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.