THE BBC and ITN are locked in a battle to take over the potentially lucrative contract to run television and radio stations in Iraq.

They are bidding for Iraqi Media Network (IMN), once the main propaganda vehicle for Saddam Hussein and his regime.

Broadcasting to most areas of Iraq, IMN became famous during the war for the appearances of Mohammed Saeed al-Sahaf, the information minister whose wild exaggerations earned him the nickname of Comical Ali.

The station is still valued at ??70m even though it was largely destroyed or shut down as the Saddam regime fell. The deal includes other big media outlets taken over by IMN.

At the moment IMN controls more than 18 television stations, the government radio station and Al-Sabbah, the 60,000-circulation national newspaper.

The BBC is bidding through its World Service Trust. This was formed after the Berlin Wall came down, with the specific aim of helping war-torn areas to set up media projects.

??We are certainly looking at Iraq,?? said a BBC spokesman. ??We obviously feel that there could be a role for us in helping to get things started again in terms of educating people and getting through. We will be looking at what we are able to offer.??

A spokesman for ITN also confirmed the company??s interest in taking over ??parts?? of Iraqi television.

The Coalition Provisional Authority announced two months ago that it was seeking a contractor to develop IMN into a ??world class radio and television broadcasting and newspaper publishing organisation??.

The Middle East Economic Digest reported this weekend that the two British organisations are among 29 international media companies that have expressed interest in the contract.

The deal involves a wholesale refurbishment of the infrastructure of the old networks. It will also mean taking control of programming and choosing content. Local workers, including journalists, will have to be recruited and trained.

Iraqi television became a symbol of resistance during the war and continued to broadcast despite the onslaught of coalition attacks. As Saddam??s hold on his country faltered it broadcast pictures of him smiling and appearing to walk through cheering crowds.

Its power to boost troop morale and rally the support of the population was not lost on American forces, who bombed it on grounds that it was part of Saddam??s ??command and control apparatus??.

At the moment management of IMN is contracted out to Science Applications International Corporation, an American defence contractor.

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