Haiti - Port Development Project

Document of FILE COPY The World Bank FOR OFFICIAL USE ONLY Report No. P-2932-HA REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT TO THE REPUBLIC OF HAITI FOR A PORT DEVELOPMENT PROJECT March 4, 1981 This document has a restricted distribution and may be used by recipients only in the performance of| their official duties. Its contents may not otherwise be disclosed without World Banlc authoriztion.  CURRENCY EQUIVALENTS Currency Unit: Gourde (G) $1: G5 Gl: $0.20 (The Gourde has, since 1919, been pegged to the U.S. dollar at the rate of G5'$1) WEIGHTS AND MEASURES Metric British/US Equivalent 1 meter (m) = 3.28 feet (ft) 1 kilometer (km) 2 = 0.62 mile (mi) 1 square kilometer (km ) = 0.386 square mile (sq mi) 1 metric ton (m ton) = 2,204 pounds (lb) ABBREVIATIONS AND ACRONYMS AAIPP - Administration de l'Aeroport International de Port-au-Prince (International Airport Authority) APN - Autorite Portuaire Nationale (National Port Authority) formed as successor to Administration Portuaire de Port-au-Prince APP - Administration Portuaire de Port-au-Prince (Port-au-Prince Port Administration) BRH - Banque de la Republique d'Haiti (Bank of the Republic of Haiti) (The Central Bank) CONADEP - Conseil National de Developpement et de la Planification (National Development Planning Council) CSDS - Coastal Shipping Development Study GRT - Gross Registered Tons KfW - Kreditanstalt fur Wiederaufbau IDB - Inter-American Development Bank NTS - National Transport Study SAT - Service Autonome des Transports (Autonomous Transport Service) SEPRRN - Service d' Entretien Permanent du Reseau Routier National (National Road Maintenance Service) TPTC - Secretairerie d'Etat des Travaux Publics des Transports et des Communication (Ministry of Public Works, Transport and Communications) UNDP - United Nations Development Program FISCAL YEAR October 1 to September 30  FOR OFFICIAL USE ONLY HAITI PORT DEVELOPMENT PROJECT Credit and Project Summary Borrower: Republic of Haiti Amount: SDR 8,700,000 Beneficiary: Autorite Portuaire Nationale (APN) Terms: Standard Relending Terms: The proceeds of the Credit would be onlent to APN for 25 years, including six years of grace, at 1 percent for the first five years and 2 percent thereafter. Project Description: The project provides for (i) expansion and rehabilitation of the international port at Cap Haitien, for which Kreditanstalt fur Wiederaufbau (KfW) (Federal Republic of Germany) is considering cofinancing equivalent to US$6 million; (ii) construction of five and rehabilitation of two coastal shipping ports; (iii) supplementary works at Jeremie; (iv) preparation of a master development plan for the Port-au-Prince harbor; and (v) institutional assistance for APN's management in the maritime sector and consulting services for project supervision. Benefits and Risks: Cap Haitien: In addition to preventing the collapse of the existing wharf, the main benefits are additional earnings from cruise ships and from the on-shore expen- ditures of their passengers. The most significant risk is that traffic development may not take place as rapidly as expected. This risk is minimized by avoiding over- investment through a staged construction program. Coastal Shipping Ports: The main benefit is to improve access to communities not linked to the main road network. The main risk is that traffic will not develop as rapidly as expected. Risks are reduced by holding investments to a minimum and by institutional assistance to the maritime sector to foster the growth of coastal shipping. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii~ - Estimated Cost and Financing Plan: Local Foreign Total --Costs (US$ million)-- Cap Haitien Port IDA - 6.3 6.3 KfW - 6.0 6.0 APN 5.0 - 5.0 Total Cap Haitien Port 5.0 12.3 17.3 Coastal Shipping Ports IDA - 2.5 2.5 APN 1.1 - 1.1 Total Coastal Shipping Ports 1.1 2.5 3.6 Supplementary Works Jeremie IDA - 0.3 0.3 APN 0.1 - 0.1 Total Supplementary Works Jeremie 0.1 0.3 0.4 Port Studies IDA - 1.9 1.9 APN 0.5 - 0.5 Total Port Studies 0.5 1.9 2.4 GRAND TOTAL IDA - 11.0 11.0 KfW - 6.0 6.0 APN 6.7 - 6.7 6.7 17.0 23.7 Estimated Disbursements: IDA FY 1981 1982 1983 1984 -------- US$ million --------- Annual 1.1 6.6 2.7 0.6 Cumulative 1.1 7.7 10.4 11.0 Economic Rate of Return: 24 percent for the project as a whole. Staff Appraisal Report: Report No. 3205b-HA dated February 24, 1981.  INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESIDENT OF IDA TO THE EXECUTIVE DIRECTORS ON A PROPOSED DEVELOPMENT CREDIT TO THE RFPUBLIC OF HAITI FOR A PORT DEVELOPMENT PROJECT 1. I submit the following report and recommendation on a proposed Development Credit of SDR 8.7 million (US$11.0 million equivalent), on standard IDA terms, to the Republic of Haiti to help finance a port develop- ment project. The proceeds of the credit would be onlent to the National Port Authority (APN). The Federal Republic of Germany is considering a grant equiva- lent to US$6.0 million in support of the Cap Haitien component of the project. PART I - THE ECONOMY 1/ 2. The last economic report on Haiti, distributed to the Executive Directors on January 8, 1979, was Report No. 2165-HA, entitled "Current Economic Position and Prospects of Haiti". A mission has recently updated the macroeconomic situation and its findings are reflected below; an economic memorandum will be distributed shortly. Relevant social and economic data are presented in Annex I. 3. Haiti is the poorest country in the Western Hemisphere. GNP per capita in 1979 stood at US$260. Data for 1976 indicated that almost 75 percent of the population lived under conditions of absolute poverty. An infant mortality rate of about 150 per thousand live births, an average life expectancy of 51 years, low nutrition and sanitation standards (malnutri- tion and gastroenteric diseases account for over half of the deaths in the country) and an adult illiteracy rate of about 80 percent illustrate the depressed living standards of the population. Though accurate information does not exist, underemployment is widespread, particularly in the agricul- tural and informal sectors. 4. The Haitian economy was characterized during the 1970s by modest growth subject to cyclical fluctuations. The average annual growth rate was 3.8 percent or 2.1 percent per capita during the 1970-79 period. Gross domestic product (GDP) growth has fluctuated from 1.3 percent in 1977 to 5.3 percent in 1978 and to 1.7 percent in 1979. These results were strongly -- influenced by the performance of agriculture. Manufacturing and construction show a more even performance. 5. Agriculture provides employment for about 73 percent of the popula- tion. It accounted for about 40 percent of GDP growth between 1970 and 1979. The sector is characterized by erratic behavior, extremely low productivity and heavy dependence on climatic conditions. Its weak performance is reflected in rapidly increasing food imports and declining agricultural export volume. Between 1970-71 and 1978-79, the share of food imports in total imports increased from 11 percent to 18 percent, while agricultural exports decreased by 1.3 percent annually, in real terms. Recognizing that sustained economic 1/ All references to fiscal years are to Haitian Fiscal Years ending September 30. Reprinted verbatim from President's Report No. 2933-HA of February 18, 1981, for a Post-Hurricane Agricultural Rehabilitation Project in the Southern Peninsula of Haiti.  - 2 - growth and a broadening of its benefits requires measures to improve agricul- tural productivity, the Government has recently initiated programs to introduce improved grain varieties, rehabilitate coffee plantations, restore the major irrigation systems and develop agro-industries. 6. Since 1970, manufacturing industries, construction and public utilities have emerged as the most consistently dynamic activities with annual average growth rates of 6.6 percent, 13.9 percent and 9.0 percent, respectively. Their combined share in real GDP represented 21 percent in 1979 (in constant prices), but, despite their strong growth dynamics, their combined contribution to GDP growth during the nine-year period did not exceed one-half of the GDP increment. The manufacturing sector owes much of its expansionary drive to the export processing industries and to a rapid increase in output of construc- tion materials. Growth of locally manufactured products for the domestic market was necessarily limited by the thinness of this market, explainable by the early stage of development of Haiti. 7. Starting from very low levels, public investment has increased rapidly since 1970, at an average annual rate of 23.4 percent in real terms, and its sectoral composition has undergone significant changes. While during the first Five-Year Plan (1971-76), only about 11 percent of total government development expenditures was for agriculture, the latter's share in the second Five-Year Plan (1977-81), on the basis of projects already approved, is estimated at about 24 percent. Other areas of high priority are transport, education, and health, especially geared to rural areas. The overall orienta- tion of the 1977-81 development program also reflects the Government's objec- tive to decentralize economic activity in favor of rural areas and provincial towns. Their share in total development expenditures is likely to increase from about 50 percent in the recent past, to about 70 percent during the second Five-Year Plan period. However, the Government's decision to carry out three major investment projects outside the Five-Year Plan, will displace or delay planned investments and could substantially alter the expected pattern of outlays. 8. Institutional strengthening is among the second Five-Year Plan's highest priorities, and technical assistance for project preparation and implementation has been considerably increased. A Joint Commission for the Implementation of External Cooperation Programs was established in 1975 to consider the country's economic situation and external technical and financial assistance programs. The Commission, for which the Organization of American States (OAS) provides the secretariat, is composed of senior government officials and of representatives of the multilateral and bilateral aid agencies active in Haiti. The Caribbean Group for Cooperation in Economic Development, under the chairmanship of the World Bank, is another forum for policy dialogue with the Haitian authorities. 9. The mobilization of domestic resources for development expenditures is hampered by institutional weaknesses in the banking sector and in public finance. During the 1977-79 period, gross national savings (GNS) amounted to 2.9 percent of gross national product (GNP), down from 5.5 percent in FY75. As the public sector provides a sizeable share of total savings, success in raising national savings would depend, to a considerable degree, on efforts  to improve public finance management. In line with the recommendations of the Bank and other donor agencies, a major reorganization of fiscal management, currently taking place with IMF assistance, should help strengthen such efforts. Inflation was not particularly high in the recent past, but its rate is increasing pari-passu with world inflation, rising from 9.4 percent in 1979 to around 12 percent in 19.80. An expected lower supply of food in 1981 will probably increase the consumer price index by 20 percent. 