Press Release

OPEC Fund to help rehabilitate basic infrastructure in Haiti with US$7 million loan

93/2005 September 8, Vienna, Austria
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The OPEC Fund for International Development today signed a US$7 million loan agreement with the Republic of Haiti to support an extensive project aimed at spurring economic recovery and boosting living standards by rehabilitating and constructing basic infrastructure.

Haiti is facing a number of challenges in improving its social, environmental and economic indicators, which are adversely affected by the deteriorated state of basic infrastructure. Roads, airport runways and ports are in poor condition; deficiencies in the power grid necessitate stringent energy rationing, with some areas lacking electricity entirely; and severe shortages exist in the delivery of drinking water and the provision of sanitation and waste management services.

To address some of these issues, the project will set up a Basic Economic Infrastructure Facility, with the mandate to provide resources to ministries and other agencies for the repair of infrastructure in areas with high economic potential. The facility will support sub-projects across a range of sectors, from transportation, energy and industry, to water supply, sanitation and rural development. A capacity-building component will safeguard the sustainability of the investments. The Fund’s loan will co-finance about 12 sub-projects.

The OPEC Fund has previously approved 12 loans to Haiti. Of these, 10 helped finance projects in the sectors of agriculture, education, transportation, water supply and sewerage and national development banks, while the remaining two were extended for balance of payments support. Technical assistance grants have also been given toward regional programs in the areas of agriculture and health, and for a renewable energy scheme.

Today’s agreement was signed in Vienna by H.E. Mr. Yvon Simeon, Ambassador of Haiti to Italy, and by H.E. Mr. Jamal Nasser Lootah, Chairman of the Governing Board of the OPEC Fund.