HAITI ECONOMIC WEEKLY UPDATE FOR SEPTEMBER 7 TO SEPTEMBER

UNCLAS PORT AU PRINCE 000818 STATE FOR WHA/EX AND WHA/CAR S/CRS SOUTHCOM ALSO FOR POLAD STATE PASS AID FOR LAC/CAR INR/IAA WHA/EX PLEASE PASS USOAS E.O. 12958: N/A TAGS: ECON ENRG EAID EAGR EINV ETRD BEXP HA SUBJECT: HAITI ECONOMIC WEEKLY UPDATE FOR SEPTEMBER 7 TO SEPTEMBER 11, 2009 ¶1. (U) Summary. This is a weekly report on a variety of topics of interest which do not merit full reporting cables. End summary. Budget -------------- ¶2. (U) The lower house of the Haitian parliament voted in the FY10 budget with numerous changes on September 9 (septel). ¶3. (U) The European Union signed a budgetary support agreement with the GoH for EUR 27 million (USD 39.5 million) covering 2009 to 2011. EUR 2 million (USD 2.9 million) are earmarked for the Ministry of Finance and budget management. Initial payments will be made this September. Energy -------------- ¶4. (U) The Brazilian government has given USD 3 million to the GoH for start-up costs on construction of a new hydroelectric plant in Mirebalais. The project will eventually flood 450 hectares of arable land. President Preval met with farmers/residents from the Central Plain who do not want the dam project to go forward. ¶5. (U) The World Bank approved a USD 5 million grant to implement the Electricity Loss Reduction Project in Haiti. This is a two-year project providing technical assistance to Electricite D'Haiti (EDH) and advising the Ministry of Public Works on oversight of the energy sector. ¶6. (U) The Parliament ratified a tripartite energy security agreement between Haiti, Cuba, and Venezuela. The trilateral treaty, which continues the Petrocaribe agreement with Venezuela, includes upgrades to the international airport in Cap Haitian and a 20,000 barrel per day oil refinery near Gonaives. International Investment Community -------------- ¶7. (U) A Brazilian textile delegation is scheduled to visit Haiti from September 27 to October 3. The delegation includes representatives from the Brazilian Association of Textile and Clothing (ABIT) and the Brazilian Association of Man-Made Fibers (ABRAFAS). They will meet with GoH officials, international institutions, and textile factory owners. Participants plan to visit textile assembly plants in Port-au-Prince and the free-trade zone of Ouanaminthe. ¶8. (U) The 10th Annual Caribbean Business Forum is planned for October 21 to 24 in Haiti. The forum will provide Caribbean investors and entrepreneurs an opportunity to create business partnerships with the Haitian private sector. Funding for the event is being provided by the Inter-American Development Bank (IDB),the GoH, and USD 100,000 from the Taiwanese government. ¶9. (U) The Organization of American States (OAS),in conjunction with the Mexican government, is organizing a working meeting to be held in Mexico next November for coordination of international cooperation of Haitian socio-economic development. ¶10. (U) Former President Bill Clinton, the UN Special Envoy to Haiti, will be hosting an international business meeting in Port-au-Prince on October 1 and 2, to encourage more U.S. private sector investment in Haiti, particularly in the apparel assembly sector. Dozens of U.S. businesspersons and investors are scheduled to participate. ¶11. (U) The World Bank 2010 Doing Business Report ranked Haiti as one of the worst countries for doing business in the Latin American-Caribbean region. Haiti, however, did improve three ranks from last year (from 154 to 151 out of 183 countries surveyed). Improvements were made in securing property rights and employing workers. Haiti also expanded access to credit by modifying collateral standards and accelerated trade with an online document handling system and 24-hour port operations. Urban Renewal -------------- ¶12. (U) The Ministry of Foreign Affairs is initiating a renovation project of the Bicentenaire area (downtown Port-au-Prince). USD 500,000 is being provided by the Taiwanese government and other entities, such as the Haitian Central Bank. ¶13. (U) The United Nations Development Program (UNDP) initiated a USD 50,000 sanitation project in the city of Les Cayes. Customs -------------- ¶14. (U) A new customs office was opened in Thomassique in the Central Plateau to strengthen border controls and fight smuggling activities in the region. =======================CABLE ENDS============================