91598 IDA at Work Haiti: Supporting the Plan to Build Back Better I DA is working alongside the people of Haiti to rebuild after the dev- astating earthquake that killed up to 230,000 people and wounded just as many on January 12, making it one of the deadliest natural disasters on record. More than 1.5 million people were displaced. With US$7.9 billion in damages and losses—120 percent of Haiti’s gross domestic product (GDP)—and reconstruction needs evalu- ated at US$11.3 billion, IDA has joined forces with other donors to support the emergency response and government’s medium-term plan to “build back better.” Challenge The earthquake that struck Haiti’s capital and nearby towns was one of the deadliest natural disasters on record. Housing, infrastruc- ture, public buildings and businesses all sustained considerable damage. Roughly 1.5 million people were displaced. Damages and losses were evaluated at US$7.9 billion or around 120 percent of GDP by the Post-Disaster Needs Assessment conducted by the World Bank and other donors, under government leadership. A donor conference in New York on March 31 raised US$5.3 billion in pledges of assistance in support of the Government Action Plan for Reconstruction and National Development for the coming three years. In the wake of this immense crisis, Haiti’s greatest challenge is to rebuild on a gigantic scale while seizing the opportunities provided by the necessity of rebuilding to achieve fundamental positive changes which the country has failed to achieve in the past. Haiti’s reconstruction plan aims to use reconstruction as an opportunity to spur sustainable development, by achieving greater economic and geographic diversification through the dinating the Post-Disaster Needs Assessment, development of new growth poles, making in collaboration with the United Nations, the substantial progress in access to education, European Union, the Inter-American Devel- providing greater incentives and a better opment Bank and several bilateral partners, business environment for the private sector, which provided a comprehensive post earth- developing growth industries such as agricul- quake damage and loss and needs assessment ture, manufacturing and tourism, reducing which underpins the reconstruction strategy. vulnerability to natural disasters and other In the current environment; the World Bank shocks, improving infrastructure and rebuild- country program is aimed at providing sub- ing urban infrastructure to disaster resistant stantial analytical, financial and coordination standards, while re-housing entire communi- support for reconstruction, while continuing ties, which will require clarifying land tenure to focus on the medium to long term chal- and improving the land market. lenges which the Country faced already before the crisis and contributing to the GDP is projected to contract and job losses international effort to address the short term are estimated at 8.5 percent in fiscal year needs of ordinary people. 2010. Commercial, manufacturing and infra- structure sectors are projected to shrink Key activities under the IDA program have by more than 25 percent in FY2010. Annual included the rapid approval in March 2010 of inflation, which was projected to rise to 6.9 the US$65 million Infrastructure and Institu- percent in FY2010 before the quake, is now tions Emergency Recovery Project. A project set to reach 8.5 percent due to the decline in advance made financing available in January supply, rising transportation costs, and inflows under this project for the rebuilding of public of international aid. However, domestic rev- institutions and transport infrastructure enue is projected to reach 80 percent of the as well as support to government for crisis pre-quake projection a better performance response and reconstruction planning. Over than expected. Remittances remain high and the last eight months, the Bank has added central to day to day survival for many fami- financing to its key projects and used their lies. With the overall fiscal deficit expected existing infrastructure and delivery systems to deteriorate, from an initial projection of to respond to the extraordinary conditions 2 to 3 percent of GDP (based on an assess- created by the earthquake. For instance, ment carried out in May), continued efforts US$12 million were approved to restore and to ensure improvements in economic gover- expand access to primary education and nance are needed to give donors the comfort US$15 million to help communities initiate necessary for continued budget support to reconstruction through community-driven fund reconstruction and social expenditures. mechanisms. In August 2010, the government received US$30 million from IDA in budget Approach support in support of reconstruction-related expenditures which was matched by US$25 The Bank’s approach has been to provide million from the Haiti Reconstruction Fund immediate support following the crisis for that IDA administers on behalf of several the reestablishment of basic government donors. Before the end of 2010, US$30 million functions while playing a leading role in coor- is expected to be approved for community- 2 based housing, and a facility is to be put in poultry farm, and the installation of health place to facilitate the lending of Banks for infrastructure. The project also operates out- business activities. side of the Port-au-Prince Metropolitan Area, in the municipalities of St. Marc, Gonaïves, In addition, the Bank’s pre-earthquake objec- and Cap Haïtien. tives remain relevant to address medium- to long-term challenges albeit with adjustments. Results It is built around (i) promoting growth and local development; (ii) investing in human capital; Using every instrument at its disposal, the IDA and (iii) reducing vulnerability to disasters program has focused on providing immedi- with a cross-cutting emphasis on long-term ate relief and reconstruction support while institution building and support in the deliv- continuing to strive for long term structural ery of quick results. Vulnerability reduction improvements in the development of physi- and disaster prevention work started after cal and institutional infrastructure in Haiti. the 2008 hurricanes which struck Haiti has Of the US$479 million pledged in March by been intensified, road building continues, as the World Bank Group in support of Haiti’s does substantial support to the schooling of reconstruction, half has been delivered in children through the payment of school fees, the form of new grants, including budget sup- the training of teachers, and overall support port, and disbursements from existing opera- to the Education sector and education policy. tions, funds made available by International Supporting Community-Driven (CDD) Develop- Finance Corporation (IFC) and through debt ment is a cornerstone of the strategy and IDA relief. continues to build capacity and finance the investments needed in 68 of the poorest com- Over US$10 million per month have been spent munities nationwide, benefiting over 700,000 to