A Survey of Haitis Private Sector

This survey of private sector engagement in Haiti includes descriptive listings of major business investments, private sector-NGO partnerships and investment-related conferences about Haiti since 2007. The three sections include multiple items that involve partnerships with international donors and investment banks. The goal is to provide an overview of donor-government-NGO activities over the past three years. The survey was completed using reviews of published investment information, interviews with members of international finance institutions and meetings with Haitian business leaders in Port-au-Prince. The document is not meant as a comprehensive listing, but will be regularly updated as new projects emerge and new information becomes available. It is intended as a planning tool for delegates attending the FOCAL roundtable The Private Sector and the Development of Haiti in May 2011. Highlights Significant private international investments are being made primarily in the apparel and tourism industries. New hotel construction to serve the international donor and business communities are the most common investment initiatives led by the domestic private sector. There is significant interest, and real investment taking place, in the creation or expansion of light industrial parks, largely anchored by firms in the apparel industry intending to take advantage of advantageous American import rules via HOPE II. Major agricultural investments for processing or storage facilities are rare. Agriculture is currently the domain of cooperatives and NGOs, though interest is increasing among both the domestic private sector and the donor community. The new E-Power energy project supplying power to a Port-au-Prince industrial park and to the Haitian grid is the first major energy investment in Haiti in many years. It is also the most significant Haitian diaspora-led investment in the country. There have been a significant number of events and initiatives aimed at organizing investment in the private sector. As of March 2011, Haiti is still in the post-earthquake crisis recovery phase. New business investments unrelated to infrastructure reconstruction are primarily in initial planning phases. Successful examples of productive investments in 2011 are required for investors waiting on the sidelines to see that the crisis period has passed. NGOs and microfinance institutions are very busy in the micro-enterprise sector and working with farmers or artisans, though with limited resources. There appears to be a gap between the large investments of internationally connected business leaders and the micro-investments funded by micro-finance institutions. The

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apparent lack of investment in the middle ground should be investigated further to determine its significance. A review of all firms nominated for the Digicel Entrepreneur awards could generate a new area of research Corporate social responsibility efforts are a priority mainly for international firms with income centres elsewhere and are largely focused on earthquake recovery donations or on school construction. Basic infrastructure investments in roads and building reconstruction are primarily government-led (and have largely been left out of this document unless directly related to another business investment initiative as with new industrial parks). Few new large investors have entered Haiti in the last three years. Most investments have been made by firms with existing operations in Haiti.

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Investments
30 MW power plant Port-au-Prince Sector: Energy Status: Completed Jan. 2011 Investment: $59.5 million Participants: 54 Haitian and Haitian-American investors led by Daniel-Grard Rouzier (60%) and Korean East-West Power (30%). The heavy fuel oil plant is among the first private sector power plants in the country. It will make 15MW available to the industrial park in which it is located and 15MW to state-owned lectricit d'Hati (EDH) on a 15-year power purchase agreement. The International Finance Corporation (IFC) provided $17 million. New pier and expanded resort Labadie Sector: Tourism Status: Completed Aug. 2009 Investment: $55 million Participants: Royal Caribbean. The new pier allows cruise ships to dock at the 260-acre resort of Labadie for the first time. Royal Caribbean has an exclusive lease to the government-owned property. North Industrial Park Cap-Hatien Sector: Industrial Status: Signed commitment Jan. Investment: $240 million 2011. Opening in 2012. Participants: Government of Haiti (park owner and operator); Sae-A Trading Co. Ltd (anchor tenant, $70 million for equipment and training); U.S. Government ($120 million grant for new power plant, housing, Cap-Hatien port improvements); IDB ($50 million grant for factory shells and infrastructure). The new 623-acre park for export businesses is targeted at creating 20,000 apparel jobs via the Sae-A investment, making it Haitis largest employer, plus another planned 15,000 jobs from other proposed tenants. Terminal Varreux Redevelopment Port-au-Prince Sector: Transport Status: Proposed March 2010 Investment: Participants: WIN Group; Sant Holding Corp; Rovirosa family. The proposed redevelopment of the private terminal includes a new port, additional jetties, a 150acre terminal, a container and break-bulk shipping terminal and ancillary facilities, plus remediation and expansion of existing piers. Knitted fabrics plant Sector: Industrial Status: Proposed 2010 Participants: Wilbes Hatien. Proposed 60 tonne per day fabric plant employing 3,000 workers.