10. Most public revenues have been integrated into the budget; the Treasury now centralizes all current expenditures and a significant share of capital expenditures; tax collection is being consolidated and para- fiscal functions have been removed from the Regie du Tabac; sound accounting procedures are being established in all public institutions; customs duties have been consolidated and their average rate raised; new taxes have been imposed on the lottery and on international communications and the income tax law was amended to improve equity and elasticity of income taxation. 11. Notwithstanding a very strong performance of coffee export tax revenues, the public sector deficit increased significantly from 3.4 percent of GDP in FY79 to around 4.7 percent in FY80. As a result, the Government could not reach agreement with the IMF on the program related to the remainder of the 1979-81 Extended Fund Facility (EFF) until March-April 1980, and this agreement was substantially revised in December 1980 in the light of the impact of Hurricane Allen. The situation will require both additional revenue measures and tight control of expenditures. FY81 will be a difficult period for Haiti inasmuch as the coffee crop will be a poor one, world coffee prices have dropped and bauxite export revenues will also decline. 12. Despite the slowdown in national savings, gross investment has accelerated, reaching 14.9 percent of GNP in 1977-79. This growth in invest- ment was entirely attributable to the public sector, whose share of total investment has increased to two-thirds. The gap between national investment and savings, therefore, averaged 12 percent of GNP between 1977-79, compared to 8.4 percent in 1975 and 4.1 percent in 1970. The most important contributions to filling this resource gap, have come from government borrowing from inter- national and bilateral aid agencies (40 percent), grants-in-aid (35 percent), and private transfers and direct foreign investment (25 percent). The public sector depends almost exclusively on foreign sources for the financing of its deficit. These inflows permitted prior to 1980 an increase in foreign reserve holdings despite a net outflow of short-term funds. 13. Gross international reserves fell from a level equal to two months of imports of goods and net factor services (NFS) in 1977-79, to a level of one month of goods and NFS by September 1980, as a result of a sharp expansion of Central Bank credit to the public sector and of government investment in several industrial projects in 1980. Private transfers continue growing as the number of Haitians working abroad increases. Private direct investment has also been rapidly rising with political stability, fiscal incentives, and cheap labor as the main factors. It is expected to continue to rise. In 1979, new private foreign investment was almost five times higher than in 1975 (in nominal terms).  - 4 - 14. The high proportion of grants and concessionary loans has helped in maintaining the debt-service ratio at an estimated 4.2 percent for 1979. The rising level of private foreign investment and of suppliers' credits, however, will bring with it larger factor payments in the form of dividend repatriation and interest payments. Net factor payments have doubled in 1979 over 1976 and the ratio of public debt amortization, plus net factor payments (including private non-guaranteed debt) to exports of goods and non-factor services, is 11.6 percent. 15. A necessary continuation -- at a somewhat quicker pace than in the past -- of Haiti's economic development will require a further increase in the use of foreign savings, given the extremely low domestic saving capacity. This would require external financing of a high proportion of the cost of development projects, including local cost when the latter constitute a major share of total cost. Furthermore, in view of the country's poverty, Haiti will continue to require external assistance on concessionary terms for some time to come, if it is to achieve a significant improvement in the standard of living of its population. An important factor in determining the availability of this assistance will be the effective implementation of the fiscal reform, and, in particular, the control of expenditures, including those of a capital nature. This aspect will be closely monitored by the Association. PART II - BANK GROUP OPERATIONS IN HAITI 16. Since 1974, IDA has financed nine projects in Haiti. Two credits for highway projects were made in 1974 and 1975. In 1976, a credit was made for an education project and, in 1977, credits were made for power and rural development projects. In 1978, credits were made for a transportation project (secondary roads and a pilot coastal shipping ports component); for a second education project and for a water supply project in provincial towns. In 1979, a credit for a second power project was approved. Documents for a credit of US$3.2 million equivalent for a post-hurricane agricultural rehabilitation project in the Southern Peninsula were recently distributed to the Executive Directors for their consideration. The total of credits outstanding is US$110 million, of which US$38.9 million were undisbursed as of January 31, 1981. Annex II contains a summary statement of Bank Group operations in Haiti as of January 31, 1981, and notes on the execution of ongoing projects. IFC has not made any investments in Haiti but is now considering two projects, one in agri-business and the other in a housing bank. 17. Various multilateral and bilateral development agencies are active in Haiti. IDB has made loans for rural development, transportation, industrial credit, rural education, water supply, development of the Port-au-Prince harbor and urban drainage in Port-au-Prince. IDB has a number of projects under active consideration for agricultural and industrial credit, rural development and reforestation, and road maintenance. In addition, projects are being prepared for secondary road construction and for water supply. USAID is providing assistance for integrated rural development projects, community development, malaria eradication, maternal-child health and family planning, modernization of coffee production and marketing, construction of feeder roads and for highway maintenance. In addition, USAID is considering a program of assistance under Title III of PL480 to help strengthen the staff and improve the efficiency of key ministries. CIDA (Canada) is supporting a  - 5 - rural development project in the Southern Peninsula; a power project in Port-au-Prince in connection with IDA's Second Power Project, and is assisting agricultural and technical education and the construction of school facilities. CIDA has also completed a study of Haiti's water resource potential for both irrigation and for power generation and is financing a rural development project in the Southern Peninsula. France is financing seed production, educational planning and research, road construction and equipment for provincial airports. The Federal Republic of Germany is providing technical and financial assistance for a regional development project in the Gonaives Plain, power facilities for Cap Faitien and the Drouet and Gonaives-St. Marc areas, and, together with France, is providing technical assistance for the execution of the IDA-assisted rural development project in the Northern Plain. 18. Recent and prospective IDA operations in Haiti take into account the ongoing and planned roles of other official lending agencies. In line with the Government's Five-Year Economic and Social Development Plan (1976-81) and with Haiti's development priorities, current and planned IDA operations are meant to support the improvement and expansion of basic infrastructure in transporta- tion and power; to expand educational opportunities and upgrade technical skills, to promote regional development in both rural areas and provincial towns and to create new employment opportunities in the directly productive sectors. 19. Negotiations for an industrial credit project were recently completed. The project would establish a rediscount facility in the Central Bank to encourage financial intermediaries to engage in term lending: incentives would be offered to promote lending to small- and medium-sized Haitian enterprises. The ongoing Rural Development Project provides for the preparation of another project which would extend the scope of the Regional Development Agency's programs to additional areas of the Northern Plain. A pilot fuelwood project is also under preparation. It would address the severe soil erosion problem and the related need to rationalize fuelwood production. An urbanization project, being prepared, is expected to help the poorer segment of the population through upgrading of a produce market in Port-au-Prince and sites and services assistance in one or two provincial towns. A third power project has been identified and is in preparation by Electricite d'Haiti and its consultants. 20. The Bank Group's share in Haiti's external debt disbursed and out- standing came to 28.5 percent as of October 1, 1979. The Bank Group's share of external public debt service was about 3.8 percent. While its share of out- standing public external debt is expected to increase to about 29.8 percent in 1980, its share of external debt service would rise to about 4 percent. PART III - THE TRANSPORTATION SECTOR Background 21. Haiti is a relatively small country; it covers an area of approximately 27,800 km2 and is situated on the western third of the Island of Hispaniola, with a shoreline of 1,540 km. The interior is very mountainous: 40 percent of the land is above 500 m in altitude. Only some 50 percent of  - 6 - the land is suitable for cultivation and agricultural areas are widely dis- persed. Total population is estimated at approximately 5 million. Besides Port-au-Prince, with a total population of approximately 900,000, there are seven provincial centers ranging in size from 20,000 to 60,000 inhabitants and 61 smaller towns, many of them poorly served by the present transportation system. 22. The country's location, its rugged terrain, its long coast line, the dispersion of its agricultural production and the dominance of the capital city determine the characteristics of Haiti's transport system and underscore the importance of the transport sector in the country's economy. In external trade, maritime transport accounts for over 98 percent of Haiti's freight tonnage; the balance is moved by air or by land transport to the Dominican Republic. Over the years, Port-au-Prince has developed into the major inter- national shipping center of the country. International passenger traffic is moved mainly by air and by cruise ships. The latter serve Port-au-Prince and Cap Haitien and bring an important number of one-day tourists to the country (close to 200,000 in 1978). 23. In the first Five-Year Plan (FY72-76), the Government focused upon the urgent need to improve the productive sectors of the economy and on transport infrastructure. This emphasis was continued under the Second Five Year Plan (FY77-81), in which transport investments account for about 23 percent of planned investments. In an effort to correct the spatial imbalances which characterize the country, the Government aims primarily at further reconstruction and improvement of the road network and at expanding coastal shipping services in order to integrate presently isolated community centers and rural areas and to achieve a better balance between Port-au-Prince and the provincial towns. As a result of this strategy, much of the main road network has already been improved. In 1975, the Government agreed to the execution of the National Transport Study (NTS), for which the World Bank was executing agency. It was carried out between 1975 and 1977 under a UNDP grant. The study concluded that, after road rehabilitation, highest priority areas were: (a) improvement of international and domestic shipping facilities at Cap Haitien, and (b) expansion and development of coastal ports, as an alternative to more costly road connections. The Government has adopted the NTS recommendations. 