IDB approves US$27 million package for Haiti

IDB approves US$27 million package for Haiti

Support for Haitian government's efforts to alleviate poverty
The Inter-American Development Bank will provide Haiti US$27 million in grant and concessional resources early in May to assist the Haitian government as it carries out an emergency plan to contain food prices, create jobs, and revive agricultural production.

The IDB's Board of Executive Directors on Wednesday approved a new US$12.5 million grant and authorized the disbursement of US$14.5 million from a previously approved soft loan, in recognition of Haiti's progress in fiscal reforms and public financial management, as well as to support the Haitian government's efforts to pursue poverty reduction in the face of soaring global food prices.

'It's crucial for the IDB to support Haiti's efforts to aid its most vulnerable citizens. The package approved by our Board will provide Haitian authorities with timely resources to address these urgent needs,' IDB President Luis Alberto Moreno said.

Earlier in April Haitian President René Préval announced emergency economic measures to restore calm in Port-au-Prince and other cities hit by riots against rising fuel and food costs.

President Préval took steps to reduce the price of rice, a staple of the Haitian diet. He also outlined a plan to foster job-creation through public works projects and by expanding access to credit for small businesses and farmers.

In the short- and medium-term, IDB and Haitian authorities aim to accelerate a portfolio of almost US$100 million in projects to boost agricultural production in two key growing regions, the Artibonite valley and the contiguous Ennery-Quinte watershed.

The IDB is also financing infrastructure in Haiti, with an emphasis on rebuilding or repairing highways and rural roads as well as smaller civil works such as markets, schools and community centers in the poorest areas.

These labor-intensive projects are helping to boost employment and economic activity in areas where public works take place.