The USAID Administrative Reform Project, also called Tarabot (Arabic for “linkages”) was created in 2011 to help the Government of Iraq improve administrative systems. Since 2015, Tarabot has been working closely with the Ministry of Oil to improve management of the Ministry and six of the state-owned oil companies.

At a July 2016 conference in Baghdad celebrating the successes of this partnership, Senior Deputy Minister of Oil Fayad Nema declared the program had “saved the Ministry of Oil time and money and had launched a new era of transparency and accountability in Iraq.” 

The packed event celebrated a partnership that has seen comprehensive adoption of modern procurement systems. The close cooperation between the ministry and Tarabot was key to this success.

The oil sector in Iraq drives the economy and funds the government, but it also struggles with a legacy of conflict and mismanagement. The sector needed renovation, especially in the area of procurement, where outdated systems severely hampered oil-sector efficiency and dramatically lowered government revenue.

The lack of modern procurement systems meant poorly written tenders and contracts led to wrongly specified materials and inadequate contractors for jobs. Essential equipment sat idle and storage tanks and pipelines went unfinished due to contractual disputes.

The heart of this procurement “revolution” is the standard bidding document, introduced by Tarabot and adopted across all Iraqi Ministries. These internationally recognized documents help procurement staff state what they wish to buy in a format that can be used worldwide to get the best goods at the best prices.

Today, with 1,500 employees trained by Tarabot to run newly established procurement units, as well as the implementation of international-standard systems to provide planning and accountability, the Ministry of Oil has the expertise to purchase the equipment and services it needs from a global marketplace in a more efficient manner.