Investment:

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New apparel industry investments various Sector: Industrial Status: Proposed 2010 Investment: Participants: Coteminas (Brazil); Vicunha Textil (Brazil); Kwan Lim (S.Korea); Kyung Seung (S.Korea); Hansae (S.Korea); Yakjin (S.Korea); Shinsung (S.Korea). Proposed addition to existing Haitian facilities to include a 60 tonne per day fabric plant employing 3,000 workers. Belle Rive Hotel/condominium project Jacmel Sector: Tourism Status: Proposed 2009 Investment: $50 million Participants: SimACT (Socit Immobilire d'Agriculture, de Commerce, et de Tourisme) with Choice Hotels International. Planned development with 94 townhouses and tower apartments, plus a 120-room hotel, marina and private club. Port-au-Prince or CapHatien Sector: Manufacturing Status: Investment: Participants: The RLJ Companies; WIN Group; Global Building Solutions, LLC. Structured insulated panel (SIP) manufacturing facilities (2)

Expansion of CODEVI apparel facilities Ouanaminthe Sector: Industrial Status: Ongoing Investment: Participants: Grupo M; IDB. Expansion of existing facilities at the Dominican Republic border. Hotels various Port-au-Prince Sector: Tourism Status: Proposed Investment: Participants : Montana Group; Best Western; Digicel; Horser Group; Visa Lodge Group; Socit Immobilire et Financire (SIF); St. Louis family and NEF & JM Associates. Several potential hotel developments are being discussed for the capital, including rebuilding of the Montana and Villa St. Louis. Karibe Hotel & Convention Centre Port-au-Prince Sector: Tourism Status: Opened 2008. Investment: Expansion proposed for 2012. Participants : Richard Buteau. Re-opened following the earthquake with 87 rooms. A 100-room expansion is planned.

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Hotel Airport Port-au-Prince Sector: Tourism Status: Under construction Investment: $33 million Participants: WIN Group; Rolando Gonzalez-Bunster, President & CEO of Basic Energy; design by OBM International. Planned 7-story, 240-room hotel with conference facilities on 5.3 acre property adjacent to Toussaint LOuverture International Airport. Serve Hotel Port-au-Prince Sector: Tourism Status: Under construction, Investment: opening April 2011 Participants : Richard Buteau Kinam. Located by Port-au-Prince airport, built using shipping containers re-fitted in the U.S. El Rancho Hotel expansion Status: Under construction, opening 2011 Port-au-Prince Investment:

Sector: Tourism Participants :

West Indies Free Zone Industrial park Port-au-Prince Sector: Industrial Status: MOU with IDB Aug. Investment: $45 million 2010, on hold Participants: WIN Group and Soros Economic Development Fund. This 60-acre industrial park near the Port-au-Prince airport was being planned before the earthquake. BioTek Agro-Energy Project Logne Sector: Agriculture and Status: Announced May 2010 Investment: Energy Participants: Government of Haiti; Biotek; International Investment Corporation (IIC); Sogebank. The plan is to complete the rehabilitation of the Darbonne sugar mill to produce sugar and cane syrup and to produce energy from the sugar cane bagasse biomass. Expansion of mango export business Sector: Agriculture Status: Announced May 2010 Investment: $1.15 million Participants: CariFresh; IDB. Recovery and expansion for the fifth largest mango exporter in Haiti.

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Oasis hotel Port-au-Prince Sector: Tourism Status: Under construction, Investment: opening late 2011 Participants : Oasis (Jerry Tardieu); Occidental Hotels & Resorts (OHR); Banque Nationale de Crdit (BNC); IFC. New 132-room hotel. Telecommunication network investments Voil National Sector: Telecom Status: Ongoing Investment: Tens of millions Participants: Trilogy International Partners, LLC Comcel. Expansion of full service mobile network: mobile broadband data services; local hybrid (copper/fibre) network deployment; redundant international submarine cable project; expanded local TV (UHF, mobile, cable, etc.) service; local data centre(s); mobile money. Telecommunication network investments Digicel Sector: Telecom Status: Ongoing, initiated 2006 National Investment: Hundreds of millions

