t, and Saudi Arabia had expropriated the pipeline despite Iraq's protests. Iraqi pipelines were guarded in part by local tribes, and in part by two army divisions dedicated to the task. In addition, Iraq's strategic pipeline constructed in 1975 to optimize export and other pipelines in the south were disabled during the Gulf War. The Mosul-Haifa pipeline is now extremely in poor condition. The Iraqi section is completely rusted and the Jordanian section had been sold as scrap metal several years ago. A full return to Basra ports nameplate capacity required extensive infrastructure repairs. The port was constrained by shortage of storage and oil processing facilities, most of which were destroyed in the Gulf war. Iraq's Khor al-Amaya terminal was heavily damaged during the Iran-Iraq war and completely destroyed during the operation desert storm and has been out of commission since then.
             Another major problem faced by Iraq's refining sector was lack of water treatment facilities. This resulted in lack of light-end products, low quality gasoline and rising pollution levels. Other challenges in maintaining oil production capacity, was water cut through damaging intrusion of water into reservoirs especially in the south. The 48-inch line, which was commissioned in November 1988, did not have phases 2 and phases 3 of the project completed due to war and sanctions. Iraq's Northern Gas System, which was built in 1983, was damaged during the Gulf War and also the Kurdish rebellion of March 1991.
             85%-90% of Iraq's national power grid and 20 power stations were damaged or destroyed in the Gulf War. In early 1991, transmission and distribution infrastructure were destroyed, including the 10 substations serving Baghdad and about 30% of the country's 400 kilovolt (KV) transmission network. Existing generating capacity of 9000 megawatts (MW) in December 1990 was reduced to only 340 MW by March 1991. In early 19...