Three British-based firms are part of consortia which have won £43 million worth of contracts to rebuild Iraq.

The US Department of Defence has awarded seven contracts, with two winning consortia involving UK partners.

Foster Wheeler, in the oil sector, and Parsons-Brinkerhoff, in the power sector, were successful.

A third consortium in the water sector has UK company involvement with Halcrow, acting as sub-consultant.

The total value of contracts awarded to consortia with a UK involvement was around £43 million out of a total of £72.3 million.

Commenting on these contract awards, Mike O'Brien, the Minister for Trade, Investment and Foreign Affairs, said: "I am pleased that UK expertise will play a key role in…work to rebuild Iraq's essential infrastructure.

"We have said all along that UK firms have the necessary skills and capabilities to make a significant contribution to Iraq's reconstruction.

These awards, along with the earlier contracts awarded to UK companies, confirm this.

"This is only the first stage. UK has considerable expertise in infrastructure work, which is the focus of the second round of these awards."

The announcement came as Amec, which is involved in rebuilding projects in Iraq as well as the rail and energy markets, reported 2003 profits up 7 per cent at £112.5 million and said it was optimistic about 2004.

While markets last year had been difficult to predict, business so far this year was up 50 per cent, with evidence of recovery in key North American industrial markets.

Sir Peter Mason, the Amec chairman, said: "The board is confident that Amec will make further progress in 2004."

Amec, which employs about 45,000 people in 40 countries, has been restructuring to switch its focus from traditional construction to engineering services. The company said it would continue to migrate to higher value work, "leaving behind" low margin activities.

In Iraq, Amec is working on the restoration of damaged power generation, transmission and distribution systems for prime contractor Fluor. Amec will receive 49 per cent or profits from these orders, which are worth $140 million £78 million).

Amec is bidding with Fluor for seven further contracts expected to be worth $4 billion, and independently for work worth $140 million.

Amec shares stood 4.5p lower at 282p in morning trade.

Explore Entrepreneur

• Start-ups

• SME