Taiwan: Aid Gains Favor in Haiti

UNCLAS PORT AU PRINCE 001669 SIPDIS WHA/CAR EAP/CM EAP/RSP/TC EB/IFD/OFD WHA/EPSC INR/IAA (BEN-YEHUDA) INR/EC DRL/IL STATE PASS AID FOR LAC/CAR TREASURY FOR ALLEN RODRIGUEZ, GREGORY BERGER, WILLIAM BALDRIDGE, LARRY MCDONALD USDOC FOR 4322/ITA/MAN/WH/OLAC (SMITH, S.) E.O. 12958: N/A TAGS: ELAB PHUM ECON EINV HA SUBJECT: Taiwan: Aid Gains Favor in Haiti ¶1. Summary. Taiwan is on schedule to spend USD 20.32 million in Haiti over FY2004 and 2005 on infrastructure development and disaster assistance. Taiwanese Counselor Sophie Lin said that it quickly disburses its money because it uses a quasi-governmental Taiwanese contractor and only subcontracts with local firms. Lin strongly defended Taiwan's motives in Haiti. She insisted that Taiwan is not trying to benefit politically from Haiti's poverty, and has no secret agenda. End Summary. ¶2. Taiwan projects that their aid to Haiti over FY 2004 and 2005 will be USD 20.32 million. Their assistance is focused largely on infrastructure development, with some projects in disaster assistance. Taiwan is not a part of the Interim Cooperation Framework (ICF). However based on the July 2004 pledges, Taiwan's projected contribution would make it the fifth largest donor during the transition period, even without considering its possible FY 2006 contribution. ¶3. Taiwan's aid projects are largely focused on road building. They include: a 25 km Road from Les Cayes to Coteaux (along the southern coast),with a 100m bridge in Port Salut; an 8 km road from the airport at Les Cayes (in southern Haiti) to the center of town; and a bypass road in Carrefour (just south of Port-au-Prince) that Taiwan is constructing in conjunction with the EU and Canada. ¶4. In addition, Taiwan plans to: install turf and lights at the national stadium and clean-up the facility; extend electricity wires to Fonds Parsien (in central Haiti near the Dominican boarder); construct the National Laboratory building in Port-au-Prince; build a government building and roads in Ganthier (near Fonds Parsien); fund reconstruction in Gonaives including rehabilitating the Gonaives square, and constructing the regional delegation building, a medical center and public market. ¶5. According to Lin, the Taiwanese process allows for quick, timely disbursements and limits overhead. Taiwan limits its contracts to a quasi-governmental Taiwanese construction company. The Taiwanese company hires Haitian companies to subcontract different elements of the project. When the work, or a phase of the work, is finished, the Taiwanese firm submits a report to the GOH and to Taiwan. Only after both Taiwan and GOH approve the progress that has been made is the Taiwanese firm paid. ¶6. Lin said that since the change over to the CCI in 2004, Taiwan has been excluded from the donors' meetings, and would like to participate again so that it could better coordinate with the other donors. She said Haitians regularly call the Taiwanese Embassy to complain about Taiwan exploiting Haiti's poverty for political gain. Lin bristled at these accusations, insisting that Taiwan does not have a secret agenda in Haiti, and that Taiwan has been committed to Haitian development for 40 years. Finally, Lin said that she hoped that MINUSTAH's mandate would be extended promptly, and expressed disappointment with what she called China's politicking.