KBR hired 2nd tier contractors to hire and pay the local workers. To my knowledge the contractors were paid in US currency but I don't know how they paid the workers.
As to how much it costs to live there I couldn't say, I never left the base but the guys making $20 a day seemed to be pretty happy with the income, I had the impression it made them middle class. A lot of them were university trained professionals and experienced business management types who couldn't find work anywhere else.
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