62-i2= sz 7'- hh - world bank · 2016-07-14 · 62-i2= sz 7'- hh 1komet of the world bank...

62-i2= SZ 7'- HH1komet of

The World Bank

FOR OMCAL US ONlY

Rept No. P-6482-UA

NENORANDUK AND RECOMMNATION

OF THE

PRESIDENT OF THE

INTERNATIONAL DEVELOPMENT ASSOCIATION

TO THE

EXCUrTIE DIRECTORS

ON A

eROPOSED EMRGENCY ECONOMIC RECOVERY CREDIT

IN THE AMUNT OF SDR 26.8 MILLION

(EQUIVALENT TO US$40 MILLION)

TO

THE REPUBLIC OF HAITI

NOVEMBER 30, 1994

f T p C,_ 12, F.P JT:

This document bas a resticted distibution and may be used by reipients only iD the performance oftheir official duti. Its contents may not otherwise be disdosed wfitbout World Bank aufhionzation.

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

CURRENCY EQUIVAENTS

Currency Unit - Haitian Gourde (G)US$1.00 - G14.5 (as of October 31, 1994)SDR1.00 - US$1.49 (as of October 31, 1994)

WEIGHTS AND MEaSURES

Hz - hertzkan - kilometerkv - kilovoltMW - megawatt

ABBREVIATIONS

APN - National Port AuthorityCAMEP - Metropolitan Water AuthorityCG - Consultative GroupCIF - Cost, Insurance and FreightCCU - Central Coordination UnitEC - European CommissionEdH - Electricity Company of HaitiEERC - Emergency Economic Recovery CreditEERP - Emergency Economic Recovery ProgramEIU - Emergency Implementation UnitFDI - Industrial Development FundFOB - Freight on BoardFY - Fiscal YearGDP - Gross Domestic ProductGNP - Gross National ProductICB - International Competitive BiddingIDA - Intemational Development AssociationIDB - Inter-American Development BankIMP - International Monetary FundKfW - German Finance Agency for ReconstructionNGO - Non-Governmental OrganizationPAHO - Pan-American Health OrganizationSEMANAH - Maritime and Navigation Services of HaitiUNDP - United Nations Development ProgrammeUNICEF - United Nations International Children's

Emergency FundUSAID - U.S. Agency for Inte-national Development

FISCAL YEAR

October 1 to September 30

FOR OFFICIAL USE ONLY

HAMEMERGENCY ECONOMIC RECOVERY CREDIT

CREDIT AND PROJECT SUMMARY

Borrower: Republic of Haiti

Beneficiary: Not applicable

Poverty: Not applicable

IDA Amount: SDR26.8 million (US$40 million equivalent)

Terms: Standard IDA, with 40 years maturity

Commitment Fee: 0.50 percent (beginning 60 days after signing)

Financing Plan: See Schedule A

Net Present Value: Not applicable

Staff Appraisal Report: Not applicable. The October 1993 Joint Mission Report on anEmergency Economic Recovery Program and the November 1994Draft Update of the Emergency Economic Recovery Programprepared by IIDA, I1DB, IMF, specialized agencies of the UnitedNations, and USAID are available upon request.

Map: IBRD No. 17094Rl

Thls document has a mesrlcd disrbutn and may be used by rcin ol in the pedrh sas oftherIoffiia duties Its 00nent ma not othrise be disclosed withu World Bank

HAMfiEMERGENCY ECONOMIC RECOVERY CREDIT

Table of Contents

A. EMEERGENCY AND GOVERNMENT RESPONSE . .......... ...... . 1Badcgound ......................................... . IThe Emergency ...................... .. ............... 1The Government's Response ........ . . . . . ................................ ** 3

B. DDA'S EMERGENCY ASSISTANCE STRATEGY .... .............. 4The EERC ............. * ............. .......... .... 4Portfolo Modifications ................................... 4Redesp of the Roads Project Under Preparation ................. 5riedium-term Assistance Progra . ............ ........................... 5Donor Coordination .............. .. .............. . 5

C. TIIE PROGRAM ...................................... 6Program Objectives and Descriptlon ........... 6Balance of Payment Support .............................. 6Sector Re iltaton 7TechnialAssistance ....... ............................. 8Pnnhplwamefa 81~rgrnmInpemnnttio * ... *........ 9 ... ~ ...

Estimated Progran Costs and Financg Plan 9

D. TIE PROPOSED CREDrJ ......... ........ ............ e 9Project Objective and Desription **... CC*.*...............CC *.**. . . . ....... 9Project Inpleuentaton ........... ............ .. 10

Procurement and Disbursement ....................................... . 10

Reporting and Monitoring ............ .................... 11Lessons IAwned from Other Emergency Operafoons ............ .e c. 11Rationale for DDA Involvement ................................ . .. e c 11Agreed Actions ............. C.... ....... ... ............12Environmental Aspects C.................................. 12Project Benefits ....... ...... cc. .ececece Ccc . .12Project Risks . .................. e....... ...... .12

E. RECO1CIENDATION ......... ...... 1 3

HAMEMERGENCY ECONOMIC RECOVERY CREDrr

Table of Contents (cont.)

SCHEDULE A ....................... 1EERP FianngRequirements .............. .. L.......... . . .14EERP Fiandng Soumes ....................... .... 1S

SCHEDULE B ..................... ... o16PositveListofImports .................................. 16EERC timated IDA Disbursements byFlscal Year .............. . 21

SCHEDULE C ......................................... 22TimetableofKey Project ProcesigEvens ........... ...... . 22

SCHEDULE D ........................................ 23Stau of IDA Opeatin Haiti ....................... ..... 23

ANNEX 1: IDA'S ONGOING PORTFOLIO

ANNEX 2: GOVERNIMENT'S PROGRAM

ANNEX 3: KEY MACROECONOMAC INDICATORS

ANNEX 4: SOCIAL NDICATORS

MAP OF HAIT

This report is based on the findings of an appraisal mision which visited Haiti in Septeber 1993, comprisingMessrs./Mmes. A.Peuker (Mission Leader), J.P.Carrier, W.De Zan, L.Groleau, N.Hidcs, L.Montalti, M.Quintos,Z.Samara, D.Varela and J.Verbeek, and of a post-appraisal mission which visited Haiti in Novenber 1994,comprising Messrs./Mmes. A.Peuer, J.P.Carrier, S.Flucldger, N.Gillespie, J.Salmi, J.D.Taillant, and D.Varela.The support of vanous sector missions is acknmledged. The project docments were reviewed by M.Pommier(OPRPG) and the Ad Hoc Advisory Group comprising M.Alexander (LATSO), N.Hicks (LA3DR), P.Meo(LAlCO), M. Van Praag (LOAEL), and D.Varela (LEGLA).

MEMORANDUM AND RECOMMENDATION OF THE PRESIDENTOF THE INTERNATIONAL DEVELOPMENT ASSOCIATION

TO THE EXECUTIVE DECTORSON A PROPOSED EMERGENCY ECONOMIC RECOVERY CEDrr

IN THE AMOUNT OF SDR26.8 MILLION(EQUIVALENT TO US$40 MILLION)

TO THE REPUBLIC OF HAITI

1. I submit for your approval this memorandum and recommendation on a proposedEmergency Economic Recovery Credit (EERC) in the amount of SDR26.8 million (US$40million equivalent) to the Republic of Haiti. The EERC would be on standard IDA terms, andis designed as a quick-disbursing emergency operation which will fimance a positive list ofimports identified as necessary to a comprehensive Emergency Economic Recovery Program (theProgram). Parallel financing is expected from various multilateral and bilateral donors.

A. EMERGENCY AND GOVLRNMENT RESPONSE

2. Background. In the aftermath of a coup d'etat in September 1991, in which electedPresident Jean Bertrand Aristide was forced from office and into exile, Haiti has experienceda dramatic deterioration in economic and social conditions. Three years of military dictatorshipled to increased economic mismanagement and an international embargo, resulting in a dramaticdecline in living standards, particularly for the most vulnerable sectors of society. During thisperiod, Haiti did not service its external debt and IDA suspended its operations. In late May1993, in the context of negotiations to reinstate a constitutional Govermment, President Aristideinvited a multi-agency mission to Haiti to assist in the preparation of the Program to addressHaiti's economic crisis. In July 1993, the Governor's Island Agreement was signed t pave theway to a political resolution of Haiti's constitutional crisis. The breakdown of this agreementin October 1993 led to a renewed period of unconsttutional rule in Haid. On September 18,1994, following United Nations Resolution 940, a negotiated solution was reached which finallyallowed President Aristide to return to Haiti on October 16, 1994. On November 7, 1994,Parliament confirmed the appointment of a new constitutional Government. Haiti's arrears tothe multilateral agencies are expected to be cleared by mid-December, allowing IDA, IDB andthe IMF to resume their operations. These developments have created the conditions toeffectively address the emergency.

3. The Emergency. Today, Haiti is in a state of economic and social emergency. Overthe last three years, the country's economic performance and social indicators have worseneddramatically, accentmting the downward trend of the 1980s. Haiti is characterized by debilitatedinstitutions, large macroeconomic imbalances, a severely dilapidated infrastructure, depletedproductive assets, alarming social indicators, and pervasive poverty. Already during 1980-91,the population had suffered a continuing decline in its standard of living, with real GNP percapita falling by about 2 percent per year. Between 1992-94, Haiti's real per capita income

- 2 -

declined at a multiple of thig rate, and is currently estimated to be well below US$250 --making Haiti by far the poorest country in the western hemisphere.