24. The inter-city road network totals 3,725 km of roads, of which 750 km are paved, 1,715 km are surfaced with natural gravel and the balance consists of earth tracks, most of which are less than 4.5 m wide. It was not until the early 1970s that the Government accorded priority to the rehabili- tation and improvement of the basic road network. Today, much of the main network has been improved, but the rehabilitation of a number of bridges and improvements of some roads are still pending. In 1979, the motor vehicle fleet numbered 30,200 units. Vehicle ownership is about six vehicles per 1,000 inhabitants, the lowest of the entire Latin America and Caribbean Region. 25. The share of air transport in total traffic is small but important since Haitian export-oriented industry, especially the assembly industry, which assembles imported components and is the largest user of air transport, has performed dynamically in recent years. In 1978, about 24,000 tons of cargo were handled by the international airport of Port-au-Prince, in addition to  - 7 - departing passengers. The nation's second airport is located at Cap Haitien; expansion of this is envisaged in the future to accommodate tourism and industry development of the area. Maritime Transport 26. Haiti's foreign trade is served predominantly by foreign-owned shipping lines through the port of Port-au-Prince, of which 373,000 tons (oil, wheat and cement) moved through privately-owned facilities and 467,000 tons through the recently modernized commercial port which is managed by the National Port Authority (APN). Since 1973, investments in international port facilities have been concentrated in Port-au-Prince. Cap Haitien, the second international port of the country, has not seen any major improvements since 1953, although the port is vital to the economy of the north. 27. Domestic coastal shipping has traditionally played a significant role as a means of internal transport. While the ongoing rehabilitation of the road system will tend to reduce the relative share of waterborne traffic, the continuing importance of domestic maritime trade has been recognized, and an increase in coastal shipping traffic is expected. 28. International shipping was served at numerous small ports in Haiti up to the 1950s. While the 1962 Customs Code still recognizes 25 coastal ports, of which 12 are "open to foreign trade," international shipping and trading patterns changed in the 1960s, and, with the centralization of commercial activities in the capital, the terminal at Port-au-Prince has become the major center for maritime transport. At present, the only public berthing facilities which can accommodate general cargo and tourist vessels of conventional size (e.g., with about 9 m draft) are at Port-au-Prince and Cap Taitien. 29. The international port at Port-au-Prince completed in 1978 with assistance from the Inter-American Development Bank (IDB), has modern facilities for general cargo and container vessels; they consist of a marginal wharf 460 m in length (effectively used as three berths), with de3ths alongside of 9.5 m, a container crane, two modern transit sheds (11,200 m total area), and ample paved yard areas. In addition, the port has two ramps for Roll-on/Roll-off vessels and a finger pier with two berths for major tourist ships. The tourist pier is connected to the shore by a 10 m wide pier which can provide additional berthing space. 30. Cap Haitien's terminal facilities were constructed in 1952-53 and comprise a marginal wharf in two sections. One is for international traffic (181 m length), effectively one berth designed for tourism and general cargo vessels of up to 9 m (27 ft.) draft. The other section (87 m length) is shallower (1.5-3.0 m) and is used mostly by coastal shipping and small pleasure craft. The wharf is in an advanced stage of deterioration despite remedial measures recently attempted by APN. Tourist ships are the only regular traffic at the international wharf at present (normally two vessels per week). Nearly all cargo through the port is currently handled by coastal vessels.  - 8 - 31. The most urgent needs for improvement of port facilities serving international traffic in Haiti are at Cap Haitien because of the deteriorated condition of the existing wharf structure and because of prospects for signifi- cant increases in trade which could not be accommodated under present capacity constraints. As the port of Cap Haitien is expected to play a major role in the development of agriculture, industry and tourism in the northern region of the country, the repair and expansion of this port are considered among the highest priority investment in the transport sector of Haiti. 32. The need for expansion of the international port at Port-au-Prince, while less urgent than the development of Cap Haitien because of recently completed terminal facilities financed by IDB, nevertheless requires considera- tion because of a variety of prospective trade developments and physical changes in the immediate vicinity of the port, which should be coordinated with port activities. Among the factors to be considered at Port-au-Prince are expansion of a central market complex and major road improvements adjacent to the international terminal, construction of a new coastal shipping terminal (under Credit 807-HA), proposals to create an international Free Trade Zone within the port, expansion of container-related terminal activities, and possibilities of establishing a transshipment center at this port for the dis- tribution of container traffic within the Caribbean region. The Port-au-Prince planning study, which APN funded from its own budget, began in late 1979, is nearly completed and indicates the need for expansion of international cargo facilities in the 1983-85 period. Agreement was reached on the timing of this expansion, estimated to cost about US$30 million, for which studies are included under the proposed credit (Section 3.02 of the draft Project Agreement). Coastal Shipping Development Program 33. The proposal to expand and modernize domestic coastal shipping was made in 1977 by the NTS and was adopted by the Government to complement the development of the country's road transport system. In the NTS report, which compared overall economic costs of land and maritime transport, the development of 19 coastal ports was recommended; however, this recommendation was not based on a comprehensive analysis of alternative systems that might be adopted for coastal shipping services, nor was it established at the time which Government agency (or agencies) would be responsible for such port development and the required parallel support of fleet services and auxiliary systems. It was therefore decided to: (a) go forward initially with only three "pilot ports," at locations where there was clear evidence of a need for terminal improvements, even without decisions on an optimal system for coastal shipping services; and (b) test the capability of the port administration of Port-au-Prince to become an agency of national scope, with responsibilities for terminal development at smaller communities along the coast. The three pilot ports selected were Port de Paix (a small town on the north coast of the northern peninsula), Jeremie (a medium-sized town on the north coast of the southern peninsula) and Port-au-Prince (the "hub" of the existing coastal shipping freight system, where over one-third of all freight tonnage is handled). Investments of US$3.5 million in new facilities at these three pilot ports are being financed under Credit 807-HA.  - 9 - 34. The coastal trade complementg internal land transport, which is erratic and costly in many parts of the country. However, the maritime alternative, where it exists, also presents difficulties, such as: (a) inade- quacy of existing ports, even for small vessels; (b) unsafe conditions of most of the fleet due to primitive vessel construction methods, lack of maintenance and repair facilities, and absence of effective inspection and controls; (c) inadequate operating crews and lack of training for vessel operators; (d) the inability to obtain insurance coverage for vessels, and (e) the absence of aids to navigation and of provisions for assistance to vessels in distress. 35. Concurrently with the initiation of terminal developments at the three pilot ports, a Coastal Shipping Development Study (CSDS) was undertaken, with UNDP and IDA financing, to assist the Government in defining a program for development of Haiti's coastal shipping system in the next decade. The objectives of Phase I of the CSDS, for which the Bank acted as UNDP's Executing Agency, were to provide: (a) an analysis of alternatives for development of the coastal shipping system; (b) definitions of vessel and fleet charac- teristics; (c) identification of the highest priority port improvements for the proposed coastal shipping fleet, and (d) recommendations on a program of Government support. 36. In 1979, Phase I of the CSDS reviewed all existing coastal ports and fleet operations, prepared traffic projections, and developed and evaluated alternative systems solutions. The study resulted in recommendations to support the development of regularly scheduled service by modern motor vessels among 11 coastal shipping ports (the three pilot ports, Cap Haitien, and seven others) and to supplement motorized service by improved feeder services of conventional sailboats to and from smaller communities. While the motorized fleet would primarily handle traffic of general high-value cargo, agricultural produce and passengers, sailboats would continue to serve traffic in salt and charcoal, which constitute a large but low-value portion of the traffic. For the 1981-1990 period, the development program as recommended would require a coastal fleet, port construction and related support services estimated to cost over US$20 million; however, the economic justification of an investment of such magnitude would depend upon implementation by the Government and private sector of coordinated actions relating to the institutional development of the maritime sector, and provision of facilities for credit, vessel repair and general assistance to shipping and it is therefore proposed to implement the program in stages consisting of investments that would be individually justified. 37. Phase II of the CSDS, completed in September 1980 with financing under Credit 807-HA, consists of preliminary engineering designs, economic analyses and financial forecasts for port terminal developments at the follow- ing ports: Gonaives, Anse a Galets, Baraderes, Corail, Anse d'Hainault, Port-a-Piment and Les Cayes. This phase of the CSDS provided the basis for appraisal of the coastal shipping ports component of the proposed project. 