The Inter-American Development Bank today announced the approval of a $25 million policy-based grant to Haiti to support priority public expenditures and fiscal reforms.
The grant, which will be disbursed in a single tranche, will support the Haitian government’s reforms to increase tax and customs revenues, improve the efficiency of public spending and strengthen the management of public debt.
The IDB assistance will also contribute to Haiti’s efforts to reinforce its Public Works Ministry’s capacity to plan, develop and maintain the national road network as well as to the government’s efforts to increase the efficiency of the EDH power utility.
The goals of these reforms are shared by other international agencies and donor countries. In connection with this new operation, the Caribbean Development Bank recently approved a $10 million policy-based grant to provide Haiti additional budgetary support.
The IDB, the leading multilateral source of grants for Haiti, may follow this operation next year with a $30 million policy-based grant. Earlier this year, it approved a $20.5 million grant for a program to rebuild and repair schools damaged by hurricanes.
In addition, the IDB is taking part in a multilateral debt relief initiative that enables Haiti to free up to $50 million annually for investments in poverty reduction programs.