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IDB makes $12 million grant for Haiti energy reform

Support for strengthening the Haitian government’s institutional capacity in the energy sector and increasing the efficiency of its state power utility

The Inter-American Development Bank (IDB) announced the approval of a $12 million grant to support Haiti's reforms to modernize its energy sector and increase the availability and affordability of energy. 

This is the second of a series of three policy-based grants designed to provide budget support as the Haitian government works to establish a legal and regulatory framework for the energy sector and strengthen the Ministry of Public Works, Transportation, Energy and Communications to carry out its policy planning and oversight duties. These reforms are also backed by the international donor community. 

The grant will support Haiti’s efforts to turn the power utility Electricité d’Haïti (EDH) into a viable and operational company through a management contract, aiming at increasing its revenues and customer base as well as reducing its commercial and technical losses. EDH’s shortfalls constitute a major burden on the government's finances, costing as much as 2.8 percent of GDP in FY2011. 

In addition to budget support for energy policy reforms, the IDB has provided Haiti investment grants totaling more than $46 million to help restore the generation capacity of the Péligre hydroelectric plant and to upgrade the power transmission line to Port-au-Prince and key circuits of the capital region’s electricity distribution network. 

“This new grant underscores the significant progress Haiti has made toward transforming its energy sector,” said IDB Energy Division Chief Leandro Alves. “Coupled with the investments Haiti is making in infrastructure and systems, the policy measures covered by this operation will be critical to achieving a sustainable reform.” 

Haiti and the IDB 

The IDB is Haiti's leading multilateral donor. Since the 2010 earthquake, the IDB has approved grants totaling $546 million and disbursed nearly $390 million to assist the Haitian government in making investments in energy, water and sanitation, transportation, education, agriculture and private sector development.