38. Success of the proposed coastal shipping development program will depend, in large measure, upon decisions to be taken by the Government concerning support for development of the maritime sector in general. Specific  - 10 - recommendations on this subject were made under Phase I of the CSDS, but their implementation was considered premature since there had been insufficient time for discussion among the various agencies concerned. Phase II of the CSDS was therefore deslignated as a period during which the Phase I recommendations would be considered in detail, with the objective of reaching a consensus on key issues relevant to coastal shipping. Proposed government actions are summarized in para. 43. For two of the proposed coastal shipping ports, at Baraderes and Anse d' Hainault, road improvements would be required for proper terminal operations. The Government agreed to undertake these improvements (Section 3.04(a) of the draft Credit Agreement). Institutional Framework 39. Overall responsibility for transport investment lies with the Ministry of Public Works, Transport and Communications (TPTC), but the Ministry of Finance and Economic Affairs, the Bank of the Republic of Haiti (BRH) , the Ministry of Commerce and Industry and, since 1978, the Ministry of Planning are also closely involved. 40. TPTC's responsibilities, as defined by law of June 17, 1971, include - in addition to roads and bridges - public buildings, zoning and construction regulations, city streets and public utilities. The increase in transport investment and agreements with external lending agencies led to the establishment of three specialized services within the TPTC: the National Public Works Laboratory, responsible for materials testing and standards; the Construction Service and Coordination Unit, responsible for contract super- vision, and the Autonomous Transport Service (SAT), responsible for planning, engineering and coordination. SAT was established in December 1975 and acts as a sectoral planning unit and a highway planning and engineering office. 41. The 1962 Customs Code made administration and management of all ports in Haiti the responsibility of the Customs Service in the Ministry of Finance and Economic Affairs. In 1973, jurisdiction over the ports of Port- au-Prince and Cap Haitien was transferred to a new public agency, the Port-au- Prince Port Administration (APP), and, by Presidential Decree in 1978, APP was replaced by a national port authority (APN), with jurisdiction extended to the ports of Port-de-Paix and Jeremie. While it is foreseen, under existing law, that responsibility for other ports will eventually be transferred to APN, the Customs Service is still in charge of vessel clearance, collection of duties and provision of facilities in all ports other than Port-au-Prince, Cap Haitien, Jeremie and Port-de-Paix. In practice, however, the Customs Service exercises jurisdiction only over ports designated as "open to foreign trade," delegating responsibility for "local ports" to the Internal Revenue Service. A time schedule for expansion of APN's staff and organization at Cap Haitien to levels that would be adequate for effective administration and operation was agreed during negotiations (Section 2.09) of draft Project Agreement). 42. APN is a tax-exempt, public service agency, enjoying administrative and fiscal autonomy. Although legally autonomous, it reports to the Government through the Ministry of Finance and Economic Affairs. APN is governed by a Board of Directors, comprising the Minister of Finance and Economic Affairs,  - 11 - the Minister of Commerce and Industry, the Minister of TPTC, the Governor of the BRH and the Director General of APN. Except for the addition of the Coastal Shipping Department, APN's structure is identical to that of its predecessor. Notwithstanding regular salary increases since 1976 (the latest ranging from 14 to 20 percent in October 1980), APN's salary scales are lower than those of the private sector and thus are not sufficient to attract qualified technical and professional personnel. In connection with Section 3.03 of the draft Project Agreement, APN intends to undertake a salary survey to determine appropriate salary levels for its staff. Government Support to the Maritime Sector 43. Government actions needed to support the maritime sector are (a) the introduction of stricter vessel inspection and licensing procedures so that vessel owners can obtain insurance and finance and (b) the establishment of a government maritime agency, to promote and regulate the domestic and international fleet of Haiti and to coordinate government policies and actions. The Government has agreed to establish a national maritime agency not later than October 31, 1981 (Section 3.02(a) of the draft Credit Agreement), and assign to it specific functions related to the development of the maritime sector (Schedule 3 of the draft Credit Agreement). Bank Group Assistance to the Transport Sector 44. The Bank Group's involvement in the transport sector of Haiti began with a loan for a road maintenance and rehabilitation project (Loan 141-HA for US$2.6 million in 1956). A second operation (Cr. 32-HA for US$0.35 million in 1962) for an interim project, completed work undertaken in the first project. The third and fourth operations (Cr. 478-HA for US$10 million in 1974 and Cr. 556-HA for US$20 million, in 1975) included construction of the Northern Road, the National Transport Study and rehabilitation of major bridges. They have been successfully completed. The fifth transport project (Cr. 807-HA for US$15 million in 1978) included construction of two bridges, 53 km of road sections in the Northern Plain and 13 km in the South, and a coastal shipping component providing new terminals at Port-au-Prince, Port-de-Paix, and Jeremie. The road component is proceeding satisfactorily, but the coastal shipping com- ponent is about 10 months behind schedule because of hurricane damage to the contractor's facilities at his home base on the Dominican Republic in 1979 and, more recently, because of delays in obtaining permits to transport dynamite and hurricane damage to the works at Jeremie. PART IV - THE PROJECT Objectives and General Description 45. The objectives of the proposed project are to: (a) rehabilitate and expand the international shipping port at Cap Haitien, and (b) support the development of a modern coastal shipping system for domestic transport by constructing new port terminals in selected locations and by assisting in related institutional developments. The main components of the project are: (a) at Cap Haitien, engineering and construction of two vessel berths to  - 12 - serve international tourist and freight traffic, a coastal shipping wharf, and auxiliary terminal facilities; (b) at the coastal shipping ports (Baraderes, Corail, Anse d'Hainault, Port-a-Piment, Anse a Galets, Gonaives and Les Cayes), construction or rehabilitation of new coastal shipping wharves and provision of engineering supervision services; (c) at the port of Jeremie, supplementary construction for shore protection at the coastal shipping terminal financed under Credit 807-HA; (d) at Port-au-Prince, preparation of a general plan for port development, feasibility studies and design for the next phase of development in terminal facilities for international trade, and (e) institutional development of the maritime sector and for APN's management. 46. A cost summary and financing plan of the project are given in the Credit and Project Summary. Proposed co-financing under consideration by the Federal Republic of Germany, through KfW, equivalent to US$6 million, would be confined to the Cap Haitien component of the project. 47. Cost estimates for the Cap Haitien port construction are based on preliminary engineering studies; detailed engineering for this project component is substantially completed. Cost estimates for the seven coastal ports are also based on detailed engineering completed in January 1981. Cost estimates for the supplementary construction at Jeremie are based on designs by APN's consultants for the pilot ports, and on a contract already awarded. All costs are calculated free of taxes and duties since APN is tax-exempt and Haiti has exempted international contractors and consultants from such duties. The proposed credit includes US$3.5 million for consultant services for studies, detailed engineering and supervision of construction. The estimated cost of consulting services is based on US$10,000 per man/month of foreign expert's time (all inclusive rate). 48. The foreign exchange component for civil works is estimated at 70 percent for Cap Haitien and the coastal shipping ports. The foreign exchange component for engineering services and for the technical assistance component is estimated at 80 percent. A contingency allowance of 10 to 15 percent was used for all civil works at Cap Haitien and 15 percent for civil works at the coastal shipping ports. Basic costs of construction and equipment have been estimated in mid-1981 prices and contingencies for price escalation were based on annual increases of 8 percent for the implementation period 1981 through 1983. Execution, Procurement and Disbursements 49. Implementation of the project would be the responsibility of APN, which would retain consultants satisfactory to the Association for this purpose and would expand its own staff capabilities. The proposed project is expected to be completed within a period of three years. 50. All civil works and equipment to be financed under the proposed project would be awarded in accordance with ICB procedures specified in the Bank's guidelines, except for the supplementary construction item at Jeremie, which has been contracted with the construction firm selected after international competitive bidding for the portion now under construction. Professional services for engineering, planning and management advisory services would be retained in accordance with procedures acceptable to the Association.  - 13 - 51. Disbursement of the credit would be made against: (a) 32 percent of total expenditures for port construction at Cap Haitien; (b) 70 percent of total expenditures for construction of coastal shipping ports and supplementary works at Jeremie, and (c) 80 percent of total expenditures for engineering services for project construction and for technical assistance for (i) planning and design for Port-au-Prince, (ii) assistance in coastal shipping development, and (iii) advisory service to APN. All disbursements would be fully documented. IDA funds for the project components are expected to be disbursed in accordance with the estimates given in the financing plan shown in the Credit and Project Summary. For the Cap Haitien port component of the project, in which the proposed joint financing with KfW would apply, specific disbursement procedures were adopted during negotiations. A condition of disbursement for this component is that the KfW financing has been made available (Schedule 1, para 3(b) of the draft Credit Agreement). Retroactive financing of US$0.3 million equiva- lent is recommended for the supplementary works at Jeremie (para. 45) and of US$0.8 million equivalent for final engineering for Cap Haitien and for the port development plan at Port-au-Prince. Financial Management of APN 52. Different accounting systems are used in Port-au-Prince and Cap Haitien; a further system has been designed for the coastal shipping ports. In Port-au-Prince, the existing system is adequate for overall control of port finances, but does not provide cost-center related information and budget comparisons for effective management control. In Cap Haitien, the accounting system is cash-based, accruals are not accounted for and only part of the assets in use are entered in APN's accounts. 