BAGHDAD, Dec. 9 (Xinhua) -- An Iraqi official said the continuing political row in Iraq is thwarting the reconstruction process in Iraq as it gives negative messages to the international community that their funds are not safe.

"The donor countries and investors will not provide funds for reconstruction in the light of the incomplete government formation and the persistence of political differences," said Mustafa al-Hiti, head of Iraq's Reconstruction Fund for Areas Affected by Terrorist Operations (REFAATO), in an interview with Xinhua.

Hiti's comments came a year after the Iraqi former Prime Minister Haider al-Abadi announced the full liberation of Iraqi territories from the extremist Islamic State (IS) militants.

Reviewing the background of the troubled reconstruction process in Iraq, Hiti said he and some other Iraqi officials attended in February an international conference in Kuwait for reconstructing areas affected by anti-IS military operations.

"The prevailing view about Iraq was that it is marred with corruption, political and sectarian conflicts and has no peaceful delivery of power," Hiti said.

"The taxpayers in all countries do not want their money to go to a country where people are fighting each other, but to be used in projects that serve people," he added.

After the May 12 parliamentary elections, the world is waiting for a change by a new government, "but the formation of the government did not complete yet," the Iraqi official warned.

He attributed the delay in payments by world donors to the political row among Iraqi factions, which almost paralyzes the government performance.

"There must be a complete government. Without a government tasked with running the funds (of the reconstruction process), the international community cannot provide such funds," Hiti noted.

In February, neighboring Kuwait held an international conference attended by more than 70 states and about 2,500 companies to mull ways to rebuild Iraq's economy and infrastructure as it emerged from a devastating war with IS militants, who seized almost a third of the country before being routed.

Before the Kuwait conference, the Iraqi government said more than 88 billion dollars is needed for reconstruction after nearly three years of war against the IS, but the pledges of funds dwarfed to 30 billion dollars at the end of the conference, mostly in the form of loans, credit facilities and investment.

Iraq frequently complained that the funds allocated for REFAATO is far from enough for the reconstruction of Iraq.

"Therefore, 40 percent of Iraq which was under IS control cannot be rebuilt with such little money. For example, we have 147,000 damaged housing units, 50 percent of which are totally damaged," Hiti explained.

According to Hiti, REFAATO is implementing 743 projects, including 499 funded by the federal government and the rest depending on international loans and funds.

These projects were very important and effective to help the displaced return to their homes, to reduce the number of the homeless to fewer than 2 million, he said.

Established in 2015, the REFAATO aims to coordinate international organizations and Iraqi governments for reconstruction operations in areas liberated from IS militants.

In June 2014, the IS group took control of large swathes of territories in western and northern Iraq, or 40 percent of the country's land in its peak.

However, the Iraqi forces, backed by tens of thousands of Shiite and Sunni volunteers, known as Hashd Shaabi paramilitary units, as well as the U.S.-led air support, managed to dislodge IS militants from their strongholds across the country.

On Dec. 9, 2017, al-Abadi officially declared full liberation of Iraq from IS militants after Iraqi forces re-captured all areas once seized by the extremist group.