HAITIAN PARLIAMENT PASSES PROCUREMENT LAW

UNCLAS PORT AU PRINCE 000558


STATE FOR WHA/EX AND WHA/CAR
EB/IFD
S/CRS
SOUTHCOM ALSO FOR POLAD
STATE PASS AID FOR LAC/CAR
INR/IAA
TREASURY FOR ERIN NEPHEW
WHA/EX PLEASE PASS USOAS
USTR FOR KENT SHIGATOMI

E.O. 12958: N/A
TAGS: ECON PGOV KCRM HA
SUBJECT: HAITIAN PARLIAMENT PASSES PROCUREMENT LAW


1. (U) Haiti's lower house of Parliament on June 10 passed the
long-awaited Procurement Law, one of the requirements established by
the International Monetary Fund (IMF) for Highly Indebted Poor
Country (HIPC) completion point achievement. The bill passed by a
vote of 62 for and 2 abstentions, and was voted without changes from
the Haitian Senate version, passed in May. Parliament sent the bill
to the President, who signed it on June 12 and transmitted it to the
official GoH gazette for same-day publication. The bill passed the
legislature speedily by Haitian parliamentary standards, having been
introduced only last February.


2. (U) The IMF has agreed to waive its original condition that the
law be implemented for 6 months prior to granting HIPC completion
point. The IMF can thus approve HIPC completion point, and the
subsequent external debt forgiveness of nearly USD 1 billion, by the
end of June.


3. (U) The Lower House's Commission of Economy, Finance, Commerce
and Industry, in its original submission to the Chamber, listed the
following benefits of the new law:

--better functioning of the National Procurement Commission;
--increased regulation of GoH procurement;
--more transparency and better, faster purchasing;
--more efficient anti-corruption measures;
--promotion of small and medium enterprises;
--and improved and equal access to the bidding process.