The ISC La Gonâve Master Plan An Environmental, Economic and Financial Development Plan

By I S L A N D S O U R C E

C ONSORTIUM Ltd. (ISC)

December 2012

Overview

La Gonâve

Lle de la Gonave

Respect for Haiti’s Sovereignty

Under the ISC Master Plan for La Gonâve Island, the Government of Haiti will continue to own 100% of La Gonâve Island.

Consistent with “Haiti’s Action Plan for National Recovery”

• Use a targeted regional development strategy

• Increase Haiti’s resilience through decentralization of commerce, industry and infrastructure

• Create hundreds of thousands of new jobs for Haitians

• Create world-class educational opportunities for Haitians

Goals of ISC Plan

• Create a new engine for economic growth and prosperity for the people of Haiti

• Create a thriving new environment for commerce, industry and tourism

• Create a new eco City of La Gonâve

• Generate hundreds of thousands of jobs and put Haiti on a new path to recovery

• Create a La Gonâve revenues plan with funds going to reinvestment in La Gonâve and to GoH

• Create a template for development in other parts of Haiti

Unique Attributes of La Gonâve Island

1. Capability for deep water port.

2. Proximity to the Windward Passage, the world’s busiest sea lane

3. The current widening of the Panama Canal by 2014 makes the Island an ideal location for a global trans-shipment port.

4. Excellent location for international airport hub for the Americas.

5. Effective natural protection provided by the mainland mountains functions as a hurricane screen.

Size of La Gonâve Island vs. Other Islands

0

200

400

600

800

1000

1200

Martinique St. Lucia Grenada St. Kitts and Nevis La Gonave Sinagpore Hong Kong

KM2

Singapore

GNP (billions)

0

50

100

150

200

250

300

350

Martinique St. Lucia Grenada St. Kitts and Nevis La Gonave Sinagpore Hong Kong

(6.1) (0.81) (0.31) (?.??)

(0.79)

?

Singapore

Why a Master Plan?

With

• Ad-hoc development

• Unknowns for developers limit investment

• No land rights for local population

• Unbalanced irregular growth

• Lacks protection for natural resources

Without

• Integrated development

• Developers know the context of their environment

• Land rights established for local population

• Balanced planned growth

• Natural resource protection planned from the beginning

Principles of the Master Plan

• Port and Infrastructure District (PID)

• Green Energy Technologies

• World Class eco City of La Gonâve

• Balance between development and ecological restoration

Principles of Master Plan (cont)

• Comprehensive transportation system – Island-wide tram system

– New island ferry network

• Respect and support for the cultural and artistic heritage of the Haitian people (Artist Town)

• An inclusive planning process that encompasses all stakeholders

Port Infrastructure District (PID)

• A wholly owned Unit of the Haitian Government

• Has its own Charter approved by GoH

• Responsible for finance, management, operations and land tenure

• Revenue bond issuing authority through International Community (i.e. Diaspora bonds)

Structure of PID

Government of Haiti

Port Infrastructure District (PID)

Owns

Manages

Finance Management Land

Tenure Operations

Finance: BOT example

Infrastructure company develops port

PID grants development rights

Builds

$$$

Port fully operational with steady client

base

Transfers to

PID $$$

Rights

Operates

PID Bonds $$

GoH

Build Operate Transfer (BOT)

Master Plan Development: Phase I

• Level I landuse suitability analysis

• Generate slope map –Source 10 meter Digital Elevation Model

• Map out developable land

–<= 10% slope

Master Plan Development: Phase I

• Locate anchor landuses based on physiographic of land and access to deep water – Trans-shipment port

– Cruise port

– Airport

• Designate other land-use districts based on relative location, physiography and proximity to water

Master Plan Development: Landuse districts

Master Plan Development: Phase I

Overlay Landuse map to get developable land for each class

Use No. Description Total Area

Hectares Total Area

Acres Useable Area

Acres Useable

Pct.

1 Industrial Zone 2,968 19,208 17,060 87.3%

2 International Airport 1,277 3,129 2,940 93.2%

3 Cruise Port & Harbor Village 1910 4711 4,576 97.1%

4 Resort 9,702 23,137 18,708 82.4%

5 Town Center 7,542 18,638 14,926 83.1%

6 Residential Resort 3,511 8,675 6,731 77.6%

7 Village Towns 1214 3000 1,805 60.1%

8 Village Residential 8,318 20,552 16,574 80.7%

9 Open Space 25,850 63,877 6,908 10.8%

Totals 67,229 166,128 90,229 54.3%

Master Plan Development: Phase I

Estimate employment, visitation and residence

Estimated Revenues (PID)

Year 5 Year 10 Year 15 Year 20

$412.45M $824.90M $1,237.36M $1,649.81M

Distribution of PID Revenues

Entity Percent GoH Central Government 33

GoH PID (for La Gonâve reinvestment) 53

GoH Education fund 04

GoH Workforce Development 04

GoH Support for the Arts 02 Ecological Restoration 02 Farming & Fisheries Support 02 Total 100%

ISC revenues as Master Developer ISC Task ISC Revenue Investment By PID

Reimburseable

Remarks

1. La Gonave Master

Plan

PM fee + third party

costs & exp.

