Iraqi firms will be able to bid for contracts

Companies from countries opposed to the conflict in Iraq will be barred from bidding for new rebuilding contracts worth $18.6bn, the Pentagon has said. US Deputy Defence Secretary Paul Wolfowitz said the policy was necessary to protect America's "essential security interests". The 26 prime contracts cover areas such as oil, power, communications, water, housing and public works centres. The ban would exclude firms from countries such as France and Germany. The Bush administration hinted - even before the conflict - that countries opposed to the war would pay a price when it came to a share in post-war reconstruction, says the BBC's Pentagon correspondent Nick Childs. Now, the Pentagon has published formal guidelines from Mr Wolfowitz confirming that companies from those countries cannot bid for new reconstruction contracts. "It is necessary for the protection of the essential security interests of the United States to limit competition for prime contracts of these procurements to companies from the US, Iraq, coalition partners and force contributing nations," he said. Other companies may bid for sub-contracts.