Haiti’s energy sector to be modernised

IDB makes US$12 million grant for Haiti energy reform.

PORT AU PRINCE, Haiti, Thursday June 14, 2012 – Support for strengthening the Haitian government’s institutional capacity in the energy sector and increasing the efficiency of its state power utility is coming in form of a $12 million Inter-American Development Bank (IDB) grant.

This was announced today (June 14) by the Washington-based IDB in its bid to support efforts to increase the availability and affordability of energy in Haiti.

According to the announcement, this grant 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 US$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, in the statement on the IDB website. “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.”

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. Click here to receive free news bulletins via email from Caribbean360. (View sample)