53. A uniform accounting system for all operations will be developed and implemented with consultancy assistance (Section 2.02 of the draft Project Agreement and Schedule 2,E,5 of the draft Credit Agreement). Assets employed in Cap Haitien will be verified, valued and brought into APN's books in 1981 (condition of disbursement, draft Credit Agreement, Schedule 1, (3), (b)(i)). To improve APN's financial planning, management and control, the format and content of APN's budgets will be improved with the help of consultants. It was agreed that (i) the 1982 and 1983 operating budgets would be prepared on a quarterly, and thereafter on a monthly basis; (ii) beginning in 1981, and through 1986, a five-year investment budget would be prepared; and (iii) start- ing in 1981, for a period of five years, investment proposals over US$350,000 would be subject to economic and financial evaluation. This analysis and also APN's operating and capital budgets through 1986 would be forwarded for IDA's comments prior to implementation (Section 4.07 of the draft Project Agreement). 54. APN's financial statements are regularly audited by an independent auditor. While past audits were conducted properly, the reports were not as extensive as would be expected from a firm having experience with large international ports. Beginning in 1981, an audit firm having appropriate experience will be retained, subject to IDB and IDA concurrence (Section 4.02 of the draft Project Agreement).  - 14 - Financial Performance of APN 55. APN has been a profitable organization over the past five years, and has not needed financial assistance from the Government. Between 1976 and 1980, the Authority's aggregate profit was about US$8.3 million. Despite these positive financial,results, APN's profitability has deteriorated since 1976. Net revenue in 1980 (about US$1 million) was US$401,000 lower than in 1976, and represented 19 percent of total revenues as against 41 percent in 1976. The profit erosion was due to increasing financial expenses, including debt amortization, and to the fact that operating expenses grew at a faster rate than operating revenues. 56. The Government and the management of APN are firmly committed to maintaining the Authority as a profitable, financially self-sufficient entity. APN's financial target, to earn an annual return of at least 6 percent on total net fixed assets employed, was established in its loan agreement with IDB, at a time when international operations in Port-au-Prince represented the bulk of APN's activities. APN's earlier agreements with IDB and IDA, were confirmed during negotiation. APN would adjust its tariffs as necessary to maintain a 6 percent return on the net value of its assets employed and revalued every three years, with intermediate adjustments, as needed, for inflation. APN's revenues would be retained in APN. Further, APN would continue to levy charges on cargo handled in private terminals (Section 3.03(b) of the draft Credit Agreement and Sections 4.03 and 4.06(a) and (b) of the draft Project Agreement). 57. The character of the Cap Haitien operation would be similar to that of Port-au-Prince; consequently, similar financial targets would be appropriate for both ports. However, since Cap Haitien has relatively low traffic, it may take several years before this port could achieve a 6 percent rate of return on its assets. Major traffic increases would take place only after the com- pletion of the new facilities, but, even with the expected growth, substantial tariff increases would be necessary to make the operation profitable. Since implementation of such tariff increases in one step would almost certainly have a drastic, adverse effect on the traffic, gradual tariff increases would be more practical; a phased improvement in rates of return to achieve the 6 percent rate within a reasonable time is considered more appropriate. Tariffs at Cap Haitien would be increased to the level of those at Port-au- Prince in 1981. In 1982, the potential of the cruiseship market would be assessed ,ith consultants' assistance and subject to a review of the study's findings, tariffs would be adjusted to ensure that the rate of return on net assets in Cap Haitien would be at least 3 percent in 1987 and 6 percent in 1989 (Section 4.08 of the draft Project Agreement.) 58. For the coastal shipping ports financed under Credit 807-HA, there is no rate of return requirement but steadily improving working and operating ratios have to be achieved each year. These targets reflect the need to balance two objectives: (a) to maintain the profitability of APN as its operational responsibilities are expanded to domestic coastal shipping ports, and (b) to establish, for the coastal shipping ports, cost-oriented tariffs, affordable to users, which would promote coastal traffic and the further development of the port system.  - 15 - 59. Based on a recovery of about 80 percent of the direct financial benefits accruing to port users, a tariff structure was designed for the "pilot" ports in 1978. Recently, the benefit calculations were updated and tariffs applicable to the coastal shipping port system were adjusted. The proposed tariffs' impact upon traffic would be reviewed with consultants assistance about one year after the "pilot" ports commence operations. Port revenues based on the proposed tariffs would not recover full costs; and the operation would not yield positive financial results. Consequently, APN's international port operations would have to provide financial support for the coastal shipping ports. This support is justified given the poverty of the regions served by the coastal shipping ports. Nevertheless, to control costs and limit the extent of assistance, progressively improving working ratios were agreed, providing for working ratios of 80 percent in 1982 and 1983; 75 percent for 1984 through 1986 and 67 percent thereafter (Section 4.04 of the draft Project Agreement). 60. During the next five years, APN's financial position is expected to remain sound, provided the proposed tariff measures are taken promptly, such as the 30 percent increase of February 1981, and expenditures are kept under control. Although borrowings for the investment program would be substantial, debt/equity ratios would improve from 1982 onward and the liquidity position is also expected to be satisfactory. However, by the end of 1985, about 90 percent of APN's cumulation cash surplus (estimated at US$16.6 mil- lion) would be required to finance additional equipment and construction in Port-au-Prince. Pending an assessment of the composition and timing of fund requirements, these have not been included in the financial projections. 61. APN's management would closely monitor the utilization of its financial resources. In addition to the introduction of capital investment control measures, it was agreed that: (a) APN would not, unless the Association agrees otherwise, contract any further long-term debt in excess of US$1.25 mil- lion; and (b) APN would maintain its accounts receivable at a level of not more than an average two months of revenue in Cap Haitien and in Port-au-Prince (Section 4.05 and 4.09 of the draft Project Agreement). Long-Term Financial Obligations of APN and Proposed On-Lending Terms 62. APN has received total financing of US$17.5 million from IDB (US$10 million loan in 1972 and US$7.5 million in 1975) for the construction and improvement of the Port-au-Prince international port. From its own resources, APN contributed US$3.3 million to the construction of the new terminal at Port-au-Prince and, in 1977, committed an additional US$5 million to reha- bilitate the existing pier. Ulnder the loan agreements with TDB, APM cannot enter into long-term loan contracts without the prior authorization of IDB and can use its funds cn'y for port projects. APN has obtained IDB's consent to borrow for the project. 63. In 1978, a US$3.5 million IDA Credit was extended to the Government and in turn, onlent to APN for the construction of three coastal shipping ports (pilot ports). The on-lending terms were 25 years amortization with a six-year grace period, 1 percent annual interest rate until 1985 and 2 percent thereafter.  - 16 - 64. For on-lending of the proposed Credit, the Government would enter into a Subsidiary Loan Agreement with APN (condition of effectiveness, Section 5.01 of the draft Credit Agreement). The on-lending terms mentioned above are recommended for the following reasons: (a) The coastal shipping port component of the project is a logical expansion of the system that was initiated under Credit 807-HA. The expansion would not improve APN's finances: the coastal ports would still require support from APN's international operations. In view of the financial position of coastal shipping ports and their importance to the economy, on-lending terms similar to those under Credit 807-HA are warranted. (b) In Cap Haitien, where most of the facilities would serve international traffic, the situation would be somewhat different. This port should eventually become financially self-sufficient, although its future revenues would depend heavily upon whether tourist traffic materializes as expected and whether the contemplated tariff adjustments can be implemented without adverse effects upon the port's competitive position. (c) The operation in Port-au-Prince is expected to be profitable, and future cash surpluses, unless otherwise committed, would be more than suffi- cient to cover the concessional interest costs of the coastal shipping and the Cap Haitien port projects. However, by about 1985, the expected export and import traffic of Haiti would require the expansion of Port-au-Prince's international terminal with new berthing and equipment needs costing some US$30 million. An investment of this order would require heavy commitment of APN's cash surpluses for counterpart funds and debt servicing, in addition to the financial support needed by the coastal shipping port system. 65. The Government would on-lend to APN a total amount equivalent to US$17.0 million to transfer the proposed IDA credit and KfW grant. It is expected that the grant under consideration by KfW would be made available to APN on the same interest terms as the IDA credit: APN would pay interest and principal to a trust fund account with the Central Bank, to be used, in agreement with KfW, for future port investments. Benefits and Risks 66. Two of the main benefits of the Cap Haitien component are additional earnings from foreign cruise ships and an average net shore expenditure of US$14 per foreign visitor calculated on current expenditure patterns. Other major benefits are the savings in road transport cost, and avoidance of the cost of a future collapse of the existing dock, if not replaced. As explained earlier, the existing dock at Cap Haitien is reaching the end of its useful life. Major reconstruction of this facility would be necessary in the next few years merely to retain it in service. Furthermore, the bulkhead con- struction would not allow deepening of the berth alongside. The economic effects of a curtailment of cruise ship calls, which would result from a collapse of the dock would be very severe. Berthing alongside the dock is not imperative, but with only a few hours in the port, the number of passengers who would go ashore by lighter would drop to such an extent that  - 17 - ship owners would be reluctant to call on the port. Thus, the number of sightseers and shoppers would be reduced drastically, with a serious loss of employment opportunities in the area. The relatively short port stay gives rise to economic activity which is very labor-intensive as not only a large handicraft market but also a large number of jeep drivers, guides and horsemen are completely dependent on these visitors. This trade has far-reaching - fects for the whole area. 67. The main benefit for the smaller coastal shipping ports is to enable improved access to communities which are not connected by road to the rest of the country, or which are reached by road for only part of the year. In time, roads to some of these communities will improve, but experience has shown that the necessary investments are high and the time required for construction is long. Even though roads will be built, coastal shipping using the advantage of favorable wind conditions and the 1,530 km of Haiti shoreline will remain competitive for certain trades and certain commodities. The major limitation of the smaller ports for such a system is that operations are now mainly over the beach using lighters or small docks without direct transfer from ship to shore. There is little or no protection to ships and cargo. The advantage of the new small port facilities is that access to shore is provided for small (up to 200-ton) motorized vessels. This improved access will enable more regular services to be provided at virtually the same en-route costs as before but with reduced damages and losses and fewer handling costs. 