The US has now declared that companies from all countries are eligible to bid for around $US6 billion worth of contracts in the war torn country.

Around $5 billion worth of construction contracts have been set aside for US firms, Iraqi, coalition partners and countries that contributed troops to the invasion force, according to a notice on a website devoted to Iraq procurement programs.

All countries will remain eligible for subcontracting in the $5 billion construction efforts.

The United States infuriated European partners in December when the US Deputy Defence Secretary Paul Wolfowitz excluded nations such as France and Germany from the bidding citing national security reasons.

"It is necessary for the protection of the essential security interests of the United States to limit competition for the prime contracts of these procurements to companies from the United States, Iraq, coalition partners and force contributing nations," Wolfowitz said in a notice published on the web site www.rebuilding-iraq.net.