UK firm wins £600m Iraq water contract

British firm Amec has won a one billion dollar (£600 million) contract to rebuild the water supply in Iraq, the biggest contract won by a UK company.

The deal is one of 10 major construction projects being funded by the US Congress to rebuild the war-ravaged country.

The work will be carried out by Amec in partnership with US firm Fluor, a joint venture which won another big reconstruction project earlier this month.

The new deal was awarded by the US Department of Defence to reconstruct water and sewage systems across Iraq.

The contract will involve rebuilding water systems and sewage centres.

Brian Wilson, Prime Minister Tony Blair's special envoy in Iraq, said: "This latest award confirms that British companies will play a key role in reconstructing Iraq, particularly in the crucial water sector.

"This is a US-funded contract and I have no doubt that, as funding sources diversify, British companies will play an even bigger part in rebuilding Iraq.

"There is no doubt that the Iraqis very much want the involvement of British firms."