4. Preliminary data indicate that real GDP fell by over 20 percent during 1992-93, and bya further 10 percent in 1994. All sectors were affected, and the situation has been furtheraggravated by the tropical storm Gordon which hit Haiti on November 12, 1994. Agriculturalproduction and exports decreased considerably, and the sector is now heavily decapitalized.Many farmers switched from coffee cultvation for exports to the production of domestic crops,for which prices rose markedly under the embargo. As this development affected marginal landswith steep slopes, it will likely contribute further to the already high degree of soil erosion.Exr-rt oriented industries have been devastated under the embargo. By May 1994, relatedemployment had fallen to 8,000, compared to 44,000 in September 1991 - a job loss of 81percent of the labor force, compared to about 40 percent in the rest of the industrial sector.Value-added in the services sector decreased in line with GDP, and construction activities cameto a virual standstill reflectng the low level of public investment and the sharp increase in theprice of cement.

5. Iflation increased rapidly, from 10 percent during 1991 to an estidrated 52 percent by1994. Inflation has been fueled by the embargo, together with rapid growth in the money supply(M2) of about 30 percent per year. In this enviroment, real interest rates, which historicallyhave been positive, turned highly negative. Against this background, the nominal exchange ratedepreciated by about 50 percent durir. 1991-94.

6. Fiscal performance also deteriorated, mainly due to a sharp fail in tax revenues,combined with some increases in the wage bill due to increased public employment. The centalgovermment accounts indicate that the overall deficit of the Central Government increased fromless than I percent of GDP in 1991 to almost 5 percent of GDP in 1994. Over the entire periodthe deficit was financed by credit from the Central Bank and by an accumulation of domesticand external arrears.

7. Total cental government revenue declined from some 8 percent of GDP in 1991 to about3 percent in 1994, on account of the decline in economic activity, lower taxable imports, anda further weakening of tax administration. Total central government expendiure increased fromabout 8 percent of GDP in 1991 to over 9 percent in 1993, mainly because of increases in thewage bill and accned interest payments. Operating and maintenance expenditures declined interms of GDP and capital expenditre remaied broadly unchanged. In 1994, total expendituredeclined somewhat to 8 percent of GDP as the growth in public sector employment slowed, andoperating, maintenance and capital investment, already extremely low, remained depressed. Thedecline in expenditure appears to reflect a general disarray in governmental arangements ratherthan a deliberate policy of contnment, as spending increased sharply in the second half of1994. This increase was largely recorded in the ministerial discretionary accounts, therebymasking the precise naure of the expenditure. By end-September 1994, the public secLor isestimated to have had domestic arrears of about US$11 million equivalent and external arrears

of US$122 million, of which US$77 million was due to the multilateral agencies IDA (US$15million), IDB (US$28 mi}lion) and IMF (US$34 million).

8. In the face of a growing fiscal deficit, Central Bank net credit to the public sector roseby 65 percent per year on average in 1992-94, fmanced by a sizable increase in currency issue,a decline in the Bank's net foreign assets reflecting the accumulation of external arrears, and anincrease in commercial banks' reserve balances at the Central Bank. Over the same period, thecommercial banks built up substantial net foreign assets reflecting strong growth in their depositliabilities, and sluggish credit expansion to the private sector. Also, net lending to the privatesector was restricted by the imposition of a freeze on commercial bank lending during the periodJuly 1993 to October 1993. To facilitate the financinig of the fisc deficit the legal limit on theCentral Bank's issue of currency was abolished by Parliament in July 1994.

9. International tade has been severely affected by the embargo. Haiti's external currentaccount deficit excluding grants increased from 4 percent of GDP in 1991 to 5 percent in 1993,and to over 7 percent of GDP in 1994 following the tightening of the trade embargo. Withusable foreign exchange reserves virtually depleted since 1992, the deficit has been financedlargely by humanitarian assistance and the accumulation of extnal arrears. Estimated exportsof goods declined from US$163 million in 1991 to an estimated US$47 million in 1994, andimports from US$300 million to US$139 million during the same period. The main sources ofexport revenues were light manufacturing goods and coffee. To a large exten, imports reflectedhumanitarian assistance, which amouned to about US$112 million in 1994.

10. The health and nutritional status of the Haitian population has worsened since 1991. In1993, an estimated 50 percent of the population had a caloric intake of below 75 percent ofrequirements, and over 20 percent of the children weighed in the USAID monitoring networksuffered from some form of malnutrtion. Low birthweight births increased from 5 percent in1992 to 11 percent in 1993, and the infant mortality rate is estimated to have exceeded 100 per1,000 live births. If it were not for the extensive humanitarian assistance, the affering ofHaiti's population would have been far worse.

11. The Goverment's Response. To address the economic crisis, in mid-1993, theconstitutional Govermnent had: (i) prepared the Program which would provide for basicemergency needs through import finance, civil works and technical assistance (see panas. 19-27);and (ii) committed itself to initiate critical policy reforms in the areas of public finces, publicsector management and privatization, iteres and exchange rate deregulation, and tradeliberalization. The Program and policy commitments were recenty re-validated by the newlyre-established consttutional Government, in close collaboration with IDA, IDB, IMF,specialized agencies of the United Nadons, and USAID. The proposed EERC will be animportant contribution to the implementation of the Program. In parallel, the '3overnment hasalso prepared a program (Annex 2), which outlines an economic policy framework designed toaddress the key structural problems of the Haitian economy and to ensure the sustainability ofthe recovery. Finally, the Government hopes to agree with the IMF on a Stand-by Arrangementby early 1995.

- 4 -

B. IDA'S EMERGENCY ASSISYANCE STRATEGY

12. IDA's assistance strategy for Haiti for the next twelve to eighteen months aims tosupport the Government in: (i) providing basic goods and services to meet urgent needs; (ii)rehabilitating priority social and economic infrastructure; (iii) establishing the context for anadequate macroeconomic and incentive framework; (iv) initiating medium-term reforms withemphasis on public sector modernization, poverty alleviation and environmental restoration; and(v) coordinating the efforts of the international donor community to ensure adequate fmancingwith an appropriate focus on Haiti's priority needs. To implement this strategy, IDA will: (i)provide finance for critical imports through the EERC; (ii) modify its ongoing portfolio andredesign a roads project currently under preparation, with substantial support for technicalassistance; (iii) pursue an intensive policy dialogue, to be supported by a proposed StructuralAdjustment Credit in FY96; (iv) prepare selected economic and sector work and lendingoperations; and (v) support donor coordination.

13. The EERC. The EERC of US$40 million equivalent is a key component of IDA'sassistance strategy for Haiti. The credit will fmance emergency unports to help reactivate theeconomy and to give an immediate stimulus to economic growth. It will be essential to providethe funds required to supply basic goods and services under the umbrella of the Program.Preparation of the EERC has been supported by a Japanese PHRD Fund Grant of US$502,000equivalent. The EERC will be complemented by modifications of IDA's portfolio.

14. Portfolio Modifications. IDA is inthe process of modifying its ongoing project Box I; IAsuportfolio to target resources to essentialrecovery activities (Annex 1). Since the coup App edC U" O A td'etat and Haiti's falling into arrears in . millionSeptember 1991, there have been no Ecnomic aind Socil Fund 10.77disbursements under IDA's ongoing credits, eahh Heft 30 Jand project activities have by and large s Recovery 11.ceased. The present portfolio includes over P w V 26.9 -US$104 million of undisbursed funds from Water ) 2Lsix ongoing projects (Box 1), comprising: :04J6Economic and Sodal Fund, designed toaddress basic economic and social . Ws(S)development needs through NGOs and othergrass root organizations; First Health, EERC 40.O0designed to improve essential health services, Road Mainto dQJ.including epidemic control measures; 8000ndustrial Recovery and Development,

designed to provide technical and financialassistance to private, mosdy small- and medium-sized industrial enterprises; Power V, designedto rehabilitate generation, tranmssion and distribution services; Plort-au-Prince Water Supply,designed to increase water production and delivery capacity; and Transport VII, designed to

- 5 -

address seleced bottlenecks in road and water transport. The focus of the portfoliomodifications will be to advance and strengthen those project components which addressemergency needs identified under the Program. The modifications will also include substntlprovision of technical assstance to strengthen the very limited absorptive capacity of Haitianinstituions. Supervision missions have initiated discussions with the Government to reactivatethe six projects and assess the extent to which they require adjustments. It is expected that allprojects will resume implementation in early 1995. No further legislative approval will likelybe required to reactivate the six projects.

15. Redesign of the Roads Project Under Preparation. IDA will also redesign one projectunder preparation at the time of the coup d'etat. The Roads Maintenance and RehabilitationCredit of about US$38 million was designed to rehabilitate and support maintenance of the mainroad network. It is being reappraised and is expected to be presented to the Board this fiscalyear. Co-financing from the EC, IDB and KfVW is anticipated. The project is expected to havea significant employment generating impact, and thus forms an integral part of the emergencyrecovery effort.

16. Medium-term Assstace Program. IDA is also in the process of formulating itsmedium-term assistance program. It envisages that above interventions will be followed-upduring FY96-98 by selected economic and sector work and lending operations with emphasis onpolicy reform and poverty alleviation. IDA's proposed economic and sector work includes:support to the Govermnent for the preparation of a Policy Framework outlining the county'sdevelopment strategy; and a basic Poverty Asment. From the onset, IDA has been engagedin an intensive policy dialogue with the Haitian authorites and it is assistig in the formulationof short- and medium-term policy reforms.

