News Releases

Jul 24, 2006

IDB to focus support for Haiti on new government’s priority sectors

Over the next 18 months, the IDB will work on new loans totaling $150 million – which could rise up to 225 million – for transportation, electricity, water and sanitation in rural areas, rural value chains and natural resources management in key watersheds

PORT-AU-PRINCE – The Inter-American Development Bank will focus its support for Haiti in priority sectors for the government of President René Préval, IDB President Luis Alberto Moreno said in a meeting held at the Presidential Palace with the Haitian head of state, Prime Minister Jacques-Edouard Alexis and members of the national cabinet.

In his speech, Moreno said the IDB would respond to short-term urgencies such as the collection of trash in urban areas.

In the medium term, the IDB will concentrate its efforts on key sectors for economic growth, such as basic infrastructure, transportation, electricity and drinking water services, agriculture and education.

“I’m convinced that this new government can establish the economic and institutional foundations for sustainable growth and poverty reduction,” Moreno said at the opening of the meeting with Haitian authorities, which was held on the eve of an international donors conference for Haiti.

The IDB, which has streamlined its procedures to speed up the preparation and execution of projects in Haiti, expects to use resources from an existing basic infrastructure loan to support a trash collection program in Port-au-Prince with the Pan-American Development Foundation and the Metropolitan Garbage Collection Service (SMCRS).

The program has succeeded in working in some of the most difficult neighborhoods of Port-au-Prince, alleviating the accumulation of trash and generating jobs for hundreds of people. IDB support could help expand the initiative to most of the city.

In addition, in response to a request from President Préval, the IDB will support the government’s efforts to engage the Haitian Diaspora to increase their involvement in local investment and strengthening the public sector.

IDB-financed operations are helping to build the institutional capacity of Haitian government agencies, in particular the ministries and specialized agencies in charge of project execution.

IDB Support for Haiti

The IDB’s portfolio in Haiti includes projects with a total value of some $524 million, of which $420 million are available for future disbursements. The IDB is the leading source of long-term lending for Haiti.

The portfolio includes projects in transportation (highways, rural roads, ports and airports), basic economic infrastructure, water and sanitation, urban rehabilitation, agriculture, education, health, local development, job training, environmental management and flood prevention.

Other IDB projects support the reforms to strengthen the Haitian public sector, with special attention to public finances on the revenue side (the tax bureau and customs service) and the expenditure side (budgeting, financial management, procurement and a new anti-corruption unit).

Over the next 18 months the IDB will work on new loans totaling $150 million – which could rise up to 225 million – for transportation, electricity, water and sanitation in rural areas, rural value chains and natural resources management in key watersheds. Early childhood development is another area where it may provide assistance, through a program that would deliver essential micronutrients for infants.

The IDB also expects to provide support for private sector development, ranging from loans for expanding cellular telecommunications coverage to improving the business climate and fostering microfinance.

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