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Viewing cable 08PORTAUPRINCE1364, HAITI TAPS PETROCARIBE REVENUE FOR DISASTER

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Reference ID Created Released Classification Origin
08PORTAUPRINCE1364 2008-09-25 15:25 2011-08-26 00:00 UNCLASSIFIED Embassy Port Au Prince
VZCZCXRO1674
PP RUEHQU
DE RUEHPU #1364 2691525
ZNR UUUUU ZZH
P 251525Z SEP 08
FM AMEMBASSY PORT AU PRINCE
TO RUEHC/SECSTATE WASHDC PRIORITY 8898
INFO RUEHZH/HAITI COLLECTIVE PRIORITY
RUMIAAA/HQ USSOUTHCOM J2 MIAMI FL PRIORITY
RUEHRC/DEPT OF AGRICULTURE WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
UNCLAS PORT AU PRINCE 001364 
 
SIPDIS 
 
STATE FOR WHA/CAR 
STATE PASS TO AID/LAC 
 
E.O. 12958: N/A 
TAGS: ASEC EAID EAGR ETRD ECON PGOV HA
SUBJECT: HAITI TAPS PETROCARIBE REVENUE FOR DISASTER 
RELIEF/RECONSTRUCTION 
 
1. (U) Summary:  Haiti is using state of emergency 
legislation to withdraw nearly USD 200 million from 
PetroCaribe funds held in the national bank to finance 
reconstruction projects and other urgent government needs 
after the country was devastated by hurricanes and flooding 
beginning in August.  End Summary. 
 
2. (U) Prime Minister Michele Pierre Louis and several other 
Cabinet Ministers announced in a press conference September 
22 the use of approximately USD 197,560,000 (7.9 billion 
Haitian Gourdes/HTG) from revenue generated by PetroCaribe 
sales to respond to hurricane victim needs and rebuild 
infrastructure damaged in the recent storms and flooding. 
This decision to dispense these funds is authorized in Haiti 
state of emergency law.  (Note: Under the PetroCaribe 
agreement, Venezuela, through its state-owned petroleum 
company PDVSA, sells refined oil products to the Government 
of Haiti (GoH) under preferential terms  -- half paid for up 
front, and the other half repayable over 20 years at 
below-market interest rates when the amount of a barrel 
surpasses USD 100.  In turn, the GoH sells at the market 
prices to oil companies operating in Haiti.  The funds from 
the price difference accrue to the GoH. End Note.) 
 
3. (U) The Office of the Prime Minister, the Ministry of 
Economy and Finance and the national bank will manage the 
funds collected from the GoH's PetroCaribe revenue and held 
in an account in Haiti,s national bank, the Republic Bank of 
Haiti.  Each Ministry receiving an emergency allocation will 
be responsible for providing documentation of spending to 
Parliament.  Of the USD 197,000,000, over a quarter (USD 
57,500,000) will be allocated to the Ministry of Agriculture 
and Natural Resources.  Minister of Agriculture and Natural 
Resources Joanas Gue announced the money would be used to 
finance 
emergency agricultural programs targeted at short-term food 
production and the purchase of 500,000 farm implements and 
835 tons of seed. 
 
4. (U) The Ministry of Interior announced a USD 20,550,000 
emergency program, of which USD 17,750,000 will be 
distributed to Haiti,s municipalities; USD 2,250,000 for 
distribution of food and water; and USD 550,000 for 
humanitarian aid.  The Ministry of Public Works, 
Transportation and Communication will use its USD 14,750,000 
allocation to finance the rehabilitation of electrical 
infrastructure (USD 7,000,000), USD 2,000,000 to repair roads 
and bridges in affected areas such as Miragoane (Nippes 
Department), Montrouis and Cabaret (West Department), USD 
3,750,000 to clean affected areas and USD 2,000,000 to 
rehabilitate hydraulic infrastructure. 
 
5. (U) The Minister of Finance indicated that USD 23,800,000 
would be used to pay an additional month,s salary to civil 
servants to offset their children,s school expenses for the 
upcoming school year.  (Note: School re-opening is scheduled 
for October 6. End Note.)  The Ministry of Education plans to 
use its allocation of 37,380,000 to repair 100 schools and 
construct 33 additional schools.  The Ministry, in 
collaboration with NGOs on the ground, will also supply 
school kits to 250,000 public schools and subsidize school 
fees for 100,000 private school students. 
 
6. (U) The Ministry of Public Health was awarded USD 
24,380,000.  The Ministry of Justice will use the remaining 
USD 2,000,000 to rehabilitate prisons, police stations and 
courthouses. 
TIGHE