17. Subject to further consultation with the Govermnent, IDA's proposed lending operationsinclude a Structural Adjustment Credit in FY96 to support the implementation of medium-termpolicy reforms identified in the policy letter; a follow-up adjustment operation in FY97-98with focus on public sector reform; and selected sector investment operations, addressingpoverty and enviromental concerns. Projects will be selective in recognition of Haiti's limitedabsorptive capacity and of the fact that other donors, in parcular the IDB, are expected todeploy signficant financial and technical assistance resources over the coming years. The initialallocations requested to carry out IDA's proposed lending program amount to US$75 million peryear on average during FY95-98. Finally, the Government has requested IFC assistance for theprivatization or restructuring of public enwprises. The World Bank Group's medium-termCountry Assistance Strategy, which will elaborate on these points, will be presented in thecontext of the proposed Strucural Adjustment Credit.

18. Donor Coordination. Donor coordination continues to be an essendal component ofIDA's assistance strategy. A principal forum for donor coordination is the Consultative Group(CG) meeting. A first, informal donors meeting took place in August 1994, in Paris, to planfor donor activities in view of the anticipated resoludon of Haiti's politcal crisis. As a resultof this meeing, a multi-agency mission visited Haiti in November 1994, to assist the

-6 -

Government in up-dating the Program. The mission concluded with a local donor meetingsponsored by IDB. A CG meeting to discuss the technical assistance and financing requirementsand sources for the Program is scheduled for end-Janup i 1995 in Paris. At the same time, localdonor meetings will be held on a regular basis in Haiti.

C. THE PROGRAM

19. Program Objectives andDescription. The Program supported by the Box 2: Program Finadng RequirezmsEERC aims to provide urgently neededassistance to sustain Haiti's economy over the Area costnext twelve to eighteen months, and initiate (US$ million)the economic recovery process. It was 8 OfadymektS Support 1300identified in June 1993 in auicipation of apolitical resolution of Haiti's constitutional Sector Reabton 23.1crisis and re-validated in November 1994 by Agriulture . 31.9the constitutional Government in close - dusty and Pinme 29.4collaboration with IDA, IDB, IMF, Rer 45-17Bspecialized agencies of the United Nations, 8.5and USAID. The design of the Program Urban raftrUcture 10.?reflects the severe emergency in Haiti, which water, Sanitadon, and Waste 16A.had a devastating effect on all sectors of Mealth and Nuttion - 49.1society and economy. The Program comprises 25.9balance of payments and budgetary support, 30civil works and technical assistance toimprove social conditions, createemployment, rehabilitate the economic and To --.social infrastructure, and restore basicGovernment functions (Box 2). It is national () .tO d:in scope, covers all sectors of the economy, a or Otu b esand supports both private and publicactivities. Reflecting the pressing needs inHaiti, the Program is estimated to cost aboutUS$402 million. This estimate is preliminary and may change slighdy as the Program is furtherassessed. In particular, the Program has not yet taken into account the needs arising from thedamage caused by the recent tropical storm Gordon. In addition to the Program, Haiti isseeking assistance amounting to about US$261 million for: governance ($79 million),humanitarian relief ($100 million), and clearance of arrears to the multilateral agencies (US$82million by end-1994).

20. Balance of Payments Support. General balance of payments and budgetary support isrequired to finance debt service payments, oil imports, and other goods and services required

- 7 -

to restore basic Government functions. The initial support is estimated to amount to US$10-15million per month, and is expected to decrease as exports pick up and the Government's capacityto mobilize revenue increases.

21. Sector Rehabilitation. A large number of activities to rehabilitate the various sectorsof the economy have been identified, including the following key areas:

(a) Agriculture: (i) rehabilitation of productive infrastructure (feeder roads andirrigation); (ii) anti-erosion measures; (iii) recapitalization of farmers through a revolvingfund; and (iv) seed production and distribution, and supply of other critical inputs.

(b) Industry and Fiance: fimancing of working capital and equipment.

(c) Power: (i) rehabilitation of generation and distribution facilities; (ii) supply ofemergency energy; and (iii) private management for the power company, EdH;

(d) Roads and Bridges: rehabilitation and deferred maintenance of key roads audbridges.

(e) Ports: (i) rehabilitation of port structures; (ii) upgrading of equipment; (iii) dredging;and (iv) private management for the port authority, APN.

(f) Urban In cture: (i) rehabilitation of roads; and (ii) renovation of markets.

(g) Water Supply, Sanitation and Waste: (i) protection of water supply intakes; (ii)rehabilitation of main reservoirs, water supply facilities and distribution networks; (iii)construction of emergency potable water systems; (iv) rehabilitation of main sewers; (v)construction of garbage dumps; and (vi) equipment for garbage collection.

(h) Health and Nutrition: (i) pharmaceutical procurement and distribution; (ii)prevention of cholera and other tansmittable diseases; (iii) rehabilitation of health carefacilities; (iv) provision of health services; and (v) nutritional assistance.

(i) Education: (i) school rehabilitation; (ii) provision of text books; (iii) teacher training;and (iv) stipends for students.

(I) Environment: restoration of protected areas and of green areas in cities.

Sector strategies and inter entions are described in detail in the October 1993 Joint MissionReport on an Emergency Economic Recovery Program and the November 1994 Draft Up-dateof the Emergency Economic Recovery Program (available upon request). As the Program isimplemented, the proposed activities will have to be reviewed and possibly modified in view ofchanging needs and the country's absorptive capacity.

-8 -

22. Technical Assistance. The provision of technical assistance will be an integral part ofthe Program, to address the severe weakness of Haitian institutions and increase the country'svery limited absorptive capacity. In addition to project-specific technical assistance, support willbe required to: (I) facilitate implementation of the Program; (ii) strengthen macroeconomicmanagement; and (iii) design policy reforms to ensure the sustainability of the recovery.Support for Program implementation will be targeted toward financing an emergencyimplementation unit and institutional strengthening of key sector ministries. Support forstrengthening macroeconomic management will focus on key positions and tasks in: the Ministryof Finance (fiscal policy, budgeting, and revenue collection), the Ministry of Planning (publicsector investment program), and the Central Bank (monetary policies and instruments, and banksupervision). Finally, technical assistance will also serve to design policy reforms, particularlyin the areas of public sector refonm and privatization.

23. Pogram Implementation. The Program will be implemented over a twelve to eighteen-month period through existing channels, the revitalized Economic and Social Fund, and anEmergency Implementtion Unit (EliU) linked to the Prime Minister's office. The EIU consistsof a Stering Committee chaired by the Prime Minister and a Cental Coordination Unit (CCU)comprising a Directorate and three units for financial administration, procurement anddisbursement, and sector issu, reectively. Independent auditors will be recruited. APresidential decree to establish the EIU has already been drafted and is currently beingprocessed.

24. The Prime Minister, supported by the other members of the Steering Committee, willprovide general oversight of the Program. The Steerng Committee will also include theMinisters of Finance and Planning and the Governor of the Central Bank. It will lay out broadpolicy guidelines for the implementation of the Program and also lay the ground for a medium-term policy framework. It will invite sector ministers to participate in its deliberations as issuesarise. The Steering Committee, the CCU, and donors will meet periodically to review progress.A mid-term review of the Program will be carried out in June 1995.

25. Within the EIU, the CCU will be responsible for day-o-day management of Programactivities. The CCU will: (i) be granted technical, administrative, economic, and financialautonomy satisfactory to IDA; and (ii) be exempt from the mles normally applicable to publicadministation, particularly in matters regarding personnel recruitment, procurement, andbudgetary management. It will be headed by a Director General appointed by the PrimeMinister in consultation with IDA and IDB. The Director General will be assisted by a foreignadvisor who will also liaise with donors. The Directorate will be able to draw on the servicesof experts in fmancial admintration, prourement and disbursement, and of specialized stafffor key sectors. The CCU will also be able to draw on technical assistance includingenvironmental advisory services funded by UNDP and other donors.

26. To the extent possible, activities will be executed through exising channels. To facilitateexecution, technical assistance will be provided to key sector ministries and the public electricityand water authorities. In most rehabilitation activities, NGOs and community-based

-9 -

organizations are expected to play an important role in the implementation. In particular, smallscale social sector and poverty alleviation projects related to the Program will be channeledprimarily through the Energency and Social Fund for execution by NGOs and community-basedorganizations. Execution of some minor works will -also be entrusted to municipalities.Humanitarian aid will continue to be provided through the existing channels, that is mainlythrough NGOs.

27. Estimated Program Costs andFinacing Plan. Indicative fmancing Box 3: Program Fucng Sourcesrequirements for the Program are estimated atUS$402 million, including US$130 million of Sew" Aiousebalance of payments and budgetary support, (US$ million)US$238 million for sector rehabilitation and M l 22Q8US$34 million for technical assistance. The EC 83.6Program will be funded in parallel from: (i) IDA (imcl. EERC) 59.0the EERC of US$40 million; (ii) other IDB 67.0disbursements from IDA's portfolio oriented N A l1.2to recovery activities of US$19 million; (iii) 3I - -. oIDB balance of payments support of US$25 C -mimlion from an emergency hybrid credit; (iv) 1---reallocations of the existing IDB portfolio and Gemw-- 6.0othe sector components of the emergency Swid .8hybrid credit of US$37 million; (v) an IDB United .z.s 69.49technical assistance grant of US$5 million;and (vi) assistance of US$215 million from - -- --- : :other donors, including the EC, specialized Unhf -61 -agencies of the United Nations, Canada, ___--_-____ -_-_ -____France, Germany, Switzerland, and theUnited States. Financing of US$62 million has still to be identified, and some fimding is alsosubject to final agency approval (Box 3). Program costs by sector and sources of funding areshown in more detail in Schedule A.