Participants: The Digicel Group. Creation and expansion of full service mobile network; mobile money. Telecommunication network investments Natcom National Sector: Telecom Status: Proposed Investment: Participants : Viettel Plans for upgrade and expansion of the former national telecom company (Telco) for partly purchased (60%) from the government $59 million in cash and debt transfer. Expanded shipping route Sector: Transport Status: Ongoing Investment: Participants : Sant Shipping. Ocean cargo service from the Miami River to Cap-Hatien and Gonaves. Mango processing plant expansion Sector: Agriculture Status: Under way Participants: JMB; Soros Economic Development Fund. Existing facilities near port being expanded. Port-au-Prince Investment:

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Events and Private Sector Initiatives

32nd Miami Conference on the Caribbean and Central America Location: Miami Dec. 1-3, 2008

Organizers: Caribbean Central American Action (CCAA) Participants: International investors and Caribbean government representatives. Regional and international stakeholders involved in the economic development of the Caribbean and Central America. Sections of the conference were focused on Haiti. Conference on Haitis Social and Economic April 14, 2009 Development Location: Washington, D.C. Organizers: IDB Participants: IDB President Luis Alberto Moreno, Former Prime Minister Michle Duvivier Pierre-Louis, Canadian Minister of International Co-operation Beverley J. Oda, United States Secretary of State Hillary R. Clinton, United Nations Secretary General Ban Ki-moon, OAS Secretary General Jos Miguel Insulza, United Nations Special Envoy to Haiti Bill Clinton, World Bank President Robert B. Zoellick, and IMF Manager Director Dominique Strauss-Kahn. Donor conference Toward a New Co-operation Paradigm for Growth and Opportunity. Second Annual International Congress of the Haitian Diaspora Location: Miami Aug. 9, 2009 Organizers: Haitian Diaspora Unity Congress

Participants: Haitian diaspora The conference is aimed at leveraging diaspora resources to help build Haitis economy. Americas Conference 2009 Location: Miami Sept. 1, 2009 Organizers: The Americas Conference, Miami Herald, World Bank Participants: Business leaders and investors from across Latin America Business and political forum on Latin America and the Caribbean. Haiti Open for Business Oct. 1, 2009 Location: Port-au-Prince Organizers: IDB, Canadian government Participants: 500 foreign and Haitian private sector representatives, 150 officials and delegates from non-governmental institutions, Haitian Prime Minister Michele Duvivier Pierre-Louis, Haitian government representatives, United Nations Special Envoy to Haiti Bill Clinton Explore opportunities in key economic sectors for Haiti, including garment manufacturing, sustainable energy production and agribusiness. 10th Business Forum of the Greater Caribbean Location: Port-au-Prince Oct. 21-24, 2009 Organizers:

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Participants: Haitian government and the Association of the Caribbean States (ACS) Business and investment leaders from the Caribbean. 33rd Miami Conference on the Caribbean & Central America Location: Miami Nov. 30-Dec. 2, 2009

Organizers: Caribbean Central American Action (CCAA) Participants: International investors and Caribbean government representatives. Regional and international stakeholders involved in the economic development of the Caribbean and Central America. Sections of the conference were focused on Haiti. Private Sector Consultation on Reconstruction March 15, 2010 Location: Indigo Hotel, Cte des Arcadins Organizers: IDB Participants: Haitian public and private sector representatives including Prime Minister Jean-Max Bellerive and members of the Forum conomique du Secteur Priv. The meeting was intended to help coordinate efforts by both the private and public sectors to develop Haitis economy. The meeting was part of a broader process to reach out to different sectors of Haitian society to seek consensus on a national reconstruction and development plan Sustainable Haiti Conference Location: Miami Participants: Haitian diaspora Fostering sustainable development initiatives for Haiti. Haitian Diaspora Forum March 21-23, 2010 Location: Washington Organizers: OAS Participants: Haitian diaspora and civil society organizations, OAS member states and permanent observers, United Nations agencies, and regional organizations. Contributing to a Strategic Plan for Reconstruction and Development in Haiti. Forum conomique du Secteur Priv meeting March 21, 2010 Location: Indigo Hotel, Cte des Arcadins Organizers: Participants: 150 representatives of both public and private sector. Preparatory forum leading to the international donors conference of March 31, 2010 at the United Nations in New York. The forum led to the production of the "Private Sector Economic Forum Vision and Roadmap for Haiti." March 17-19, 2010 Organizers: The Working Group for a Sustainable Future for Haiti

Haiti Business Development Committee March 21-23, 2010 conference Location: Washington, D.C. Organizers: Organization of American States Participants: Haitian diaspora Planning for the Haiti donors conference at the United Nations on March 30.

