ARTICLE - IDB - $1 BILLION IN SUBSIDIES - 5 YRS.

USD$1 BILLION IN SUBSIDIES OVER 5 YEARS
(Haiti Libre) -

The Interamerican Development Bank (IDB) is one of the major sources of aid for Haiti. Since January 2010, the Bank approved a total of $442 million in new subsidies and disbursed almost 355 million already. These funds support projects in education, transport, energy, agriculture, water and sanitation, and private sector development.

The IDB plans to provide about 1 billion dollars in subsidies over 5 years in 6 priority areas that are part of a strategy agreed with the Haitian government.

Education:

The IDB has already approved 100 million dollars in grants for the country's ambitious effort to expand access and improve the quality of education. Much of these funds will finance the construction of 50 new public schools. Another portion will support a tuition fee exemption program which allow about 220,000 children to have free tuition in private schools. The IDB is also working to increase the additional donations from other entities interested in supporting the reform of education in Haiti.

Road infrastructure:

Regarding transport, the IDB will assist Haiti in improving the main roads and highways RN1, RN2, NR5, RN7 and RN8. These investments contribute to improve communication between the largest cities, as well as the Dominican Republic. A subsidy approved in December 2011 also dedicate resources for the paving of city streets, will generate thousands of temporary jobs in several towns and villages.

Energy:

In the energy sector, the IDB is working with other donors like the World Bank and the U.S. Agency for International Development (USAID) to help Haiti to do a comprehensive reform of its electricity sector. In 2011, the IDB has approved subsidies to ensure funding for the modernization of the hydroelectric plant Péligre, the country's main source of renewable energy. By renovating its three turbines and equipment, the plant will return to its initial capacity of 54 megawatts.

Agriculture:

Agriculture is a priority for Haiti, since nearly half of its population lives in rural areas. The IDB is supporting the national plan for rural development by providing resources for a wide variety of activities ranging from irrigation to watershed management. The last operation approved, will serve for example, to fund a program of technology transfer through subsidies to farmers to improve their productivity.

Water and sanitation:

In the field of water and sanitation, the IDB is working with the Spanish government, by helping to improve services in Port-au-Prince and in five medium-sized cities and dozens of rural communities. One of the biggest challenges for this sector is the decoupling of the degraded water supply system in the capital. For this reason, the National Directorate of Water Supply and Sanitation (DINEPA) has hired a team of foreign experts who have already started to address the problems.

Private sector:

In connection with the private sector development, the IDB approved in 2011 a subsidy of $55 million for the construction of the North Industrial Park, and a donation of 11 million for a program to provide business counseling services for Small and Medium Enterprises (SMEs). This program will complement the activities of a fund created through a contribution of 50 million euros from Spain, to co-finance SMEs in partnership with local banks and microfinance institutions.

The Multilateral Investment Fund of the IDB, which has traditionally focused on small businesses, continues to launch innovative solutions. One of its latest projects, aims to make Haiti a coffee producer of high quality again, by working with cooperatives and farm organizations. The project is supported by the French Development Agency (AFD), the Colombian Federation of Coffee Growers and the Food industry giant Nestle.

For the IDB, the challenge in the coming years, will be to help its Haitian counterparts to accelerate project delivery, while strengthening their institutional capacities. To this end, the IDB has a team of 55 people on the ground, in addition to the many experts at the headquarters who assist. "We have a vision for Haiti and now we must begin to make this vision a reality" said Agustín Aguerre, Director of the Department for Haiti "[...] The year 2012 must be the year of working people and children in schools."