D. THE PROPOSED CREDIT

28. Project Objective and Description. The objective of the EERC is to provide urgentlyneeded balance of payments support to reactivate Haiti's economy and initiate the economicrecovery process in the context of the overall Program. Specifically, the US$40 million EERCis designed as a quick-disbursing emergency operation which wil finance the CIF value ofimports based on a positive list identified as necessary to the Program (Schedule B). Theimports will support emergency activities in all sectors covered by the Program, as describedin paras. 19-22 above. Within the confines of the positive list, EERC funding will not beearmarked for specific sectors or activities, and wil fmance imports of consumable or capitalgoods by both public and private entities.

- 10-

29. Project Implemientation. The EERC will be executed by the CCU under supervisionof the Steering Committee, as described in paras. 23-27 above. Imports of eligible goods willbe undertaken by public and private entities according to their demand for such goods andfollowing the procedures set out below.

30. Prociurement and Disbursement. The EERC will fmance 100 percent of direct imports;covering the CIF value of goods imported from IDA member countries based on the positive listof imports identified as necessary to the Program. A procurement and disbursement expert,responsible for gathering documentation for eligible imports, has already been hired to workwithin the CCU.

31. As discussed in pam. 19 above, the Program was originally identified in June 1993.Program implementaton was then stalled by the collapse of the Governor's Island Agreementwhich resulted in the United Nations Embargo effected on October 18, 1993. During that four-month period, a significant volume of imports were brought into the country which met theeligibility criteria for financing under the EERC. In view of these circumstances, the EERC willpermit exceptional retroactive financing of US$20 million (50 percent of the credit amount) foreligible imports effected: (i) during the period of June 4, 1993 to October 18, 1993 (from theidentification of the Program to the taking effect of the United Nations Embargo); and (ii) afterOctober 17, 1994 (the date of the lifting of the United Nations Embargo). Imports effectedduring the period of the embargo and imports financed through other development assistaneprograms will not be eligible for finacing.

32. The following procurement procedures, agreed upon with the Borrower duringnegotiations, will be applied:

(a) goods imported by public and private sector entities valued at US$3 millionequivalent or more would be procured through international competitive bidding (ICB)procedures, using IDA's standard bidding documents, in accordance with IDA guidelines.For petroleum and commodity imports, competitive procedures satisfactory to IDA willapply. For petroleum imports being supplied under existng contracts, relevantexpenditures would qualify for reimbursement under the credit in an amount not toexceed on a per unit basis the reference average FOB price published in the Platt'sOilgram for the US Gulf Coast or the Caribbean, as applicable, on the date of loadingand adjused for the type and quality of crude or product. In some cases, directcontracting will be acceptable, pursuant to the guidelines; and

(b) imports valued at below US$3 million equivalent would be procured as follows: (i)by public sector entities, in accordance with the procedures applicable to them asgovemed by local legislation, provided that such procedures are acceptable to IDA; and(ii) by private importers, in accordance with established commercial practices, includingprice quotations from at least two eligible suppliers, except where direct contacting maybe appropriate under IDA procurement guidelines.

- 11 -

33. Disbursements of the EERC for contracts valued in excess of US$1 million equivalentwill be based on full documentation (contracts, orders, invoices, bills receipts) where available,or simplified documentation (customs certificates). The appraisal mission determined thatcustoms certificates in Haiti are acceptable to IDA. For contracts of US$1 million equivalentor below, disbursements will be based on statement of expenditures (SOE) to be prepared from-the documentation as described above. These documents will be stored in Haiti and madeavailable for fuure inspection by IDA supervision missions as well as for audit purposes.

34. Audits. The CCU will maintain records and accounts of all transactions relating to theEERC. The CCU will hire independent auditing services to assist in the preparation andexecution of annual audits, to be furnished to IDA within four months after the end of Haiti'sfiscal year.

35. Reporting and Monitoring. The CCU will be responsible for monitoring projectprogress and for preparing quarterly progress reports, satisfactory to IDA, based on thesubmissions from the sector staff and the Economic and Social Fund. The reports will bereviewed by the Steering Committee, submitted to IDA and other donors within 30 days afterthe end of each quarter, and subsequently discussed and reviewed at joint meetings. Theprogress reports will be issued starting April 30, 1995. A mid-term review will be carried outin June 1995. A project completion report for the EERC will be prepared within six monthsafter the closing of the Credit.

36. Lessons Learned from Other Emergency Operations. The current crisis in Haiti iscomparable to other emergency situations involving war or civil distutbances for which theWorld Bank Group has provided support through emergency recovery operations followingOperational Directive 8.50. The lessons learned from these operations suggest the need for: (i)simple project design; (ii) strong govermment commitment; (iii) very close communicationbetween tie Borrower and the World Bank Group; (iv) simplified procurement and disbursementprocedures; and (v) maximum use of exisfing functioning institutions. Although emergencyrecovery operations should be designed with some view to long-term development objectives,reconstruction itself should not be seen as a mechanism to achieve those objectives. Countriessuffering from disasters have limited insttutional and absorptive capacity, and the focus needsto be on the most immediate needs. These lessons are incorporated in the design of theproposed operation, complemented by rstrucrig of the existng portfolio to address basicemergency needs in ifstucture rehabilitation, social sectrs, and employment creation.Medim-term development issues would be addressed in follow-up operations, once the mostcritical emergency needs are met.

37. Rationale for IDA Involvement. The restoration of the constitutional Govemmentprovides Haiti with a unique opportmity to reconstuct its economy, but the country will dependheavily on external assistance in this effort. In this context, IDA involvement will facilitaterapid donor assistance. Apart from providing an important financial contribution through theEERC, IDA involvement would: (i) bring to bear the World Bank Groups' experience in otheremergency operations in the implementation of the Program; (ii) provide necessary technical

- 12 -

expertise; (iii) provide a framework for donor coordination; and (iv) serve as a catalyst for otherdonor contributions.

38. Agreed Actions. The Government has agreed to critical actions prior to Crediteffectiveness. These relate to project management to ensure that the EERC achieves its objectivein the context of a successful Program. Specifically, the Government will:

(a) establish the CCU and the cabinet-level Steering Committee chaired by the PrimeMinister (see para. 24); and

(b) appoint a Director General and key staff for the CCU (see para. 25).

The Govermnent also agreed to:

(c) grant the CCU technical, administative and financial autonomy, and certainexemptions from the rules normally applicable to the public administration; and

(d) conduct a mid-term review of the Program in June 1995 based upon the quarterlyprogress reports.

The Government has expressed its commitment to ensure the sustainability of the recovery effortsupported by the Program through sound economic management.

39. Environmental Aspects. As a quick-disbursing operation, the EERC has anenvironmental rating of C and requires no special environmental assessment. In line withstandard IDA practices, eligible imports exclude enviromnentally hazardous materials.Environmental arrangements under ongoing IDA operations supporting the Program remain ineffect, and the Program will be able to draw on environmental advisory services funded byUNDP as needs arise.

40. Project Benefits. The benefits of the EERC, in the context of the Program, includeproviding timely finance for critical imports for the reconstruction effort and for restoring basicGovermnent services. Because of its flexible, quick-disbursing natre, it will complementassistance earmarked for specific investment projects, supporting imports of consumable orcapital goods by both public and private entities. Thus, the EERC will contibute to Haiti'sstability, and help to halt the decline in economic growth and the deterioration of socialindicators. In addition, through this operation, IDA will coordinate with other donors, thusenhancing the overall impact of the reconstruetion effort. While the benefits of the operationcannot be quantified, they are expected to be substantial.

41. Project Risks. The risks for the EERC center on political instability in Haiti. Theserisks must be judged as high at this time. While the expectations of the population regardingthe improvement of the living conditions are understandably high, the financial and institionalcapacity of the Govermment to bring about these improvements is extremely weak. More

- 13 -

specifically, there are three main risks to consider. First, donor assistance for the Program maynot be forthcoming on the scale expected or in a dmely manner. Second, the overall assistanceprogram may not be managed effectively due to the country's debilitated institutional capacity.Third, in some areas, policy reforms necessitated by the country's severe fiscal constraints afterthree years of economic mismanagement could have high social costs and undermine theGovernment's popular support. IDA will attempt to address these risks in the context of theProgram through: (i) close coordination with the donor community; (ii) substantial technicalassistance; and (iii) speedy processing of the proposed operation and restructuring of its existingproject portfolio to address the population's basic emergency needs. In the event of any shortfallin expcted technical assistance from other donors, IDA will further seek to assist theGovernment through reallocation of funds under ongoing sector operations. Finally, since thesustinability of the Program will ultmtely depend on the speed with which a medium-termeconomic program can be put in place, IDA will assist the Government in the design of such aprogram wbich would then be supported by the proposed follow-up Structural Adjustment Creditand future investment projects.

E. RECOMMENDATION

42. 1 am satisfied that the proposed Credit of SDR26.8 million (US$40 million equivalent)would comply with the Articles of Agreement of the Association and recommend that theExecutive Directors approve it.

