Since January 2005, IDA has provided a total of US$308 million in assistance for Haiti. *Photo credit: www.mafkrul.com

WASHINGTON, CMC – The World Bank on Tuesday approved two grants totalling US$24.5 million to support Haiti’s economic governance reform agenda and rehabilitation of key roads and bridges.

“The first US$12.5 million grant approved today seeks to improve the effectiveness, transparency and accountability of public sector institutions by consolidating economic governance reforms and strengthening core institutions,” the World Bank said.

In particular, it said the operation aims to contribute to reducing “inefficiencies in the electricity sector through improvements in the management of Electricité d’Haïti”.

The World Bank said the grant also seeks to improve public financial management, “to raise and use public resources in a more efficient and transparent way, prioritising actions related to poverty reduction and growth”.

“The new funds will allow us to create fiscal space for priority poverty reduction programs while addressing urgent recovery and reconstruction needs,” said Haitian Finance Minister Ronald Baudin.

In addition, the funds are expected to strengthen the legal framework for public procurement, “to contribute to more transparent and cost-effective public expenditure,” the bank said.

“These grants bolster the government’s programme and are aimed at combining longer-term institution building with the delivery of quick, visible results to the population,” said Yvonne Tsikata, World Bank Director for the Caribbean.

The World Bank said the second grant provides US$12 million of additional financing for the Transport and Territorial Development Project.

It said this will “replenish” the project for road and bridge reconstruction undertaken following the at least five deadly storms that struck the impoverished country in 2007 and 2008, as well as cover additional costs related to the road rehabilitation works included in the original project approved by the bank in April 2006.

The World Bank said the two grants come from its International Development Association (IDA), the part of the bank that helps the world’s poorest countries by providing interest-free credits and grants for programs that boost economic growth, reduce inequalities and improve people’s living conditions.

Since January 2005, IDA has provided a total of US$308 million in assistance for Haiti.

In addition, trust funds administered by the World Bank have given more than US$55 million since 2003.