ISC investor Infrastructure &

restoration plan

Reimbursement out of first bond

sale

1. PID Master

Infrastructure &

Financial Plan

PM fee + third party

costs & exp.

ISC investor 100% Reimbursement out of first bond

sale

1. LG Financial

Development Plan

PM fee + third partycosts

& exp.

ISC investor Infrastructure &

restoration plan

Reimbursement out of first bond

sale

1. PID Operating Plan PM fee + third party

costs & exp.

ISC investor 100% Reimbursement out of first bond

sale

Master Developer – Phase I - Development Fee

- Participation

- Sublease Fee

- users

-users investors

- ISC investors

By project at

project

stabilization

Define development phases so

users inv. & ISC inv. Is near 50– 50.

Infrastructure –

Phase I

- Development Fee

- Participation

- Sublease Fee

- users

- users investors

- ISC investors

100% Same as above

Land Development – Phase I - Development Fee

- Participation

- Sublease Fee

- users

- users investors

- ISC investors

No Same as above

Utilities & restoration - Development Fee - users

- users investors

- ISC investors

Partial Charges based on Capital Recovery

assessment.

Vertical Development Joint

Venture

- Development Fee

- Asset Mgmt. Fee

- Participation

- users

- users investors

- ISC investors

No Defined exit plan for JV.

PID Operating Phase - Management Fee

- Asset Mgmt. Fee.

- Sublease Fee

- Participation

- users

- third party

developers.

- PID bond issues

Varies When majority of Phase I stabilized,

PID becomes self sufficient.

New development Management Fee

- Asset Manage Fee.

- Sublease Fee

- Participation

- users

- third party

developers.

- PID bond issues

varies Same as above

Infrastructure & restoration Management Fee

- Asset Management Fee.

- PID Excess

revenue

- PID bond issues

From capital

recovery &

assessment fees.

Could include BOT for infrastructure

expansion

Master Plan Development: Phase I

Master Plan Development: Phase I

• Develop an island-wide transportation system concept plan

• Create a system with multimodel transportation.

Master Plan Components

• An industrial trans-shipment container port

• A world class City of La Gonâve

• A cruise port with a retail resort center • A central power plant, including a renewable energy park • A manufacturing and distribution center

Post-Panamax Ships

Caribbean Shipping Triangle

La Gonâve Cruise Port

Courtesy of Suisman Urban Designs

Renewable Energy Park Ocean thermal

Wind Bio-fuel

Waste to energy

Solar

Master Plan Components (cont)

• An international business and city center

• General and specialty hospitals

• Resort housing, hotels, golf and marinas • Housing in multiple villages for local and mainland workers who want

to live on the Island

Master Plan Components (cont)

• An international airport with

maintenance and jet fuel facilities

• Ecological restoration

• Transportation: island-wide light rail & ferry system

• Schools and community churches

ISC Management Plan GoH Advisory

Committee

ISC Executive Committee Sean Ahearn, Edmond Heraux, Frantz Reid, Richard Boncy &

Doug Suisman

Project Director Sean Ahearn

Planning Team

Real Estate

Mike Robbins Charles Fombrun

Planning Doug Suisman, (Master Planner)

Marc Andre Joaquin Quinonero

Finance Edmond Heraux

Alan Hembel

General Counsel Frantz Reid

iuu

Supporting Studies

La Gonave Liason

Louis Elneus

Housing Marc Andre

Antonio Rodrigez Jose Del Rio

Gerard Fombrun

Ecological Restoration Steven Apfelbaum , AES

Teresa Vilarino

PID Gene Schiller

Edmond Heraux

Other Studies

Fishery & Ag Eric Heraux

Labor &Commerce Herve Denis

ISC Team

Gene Schiller Eric Heraux Teresa Vilarino

Richard Boncy Edmond Heraux Sean Ahearn Herve Denis Mike Robbins

Charles Fombrun Doug Suisman Marc Andre Gerard Fombrun

Alan Hembel

Next Steps

• Government of Haiti (GoH)

– MOU with ISC for path forward for La Gonâve Plan – Establish the La Gonâve Working Group (LGWG) with goal of creating an

island-wide Port-infrastructure district (PID) – Designate ISC as the Master Developer

• Island Source Consortium (ISC)

– Manage the LGWG and guide toward legislation for La Gonave PID – Establish Land Tenure for the Island – Identify anchor shipping line for trans-shipment port (ISC)

• MOU between ISC and Shipping Line

– Capitalize ISC with first $2M • Investment Group

– Obtain funding/support from International agencies (i.e. IDB, OPIC etc.)