Lewis T. PrestonPresident

Attachments

Washington, D.C.November 30, 1994

- 14 -

Schedule APage 1 of 2

Table 1: EMERGENCY ECONOMIC RECOVERY PROGRAM ()FINANCING REQUIREMENTS

(US$ million)

AREA COST--Rehab. Tech.Asst. Totl

BALANCE OF PAYMENTS -.- -.- 130.0

SECTOR COMPONENTS 238.1 34.3 272.4

Production 61.2 10.0 71.2AgriculUre 31.9 4.5 36.4Industry and Finance 29.4 5.5 34.9

Energy 45.8 0.8 46.5

Infrastructure 53.1 5.3 58.4Roads and Bridges 17.8 1.1 18.9Ports 8.5 0.6 9.1Urban 10.7 2.0 12.7Water Supply and Sanitation 16.1 1.6 17.7

Sodal Sectors 75.0 11.9 86.9Health and Nutrition 49.1 8.2 57.3Education 25.9 3.7 29.6

Envroment *) 3.0 1.4 4.4

Implementation/Management -.- 5.0 5.0

TOTAL 238.1 34.3 402.4

() Exingfianng for govemance, hmnwdtananrelef and clearance of arrears.

I**) ntervenons to address environmenal needsare abo ied in other sectors.

- 15 -

Schedule APage 2 of 2

Table 2: EMERGENCY ECONOMUC RECOVERY PROGRAM ()FINANCING SOURCES

(US$ million)

SOURCE QUICK-DISBURSING (* HAB. TECH.ASST. TOTAL

Multilateral Donors 95.3 104.9 20.5 220.8EC 30.3 50.9 2.3 83.6IDA (incl. EERC) 40.0 17.0 2.0 59.0T1DB 25.0 37.0 5.0 67.0PAHO 0.0 0.0 3.9 3.9UNDP 0.0 0.0 4.5 4.5UNICEF 0.0 0.0 2.8 2.8

Bilateral Donors 53.8 51.9 14.4 10.0Canada 3.7 15.6 1.4 20.7France 1.4 12.0 5.8 19.2Germany 0.0 6.0 0.0 6.0Switzerland 3.7 1.1 0.0 4.8United States 45.0 17.2 7.2 69.4

TOTAL 149.1 156.8 34.9 340.8

Unidentified (19-1) 81.3 (0.6) 61.6

(*) Excluding financing for governance, humaniarianrelief and clearance of arrears.

(**N Not earmared for specific sectors, activties or goods.Can be directed io any secor reWbiliation activities.

- 16-

Schedule BPage 1 of 6


Positive List of Imports

SECTOR | HARMONIZED CODE

AGRICULTURE

Seeds 12.01-07; 12.12-14

Seed processing and packaging equipment 84.19; 84.22-28

Processing equipment and materials for agricultural 84.24-27; 84.32-38products including storage, drying, milling, canning, andother processing and extraction equipment and machinery.

Packaging equipment, material and machinery. 84.32-38

Phytosanitary products, insecticides, fungicides, fiumigation 38.08-11products.

Agricultural equipment and machinery, including trucks and 84.32-35; 87.01-16heavy earth moving equipment; and spare parts.

Tools, including hand tools 82.01-15

Plastic products related to agricultural production, includig 39.01-26bags, specialized films, packaging material and containers.

Testing and production control equipment. 90.15-18; 90.22-27;90.31-33

Ferdlizers 31.01-05

INDUSTRY

Utility and four wheel drive vehicles and spares 87.01-09; 87.16

Heavy machinery, boilers and mechanical machines 84.02-85

Tractors 87.01; 87.04-09; 87.16

Tools, including hand tools 82.01-15

Miscellaneous 95.01-08; 96.01-18

- 17 -


HAITIEMERGENCY ECONOMIC RECOVERY CREDfT


I SECTOR I HARMONIZED CODE

POWVER AND ENERGY

Gasoline, fuel-oil, gas-oil and lubricants 27.10.00

Asphalt 27.08

Tar 27.14-15

Other derivatives 27.00.00

Turbines and parts 84.02-06

Equipment for generation and transmission of energy 85.01-12; 85.23-40

ROADS AND BRIDGES

Heavy machinery and parts 84.13-14; 84.25-31

Structures 73.08

Concrete Iron 72.06-29

Signalization equipment 85.30

Topographic, geotechnic, hydraulic and laboratory 90.14-15; 90.22;equipment 90.24-33

Tools 82.01-15

Truck balance 84.23

PORTS AND SEA TRANSPORT

Equipment and material for ports and port installation 89.05-08

Material and consumable for signalization 85.30-31

Wharf protection material 40.16-94; 84.13; 89.07

Boats and boat equipment 89.01-08

- 18-



Poitive List of Imports

SECTOR -HARMONIED CODE

WATER SUPPLY, SANITATION AND WASTE

Pumps 84.13

Drains, pipes 39.17-18; 69.03-11;73.18

Hydrants, valves and plumbing accessories 73.04-07; 74.18; 76.08

Garbage collection trucks and equipment 87.05-09

Electric control panels 85.35-38

Fencing material 73.12-14

Electro-mechanic equipment 85.35-38

URBAN AND GENNERAL 1NGFRASTRUCTURE

Steel, aluminum and metal products for construction and 73.01-18; 73.26; 76.01-mnainteunance 16

Cement 25.23

Wood 44.03-21

Pipes, tubes and plumbing equipment 39.17-18; 39.22; 74.11-18; 83.01-11

Ceramic Products 69.01-14

HEALTH AND NUTRITION

Flour 11.01-09

Sugar and sugar products 17.01-04

Oils 15.01-22

Cereals 10.01-08

- 19 -


HAMIEMERGENCY ECONOMIC RECOVERY CREDIT

Positive LAt of hnports

SECTOR- HARMONIZED CODE

HEALTH AND NUTRiTION (cont.)

Rice 10.06

Food preparatives 21.01-06

Residues from the food industries 23.01-09

Soya beans 12.01

Dairy products 04.01-10

Fish 03.02-07

Pharmaceutical products 29.16; 30.01-06

Family planning items 30.06.60; 40.14; 48.18

Medical and laboratory equipment 90.18-22; 94.02

Traning and teaching material 40.15; 48.20; 49.01-11

EDUCATION

School building equipment and matenal 68.09-10; 69.01-10;73.01-18

School furniture 94.03; 96.08-12

Teaching materials 49.01-11

OTHER IMPORTS

CHEMICAL PRODUCTS 28.01-51; 29.01-42;38.01-23

INK, PIGMENTS AND PAINTS 32.01-15

ESSENTIAL OILS, SOAP, WAXES, GLUES AND 33.01-07; 34.01-07;ENZYMES 35.01-07

-20-


HAMfEMERGENCY ECONOMIC RECOVERY CREDIT


I SECTOR | HARMONIZED CODE

OTHER IMPORTS (cont.)

PACKING MATERIALS, PLASTICS AND RUBBER 39.00; 40.01-17; 48.00

LEATHER GOODS 41.01-11; 42.01-06;

PULP, PAPER, WOOD AND WOOD PRODUCTS 44.00; 47.00; 48.01-23

TEXTILES

Silk and wool 50.01-07; 51.01-12

Cotton 52.01-12

Other natural and synthetic fibers 53.01-11; 54.01-08;55.01-16

CLOTH AND OTHER RAW MATERIAL 56.01-09; 57.01-05;58.01-11; 59.01-11

FABRICS, APPAREL AND CLOTHING ACCESSORIES 60.01-04; 61.01-17;62.01-17; 63.01-10;64.01-06

GLASS 70.01-20

REFRIGERATION EQUIPMENT 84.18

COMMUNICATIONS AND INFORMATION

Computers and accessories 84.69-73

Radio-telephones, telephc..; switches and other 85.25-27communication equipment and systems

- 21 -


HAMfIEMERGENCY ECONOMIC RECOVERY CREDIT

Estimated IDA Disbursements by Fiscal Year(US$ million)

_~~__ ___ FY96.

IDA Fiscal Year Y95 FY96

Annual 30 10

CumL ulative | 30 [ 40

- 22 -

Scbedul CPage 1 of 1


Timeable of Key Prject Processing Evenb

(a) Time taken to prepare: Eighteen months(tme elapsed since ide aon)

(b) Prepared by: Goverment and IDA staff

(c) Appraisal mlssion departure: September 11, 1993Post-appraisal mission departe: November 6, 1994

(d) Negotiations: November 15-18, 1994

(e) Plwned date of effectiveness: Jamnary 31, 1995

(f) Expected date of completon: December 31, 1995

-23 -

Schedule DPage 1 of 1


STATUS OF IDA OPERATIONS IN HAiTl

Statement of IBRD Loans and IDA Credits(as of September 30, 1994)

Nim3e Equv.-Amount (Les Cancelions)

Credit No FY Borrower Purpose IBRD IDA Undtmrsed

One (1) Loan and Twenty-four (24) Credits fully disbursed 2.60 273.43 0.00

1756-HA 1987 Haiti Transport VI 20.00 3.73

2052-HA 1989 Haiti Port-au-Prince Water 20.00 21.21

2053-HA 1989 Haiti Power V 24.00 26.93

2071-HA 1989 Haiti IAdutra Recovery 11.40 11.42

2085-HA 1990 Haiti First Health 28.20 30.10

2205-HA 1991 Haiti Economic and Social Fund 11.30 10.77

Total 2.60 388.33 104.16of which repaid 2k 5-SQ

Total held 0.00 382.83

HAMf

EMERGENCY ECONOMIC RECOVERY CREDIT

- ANNEX 1

IDA'S ONGOING PORTFOLIO

Ann-ex 1Page 1 of 7

HAMII: IDA'S ONGOING PORTFOLIOSUMMARY

Credit 1756-HA: Transport VU

* Credit Amount: US$20.OOM * Approval Date: 02/03/87* Disbursed: US$18.66M 0 Effective Date: 03/25/87* Undisbursed: US$3.37M * Closing Date: 06/30/92 (ext. in process)

