The work forms the bulk of water and sewage contracts the Defense Department announced which are worth up to $1.5 billion.

Amec's shares climbed almost three percent to 305-1/4 at 1158 GMT.

The latest contract awards may go some way towards assuaging fears among British companies that they are being sidelined by the United States.

U.S. companies Bechtel and Halliburton (HAL.N: Quote, Profile, Research) won billions of dollars worth of Iraq work in the wake of the invasion to oust Saddam Hussein, prompting accusations that they were being given preferential treatment.

"We have said all along that UK firms have the skills and capabilities to make a significant contribution to the reconstruction of Iraq's essential infrastructure," British Trade and Investment Minister Mike O'Brien said in a statement.

"These awards, along with earlier ones to UK firms, confirm this," he added.

Earlier this month, Fluor-Amec won another contract worth up to $500 million for power projects in the war-torn country.

An Amec representative said the venture is in the running for two more pieces of work, one in transportation and another related to justice and security, worth up to $1.2 billion.

Amec and Fluor staked their claim for Iraq work soon after the U.S.-led invasion a year ago, establishing the joint venture in April expressly to go after contracts.

This week, the U.S. government also awarded a $75 million contract to Lucent Technologies Inc. (LU.N: Quote, Profile, Research) for repairing and modernising Iraqi communications systems. The communications company earlier won a $25 million deal to supply equipment to help restore service.