Productive Infrastructure Program II (IADB-HA-L1081)

Countries
  • Haiti
Where the impacts of the investment may be experienced.
Specific Location
Caracol, Haiti
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • Inter-American Development Bank (IADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Bank Risk Rating
A
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Aug 7, 2013
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Government of Haiti
The holder of the loan, grant, or other investment.
Sectors
  • Construction
  • Industry and Trade
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Potential Rights Impacts
  • Cultural Rights
  • Healthy Environment
  • Housing & Property
  • Labor & Livelihood
  • Marginalized Groups
  • Right to Food
  • Right to Health
  • Right to Water
Only for projects receiving a detailed analysis, a broad category of human and environmental rights and frequently at-risk populations.
Investment Type(s)
Grant
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 40.50 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 40.50 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IADB website

Updated in EWS Jan 19, 2018

Disclosed by Bank May 6, 2013


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Project Description
The "Productive Infrastructure Program II" project in Haiti intends to finance the expansion of the existing infrastructure and manufacturing facilities at the Caracol Industrial Park (PIC: Parc Industriel du Caracol), at 250-hectare site located 4km south of the city of Caracol and ecologically-sensitive Caracol Bay on the northern coast of Haiti. The first phase of the PIC project was initiated in 2011, which provided buildings and infrastructure to accommodate three manufacturing firms, including a 10 MW power plant. The flagship tenant, Sae-A Trading Company Ltd., as well as a second company, Peintures Carabes (Carribbean Paint), have started their operations in the PIC. The "Productive Infrastructure Program II" project will provide additional infrastructure (e.g. roads, a wastewater treatment plant), industrial facilities (e.g. warehouses, factories), cantines and dormitories for an additional 5000 workers, and management support required for the expansion and operation of the PIC. The project is currently in preparation; project managers will submit the Proposal for Operation Development in June 2013, and will seek board approval of the project in August 2013. **Source: IADB Project Profile
Early Warning System Project Analysis
CATEGORIZATION This project is classified as Category A, which, according to the IADB, is *likely to cause significant negative environmental impacts and associated social impacts, or to have profound implications for natural resources.* With additional tenants and an increase in workers, the PIC is likely to exacerbate environmental and social impacts leading to increased pressures on already fragile ecosystems and natural resources, increasing the vulnerability of local communities to impoverishment. Two overarching concerns related to the PIC operation are: (1) potential for uncontrolled housing expansion; and (2) continuation of the construction without a simultaneous compliance with environmental and social safeguards and implementation of mitigation measures. **Source: IADB Project Profile
People Affected By This Project
APPLICABLE SOCIAL AND ENVIRONMENTAL STANDARDS OP 761. Gender Equality in Development Policy OP 703. Environment and Safeguards Compliance Policy OP 704. Natural Disaster Risk Management Policy OP 102. Access to Information Policy IADB does not consider this phase of the project to invoke OP 710, Involuntary Resettlement Policy. Significant displacement did occur, however, during the initial construction of the PIC, but the IADB believes additional infrastructure included in *Productive Infrastructure Program II* will not cause further displacement. A Compensation and Livelihoods Restoration Plan was created during the first phases of the project, but there have been delays in its delivery of benefits to impacted peoples. **Source: IADB Project Profile
Investment Description
  • Inter-American Development Bank (IADB)
The Inter-American Development Bank will provide the Government of Haiti with a grant of US$ 40.5 million, as one of four grants totaling US$180 million over six years, in order to supply and support the operation of the PIC. The United States Government Department of State and United States Agency for International Development (USAID) are also providing grants in support of the project.
Contact Information
IADB Team Leader: Santos, Arcindo B. ARCINDOS@iadb.org Ministry of Economy and Finance, Technical Execution Unit: Route de Caracol No 14, Caracol, Hati Nord d'Oeust Zip Code: HT 2340 HAITI Tel. + 509 28 13 18 83 Info.Caracol@UTE.Gouv.ht ACCOUNTABILITY MECHANISM OF IADB The Independent Consultation and Investigation Mechanism (MICI) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an Inter-American Development Bank (IDB) or Inter-American Investment Corporation (IIC)-funded project. If you submit a complaint to MICI, they may assist you in addressing the problems you raised through a dispute-resolution process with those implementing the project and/or through an investigation to assess whether the IDB or IIC is following its own policies for preventing or mitigating harm to people or the environment. You can submit a complaint by sending an email to MICI@iadb.org. You can learn more about the MICI and how to file a complaint at http://www.iadb.org/en/mici/mici,1752.html (in English) or http://www.iadb.org/es/mici/mici,1752.html (Spanish).