Credit 2052-HA: Port-au-Prince Water Supply

* Credit Amount: US$20.OOM * Approval Date: 06/27/89* Disbursed: US$0.84M O Effective Date: 02114190* Undisbursed: US$21.21M * Closing Date: 06/30/94 (ext. in process)

Credit 2053-HA: Power V

i Credit Amount: US$24.OOM * Approval Date: 06/27/89- Disbursed: US$0.13M * Effective Date: 01/16190i Undisbursed: US$26.93M * Closing Date: 12/31/95

Credit 2071-HA: Industial Recovery and Development

e Credit Amount: US$11.40M * Approval Date: 12/05/89* Disbursed: US$1.75M 0 Effective Date: 08/02/90* Undisbursed: US$11.42M * Closing Date: 06/30/95

Credit 2085-HA: First Health Project

* Credit Amount: US$28.20M * Approval Date: 01/16/90* Disbursed: US$2.03M * Effective Date: 06120/90* Undisbursed: US$30.10M * Closing Date: 06/30/96

Credit 2205-IA: Economic and Soial Fund

* Credit Amount: US$11.30M * Approval Date: 01/17/91* Disbursed: US$0.67M 0 Effective Date: 05/21/91* Undisbursed: US$10.77M * Closing Date: 06/30/95

Annex 1Page 2 of 7

Credit 1756&HATransport VII

* Credit Amount: US$20.OOM * Approval Date: 02103/87* Disbursed: US$18.66M 0 Effective Date: 03/25/87* Undisbursed: US$3.37M * Closing Date: 06130/92 (ext. in process)

Borrower Republic of Haiti

Executing Agency The Directorate of Transport of the Ministry of Public Works, Transportand Communications; the National Port Authority (APN) of the Ministryof Economy and Finance; and the Maritime and Navigational Service ofHaiti (SEMANAH).

Beneficiaries The nual population, from improved road access and coastal shippiDgservices.

Project Objecftfves The objectives of the proposed project are the improvement anddevelopment of roads and coastal shipping in support of agriculture andindustry, and contined sheg of sector institutions. The projectalso aims at setting realistic parameters for the Government's transportsector investments.

Project Description The project inchldes: (a) implementation of Phase I1 of the bridge andculvert rehabilitation program strted under the Sixth Highway Project; (b)construcdon of two major bridges at Fer-a-Cheval and Guayamouc; (c)completion of road rehabilitaton on the Gonaives-Cap Haitien road; (d)technical assistane to the National Permanent Roads haintenanceDepartmen, including improved labor-based road construcdon; (e)provision to SEMANAH of technical assistance, training, and boatinspection facilities; and (f) provision to APN of funds for engineeringstudies and detailed engineering for remedial works at the Port of Jelmie.

Annex 1Page 3 of 7

Credit 2052-HAPort-au-Prince Water Supply

* Credit Amount: US$20.OOM * Approval Date: 06/27/89* Disbursed: US$0.84M 0 Effective Date: 02/14/90* Undisbursed: US$21.21M * Closing Date: 06/30/94 (ext. in process)


Executing Agency Central Autonome Metropolitaine d'Eau Potable (CAMEP)

Benefiiaries The project will provide identifiable benefits to about 425,000 people,including some 50,000 benefiting from new water connections, some175,000 benefiting from availability of service through public standpipesand willing neighbors, and some 200,000 benefiting from eliminated orsubstantially reduced rationing. Some 500 primarily industrial enterpriseswill also benefit from decreased ratoning.

Project Objectives The objectives of the proposed project are to: assist CAMEP in its effortsto become an operationally efficient and financially viable entity; improvethe supply of water and expand service coverage in Port-au-Prince,benefiting a populaton of about 425,000; develop a plan for improvingsanitary conditions in Port-au-Prince through the intoduction ofappropriate and affordable sanitation technology; and define a strategy formore efficient development of the water sector with emphasis on the needsof the poor.

Project Description The project includes: (a).,' institutional development program comprisingtechnical assistance and training to improve CAMEP's performance; (b)drilling of wells to increase water production capacity by 20,000 cubicmeters per day; (c) expansion of distribution facilities; (d) rehabilitationor replacement of obsolete water distribution facilities; (e) engineeringservices to complete final designs, supervise construction and assist indeveloping future investment plans; and (f) preparation of a plan for theappropriate disposal of waste water in Port-au-Prince.

Annex 1Page 4 of ?

Credit 2053-RAPower V

* Credit Amount: US$24.OOM * Approval Date: 06127/89* Disbursed: US$0.13M 0 Effective Date: 01/16/90* Undisbursed: US$26.93M * Closing Date: 12/31195


Executing Agency Electricite de Haiti (EdH)

Beneficiaries The cities of Hinche and Thomonde, through supplying electricity; and thegeneral population, through improving the efficiency of EdH.

Project Objectives The objective of the project is to provide power investments which areurgently needed to ensre a reliable supply of power necessary foreconomic growth, and in particular, for industdal and commercialactivities. The additional capacity to be provided will avoid the rationingof power that would otherwise become severe. Further, byinterconnecting the cities of Hinche and Thomonde to the main grid, itwould substitute for expensive local diesel generation and thus loweroperating costs. The project would also reduce non-technical losses, andimprove EdH's managerial financial and techical capacity.

Project Description The project includes: (a) insallation of two 20-MW gas turbine generatingunits in Port-au-Prince; (b) constuction of a single-circuit, 42 kn-longsub-transmission line of 23 kv from the Peligre hydro plmt to Hinche; (c)procurement of equipment and tools for maitnance of distributionsystems and the loss-reduction program; (d) preparation of feasiilitrstudies for future medium-speed diesel units; (e) a pre-investment studyto assess the economic merits of a frequency conversion (from 50 Hz to60 Hz) of the Ciment d'Haiti plant, to serve this plant from EdH's maingrid; (f) s h g of an on-going program to reduce non-technicallosses; and (g) carrying out a program for EdH's insdtionaldevelopment, including the implementation of a taning program.

Annex IPage 5 of 7

Credit 2071-HAIndusti Recovery and Development

* Credit Amount: US$11.40M * Approval Date: 12/05/89* Disbursed: US$1.75M 0 Effective Date: 08/02/90* Undisbursed: US$11.42M ° Closing Date: 06/30/95


Executing Agency Bank of the Republic of Hait and Industrial Development Fund (FDI)

Bendiaries Private industal enrprises

Project Objectives The objective of the project is to provide technical and financial assistaeto: (a) private indusial enterprises that need to restructure in order toadjust to the new enviroment resulting from trade reforms; and to (b)those, primarily small- and medium-sized, enterprises that need financialassistance but no restructuring. Specifically, the project will seek to assistfirms to improve productivity and maintain or increase employment,through financial estcng, changes in or expansion of products and/oractivities, product quality improvements, reorganization of productionprocesses, changes in management structures, and designing of marketingstrategies. In addition, the project aims to strengthen: (i) FDI'smstitutional capability to play a more active role in industial promotion;(ii) the Cental Bank's supervisory and regulatory fumctions; and (iii) theindustrial reguiory framework.

Project Description The project includes: (a) financial and technical assistance to a mmiber ofprivate industrial enterprises being restruured, including financialrestrcturing, improving maketing strategies, and upgrading productquality and production facilities; (b) credit assistance to export-oriented orefficient import-substitution industrial entrprises that need financing butno restucturing; and (c) technical assistance to strengthen the institutionalcapacity of the FDI, financial institutions and the Cental Bank, strengthencustoms adminison, and support ongoing Government efforts toimprove the industrial regulatory framework.

Annex 1Page 6 of 7

Credit 2085-HAFirst Health Project

* Credit Amount: US$28.20M * Approval Date: 01/16/90* Disbursed: US$2.03M * Effective Date: 06/20/90* Undisbursed: US$30.10M * Closing Date: 06130/96


Execuing Agency Ministry of Health and Population

Beneficiaries The project's main benefit would be to extend health service coverage andimprove the health status of up to 2.1 million people in the western healthregion, particularly of mothers and children, and control the spread of twomajor epidemics (AIDS and tuberculosis) nationwide.

Project Objectives The project aims at assisting the Government in improving the countiyAhealth status through selected investments linked to increased efficiencyand effectiveness of expenditures in health. Its specific objectives are: (a)reducing ministerial central administration expenditures by about 359% inreal terms; (b) changing the ratio of salaries to operating expenses from87.5/12.5 to 70/30; (c) implementing improved cost-recovery mechanismsfor medical services and drugs; (d) developing a more coherentinstitutional framework involving the selective strengtening of keymanagement and technical functions, and the development andenforcement of personnel norms and standards; (e) for the population ofthe western health region, reducing maternal and child mortality rates by15% by the end of the third year of the project, and by 40% by the endof the sixth year of the project; and (f) countering the potentiallydevastating effects of the AIDS and tuberculosis epidemics.

Project Description The project activities include to: (a) rationalize the allocation of resourcesfor primary health care within a more coherent institonal framework;(b) implement, in the western health region, a Basic Health ServicesDelivery Model conceived as a framework for all health activities; and (c)support the AIDS medium-term prevention and control program, and thenational tuberculosis control program. The corresponding three keymeasures are: (a) restucturing of the Ministry budget over the projectimplementation period; (b) improving coordination, dialogue andintegration between the private and public sectors; and (c) implemingrecruitment and retirement policies as provided by legal regulations.

Annex 1Page 7 of 7

Credit 2205-HAEconomic and Social Fund

* Credit Amount: US$11.30M * Approval Date: 01/17/91* Disbursed: US$0.67M * Effective Date: 05/21/91* Undisbursed: US$10.77M * Closing Date: 06/30/95


Exeuting Agency Ministry of Economy and Finance, and the Economic and Social Fund

Beneficiaries Target groups in rural and urban poverty reas to be reached throughNGOs, cooperatives and community associations.

