By Judith Ugwumadu | 25 November 2013
Haiti has been handed a $50m grant from the Inter-America Development Bank to spend on development projects to improve its road transportation system over the next five years.
The IDB said the funds would create a more efficient road system in Haiti to foster economic activity, facilitate regional and international integration and economic development.
Among the schemes to benefit are the rehabilitation, improvement and two-year maintenance of the Enner-Plaisance road section on Route Nationale 1 (RN-1), one if Haiti’s major roads; enhanced road safety conditions; paving of main streets; and instuitional strengthening of the transport sector.
The project will also include a communication campaign on road safety for RN1.
‘Road transport is the leading mode of transportation for cargo and passengers in Haiti, making the improvement of the road infrastructure a fundamental mechanism for economic development and for enhanced integration of the country’s regions,’ the bank said.
‘In addition to integrating different departments, the corridor plays a very important role in international trade as it connects the two international seaports with the major cities and productive regions in the country.’
Haiti has a road network of 3,500 kilometres of which only 15% are in good condition.
Meanwhile, the International Monetary Fund reported that Haiti had taken ‘important steps’ towards the creation of a Treasury Single Account. This would help to strengthen spending effectiveness, controls and cash management, the IMF said following its November mission to Haiti. However, work on complementary reforms should be accelerated if the TSA was to be in place by the end of the 2014 fiscal year.
It also urged Haiti to boost its efforts to improve revenue collection and clamp down on tax evasion. This was vital to offset declining foreign assistance.
The IMF added: ‘Continued strengthening of public financial management will allow for a more effective link between public spending, growth and poverty reduction.’
