The magnitude 7.0 earthquake that struck Haiti on January 12, 2010 significantly deepened existing challenges and created massive reconstruction needs for a country that was already the poorest in the Western Hemisphere.

In spite of the enormity of the task, more than two years later, reconstruction is gaining momentum with tangible changes on the ground.

• Camps and temporary shelter programs are making way for neighborhood repair and reconstruction programs.

• 60% of the 11 million m3 of debris has been removed, making most of Port au Prince's roads passable again.

• Schools have reopened, with 900,000 children attending school this year without having to pay tuition and 2 million children receiving a hot meal every day as part of a national school feeding program.

POLITICAL SITUATION

ECONOMY

The World Bank strategy balances reconstruction needs with medium-term development. Reconstruction work focuses on housing (neighborhood reconstruction approach that includes infrastructure improvements in neighborhoods to facilitate return of displaced persons from camps), and electricity (improve service, improve management of public electricity utility, and reduce Government transfers).

Beyond reconstruction, the World Bank Group supports Government efforts to reduce its vulnerability to natural disasters, reconstruct critical infrastructure, build human capital, revitalize the economy, and strengthen governance.

Investment operations are complemented by strategic use of GFDRR resources and analytical work on building codes and multi-hazard assessment. The Bank also finances the building of human capital through tuition waivers and school feeding. It is also leveraging analytical work on nutrition and trust fund resources in a household development agent pilot, which provides referrals and waivers for health services in remote areas. To help revitalize the economy in a way that incorporates inclusive growth and decentralization, the Bank finances small scale rural infrastructure using a community-driven approach, is strengthening agriculture public services to improve yields and increase rural incomes, and is investing in regional growth poles and working closely with the IFC to improve the business environment and create jobs. Through budget support, the Bank has helped the Government close its fiscal deficit and reform public financial management, increasing the transparency and efficiency of public spending. The Bank program also focuses on governance and government capacity building in all of its projects to strengthen the role of the state to achieve development outcomes over time.

To these ends, on December 1, 2011, the World Bank approved its 2012 Interim Strategy for Haiti, programming US$255 million of Haiti's IDA16 Crisis Response Window exceptional allocation of US$530 million for the country. The World Bank also approved the second phase of the Education for All Project (US$70 million), the Disaster Risk Management and Reconstruction project (US$60 million), and the second phase of the Strengthening Agriculture Public Services project (US$50 million, including US$10 million from the Global Agriculture and Food Security Program).  The remainder of the IDA 16 envelope is being programmed in 2013.

Disbursements

The Haiti portfolio consists of 17 projects for a total commitment of $495 million, of which $218 million have been disbursed. Since the earthquake, the Bank has disbursed an average $8 million per month and the disbursement ratio at 18% is higher than the regional average of 17%.

Support for the private sector

Since the quake, IFC has committed 5 new investment transactions. The IFC portfolio to date amounts to US$46 million, including US$15 million mobilized from others, in the finance, energy, mining, garment and hospitality sectors. Advisory commitments from various donors amount to US$9.7 million in areas such as investment climate, access to finance, access to skills, and public private partnerships. Undisbursed balance to date is US$2.7 million on ongoing. Through its advisory services, IFC structured the largest foreign direct investment since the earthquake, a US$100 million investment by Viettel in Haiti's TELECO, to upgrade the telecommunications system. IFC's combined investment and advisory projects are supporting the creation of 5,000 new jobs as well as safeguarding 5,000 existing jobs.

Haiti Reconstruction Fund

The HRF is the main resource for strategically closing financing gaps to achieve a balanced recovery. It is the largest source of unprogrammed funding and accounts for 18 percent of all reconstruction financing provided to date. Contributions to the HRF total US$396 million, of which US$377 million has been received. US$274 million has been allocated to 17 projects since the Fund began operation in June 2010. New contributions by donors (Finland, France, Norway, the United States) at the end of 2011 indicate a renewed momentum for reconstruction finance through the HRF.

The World Bank wears four hats in the HRF: i) Trustee (CFPMI); ii) Secretariat (LCRRF); iii) Partner Entity (LCCHT); and iv) donor (US$2 million contributed from the State and Peace-Building TF).

• Conducted building assessments of Port au Prince (400,000 buildings), developed and disseminated building guidelines for housing reconstruction; developed building guidelines for public buildings, schools and hospitals; trained a cadre of engineers who are training others on better building techniques, and is disseminating information in neighborhoods on safe building practices.

• Improved Haiti's capacity to protect against, prepare for, and respond to natural disasters. Robust preparation for Hurricane Tomas in October 2010 and for the 2011 hurricane season has resulted in fewer fatalities than in previous years.

• Developed a multi-hazard risk management tool (floods, mudslides, hurricanes and earthquakes) with neighborhood-level detail, which the government and donors can use to make investments that will be safer for people and more effective.

• Provided major support to the education sector. Since the earthquake, the Bank has financed 210,000 tuition waivers and school meals for 75,000 children every day. Access is being expanded and quality will be enhanced over the next 3 years.

• Is funding the first environmentally and socially sound debris management site in Haiti – with capacity sufficient to treat bulk of earthquake debris from Port au Prince.

• Is implementing a Neighborhood Rehabilitation and Housing Reconstruction Program of US$95 million (of which US$65 million from the Haiti Reconstruction Fund) to repair or rebuild houses for 85,000 people, upgrade neighborhoods and provide basic services for 3,000,000 and help families move out of camps by providing rental subsidies.

• Is fighting the cholera epidemic through a US$15 million Emergency Response Project, which has provided health and hygiene education in 600 localities, trained over 3,000 health and hygiene agents and medical personnel, prepared six departmental cholera management plans, and supported 174 cholera treatment units and oral rehydration posts with personnel and/or supplies.

• Provided employment for 1,700 persons through IDA programs (cash for work, debris sorting, canal clearing, etc.) and 5,000 persons through new IFC investments. IFC activities also safeguarded 5,000 existing jobs.

• Completed six water supply systems, benefiting 37,000 people in rural communities.