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Haiti - Environment : Waste transformation, Haiti will lose a donation of $33M from the IDB if...
08/06/2020 10:23:38

Haiti - Environment : Waste transformation, Haiti will lose a donation of $33M from the IDB if...
In a correspondence from Yvon Mellinger, the Representative of the Inter-American Development Bank (IDB) addressed to President Jovenel Moïse dated May 19, he reminded him that due to a land conflict in Mouchinette (Commune of Limonade) and if "a final non-appealable decision of the Haitian courts confirming the possession or the property of the Haitian State of the disputed land or lands of Mouchinette" and the documentation given to the IDB, "the operation cannot reach its eligibility at the first disbursement of which the deadline, already extended twice, is set for June 9, 2020" the Bank "will be under the contractual obligation to cancel this investment project."

Remember that this non-repayable funding (grant agreement) of $33.5 million https://www.haitilibre.com/en/news-25600-haiti-environment-idb-donates-$33m-for-solid-waste-management-in-haiti.html was intended for the construction of a major integrated municipal solid waste management center, including a landfill and infrastructure for composting and recycling of waste.

Letter from the IDB to President Jovenel Moïse:
His excellence,

The Inter-American Development Bank (IDB) takes this opportunity to communicate its support to you during this difficult time for the country. It also remembers that she has made available to the Republic of Haiti a non-refundable funds for an amount of 33,503,000 US dollars to finance an operation to improve waste management in the North of Haiti. This financing was approved by the IDB Board of Directors on September 4, 2018 and the Donation Agreement, attached hereto, was signed with the national authorities on November 13, 2018 https://www.haitilibre.com/en/news-25600-haiti-environment-idb-donates-$33m-for-solid-waste-management-in-haiti.html

This operation aims, among other things, to set up an integrated solid waste management center on the Mouchinette site, in the municipality of Limonade. However, to date, this investment project has not been able to start for the following reason.

As mentioned in our correspondence C/D/CHA-932/12019 dated September 13, 2019, CID/CHA-961/2019 dated October 9, 2019 and CID/CHA-302/2020 dated April 7, addressed to Ministry of Economy and Finance and in our correspondence CID/CHA-329/2020 dated April 22, 2020 addressed to the Prime Minister (copies attached herewith), the IDB is still waiting to receive a report from the Haitian State, and in this case the Directorate of Legal Affairs of the Ministry of Economy and Finance, providing clarifications on the current legal situation of the litigation (s) front the courts relating to the ownership of the land or plots of land works proposed to Mouchinette within the framework of the Donation Agreement 4605/GR-HA as well as the evidence of the final settlement of this dispute (s) before the courts.

The IDB takes this opportunity to remind you that, in accordance with Clause 4.03 (f) of the Special Provisions of the Donation Agreement, the IDB is not able to finance works on the site known as Mouchinette (commune of Limonade) until there is a final decision not appealable from the Haitian courts confirming the possession or ownership of the Haitian State of the disputed land or lands of Mouchinette. If the dispute has been settled, it is expected that the Directorate of Legal Affairs of the Ministry of Economy and Finance confirms the existence of this final decision not appealable, as well as the possession of the Haitian State of the land or lands Mouchinette relating to the works offered under the Reference Donation Agreement.

One of the conditions precedent to the first disbursement of this funding relates to the completion of the closing works of the Mouchinette site. In the absence of transmission of the documentation referred to above, the IDB will not be able to give its non-objection to the resumption of said work. Consequently, the operation will not be able to reach its eligibility for the first disbursement, the deadline, already extended twice, is set for June 9, 2020.

The Bank therefore wished to inform you that after June 9, 2020, it will be under contractual obligation to cancel this investment project.

The IDB renews to you, Your Excellency, the assurance of its highest consideration and its most perfect collaboration in the name of the country's development."

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