INTERNATIONAL BUSINESS NEGOTIATION: KUWAIT RECONSTRUCTION
This research considers the requirements for the successful negotiation of contracts by American companies for reconstruction contracts in Kuwait in the Gulf War aftermath. Kuwait's reconstruction will be accomplished in three phases. The Emergency Relief Phase covers the urgent needs of the country in the immediate post-war period. This phase of work is still in progress in the fall of 1991. The government of Kuwait budged approximately $850 for work to be conducted during this phase. The United States Army Corps of Engineers has been awarded $218 in emergency reconstruction contracts, and the Bechtel Corporation has been designated as the coordinating contractor for the emergency reconstruction of Kuwait's oil fields.
The second phase is the Recovery Phase. This phase is expected to last for approximately two years, and it is expected to be initiated in late-fall 1991. The Kuwait Ministry of Planning is expected to supervise this phase, including the awarding of reconstruction contracts.
The third phase of work is the Reconstruction Phase. This phase is expected to last for about five years, and will begin when the Recovery Phase ends. The actual infrastructure work that will be accomplished during this phase will be determined through assessments performed during the Recovery Phase.
The Potential Extent of Reconstruction Work Required in Kuwait
The war damage to Kuwait may be considered in four general areasùthe petroleum sector, the utilities infrastructure, the transportation infrastructure, and all other reconstruction work. Repair work in the petroleum sector is anticipated to amount to $1.5 billion during the Recovery Phase. This work is expected to begin, once all of the oil well fires have been extinguished.
Emergency work is already underway in the repair of the utilities infrastructure. Upwards of $2 billion is expected to be exp...