In Afghanistan, Maj. Gen. Eric T. Olson was the No. 2 U.S. commander in the fight against the Taliban and al-Qaida.

His old job may turn out to have been easier than his new one — a key position with the Iraq Reconstruction Management Office.

Olson, 55, who led the 25th Infantry Division on its 2004 deployment to Afghanistan and now lives in Hawai'i Kai, recently left for Iraq to be the civilian deputy director for civil, military and regional affairs with the reconstruction office.

The State Department job comes with a staff of about 300, including individuals who work on provincial reconstruction teams.

The reconstruction office was established by presidential directive to coordinate the rebuilding effort in Iraq, in cooperation with U.S. agencies and the Iraqi government.

Olson acknowledges the challenges ahead.

A July report by the special inspector general for Iraq reconstruction said production of electricity and oil climbed above pre-war levels for the first time in a year, but deteriorating security has impeded reconstruction efforts, restricted the movement of personnel and diverted dwindling resources.

One-third of $18 billion in Iraq relief and reconstruction money was devoted to security costs as of late June.

Corruption permeates Iraq, more international effort and investment is needed, and the lack of budgeting by the Iraqi government to fund major infrastructure is a "potentially crippling weakness," the inspector general's report said.

"I think there are some issues there, and just based on some of the experiences that we had in the (25th Division in Afghanistan), I learned some lessons that hopefully will allow me to make a contribution," Olson said.

Olson spoke about the yearlong Iraq job before he left, noting he will have greater familiarity with the challenges after spending some time in the country.

VISION FOR REBUILDING

But he is a proponent of a plan to double the number of provincial reconstruction teams, or PRTs, to 18 as one approach to help break the logjam.

The teams, pioneered in Afghanistan and with more than 100 members, including diplomats, military personnel, aid officials and contractors, work closely with Iraqi counterparts to coordinate rebuilding, rather than direct it from the Green Zone in Baghdad.

Early PRTs were set up in Mosul, Kirkuk and Hilla in the fall. Baghdad, western Anbar Province, and four other locations were selected for PRTs.

The inspector general's late July report said "the leading U.S. capacity-building initiative outside Baghdad is the PRT program," but that the effort faces "serious challenges," including security threats, insufficient staffing and limited resources. Only five had begun operations, the report said.

"I think what you've got to do is get greater cooperation between the coalition, the military piece to this, and the reconstruction side," Olson said. "I'm not trying to be critical, because I haven't been on the ground, but my sense is that this positive relationship and interaction between the military and folks that are over there to do the reconstruction — that has got to be firmly established in Iraq."

Olson will be working in the fortified Green Zone, but said he plans to get around to the PRTs around Iraq.

UNIFORM TO SHIRT, TIE

After a nearly 34-year Army career, Olson retired this year. He had been nominated to be deputy commander of U.S. Pacific Command, but chose retirement instead.

Olson led the 25th Division during deployments to Iraq and Afghanistan in 2004, was commander of Combined Joint Task Force 76 in Afghanistan, and oversaw operations during that country's first presidential election.

A job with a patent license firm fell through, and the State Department Iraq reconstruction offer came up about the same time, Olson said.

Olson, now a shirt, tie and coat official in Iraq, rather than a two-star general in Afghanistan, said he has already experienced the downside of Iraq's summer heat when his air conditioner broke down in his quarters in 100-degree temperatures.

His wife, Vicki, said she hates to be separated from her husband again, "but I think we both believe he can do some good over there," in particular with his experience with PRTs in Afghanistan.

"There have been a lot of great people over there (in Iraq) who have been working on this for quite some time, and there have been problems and there are issues," Olson said. "So I'm not going to go over there and think that my team is going to be able to turn everything around right away.

"What we ought to aspire to is steady improvement over time," he said.

Reach William Cole at wcole@honoluluadvertiser.com.