In Port-au-Prince, Moreno proposes boosting grants for reconstruction
PORT-AU-PRINCE - Inter-American Development Bank President Luis Alberto Moreno today called for increased financial aid for Haiti, which last week suffered the worst natural disaster in its history.
In a visit to the Haitian capital, which was razed by an earthquake last Tuesday, Moreno said that he would ask the IDB Board of Governors to assign additional resources to Haiti, the poorest country in the Western Hemisphere.
"Only by walking the streets of Port-au-Prince can one grasp the scale of this catastrophe. It's heartbreaking to see the pain on people's faces," he said. "But I also saw countless examples of the Haitian spirit of resilience. They are determined to overcome this challenge."
The IDB expects to approve $128 million in new grants to Haiti this year. The proposal to the Board of Governors, where all 48 IDB member countries are represented, would request more resources for the Grant Fund that finances these operations.
Additionally, the Board of Governors could consider the possibility of providing further debt relief to Haiti, on top of the $511 million in debt cancellation announced last year. Currently the pending debt stands at $441 million in USD and $6 million in local currency in loans that are financing investments in key sectors including roads, water and sanitation, electricity and agriculture.
Most of that debt consists of 40-year soft loans approved between 2004 and 2007, and therefore are still under a 10-year grace period on principal repayments. Interest payments are being covered with resources from a trust fund backed by donor countries. Since 2007 the IDB provides only grants to Haiti.
Last week, immediately after the earthquake, the IDB offered the Haitian government to redirect resources from existing operations to emergency tasks and reconstruction efforts. The IDB portfolio currently holds US$330 million, of which some US$90 million could be quickly assigned to priority projects.
Activities in Port-au-Prince
Moreno visited areas of the capital city hit by the earthquake, including the district where the IDB had its offices. The IDB's country manager, Eduardo Almeida, is working on establishing an alternative base of operations.
Moreno also went to the site where the United Nations had its headquarters. A former IDB country manager, Philippe Dewez, was in the building when it collapsed. Moreno expressed his sorrow to Dewez's wife and sons. The former official had remained in Haiti after his retirement in November to advise the Haitian government.
Moreno met with Brazilian military commanders who lead the UN peacekeeping troops in Haiti. They inspected the site of a proposed encampment for people left homeless by the quake, and discussed the IDB's potential role in helping to turn the encampment into a neighborhood with permanent housing and basic services.