68. The benefit assigned has normally been the difference of the cost for the selected coastal shipping alternative compared to the transport cost of the next best solution for each main commodity group. Feasible ports under these selection criteria are those with a return exceeding 8 percent (the opportunity cost of capital in Haiti). 69. The quantified benefits result in a rate of return for Cap Haitien, conservatively estimated over only a 12-year period, of 26 percent. Sensitivity tests indicate a minimum of 12 percent under adverse assumptions, and the first year return (of 22 percent) is also more than adequate. For the coastal ports, the total return is 14 percent, based only on transport cost savings over a period which varies from 10 to 25 years, depending on location. The first year's return for the small coastal port system is higher than the opportunity cost of capital. For the project as a whole, the rate of return is 24 percent. 70. The design and scope of the project have avoided risks of over- investment to the extent possible, i.e., by staged construction at Cap Haitien and minimal investment at the smaller coastal shipping ports. Nevertheless, the most significant risk is that development in shipping may not take place as, and when, anticipated. In the case of Cap Haitien, a conservative valuation of benefits as above gives a high return, which, in extreme cases of 25 percent and even 50 percent reduction of benefits, yields a rate of return of 20 percent and 12 percent, respectively. The likelihood of serious cost overruns is less, but a 15 percent cost overrun combined with a 25 percent reduction in benefits gives a return of 17 percent.  - 18 - 71. For the coastal ports, the situation does not appear equally secure. Total benefits, however, have been underestimated because the development impact on agricultural production is not quantified; therefore, the risk of cost overrun is likely to be more important. The return varies from port to port, but a 15 percent cost overrun in real terms gives a return of 11 percent for the system as a whole. PART V - LEGAL INSTRUMENTS AND AUTHORITY 72. The draft Development Credit Agreement between the Republic of Haiti and the Association, the draft Project Agreement between the Association and the National Port Authority, and the recommendation of the Committee provided for in Article V, Section 1 (d) of the Articles of Agreement are being distri- buted to the Executive Directors separately. Special conditions are listed in Section III of Annex III. An additional condition of effectiveness would be that the Republic of Haiti has entered into a Subsidiary Loan Agreement with APN. A condition of disbursement for the feasibility study and detailed engineering for the next phase of development of the Port-au-Prince harbor would be that APN had adopted a general land-use plan for the port. Conditions of disbursement for the Cap Haitien component of the project would be that assets at this port had been verified, valued, and entered in the accounts of APN, and that KfW financing has been made available for the Cap Haitien component. A condition of disbursement for the coastal shipping port of Baraderes would be that a road linking the port to the town's street system had been completed. 73. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Association. PART VI - RECOMMENDATION 74. I recommend that the Executive Directors approve the proposed credit. Robert S. McNamara President by: Ernest Stern Attachments March 4, 1981  - 19 - ANNEX I Page 1 of 5 TADLt 3A, HAITI - SOC2I INDICATORS DATA SKEST HAITI RErUENE CPCOPS (UFIGPTED AVI ACES 4e AusA (THOUSAND SO. K. - )ST RECENT ESTIMATE) W ~~~~~27. 8 ICULTURAL 13.9 MOST RECENT 1L3E IICCQE MIDDLE INC(VF 1960 lb 1970 lb ESTIMATE /b LATIN AMEICA 6 CARIBBEAN AFPICA SOUTH OF SAPARA GNP PER CAPITA (USS) 100.0 120.0 260.0 1562.9 868.0 ENERGY CONSUMPTION PER CAPITA (KILOGRAMS OF COAL EQUIVALENT) .. 43.0 57.0 1055.9 699.4 OfULATIO1K AND VITAL STATISTICS POPULATION, MID-YEAR (MILLIONS) 3.6 4.2 4.8 IRBAN POPULATION (PERCENT OF TOTAL) 15.6 19.8 23.8 63.4 28.9 POPULATION PROJECTIONS QOPULATION IN TEAR 2000 (MILLIONS) B. 0 STATIoNARY POPMATION (MILLIONS) 17.0 TM STATIONARY POPULATION IS RnACn 2145 POPULATION DENS ITY PER SQ. EM. 131.0 153.0 173.0 28.1 61.7 PER SQ. KM. AGRICULTURAL LAND 259.0 300.0 345.0 81.7 126.0 POPULATION AGE STRUCTURE (PERCENT) 0-14 YRS. 42.0 41.5 43.5 41.4 45.5 15-64 YRS. 55. 0 54.0 52. 9 54.7 51.6 65 YRS. AND ABOVE 3. 0 4.5 3.6 3.9 2.8 POPULATION GROWTH RATE (PERCENT) TOTAL 1.6 1.5 1. 7 2.7 2.7 URBAN 4.4 3.9 4.1 4.1 4. 9 CRE BIRTH RATE (PER THOUSAND) 45.0 43.0 43.0 34.8 46.8 CRUDE DEATH RATE (PER THOUSAND) 23.0 18.0 17.0 8.9 16.4 GROSS REPRODUCTION RATE .. 3.0 2.9 2.5 3. 2 FAMILY PLANNING ACCErTFCS, ANNUAL (THOUSANDS) .. .. 16.1 USERS (PERCENT OF ARRIED WOMEN) .. .. 5.0 FOOD AND NUTRITION IDCt OF F0OOD PRODUCTION PER CAPITA (1969-71-100) 104.0 100.0 91.0 106.9 94.0 P- CAPITA SUPPLY OF CALM IES (PERCENT OF REQUIREMENTS) 88. 0 87.0 93.0 107.4 92. 7 PROTEINS (GRAMS PER DAY) 47.0 47.0 51.0 65.6 53.0 OF WHICH ANIMAL AND PULSE 17.0 17.0 18.0 33.7 15.6 CHILD (AGES 1-4) MORTALITY RATE 39.0 29.0 23.0 8.4 21.3 LIFE EXPECTANCY AT BIRTH (YEARS) 42.0 47.0 51.0 63.1 50.1 INFANT MORTALITY RATE (PER THOUSAND) .. 150.0/c .. 66.5 ACCESS TO SAFE WATER (PERCENT OF POPULATION) TOTAL .. .. 14.0 65.9 31.0 URAN .. .. 38. 0 8. 4 66. 8 RURAL .. .. 7. 44.40 ACCESS TO EXCRETA DISPOSAL (PERCENT OF POPULATION) TOTAL .. .. .. 62.3 URBAN .. .. .. 79. 4 RDRAL .. .. .. 29.6 POPULATION PER PHYSICIAN 13600.0 11730.0 5936.0 1849.2 14508.2 POPUIATION PER NURSIC PESON 11880.0 74600 3513.0 1227.5 3279.5 POPULATION PER HOSPITAL BED TOTAL 1790.0 1370.0 1219.0 480.3 1141.5 URBAN .. .. UtAL.. . ... AtSSSIONS PER HOSPITAL RED ARACE SIZE OF HOUSEHOLD TOTAL .. 3.6 4.4 URBAN .. 2.2 4.2 RURAL *4.3 4.5 AVERAGE NIMBER OF PERSONS PER ROOM TOTAL .. 1.9 URBAN .. 2.0 RLRAL *1 1.9 ACCESS TO ELECTRICITY (PERCENT OF DWELLINGS) TOTAL .. .. 2.9 URBAN .. .. RURAL .. ..  ANNEX I - 20 - Page 2 of 5 TABLE 3A HAITI - SOCIAL INDICATORS DATA SHEET HAITI REFERENCE GROUPS (WEIGHTED AV AGES - MDST RECENT ESTIMATFE)' MOST REC ENT MIDDLE INCMEE MIDDLE INCOME 1960 /b 1970 /b ESTIMATE /b LATIN AMERICA & CARIBBEAN AFRICA SOCUB OF SAHARA EDUCATION ADJUSTED ENROLLMENT RATIOS PRIMARY: TOTAL 46.0 49.0 71.0 99.7 61.7 MALE 50.0 55.0 .. 101.0 69.2 FEMALE 42.0 43.0 .. 99.4 51.4 SECONDARY: TOTAL 4.0 6.0 .. 34.4 20.6 MALE 5.0 8.0 .. 33.5 29.2 FEMALE 2.0 3.0 .. 34.7 14.7 VOCATIONAL ENROL. (X OF SECONDARY) 21.0 19.0 8.0 38.2 7.0 PUPIL-TEACHER RATIO PRIMARY 43.0 45.0 .. 30.5 36.6 SECONDARY 13.0 18.0 .. 14.5 24.3 ADULT LITERACY RATE (PERCENT) 15.0 20.0 23.0 76.3 CONSUMPTION PASSENGER CARS PER THOUSAND POPULATION 2.0 3.0 3.5 43.0 38.8 RADIO RECEIVERS PER THOUSAND POPULATION 6.0 20.0 21.0 245.3 83.5 TV RECEIVERS PER THOUSAND POPULATION 0. 5 2.6 2.9 84.2 NEWSPAPER ("DAILY GENERAL INTEREST") CIRCULATION PER THOUSAIID POPULATION 11.0 19.0 20.0 63.3 24.2 CINEMA ANNUAL ATTENDANCE PER CAPITA .. .. .. .. 0. 7 LABOR FORCE TOTAL LABOR FORCE (THOUSANDS) 1967.1 2101.9 2340.6 FEMALE (PERCENT) 47.4 47.4 46.0 22.2 38.1 AGRICULTURE (PERCENT) 80.0 74.2 69.8 37.1 54.3 INDUSTRY (PERCENT) 6.4 7.2 8.0 23.5 17.8 PARTICIPATION RATE (PERCENT) TOTAL 55.8 50.6 50.5 31.5 38.8 MALE 59.7 55.2 55.1 48.9 *8.4 FEMALE 52. 1 46.4 46.2 14.0 29.4 ECONOMIC DEPENDENCY RATIO 0.8 0. 9 1.0 1.4 1.3 INCOME DISTRIBUTION PERCENT OF PRIVATE INCOME RECEIVED BY HIGHEST 5 PERCENT OF HOUSEHOLDS .. .. HIGHEST 20 PERCENT OF HOUSEHOLDS .. .. LOWAEST 20 PERCENT OF HOUSEHOLDS LOWEST 40 PERCENT OP HOUSEHOLDS .. .. POVERTY TARGET GROUPS ESTIMATED ABSOLUTE POVERTY INCOME LEVEL (USs PER CAPITA) URBAN .. .. 169.0 RURAL .. .. 144.0 190.8 ESTIMATED RELATIVE POVERTY INCOME LEVEL (US$ PER CAPITA) URBAN .. .. 82.0 474.0 RURAL .. .. 73.0 332.5 ESTIMATED POPULATION BELOW ABSOLUTE POVERTY INCOME LEVEL (PERCENT) URBAN .. .. 55.0 RURAL .. .. 78.0 Not available Not applicable. NOTES /a The group averages for each indicator are population-weighted arithmetic means. Coverage of countries among the indicators depends on availability of data and is not uniform. /b Unless otherwise noted, data for 1960 refer to any year between 1959 and 1961; for 1970, between 1969 and 1971; and for Most Recent Estimate, between 1974 and 1978. /c 1965-70 average. Most recent estimate of GNP per capita is for 1979, all other data are as of April, 1980. October, 1980  AN'NFEI Page 3 of 5 DEFINITI NOS OF SECIAI. INDICATORS0 No---: Although dt. dof- so d-aw frs source gSeraly odged the -oe euthorlttisa ood reftble, Er ehould .1.0 be eted than they may et be ta-- .. ioldyconp tble fcu- ofth oc f etadeedioed d:fiitttoeo ..d cspte .eed by differn- cntre -- s i ol. tr fhl dat. The data r. n~ thele...e.. uful to de-libe order. of magnitude. iadi_te trends, ad cheracte ee ertis major diff.renc. b.tmo coatrie.. The referenc .ro.ae()teaacutr re ftecb~tOot ad(2) a o -tygru sith eoehat high.. serag. Insem the. the remary S_Wm of he eujeo og sr (esrept for .Cait.'l SurPle Oil E.purte-" group where "Mliddl Ioos North i.ftir. aed Middle _teat le sh_m hao_a of etr_ag eoiocltrl fioties .1s reeres greep data h avrg. a- po aI.= weighted arilthetit -en for sah indicator h- eny h-a at leect ha0 f the c.Ouutrle it agroup h. date for that idiator, tiers the. corag of cotetriem e-r the imdilt.to. depend. on the -siIsbfity ef deeed sst ..if.-n. 000010 mut he e-erted i. relsutng evrgee of On indi-tor to entrhe. The.e -nragee Zre only u-fl in r-arfe the rais ofor Idisorat tie ugth -utr-y endreare group.. LANDO AREA (tho...eud sq.hn.) roOolateer Pyties- foputlatt dividd by ab.r at pretiaia pay- T.t.1 - Toig1 -uface area oopri.tug loud are end island _aters . elOea qolif Ed froe m mdical bool gt cal--rity level. Agricultural - Earinecs of agicltrel ar- used tap-reily or pe-anoly Ppuat.ion Eer Nor ina Pereon - Pepultion divide by erb of -rat-e for crope. pasture markegtand hitcher garden or to lIe tallow; 19'77ly dat, al -an female gradma rce practical asrane. esie-ten me Peametonoa Weria ld - total. -rhs-. edeel Pplt tt ,gLPttCAIT (i) -GNP? pot capita saiae t curost maket pri-e. l - rbn ad ual iVided by their reeplltti -mber-f hsptal be& oulated by saec -rrioo nthod on W-1td teak Atlae (1977.79 b.ete); 1960, avilable Es pbllr _ad privte_ genra en"geilad hesptel sade 190,sd 1979d.ta. bhlitation teree .sit.le er estbHlA-ltl pasmentlY eteted by at 1eat s- pby.fieia. gsteblab.-t. proeviMeg psintiaRp y ommo.l ENtGRY CONSUMPTEON PER CA01TA - sualcoemptior of torcial. enrgy I(oa c r. r nat ioladed. Wural heepital., h -nve, O-lad b-1th d sedsma and liguito, petr-le.