assembly of international communities that are here today is reflective of the large loss that Iraq withstood in facing terrorism,” Sheikh Sabah said at a donor’s summit at Kuwait City’s Bayan Palace.

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“Iraq cannot commence the mission of rebuilding itself without support, which is why we are all here today from all around the world, to stand by Iraq’s side,” he added.

Kuwait’s pledge was followed by the promise of a $494 million donation from the European Union’s foreign policy chief Federica Mogherini. Saudi Foreign Minister Adel al-Jubeir made the pledge for the kingdom.

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Turkey’s Foreign Minister Mevlut Cavusoglu and Qatar’s Foreign Minister Mohammed bin Abdurahman Al Thani announced their countries’ donations.

Wednesday is the last day for the funding to come forward at the summit held in Bayan Palace in Kuwait City. Iraq, however, still needs far more donations — overall, Baghdad is seeking $88.2 billion in aid from donors.

Among the hardest-hit areas in Iraq is the city of Mosul, which Iraqi forces, aided by a U.S.-led coalition, recaptured from ISIL in July 2017. Iranian-backed Shiite militias also participated in the operation, fighting in the villages around the city.

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The victory came at a steep cost for Mosul, as coalition airstrikes and extremist suicide car bombs destroyed homes and government buildings.

Of the money needed, Iraqi officials estimate that $17 billion alone needs to go toward rebuilding homes, the biggest single line item offered Monday, on the first day of meetings. The United Nations estimates 40,000 homes need to be rebuilt in Mosul alone.

The war against the ISIL displaced more than 5 million people in Iraq, only half of whom have returned to their hometowns.

However, officials acknowledge a feeling of fatigue from international donors, especially after the wars in Iraq and Syria sparked the biggest mass migration since World War II. Iraq also is OPEC’s second-largest crude producer and home to the world’s fifth-largest known reserves, though it has struggled to pay international firms running them.

The United States under President Donald Trump also seems uninterested in directly investing in Iraq’s reconstruction.

The U.S. alone spent $60 billion over nine years — some $15 million a day — to rebuild Iraq. Around $25 billion went to Iraq’s military, which disintegrated during the lightning 2014 offensive of ISIL, which grew out of al-Qaida in Iraq. U.S. government auditors also found massive waste and corruption, fuelling suspicions of Western politicians like Trump who want to scale back foreign aid.

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Iranian Foreign Minister Mohammad Javad Zarif prepares for a donor’s summit at Bayan Palace in Kuwait City, Kuwait, Wednesday, Feb. 14, 2018.
Iranian Foreign Minister Mohammad Javad Zarif prepares for a donor’s summit at Bayan Palace in Kuwait City, Kuwait, Wednesday, Feb. 14, 2018. Photo by Jon Gambrell/AP /AP

However, the U.S. has offered an over $3 billion package for Iraq from the Export-Import Bank of the United States. The package will be structured so that the initial amount could rise to as much as $5 billion over several years. That money would include loans, loan guarantees and insurance devices to encourage American investment in Iraq.

Meanwhile, regional tensions may affect how spending comes. Iranian Foreign Minister Mohammad Javad Zarif attended the meeting, skipping a group photograph held before. Meanwhile, Saudi Arabia and other Gulf nations remain suspicious of Iran’s influence in Iraq.

Iraqi Prime Minister Haider al-Abadi urged all his country’s neighbours to contribute.

“We need to rely on all our neighbours and friends to help Iraq invest in its future,” he said.

Associated Press writers Hussain al-Qatari and Malak Harb in Kuwait City contributed to this report.

In this Nov. 15, 2017 file photo, Haider, left, and Abdullah carry belongings they collected from their damaged house to wash before returning to live in the Old City of Mosul, Iraq.
In this Nov. 15, 2017 file photo, Haider, left, and Abdullah carry belongings they collected from their damaged house to wash before returning to live in the Old City of Mosul, Iraq. Photo by Felipe Dana/AP Photo

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