restore key government functions; assess people. Nine urban communities in Port au buildings for reconstruction planning, remove Prince have implemented cash for work and debris from drainage canals that threatened other projects since the earthquake, serving to flood tent camps, distribute solar lanterns; nine communities in Port au Prince through 68 provide food supplements for 200,000 chil- sub-projects. Disbursements under the CDD dren, fund school fees for 390,000 children; projects are accelerating rapidly and they serve hot meals to 210,000 school children have and will receive additional financing as every day, and establish water systems ben- a key tool for responding to the crisis. Urban efitting 37,000 people in rural communities sub-projects have focused on the removal of affected by the exodus. While these activities debris from public spaces and access roads, are ongoing, longer term efforts to improve as well as cleaning of local drainage ditches, economic governance, education access, provided temporary jobs to over 5,000 people road infrastructure, agricultural productivity, in the neighborhoods of Cité Soleil, Martis- and support community driven development sant, Belair, and Delmas 32. Other emergency on a national scale continue. activities included the repair of some previ- ously implemented sub-projects that had Through a range of grants from IDA for proj- been damaged during the earthquake, includ- ects and budget support, Haiti was making ing community kitchens and a community substantial progress in economic governance 3 before the earthquake, focusing more sharply ▪▪Over 200,000 buildings have been assessed on disaster risk reduction, improving infra- through the damaged building assessment structure and broadening access to education initiative, under the responsibility of the before the earthquake: Ministry of Public Works. These assessments are crucial to reconstruction planning. Key achievements included: ▪▪Around 90,000 cubic meters of trash and debris were removed from key drainage ▪▪The improvement of budget processes canals in Port au Prince, reducing flood risk and of transparency in public financial for temporary camps in the capital. management, in particular the approval ▪▪A total of 50,000 solar lanterns distributed, of an updated procurement law and the many of them to camp residents, increasing strengthening of capacity for economic safety, making studying possible at night as governance more broadly. well as eating communally, and reducing ▪▪ The broadening of access to education fire hazard. through the payment of school fees to ▪▪Through the World Food Program food 175,000 school children and the provision supplements are being provided to 200,000 of daily meals to 80,000 school children particularly vulnerable children aged 6-23 per year, alleviating the financial burden of months and through the Pan American education on their families and improving Health Organization care services are being their chances at better learning outcomes. provided to pregnant and lactating women ▪▪ The successful development of a broad and children from 0-24 months. These network of community based decision mak- activities are complementary to the Bank’s ing mechanisms in the form of community school feeding activities and consistent in development councils and the realization an emergency situation with the objective of over 850 community based infrastruc- of avoiding long-lasting effects of malnu- ture and other development projects trition on children. benefitting over 700,000 people in 68 rural ▪▪The broadening of access to education and urban communities nationwide. from 145,000 to 175,000 children per year ▪▪ The building of roads and the repair of through payment of their tuition and the bridges coupled with the development of scaling up of school feeding from 50,000 planning, analytical, procurement and children to 80,000 who receive a hot meal execution capacity at the level of the every day. Ministry of Public Works which is now ▪▪Six water supply systems were completed, better positioned to face the immense benefitting 37,000 people in rural commu- reconstruction challenges. nities in the South, which are struggling to absorb the exodus from the capital. Some key results of emergency actions include: IDA Contribution ▪▪Offices were acquired and equipped for As of August 30, 2010, the Haiti IDA portfolio the Ministry of Economy and Finance and comprised of 15 active projects for a total Tax Office (over 500 staff), enabling the commitment of US$307 million. Despite a Ministry to function and revenues to be more difficult operating environment, current collected. disbursement ratio for Haiti is 40.4 percent, 4 against 37.8 percent for the Latin America to ensure that the Haitian government lead and Caribbean region and 25.9 percent for the reconstruction efforts and preside of all the Bank overall. This high disbursement rate reconstruction mechanisms. IDA maintains reflects intensive supervision by Bank staff close ties and executes joint projects with (with most teams fielding at least one mission a multitude of actors and serves as a key per month to Haiti during the first six months convener and coordinating body for budget of 2010, breaking all records) and around support and for reconstruction through its the clock supervision from field based staff. management of the Haiti Reconstruction From January through August, the World Bank Fund. disbursed US$98 million in Haiti, including US$42.5 million of budget support. In addi- Moving Forward tion, the Bank serves as Trustee for the Haiti Reconstruction Fund, a multi-donor trust IDA will continue to support Haiti through fund for Haiti’s reconstruction. the crisis with new and existing instruments. New strategic directions to be laid out in Partners the upcoming country strategy are likely to focus on institutional capacity building and IDA has maintained closed partnerships with governance, while underpinning the program other donors, in particular in the setting up with infrastructure investments including in of the Haiti Reconstruction Fund, which is housing, continued strong involvement in set up in partnership with the Inter-American education and disaster risk reduction, and Development Bank and the UN and to which the facilitation of private sector develop- Brazil, Norway, Canada, Estonia, Australia, ment in close collaboration with IFC. IDA and Oman have contributed. The United will also continue to provide lessons from States, France, and the European Union (EU) worldwide experience on reconstruction and have also announced their participation. knowledge of fragile states as well as to serve Cooperation is crucial in reconstruction and as a convening power and source of analytical has been the Bank’s modus operandi, starting capacity and policy advice. with the leadership and coordination of the post-disaster needs assessment together with Last updated September 2010. the EU and the UN immediately following http://www.worldbank.org/ida the earthquake. Sustained efforts have been 5