- etca-I gaa end hydro-.. nulear. nd sautbhrme ale- retee a patmnaly utff d by a plwei1ian (her by a maddel maI tr ility) It kiloges of coaI eqivalent per capita; 1960. i7lE, end 1979Bus mid.ife, ate.) skih effm ga-patiemt -ninedatiaMl p55wb a data. lilited renga of "eiri f-asliti-n Fer e.ltaieial papame -ee hesi- POPULATION AND VITAL STATISTICS ~~~~~tel. tar1ede WW. pninop.l gem-e mad e.salad pitale. M NM POPULATIOf 080 11102 STACIOIIC haep=rIelocal orrua heepita=. ed madi-a1 amiyr e Total P.palatios. Mid-Ys.r (mllions) - As of July Of 1960. 1970. aud 1978 Ah,eeeptWeia a oa abre dism ee deep date, 'ti ' t o -t...1from h.epitrla divided by the emer of bda.. different defini,tion at urba ara may effect csparability of data BpUSINGi eneog coontrins; 1960, 1970. and 1978 dat. Av-rag Si.. of gosehad irroe a =ea,d ftl aSs,M Paloleto Prueoloh bna id conis. ofagupe . Eadvdnl basee Eie f ct toaac EuYear 2000 - Curreut population Projertou err.. bare.d ou 1960 end thsir main mel.Ahadrorlde a rma e edd total poplation by age end son cod their mertality erd fertil ity rae. the echi fur etaintical pmpuee PrIeo, a prmters for urtality rates omprina of throa level. arso- Aeaeebro mae e om-ttl oe. md-Aesaa tag lif apetta.. e t birth Ecees ith coun.try's par capita inon hr of perer Per root. I alluban, and rura -.omIa" gevti-la lee,adfena lit0 espeotany atebilising at 77.5 years. Th. parc- dereliug.. reepactive1y. DIellinge antlnde e-pseast et-ntne SW Metoo fo fertility rate alsohe. thre leves .a.oIn decline ir onooupind pAr-e. fetiit accrding to incom leve ad pat faml planing perfornso. ooe rXetiiv(esa fdelea ae.ahn eS Ee- -ousry is then easiged ose of thsaa alas coebiustlone of mertality A....otirEal.dtri.lta wirth latitynlvigqrtsenpuese adfrtillty trend for projection p es.of total, -rban, and rura duallinga tep-ti-vly. Stationar. " nrolanbo - Ia. n etatlony popu:latios there ia so growh irce tho birth rate in eqm1 to the death rate so-d also the g nt-uctu.re in- ,, maine costant. Tis ia -ohl-d oaly after f-otility rteedolr to Adusted f.rol-mn Retioe the replcmn lee o st st roprodoctie rte, herecth 1geserti. Primry achool - total, male an fsmale - Grsee total. MIc - femcIn of ome rspla... itself ematly. The a.t tlar populatiostse- sarllen of all age. at the prinaoy leve -s paromt.n ef 'ccyatism -aiaeted ott the bade. of the proJeote thr-tneriatice of the popula:tion prmr oolaeppltas tmlyicaa hlemMd61 inthe yea 2000i. ad the rats of decline of fertility rate to elae year. but adjusted fo- dWfErma lemthe of primar edmttim. for metlve.I o.tustile iEth s.I .r.I eduction enrelet may ..nnd SM0 peat Yll. statienarY P.P.Lttoion le ehbd - The yar hbo atationry pop.latier a-r appl rehlsa hv the affiri1 Wse p. itee ha. bean reahed. S..nar aohos -ttl ml n female - C.cym-a - shsa enade Poplation Denity edatiol requires at 1et four pear of spysevad p.laCe ietrstisng Par e. bkn. -fd-year pcpulsrioa por aqure kilomter (100 hbet.tee) of proidesgnra.o.uoa.or teache t-aila inatemtio fee peuib total rm.- u-IIl of 12 to 17 years of age; crapedna ormeaegeealy Per a. ke. agricultural land - Computed ce shor for agricultural laod eaclded. only-31. Voc..tiomel enrolmet (r!Er t of seosedary - Vocational istimtuis Popltio Agp-rutse recot) - Children (0-li year.), :orkts-a_go (151 iclude techslca o. ideriml or other prgr shio pre adepo- 64 yoars), en rtired (65yeaaed ove r) aeP-.. pretages fmid-year popo- dontly or andea tmet of secondary inenta tion latios; 196f, 1970. and 1978 date. ?purl-t ...h.. ratio - onry Wn easuede - Total etsdet. eelld ia PIPleio Groth Rat. frer-oen) - total - AIIs grroh rate. of total itd- pri,aary aud seo-ear level. dtVided by rmbar. ef tsaohar Or the yer popoti_r for '95-_ 09I60-70. ned 1970-70. corresponding level.. PPorultito Greh Rats (Pr ... t) - uha - A-Ioa growh rates of urban p09p- Adul ltcro aeforet itrt dl. a oradsdaia 1-tiutt for 195060-h, 1960-70. and 0970-70. ______________ Crndr girth Ello (pat thousad) - Asoal. lIve births pot thc...aad of mId-year aeporcetage of tte1 adult popolatil Med 10 year. andevr pcpulation; 1960. 1970. and 197f data. CONSUNTIpON~o Credo Dastb Rate (par thcuand) - ,tA--l deaths per thcuaasd of aid-year mssse a. (eec thouan oeltion) - Pcaacagerar er acnr popula,tios; 0960, 1970, and 197f data. cara s.Crn aatita eight eeoe or-1sd.. b-lns, e n cad GroanR terduoti.n ats -Average raba of da-ghtera- na ill bear 10 aiiay vho her nna ceprdooti-e period if bh.neracsProetf-ePOoif is for- paE.errt oa huadcolatiur, - Ant typse ofreavefu sh tility races; ue..lly five- pera-rgaa adiag is 1960. 1970, and1917. b-odoats to ge-ra public per thuread of poptaetion; caclda cal- Fanily Pl . ognn- A,cepto-n. Assualtho.. asda) -.As-',l rubhe of~ acPtra r .. cosd ci eic conrissd Es year sh-nrgitato f .adin ass of ..thootro eicuudr upce frtiol f1 sally ploanlog pregran. wa-ifec;dt o recent year. nay not be comparble ames neat haiyPaena.E-Ene- (p.r-et ofmareauo-Percentage of maried countries abolabdi cning ooe fichild-hb-ing oar (05-44yer wouebirch-control d-vic- to T R...sciv-rs (rer thousad p.pulation .. TV r-nev-- far brsadOa to ol arid -oo 10 -araE group. general public Pro thenna-d population; anoldee olaedTV resi-a. P0012 AND 0JfitIlitN in~~~~~~~~f oontri.n And Er year. shea rgiatration of TV sate -a in eff at. FOMa ANf PIRTONd PrdcinprCaia(997.40 ae f e aia-ono Iee Circulation (rer thonee Poe=nio - Sham the -q ea .g -ta-ia d V71-1110) - Id,, of pl, lpill -1 -.flow.f "daily gEusa neet eeg. dfined asapeied1ifalp"-' production of all food! c-eetitiee Production .nlde .. ..d aud fend and litation devted primarily to r ....diseg genra - sse. It ie uomidaed is ott caeda yr... butiar. Conmdltie cure..r primary goods (e.g.B. fru to he "daily" Of it appeara an 1at foor tIme a sek. iantrad of.....c) whicrh ar diblo and coutainrutriecta (e.g9. ..tfor. ad Cisen Annul Attrdenca ret C.Pita oar Tea - esed on the ambar ef te ar ouclude,,d) .Aggrega,te pro,duction ofl eah,c,,rtry is buse on 1 ticketsisold dartg the year. istluding amai to driv-intia ato lavago produce p bc egts; 1961-5. 197. ud97 dat,an ehl oie Percaris uoly f cloirn(pecet of roguiroets) - Computed from euorgyoqu-l-loo ofnt foo "..PIPte avilblo 00 --stry Per ccpito L.ABOR itRCE Per day. Available aupplies comprise datic pouductiom, imp-te I..s Total Lao ote(huads) - PoEom.ically artive persona imldieg rePorts, and changes to -tok. Net auPPlion uclud. -ima1 teed, needs, are foc.sduepoe o nldighuein,aeet,ae qanatittenona,d is frod proesing, and loa- in distrihutico. Requie Drfliti-in Eu variu rtrrina ar met tmeab 90. 1978 d "Int, ara tninated by PAC b... d on phyi.lolgioal needn for --Ia a-ti- 0910 data. vEy.andh helth con..idertug evroerlrueao body weighta. age Peaeprcn) - PFnal labor fort aspercentage sof teta lake ferra an s intrib.tio of population, and 1llowlg 10 perc..at fut este a Agricl.ture (p.rcat) - Labor for_ in farmIng. foretry. itiatg -d household Il.vol; 1961-61. 170, nd 1977 data ftnhing as percertage of totl labor forte; 0960. 1970 an 1975 data. Per caira arrlr E proein (tamo er da) - Prtein ooto f per caPita. nuor (pr ...nt) - Llao f.ro. is sEing. cotru.ttio, manfanenrg set supply of food Par day. Net supply of food ia dofiurd as ebv. to- eud electricity, water a ad ga. as p-reofsg oftae lbo ora 1960. qulon-t O or al l countries c-tblihod by USDA provide for elau 0970fendt1918 data allowance of hi gra of total protein per day and 20 gr_ of animal an arcero aefare)-ttl am d P.~7 91 femal -Paa'tipetien e Iun .pr-trIn, of which 10 gras ehoad be onina protein. Thes stn- ativiZty oleaernda oa,nl.adIegel rfe.a a-d, era loe than thoae of 75 area of total protein and 21 grac .f tsgen of total, n n f ala p.pulation ef-aleg cpaenivmly: Aliaa protrin - an a-eag for the -Iod, propr...d by FAR in rho Third p90e 90rce95n.. h..r LO.Pt.it-- -f-i World Pond Survey 1961-65;.011 ad 0977 data, 19017,ad175dt.Tesam120 atoptnertcrfate P_r c.pita proteinsuppl fro animl and pulse - Protais aupply of food de- age -to tro r of the pupulatie ad long tine trsed, A fen ati- ryed from animal aId Pue in. fre p. day; 1960-61, 1970 and 0977 data. E toomb OrretfrcRtin_ .. Rai f uuano ndr1 ad6 cdoe ChIld (eae 1-i) MrtalIty Rta ( perthousad) - Annual dntha per iousad In torotra lbo Rtjors aegop1-4 yasra, to children in thia age grop; for meet develpingron tries dai derived f ro life table.; 1960. 1970 and 1977 data. INCO~M DISigryRITON BMTH =~~~~~~~~~~~~~~~~Pretg o rvt es hr ncnbcdhn) - enedvef by e1t5t S percent riobset 20 percent. poormen 2 peen.ed pesren 40 pse-te Life fEpecta y an airth (rea.) -Averag. nmber of yenoc of life raisin of ho.holda.h at birth; 1960. 1971) and 19701data. Isf at Mortality Rte (Pe thoAeor) - Ansual deaths of iofots order roe Year POVEiTY TARrEl GROUPE of en per thousand lIve. birtha. Eatimated Abaclute Povert I-o- LercI (05 a sia e .edesl Acce.. gtc Safo Water (percent of p.p.lati-n) - t.t.l. rban. and rur1 - bcuopvrt uafrlI ta ealvlb I msta 5maS Ncaber of people (rta.t1 orba, and rurl) with raasbhe acr., to safP i urtionll P dequar diet p1us essnti.1 nsa-fond requir-mn in net wat.rreupp ly (icludra treated raemtat or..-itreted but nscteaiutad off-rdble. _tior n-h sriot fron p rotectdborho.: spring, and san itary wells) a fE.tinated S1-ivo Poverty ic Leve (US$ Pre -pit.) - -Iden res. porcontngen o the ir respective populations. In on urban area a public ARal reltive -ootyit leva is on-third of vrA-ga par" caita fcanaiu r arndpot locate-d rot ere tba 200 matern Ero j hous y be. _ocoua income ofthey country. Urban leve a derived fro the ruea conoidarod n bting nitir roneoela coe of riot hous . _rrel.r.. loya uith udjuntrt f or hig*er cost of living in uramams r.....ablcren...... d imply tha trho h...-ilf. or s-b-n of thl hcusohod cetnebd Porltion ads Absolute Povrty icm Levl atet - be, donthave to epond'a disproportio... e part of the day io fething the n.ua ecn fpplto ubnadrrl h s amlt mr~ Access cc tetteta Otarocal (usrumett of nooaIli.an.1bior. -rtotal. -rhb-l.t..Pgd r Na -bgshr of people(aa.obs n rurl servd byecrt dieptea1 aa peroantogas of their r..psc-i- populatior... . focta die- c-soic end Social Vata DirfLam posal may incud trho culoinad dlcpuaa. w, ith or without tr-armet,lceoi Aalyeis end PruistAin Dfparten of boe -arata end wesne-tere by voterb-horn system or tha -s ufOcoe O Pit Prtvie ard similar to._ellt iona.  -22 - PANe 4 of 5 HAITI - ECONOHIC DATA GROSS NATIONAIS PRODUCT IN 1979 ANNUAL RATE o0 GROWT!H %. constwnt prices) US$ Million % 1965-70 1970-75 1975-79 GNP at market price. 1,259.8 100.0 -0.1 3.7 4.1 Gross Donestic Investmnt 180.8 14.4 11.6 13.8 2.5 Gross National Saving. 2/ 32.5 2.6 42.3 15.9 -41.7 Current Account Balance -63.3 5.0 - - - Export of Goods, NFS 190.0 15.1 4.4 -3.7 2.2 Import of Goods, NFS 324.0 25.7 4.4 0.9 9.6 OUTPUT. LABOR FORCE AND PRODUCTIVITY IN 1979 Value Added Labor Force V.A. Dar Workar US$ Million % U$ million 7 Us4 Nil Agriculture 507.1 39.8 .. Industry 3/ 282.9 22.2 .. Services 484.2 38.0 .. Total/Average 1274i10 .. .. GOVERMNDT FINANCE Goenral Sov4rEn"t 4/ Central Governnt (C Million) % of GDP (G Million) % of CDP 1979 1979 1975 1979 1979 1975 Current Receipts 877.1 13.8 13.1 588.0 9.2 9.3 Current Expenditures 803.8 12.6 11.7 567.7 8.9 8.2 Current Surplus/Deficit 73.3 1.2 1.4 20.3 0.3 1.1 Capital Expenditures 574.6 9A0 7.5 436.4 6.9 5.5 External Assistance (net) 5/ 426.5 6.7 5.2 388.5 6.1 4.5 PUSY. CREDIT AND PRICES 1970 1975 1976 1977 1978 1979 (Million C Outstanding Snd Period) Money nd Quasi Money 198.2 583.4 779.9 930.6 1,159.7 1,353.5 Bak Credit to Public Sector 189.2 318.0 346.3 288.9 332.0 393.2 Bank Credit to Private Sector 65.3 451.3 519.7 657.9 791.5 921.8 (Percentages or Index Numbers) Money end Quasi MHey as % of GDP 10.0 14.7 15.9 16.8 19.9 21.2 Coneoer Price Indax (1965 - 100) 114.6 199.9 218.7 234.9 228.8 250.3 Annual Percentage Changes in: Conesmr Price Index 3.3 18.0 9.4 7.4 -2.6 9.4 Bank Credit to Public Sector -2.1 10.4 8.9 16.6 14.9 18.4 Bank Credit to Private Sector 9.9 45.3 15.2 26.6 20.3 16.5 Note: All conerione to dollars in this table are at the average exchange rate prevailing during the period cowered. 