US$38.6 MILLION FOR BUDGET SUPPORT FROM HAITI RECONSTRUCTION FUND.

Port-au-Prince, May 28th, 2014.The Steering Committee of the Haiti Reconstruction Fund (HRF), chaired by the Minister of Economy and Finance, Marie-Carmelle Jean-Marie, confirmed funding totaling US$38.6 million for budget support.  When these new allocations are finalized, the HRF will have provided a total of nearly US$74 million in budget support to the Government of Haiti since its creation in 2010, thus helping the government to balance its budget and pursue its reconstruction agenda.

In addition, the HRF also identified energy, agriculture, health, and professional training projects in different stages of development for a total of US$56 million. This funding can be allocated when final project documents are available.

Included in this amount is US$40 million that was originally reserved for a hydropower dam on the Artibonite River at the request of the Brazilian government. The Steering Committee agreed to reallocate these funds to finance projects in the fields of vocational training, agriculture and health which are areas recognized as priorities for the Haitian government.

 Mrs. Marie- Carmelle Jean -Marie, Minister of the Economy and Finance, President of the Fund stated: "Budget support from the HRF enables us to finance the government deficit anticipated for the end of June and thus to balance the major economic and financial accounts of our program with the IMF ".

With almost all of HRF’s available funds allocated or reserved, and changing government priorities from reconstruction to development, the Steering Committee deliberated on the future of the Fund.

The Haitian government proposed that the Haiti Reconstruction Fund be reoriented towards economic construction in order to invest in private sector development and job creation. It was decided to start an evaluation of the HRF before the end of 2014 as well as a feasibility study of this proposed change in purpose.

“The mandate of the HRF has been reconstruction,”said Mr. Josef Leitmann, the Head of the HRF Secretariat. “Now, the HRF can focus on other priority areas that the Government is in the process of determining, in consultation with its partners." Meanwhile, the HRF will be required to reduce its activities to enable effective use of available resources for the development of Haiti.

In addition, the Steering Committee welcomed Mr. Mamadou Deme, to replace Mr. Leitmann as Head of the HRF Secretariat starting 1 June 2014.

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