Implementation Completion Report - Republic of Haiti Fifth Power Project (Cr. 2053-HA)
Summary — This is the Implementation Completion Report (ICR) for the Fifth Power Project in Haiti, which aimed to support Haiti's economic development by providing a reliable power supply. The project partially achieved its objectives, expanding power generating facilities in Port-au-Prince, but failing to improve EdH's overall efficiency and financial condition.
Key Findings
- The project partially achieved its objective of expanding power generation in Port-au-Prince, increasing availability from 4 to 18 hours per day.
- EdH's overall efficiency was not improved; electricity losses increased from 40% in 1989 to 55% in 1997.
- EdH's financial condition deteriorated, with negative rates of return and high accounts receivable.
- Political instability and a three-year economic embargo significantly affected project implementation.
- Sustainability of project achievements is uncertain and dependent on private sector involvement.
Full Description
The Fifth Power Project in Haiti, approved in 1989, aimed to support Haiti's economic development by providing a reliable power supply necessary for economic growth, particularly for industrial and commercial activities. The project focused on expanding generating facilities in Port-au-Prince, supplying electricity to the cities of Hinche and Thomonde, and improving EdH's efficiency through loss reduction, institutional improvements, and training programs. While the project expanded power generating facilities and increased electricity service availability in Port-au-Prince, it failed to improve EdH's overall efficiency. Electricity losses increased, and EdH's financial condition deteriorated, leading to an unsatisfactory outcome. The project was restructured in 1996 after an economic embargo, and faced challenges including political instability, EdH's financial struggles, and government intervention.