1/ Data refers to FT ending Septmber 30. / D_e not include current trnsf re. 2/ Nisag, _emfactsring, public utilities and construction. 4/ Celideted accents of Central Governownt and Public Enterprises. N et disb-re_ments of loans and grants. LClDC January 30, 1981  - 23 - pag 5 of 5 HAM - COUNTRt DATA BALANCE OF PAYMENTS MERCHDISE EXPDOTS (AVERAE 1976-79) 1975 1976 1977 1978 1979 (We$ Million) USSNilifon S Export of Goods, NFS 105.7 140.6 173.9 199.2 189.6 Coffee 53.0 39.3 Import of Goods, NFS -165.1 -218.8 -262.8 -293.7 -323.5 Sugar 1.0 0.7 Reso.rce Gap (deficit-. -) - -78.2 -88.9 -94.5 -m Essential Oils 8.0 5.9 Sisal 1.3 1.0 Interest Payments (net) 1/ _7.0 -7.2 -12.1 -14.7 -14.3 Bauxite 17.7 13.1 Other Factor Payment. (net) ... .. .. .. .. Assembly Industry (not) 18.2 13.5 Net Tranfetrs 39.4 6S.O 63.5 67.9 85.0 S.ll Industries andigandicraft 16.1 11.9 Balance on Current Account 2 : -41.3 All Other Cmoditi.. 19.5 14.5 Total 134.8 Direct Foreign Investment 2.7 6.8 8.0 10.0 15.0 Net MLT BorrominS 19.7 24.8 62.5 48.1 38.2 EXTERNAL DEBT, SEPTEMBER 30. 1979 US$Million Disbursements 24.9 33.3 i 57. 4 Amorti..tion 5.2 8.5 8.3 9.2 6.7 Public Debt, including guaranteed 208.6 Non-Guaranteed Private Debt Other Items n.e.i. -18.5 7.5 -19.3 -2.6 26.3 Total Oustending mnd.Disbursrd Increase in Reweaves (.) -23.1 18.8 13.6 14.2 16.2 DEBT SERVICE RATIO FPi 1979 Grose Reserves 12.7 28.3 35.9 46.8 53.1 Net Reserves -23.7 -4.9 8.6 22.9 39.0 Public Debt, including Guaranteed 4.1 Non-Guaranteed Private Debt Fuel and Related Materials Total Outstanding and Disbursed I.ports 12.9 17.1 23.6 24.5 n.e. Exports - - - - IBRD/IDA LENDING (SEPTEMBER 30, 1979) USSMillion 1B885 IDA RATE OF EXChANGE Outstanding nd Disbursed - 45.3 Sisc;e 1971 Undisbureed 48.2 US$1.00 = G5.o0 Outstanding including Undisbursed -9 G1.00 = US$0.20 I/ Includes al fator ervices. - not applicable LCIDE .. not *vail.ble ............ January 30, 1981  - 24 - ANNEX II Page 1 of 3 THE STATUS OF BANK GROUP OPERATIONS IN HAITI A. STATEMENT OF BANK LOANS AND IDA CREDITS (as of January 31, 1981) ---------$ Million------- (less cancellations) Loan or Credit Bank Number Year Borrower Purpose Amount IDA Undisbursedo One loan and four credits have been fully disbursed 2.6 46.4 618-HA 1976 Republic of Haiti Education 5.5 1.1 675-HA 1977 Republic of Haiti Rural Development 10.0 7.3 757-HA 1978 Republic of Haiti Water Supply 6.6 3.8 770-HA 1978 Republic of Haiti Education 10.0 8.7 807-HA 1978 Republic of Haiti Transporta- tion 15.0 4.1 895-HA 1979 Republic of Haiti Power 16.5 14.0 Total 2.6 110.0 38.9 of which has been repaid 2.6 Total now outstanding Amount sold 0.4 of which has been repaid 0.4 - Total now held by Bank and IDA 110.0 1/ Total undisbursed 38.9 B. STATEMENT OF IFC INVESTMENTS (as of January 31, 1981) No IFC investments have been made in Haiti. C. EEC SPECIAL ACTION FUND 4-HA 1979 Republic of Haiti Power 6.0 3.3 1/ Prior to exchange adjustments.  - 25 - ANNEX II Page 2 of 3 C. PROJECT IN EXECUTION 1/ Credit 618 First Education Project; $5.5 Million Credit of February 27, 1976; Date of Effectiveness: May 20, 1976; Closing Date: June 30, 1981. The project is about 14 months behind schedule due to original start-up delays in school design and in contracting for construction, and subsequently because of climatic conditions and six months of administrative problems, including a shortage of counterpart funds. Some 50 (of 65) rural schools have been completed and are in use, and the rest will be completed by the end of September 1981. The three teacher training colleges will be completed by June 1981. There has been considerable progress in the educa- tional aspects of the project, including curricula revisions, teacher training and communal use of school facilities. The problem of counterpart funds has been largely resolved between the Ministries of Finance and of Education. Credit 675 Rural Development Project; US$10 Million Credit of January 14, 1977; Date of Effectiveness: May 27, 1977; Closing Date: December 31, 1981. Substantial progress was made in 1980. The Water Supply component is proceeding well and will be expanded and agricultural field trials have been successfully carried out and will be expanded. Administration and staff problems in the Organisme de Developpement du Nord, the project agency, have been largely resolved, but lengthly procedures for approval of local expenditures and delays in the provision of counterpart funds still continue. On the other hand, disbursements are well behind schedule because of delays in feeder road construction, irrigation rehabilitation and rural credit components. Weaknesses continue in the extension service provided to ODN by the Ministry of Agriculture. Some progress has been made recently in feeder road construction. Credit 757 Provincial Towns Water Supply Project; $6.6 Million Credit of January 23, 1978; Date of Effectiveness: September 14, 1978; Closing Date: December 31, 1981. This project is about 18 months behind schedule because of original delays in the appointment of consultants and delays in issuing bid documents and the subsequent need to rebid for three of the seven project towns, for which satisfactory bids were received in July 1980. Technical assistance from PAHO is proceeding well. Kreditanstalt fuer Wiederaufbau (KfW) is considering financing two of the three towns included under a related UNCDF project (which IDA is administering) because of a shortage of UNCDF funds and bids higher than expected. 1/ These notes are designed to inform the Executive Directors regarding the progress of projects/investments in execution, and in particular to report any problems which are being encountered, and the action being taken to remedy them. They should be read in this sense, and with the understand- ing that they do not purport to present a balanced evaluation of strengths and weaknesses in project execution.  - 26 - ANNEX II Page 3 of 3 Credit 770 Second Education Project; $10 Million Credit of March 16, 1968; Date of Effectiveness: July 25, 1978; Closing Date: December 31, 1983. Implementation of this project is about a year behind schedule because of initial start-up delays; subsequent administrative problems; changes in the consultants' contract and delays in purchasing cement on a tax-free basis. A revised construction schedule still allows completion of school construction (46 units of various types) by the original Closing Date. The educational component is proceeding satisfactorily. Performance of the Project Unit, and of consultants, is also satisfactory. Credit 807 Fifth Transportation Project; $15 Million Credit of June 9, 1978; Date of Effectiveness: September 26, 1978; Closing Date: December 31, 1981. (a) Road Component: This includes construction of 54 km of roads in the Northern plain, 13 km in the Southwest, construction of two bridges and preinvestment studies of high priority projects in the transport sector. Work is substantially on schedule and no serious problems have been encountered. (b) Coastal Shipping Ports Component: This includes construction of two coastal shipping ports in the Northwest and Southwest and of a main coastal shipping port in Port-au-Prince. Construction is about 10 months behind schedule largely because of hurricane damage to the contractor's facilities in the Dominican Republic (his home base) in 1979 and a delay in obtaining permits to transport dynamite. This has now been resolved. Training of coastal shipping port staff has been rescheduled to coincide with the estimated completion of port construction. Management advisory services are proceeding well, though a study on the development of coastal shipping was delayed by the illness of consultant's staff. Credit 895 Second Power Project: $16 Million Credit and US$6 Million and EEC Special Special Action Credit of May 31, 1979; Date of Effectiveness: Action Credit 4 April 24, 1980; Closing Date: June 30, 1983. These two credits were declared effective almost 11 months after signing because of delays in contract award. These delays arose because of opposition to the award to the lowest evaluated bidder within Electricite d' Haiti (EdH). The contract with suppliers was signed in April 1980, and with the new consultants, in June 1980. EdH's financial performance is satisfactory. Government arrears due to EdH increased from $1 million at appraisal, to about $1.8 million before declining to $1.2 million. EdH's Chairman is taking steps to ensure settlement of bills as rendered.  - 27 - ANNEX III Page 1 of 2 HAITI PORT DEVELOPMENT PROJECT SUPPLEMENT PROJECT DATA SHEET I. Timetable of Key Events (a) Project Identification (1) Project prepared by: APN, consultants, and Bank staff. (2) Initial request for IDA Consultant services to help financing: prepare the project were financed under Credit 807-HA (Fifth Transport Project) of June 1978. (3) First mission to consider April 1980, though supervision project: missions for Credit 807-HA assisted APN and consultants in the course of the study. (b) Appraisal mission departure: July 1980. Post-appraisal: October 1980. (c) Negotiations completed: January 1981. (d) Planned effectiveness date: May 1981. II. Special IDA Implementation Action: None. III. Special conditions: Assurances were be obtained that: (a) A time frame for development decisions regarding the port of Port-au-Prince was adopted (para 32); (b) Road improvements for coastal shipping ports at Baraderes and Anse d' Hainault would be undertaken (para. 38). (c) APN would provide appropriate staff for the port of Cap Hait ien and adopt a program to improve personnel policief. (paras 41 and 42); (d) The Government would establish, by October 31, 1981, a new maritime agency and to enforce stricter vessel inspection and certification (para 43);  - 28 ANNEX III Page 2 of 2 (e) Assets in Cap Haitien would be verified, valued and brought into APN's accounts (condition of disbursement, para 53); (f) Investments of more than US$350,000 would be subject to economic analysis, which would be forwarded for review by IDA (para 53); five year investment budgets would be prepared annually beginning in 1981 and forwarded to IDA for review through 1986 (para 53); APN would not, without the prior consent of the Association, contract long-term debt in excess of US$1.25 million, and that APN would maintain its accounts receivable at a level not more than an average of two months' revenues (para 61); (g) Uniform budget and accounting procedures would be developed for all of APN's operations and implemented by the end of 1982 (para 53); (h) APN would adjust its tariffs as necessary to achieve a rate of return of 6 percent per annum; assets would be revalued every three years, and APN would retain its right to levy charges on cargo handled in private terminals (para 56); tariffs for the port at Cap Haitien would be adjusted to the level of Port-au- Prince harbour in 1981, and thereafter to achieve a rate of return of at least 3 percent by 1987 and of 6 percent by 1989 (para 57); (i) Working ratios for the coastal shipping ports would be gradually improved (para 59); and (j) The proceeds of the IDA credit would be onlent to APN on agreed terms, under a subsidiary loan agreement acceptable to the Association (para 64, Condition of Effectiveness).  IBRD 15247 ATrLANrOC OCEAN to A $ a r A t ~ .-.V' I H~~~~~~~~~~~~~~~~~~~~~72