Project Objecives The objectives of the project are to: (a) establish the Economic and SocialFund, as a means to responding flexibly and efficiently to the basic needsof the poor through NGOs, cooperatives, community associations andother grass roots organizations; (b) assist the Government to improvehealth, nutrition and education services, and provide physicalinfrastructure and employment opportunities to the poor; (c) provide aneffective channel for critically required donor financing and coordinatedomestic efforts that are curreny fragmented; and (d) strengthen thecapacity of community groups, cooperatives and other grass rootsorganizations in preparing and implementing projects.

Project Description The project consists of a project component and an insdtutionaldevelopment component. The project component (IDA contribution:US$10 million) will address the needs of the poor in health and nutrition,education and physical infastrucue. Financig will be provided for: (a)health and nutrition projects primarily for children, pregnant and lactatingmothers, rehabilitation and construction of primary health care facilities,essential drugs, imnization, construction of small water supply systems,small-scale sewerage systems and latrnes; (b) rehabilitation andconstuction of pre-school centrs and prmary schools, provision ofschool furiture and pedagogic material, literacy and vocational trainingprograms; (c) rural market and social service access to roads and relateddrainage works; and (d) advisory services to participang organizations.The institutional development component (IDA contibution: US$1.3million) will finance administrative and technical assistance to theEconomic and Social Fund, including salaris for selected staff,equipment, consultants' services and operating costs.

HAM


ANNEX 2

POLICY LEITER

HAmI


ANNEX 2

GOVERNMENT'S PROGRAM

A FRAMEWORK FOR A SUSTAINABLE ECONOMIC RECOVERY

RIPUKIQUE OHAM

MINISTEREDE L'ECONOVIE ET DES FINANCES

/~~~~~~~~~~~~~~~ 13 N-Z'1 - oNo .$i9/. 3 3 POT-AUIN LE ................. is

Mr. Lewis T. PrestonPresidentInternational Development AssociationWashington, D.C. 20433

A FRAMEWORK FOR A SUSTAINABLE ECONOMIC RECOVERY

Dear Mr. Preston

1. The Republic of Haiti has suffered through a long period of economic decline andpolitical instability. This period was marked by high inflation, rising poverty and a criticaldeterioration in the ability of the state to provide basic services. On the occasion of thereturn of President Aristide and the restoration of a constitutional government, we have theopportunity to begin anew. Our first and fundamental objective is the restoration of law andorder within the country, the amelioration of social conditions, and the resuscitation of theeconomy in the context of the Emergency Economic Recovery Program (EERP). Once thishas been assured, our economic objectives will focus on policies that will improve thefunctioning of the state, achieve sustainable growth in a stable macroeconomic context andreduce poverty and social inequalities. I would like to take the occasion of this letter tooutline an economic policy framework for the next twelve to eighteen months, designed toensure the sustainability of the economic recovery process supported by the EERP.

EMERGENCY ECONOMIC RECOVERY PROGRAM

2. In 1993, a multi-agency task force, including participation by the IntemationalDevelopment Association (IDA), the Inter-American Development Bank (IDB) and othermultilateral organizations, laid out the basis of our EERP which we are beginning toimplement, taking into account the findings of the recent up-dating mission. This programhas identified about US$394 million of budgetary/balance of payments support, technicalassistance and emergency measures to be carried out over the next twelve to eighteenmonths. It focuses on social programs directed at poverty alleviation, repair of basic

infrastructure, protection of the environment, support for private sector development andrestoration of key central government functions. We estimate quick-disbursing funds of atleast US$130 million will be required during the first year, in order to restore the functionsand services of the central government. A small part of the program, amounting to aboutUS$28 million, is aimed at providing technical assistance to help reorganize the public sector,strengthen economic management and assist in carrying out the EERP. Of the remainingUS$236 million for sectoral programs, nearly two-thirds involve expenditures for laborintensive works. In the social sectors, our activities will be aimed at improving the supplyof basic supplies, such as drugs and school books, increased staff training, and targetedprograms of nutrition and maternal and child health. In infrastructure, our objective is torehabilitate existing infrastructure which has been neglected in the past, including roads,water supply, ports and electric power. In order to carry out the EERP as expeditiously aspossible, an emergency implementation unit (EIU) will be established linked to the officeof the Prime Minister. The Prime Minister wil provide general oversight of the EERP,supported by a Steering Committee including the Ministers of Finance and Planning, andthe Governor of the Central Bank. Also, existing sectoral implementation arrangements willbe utilized, and all sectors of the Civil Society will be invited to participate in theimplementation process.

3. We hope that this program will attract support of multilateral and bilateral donors.The proposed Emergency Economic Recovery Credits of IDA and IDB will be importantcontributions which will permit us to finance critical imports for the private and public sectorunder the umbrella of the EERP. We intend to make a full report on progress on theEERP, and discuss additional financing needs, during the forthcoming Consultative Groupmeeting in early 1995.

4. In addition to the emergency measures described above, the Government will needexternal support in the areas of governance and humanitarian assistance, as well as fundsto clear Haiti's arrears. To clear arrears with the multilateral lenders, a support groupmeeting chaired by the U.S. Treasury has been convened, and a financing plan for theclearance of these arrears has been established. The Govemment of Haiti has allocatedUS$13 million of its own funds to this effort, and we expect the clearance of arrears to beeffected soon.

MACROECONOMIC STABILITY

5. In order to ensure a stable and productive environment for the private sector, we aretaking steps necessary to stabilize the economy. Working with the IMF, we are identifyingmeasures necessary to contain the overall public sector defici. We are also taking steps toreduce monetary growth based on credit by the Central Bank, and expect overall inflationto be substantially reduced in 1995. Ceilings on interest rates will be abolished so as toeffect market determined interest rates on loans. The Government will at the same timeexplore ways to revitalize the system of credit unions and broaden access to credit. We hopeto finalize our overall macroeconomic program in the next few weeks and reach agreementwith the IMF on a new Stand-by Arrangement by early 1995. This agreement will outline

-3.

our objectives for monetary growth, the public sector deficit, and external accounts, withinthe objective of reducing inflation and laying the basis for economic recovery.

THE ROLE OF THE STATE

6. The past decade has seen a marked deterioration in the ability of the state to providebasic services. While public sector employment increased considerably, government revenuesdeclined, resulting in a deterioration of services, particularly in the social sectors. At thesame time, the Government expanded its reach into the productive sectors through publicenterprises, which preempted private investors. We are committed to refocus the role ofthe state on its legitimate functions of prwiding security, justice, basic economicinfrastructure and essential social services targeted at the poor. To do this, we must makesome fundamental changes in the way the state operates.

7. Revenues. Tax evasion, avoidance and corruption have become endemic, and weestimate that the tax to GDP ratio has fallen to 4 percent in 1994, one of the lowest in theworld. We intend to raise this ratio at least to the level of 8 percent of GDP attained in1991. The primary focus will be on tax administration and compliance. First, overduepayments to the Treasury will be collected and steps taken to reduce tax delinquency.Second, the high cost of tax collection, relative to revenues generated, will be reducedthrough budget reallocations, administrative reforms and staff training. Third, in view of thehigh concentration of tax payments on a few entities, we will immediately establish a unitspecializing on the largest taxpayers. This will improve the ability to cross-check fiscalinformation with the customs administration as well as within the internal revenueadministration. Fourth, we want to broaden our tax base, specifically through includingprofessionals. Finally, steps will be taken to eliminate bribery and corruption in tax andcustoms administration.

8. Expenditures. The level of public expenditures has been so eroded by inflation thatthe Government is unable to adequately discharge most of the basic functions that are theproper responsibility of the public sector. Furthermore, the current pattem of publicexpenditures is inappropriate in view of the urgent needs of the social sectors. TheGovernment intends to make major steps to improve delivery of health, nutrition andeducation services. Particular focus will be given to increasing non-salary operating andmaintenance expenditures, including medical supplies and equipment, school textbooks andsupplies, and targeted nutrition programs. High priority will be extended to augmentingallocations throughout the public sector for maintenance and operating expenditures, so asto prevent further deterioration in the stock of infrastructure. We will also undertake amajor review of the public sector ir.vestment program, focusing on high priority rehabilitationinvestments in infrastructure. Our overall objective is to have a significant increase in publicsector investment in fiscal year 1995, consistent with our overall macroeconomic targetswhich will be outlined in the IMF Stand-by Arrangement. At the same time, theGovernment will eliminate unnecessary and wasteful expenditures, particularly by eliminating

-4-

spending from discretionary accounts and fraudulent employment practices, and byintroducing procurement procedures that ensure accountability.

9. Clvil Service Reform. We intend to transform the civil service to make it an efficientinstrument for the delivery of services to society. To this end, civil service management willbe improved, the size of the civil service reduced, and the level of professional competenceincreased. Personnel management practices will be revamped to make processestransparent, clear criteria and qualifications for employment will be established, and moreup-to-date personnel records will be assembled. Voluntary separation and early retirementschemes will serve as a means to eliminating redundant employment. The phasing of thecivil service retrenchment will depend critically on the financial means available to theGovernmnent to cover up-front costs. In order to attract qualified people to the civilservice, part of the medium-term savings realized from the above programs will be used toincrease key salaries. On a pilot basis, and to improve the effectiveness of governmentservices, we will start decentralizing some positions and functions to the local authorities.

