Haiti: World Bank approves $38 million grant to support community-driven development

Press Release No:2006/042/LAC
WASHINGTON, July 28, 2005 -- The World Bank Group's Board of Directors approved today a US$38 million grant from the International Development Association (IDA) to scale-up the direct transfer of public resources to local community organizations in poor rural areas and urban communities.

"The project signals the Bank's commitment to the development and empowerment of Haitian communities, especially in poor rural areas," said Caroline Anstey, the World Bank's Country Director for the Caribbean. "The project will support economic rehabilitation and the creation of economic opportunities, including rapid job creation; improve basic services, such as education, health and sanitation; and improve economic governance, also at the local level. It directly supports 3 of the 4 pillars of the Interim Co-operation Framework agreed by the Transitional Government of Haiti and the donors a year ago."

The Community-Driven Development Project builds upon the successful implementation of a Community-Driven Development pilot project, which was executed in 2004 by the Pan-American Development Foundation and financed by the World Bank's Post-Conflict Fund. Ms. Anstey added that the project is part of the Bank's reengagement strategy with Haiti as set out in the Bank's Transitional Support Strategy (TSS):

"The TSS sets the stage for the Bank's reengagement in Haiti and highlights Community-Driven Development (CDD) as an approach to improve basic economic, social and infrastructure services while building social inclusion, participation, transparency, trust, and public-private partnerships at the local level."

The project will scale-up direct transfer of funds to local community organizations to improve their access to basic social and economic infrastructure and income-generating activities. Specifically, the project will support the following activities:

- Community Subproject Funds, Management and Support: This component will finance approximately 1,300 small-scale investments in 55 to 65 targeted municipalities of rural and peri-urban Haiti. The investments are identified by community organizations and prioritized in project development councils.

- Capacity Buildingand Technical Assistance: This component will finance the training of trainers in basic management, administration, accounting and financial management and sharing of experiences and knowledge between municipal and regional representatives, and local councils.

- Project Administration, Supervision, Monitoring and Evaluation: This component will finance incremental costs associated with project implementation and operate under the oversight of the Ministry of Planning and External Cooperation.

"Community-Driven Development is a viable approach for improving access to basic social and economic infrastructure in a short period of time," said Garry Charlier, the World Bank's team leader for the grant. "The grant approved today will address one of the goals of the TSS of delivering hope and achieving quick wins, particularly in rural areas of Haiti."

The World Bank in Haiti

The World Bank's Board of Directors approved the two-year TSS for Haiti on January 6, 2005, along with two operations totaling US$73 million to support economic governance reforms and emergency recovery efforts in flood-affected areas. The two operations, financed through IDA, are the first approved by the Bank for the Government of Haiti since 1996.

The Bank's TSS seeks to assist the Government of Haiti in delivering hope to the population through quick wins, such as the provision of basic services and job creation; and to restore credibility in public institutions by helping the government launch reforms that promote sound economic governance and institutional development.

The Bank approved a total of US$75 million in financing from IDA during the past fiscal year, of which US$38 million was provided in the form of grants. In addition to these US$75 million, the World Bank is providing a grant of US$6.4 million drawn from the Low-Income Countries Under Stress (LICUS) Trust Fund. The Bank has disbursed US$50 million from this IDA and LICUS Trust Fund financing. During its fiscal year 2006, the Bank will also provide 100 percent of its IDA assistance on grant terms for investment projects. The CDD project approved today is the first project for this fiscal year.

For more information about the grant, please visit:

For more information about the World Bank's program in Haiti, please visit: http://www.worldbank.org/ht

Contacts: Washington: Karina Manasseh
(202) 473-1729
Port au Prince: Maryse Calixte
(509) 256 0844