10. Democratization of Asset Ownership. State control of substantial productive assetshas resulted in mismanagement and corruption and imposed serious political, economic andfinancial costs on Haiti's society and economy. The consolidation of a democratic order andthe desire to foster economic growth and efficiency compels the Government to dispose ofthese assets.

11. The intended comprehensive divestiture needs to be accompanied by theimplementation of an appropriate regulatory framework and anti-trust legislation. Toprevent undue concentration of wealth within the country, the Government will seek outforeign investors, members of the Haitian Diaspora, and small domestic savers. Additionally,arrangement will be made to ultimately transfer part of the ownership to traditionallyexcluded segments of society, including the victims of the unconstitutional rule. To furthersupport the redistribution objectives, the Government will give priority to investing proceedsfrom the divestiture so as to benefit the poor, including in infrastructure, low-cost housing,and a permanent trust fund for education and health.

12. International Trade. The country's exchange system is free of restrictions andtransactions are taking place at the free (Interbank) market rate. The Government iscommitted to continue this policy and to allow the Central Bank to purchase foreignexchange only for its operations.

13. While steps have been taken in the past to reduce effective protection, our traderegime compares unfavorably to that of many other countries, and thwarts our goal ofachieving a competitive and open economy. In addition to having many different rates andexemptions, the import duty structure is too high and encourages contraband and corruption,and benefits domestic monopolists. High tariffs on agricultural products particularly raisethe price of food for the poor. To correct this situation and promote economic efficiency,the Government plans to eliminate the remaining quantitative restrictions and move towards

-5-

the elimination of all tariffs except for those on a small number of sensitive goods includingrice, corn, beans and sorghum. The tariff reform will be phased so as to facilitate thetransition to a free trade regime with a view to a concurrent reduction in the relative tariffdispersion. In conjunction with the tariff reform, the system of import valuation will bemodified and moved to the free market exchange rate, and the duty-free franchise systemwill be reviewed to eliminate abuses. To reduce uncertainty, the respective legislation willbe submitted to Parliament by early 1995. We will ensure that these reforms take place inthe context of a viable fiscal regime. To this end, we already revised taxes for petroleumproducts and eliminated the implicit subsidy by making sales to the private sector at themarket exchange rate.

14. Any revenue losses from the trade reform will further be offset by implementinghigher excise duties on luxury consumer goods, alcohol, tobacco, and automobiles. As weundertake the liberalization process, we will also negotiate with our major trading partnersbetter access to their markets, including maximum favorable treatment with respect toquantitative restrictions and tariffs for the next ten years. In addition, the Governmentintends to mobilize international assistance to improve the competitiveness of the agriculturalsector, particularly focusing on rice production. The legislation incorporating the tariffreductions for agricultural products would be introduced concurrently with measures tosupport this sector.

15. Poverty and the Social Sectors. Regretfully, Haiti remains the poorest country in thewestern hemisphere. While a strong and sustained recovery of growth will do much to raiseincomes and provide employment for the poor, this must be complemented with effectiveprograms in health, nutrition and other social services that will eliminate the worstmanifestations of poverty, and provide a safety net for those most affected by the currentsevere recession in the Haitian economy. As stated above, we will make a majorreallocation within our budget to increase the funding for health, education, nutrition andother social programs, although we hope that some of these expenditures will be financedby foreign grants as well. We intend to revitalize the Economic and Social Fund, institutingmore flexible procedures and seeking additional external financing. We appreciate the roleof grass roots organizations and NGOs in delivering essential services, and will continue tocount on their support. To more effectively integrate these organizations in our effort toalleviate poverty, we would like to request that IDA and IDB undertake a PovertyAssessment, to assist in the formulation of social development and poverty alleviationpolicies and programs.

AID COORDINATION

16. We sincerely appreciate the support of IDA and IDB, as well as other multilateraland bilateral agencies during the recent transition period. We recognize, however, that stepsare necessary to improve our aid coordination efforts, in order to ensure that aid funds areused to maximum effect and that aid projects are consistent with implementation capacities

6 -

and available counterpart funds. We look forward to the forthcoming Consultative GroupMeeting for Haiti in early 1995 as an opportunity to further explain our program andobjectives, and to elicit support from the donor community. In addition, we intend todevelop, with the staff of the relevant multilateral agencies, a Policy Framework Paper (PEP)which will lay out in more detail our policy objectives described here and a timetable fortheir implementation. We hope that the PFP would provide the basis for a future dialogueon adjustment lending from IDA, IDB, the IMF and other donors.

Marie-Michele Rest -4,,'Minister U t

\A

HAI-T


ANNEX 3

KEY MACROECONOMIC INDICATORS

Annex 3Page 1 of 2

HAITI: KEY MACRO-ECONOMIC INDICATORS

Est.1990- - 1991 1992 1993 1994

Real GDP (Average Annual Growth Rates)Total GDP -0.1 -3.0 -14.5 -4.7 -10.0

Agriculture -3.2 2.7 -2.0 -10.0 0.0Manufacturing 2.5 -17.7 -21.5 -0.8 -33.3Construction -4.2 3.5 -54.0 -3.5 -25.0

Central Goverment (As a Percent of GDP)Current Revemnes 7.0 7.6 5.5 5.5 3.3Current Expenditures 8.9 8.2 8.4 9.2 7.7Current Savings -1.9 -0.7 -2.9 -3.7 4.4Capital Expenditures 0.3 0.2 0.2 0.3 0.4Overall Balance (incl. transf.) -1.8 -0.5 -2.8 -3.8 4.6Domestic Financing 2.1 0.7 3.2 4.9 5.3

Money and Credit (As a Percent of GDP)Domestic Credit 41.2 36.3 41.2 37.7 35.9

Public Sector 27.8 24.8 30.1 27.5 25.3Private Sector 13.4 11.5 11.1 10.1 10.6

Money Supply 14.1 13.6 15.7 14.9 18.6

Prices and Salaries (Average Annual Growdt Rates)Consumer Prices 21.8 6.8 21.3 26.9 52.1Real Wages -17.1 -15.6 -16.7 -31.6 NA

Exchange RatesMarket Rate 7.5 7.7 9.1 12.4 14.5

(Index 1980 = 100)Real Effective Rate 107.9 139.9 141.6 134.5 NA

(Annual Percentage Change)

Terms of Trade -10.1 0.5 -8.7 3.2 -1.

Annex 3Page 2 of 2

Est.1990 1991 1992 1993 1994

Balance of Payments (Millions of Dollars)Current Account Balance -38.7 -10.5 6.5 13.0 -2.8

Trade Balance -87.1 -137.5 -113.1 -102.1 -91.6Export of Goods FOB 160.3 162.9 73.4 71.2 47.2Import of Goods FOB 247.3 300.4 186.5 173.4 138.8

Service Balance -117.9 -124.3 -30.9 -39.6 -67.4Unrequited Transfers 166.3 251.3 150.5 154.7 156.2

Capital Account Balance 17.3 31.7 -5.1 -11.5 -27.4Non-Monetary Sector 38.2 58.7 -5.1 -11.5 -12.4

Private 22.7 35.9 5.5 4.2 NAGovernment 15.5 ').8 -10.6 -15.8 NA

Monetary Sector -20.9 -27.1 - - -15.0Change in Reserves (+-) -26.4 21.4 -.04 -26.6 NAErrors and Omissions 47.8 -42.8 -1.0 -25.1 NA

(Millions of Dollars)Total External Debt

Disbursed Debt 884.0 747.1 772.8 8')4.0Debt Service Paid 32.7 26.6 4.9 0.0 0.0

(In Percent)hIt. Payments Due/XGNFS 9.5 8.7 9.7 - -

Source: IMA, 1DB and IMF Ste

HArrI

EMERGENCY ECONOMIC RECOVERY CRED -

ANNEX 4

SOCIL INDICATORS

Annex 4Page 1 of 1

HAITI: SOCIAL INDICATORS (1987.92)

Uni f Ms e Halti LAC Low lcerme

GNP Per Capita us$ 380 2,690 390

Consumer Price Index 1987 = 100 135 - _Food 1987= 100 141 -- -

Social IndicatorsGross Enrollment RatiosPrimaiy % school age pop. 56 106 103

Male 58 - 113Female 54 - 96

MortalityInfant Mortality pertl000 live births 93 44.0 73.0Under 5 Mortality 151.0 56.0 108.0

Immunization Measles % age gup 31.0 78.9 72.7DPT 41.0 73.8 80.6

Child Malnutrition (under 5) 37.4 10.5 38.3Ufe ExpectancTotal yeas 55 68 62Female Advantage 3.0 5.6 2.4

Total Fertility Rate biths per women 4.7 3.0 3.4Maenal Mortality Rate perIlOO.OG live 600 - -

binbhs

Supplemental Poverty IndicatsAccess to Safe Water: Total % of pop. 41.0 80.3 68.4

Urban 55.0 91.0 78.9Rural 36.0 64.3 60.3

Access to Health Care 45.0 -

Source: Sodal indicators of Deeopment 1994. Ihe World Bank

IIRD 17094R1'USA 73'

A. -~20 A T I A N T / C2

Part dePoix e

CUBA

--- ---- DOMINICAN-ERPuSuC

HAITI ,

JAMAPUERTO SBICO

Ta'~~~~~~~~~~~~~~~~~~~~~~~~~~~i

HIAITI

Main HighWaySG St ,C,

Secondary Roads -

Tertiary Poods L

-----Rivers- ntemnatlenal Boundaries

800~~~~~~~~~~~~~~~~~~~~~~

0 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1980

62-i2= sz 7'- hh - world bank · 2016-07-14 · 62-i2= sz 7'- hh 1komet of the world bank...

Documents