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Construire une Nouvelle Hati: Affaires, Commerce et Investissements Location: Indigo Hotel, Cte des Arcadins

June 10-11, 2010

Organizers: American Chamber of Commerce of the Dominican Republic (AMCHAMDR), Participants: Dominican, Haitian and American business people The goal was to build a network among participants in order to facilitate exchanges and to create trade alliances among Dominican, Haitian and American businesses. Americas Conference Location: Miami Sept. 14-15, 2010 Organizers: The Americas Conference, Miami Herald, World Bank Participants: Business leaders and investors from across Latin America Business and political forum on Latin America and the Caribbean. Quebec-Haiti Business Forum Oct. 7-8, 2010 Location: Montral Organizers: Nancy Roc Participants: Business people from Haiti and Quebec Organized by the Haitian Embassy in Canada, the Haitian Consulate in Montreal, the JCCH (Jeune chambre de commerce hatienne), the CCIHC (Chambre de commerce et dindustrie hatiano-canadienne), the FCCQ (Fdration des chambres de commerce du Qubec), and sponsored by Digicel Haiti and the Quebec government among others. 34th Miami Conference on the Caribbean and Dec. 3, 2010 Central America Location: Miami Organizers: Caribbean Central American Action (CCAA) Participants: International investors and Caribbean government representatives. Regional and international stakeholders involved in the economic development of the Caribbean and Central America. Sections of the conference were focused on Haiti. Sustainable Haiti Conference Location: Miami April 4-6, 2011 Organizers: The Working Group for a Sustainable Future for Haiti

Participants: Haitian diaspora Fostering sustainable development initiatives for Haiti.

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Business-NGO Partnerships
Construction and upgrade of 150 schools National Sector: Education Status: Ongoing (70 projects Investment: completed) Participants: Fondation Digicel Haiti, various partners (including USAID). Digicel is helping repair or construct 150 schools in Haiti, with 70 already complete as of February 2011. The first school was cole Mixte Lageho in the Pont Janvier community of Thomazeau. The program expanded in 2010 with a new USAID partnership after the earthquake hit communities, including Lognes cole Louis de Borno. Haiti Hope Project Various locations Sector: Agriculture Status: 5-year project started in 2010 Investment: $7.5 million Participants: Coca Cola ($3.5 million); IDB ($3 million); Clinton-Bush Fund ($500,000). The project is intended to help mango farmers access markets. It may be expanded in the future with investments in mango juice facilities. It is implemented by Technoserve. Brand Haiti Initiative National Sector: Investment Status: Ongoing Investment: $1.4 million Participants: Soul of Haiti; Digicel. Highlights positive developments in Haiti and investment opportunities by connecting nongovernmental organizations and businesses. cole Lakay trade school Le Soleil Sector: Education Status: Planned Investment: Participants: Canadian Construction Association (CCA); Builders Without Borders (BWB). Reconstruction and expansion of the school. Between Labadie & Cap Haitien Sector: Education Status: Opened Oct 2010 Investment: Participants: Royal Caribbean; InnoVida; St. Colemans School; ProDev, L'cole Nouvelle Zoranje; Solano Foundation. Construction and ongoing support for the school. cole Nationale Jacob Martin Henriquez Sector: Education Status: Under construction Participants: Honeywell; Operation USA; City of Jacmel. Construction and ongoing support for the school Jacmel Investment: L'cole Nouvelle Royal Caribbean

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Digicel Entrepreneur of the Year National Sector: Investment Status: Ongoing Investment: Participants: Digicel; Clinton Global Initiative (CGI). Six categories: Tourism and Culture, Environment, Food and Agriculture, Industry, Services, and Emerging Entrepreneurs. Worker training project Port-au-Prince Sector: Education Status: Announced Aug. 2010 Investment: $250,000 Participants: Citi; Soros Economic Development Fund (SEDF); CODEVI. Professional training program for garment industry employees. Haitian Apparel Centre (HAC) Port-au-Prince Sector: Education Status: Open Aug. 2010 Investment: Participants: CHF International; [TC]2; USAID. Provides training of workers in the textile industry. Will eventually train 2,000 people per year. HAC is part of "Konbit Ak Tet Ansanm" (KATA), a 4-year USAID job-creation initiative. March de Fer Sector: Commercial Status: Completed Jan. 2011 Participants: Denis OBrien. Reconstruction of earthquake-damaged market. Port-au-Prince Investment: $12 million

Installing solar panels at hospitals National Sector: Health Status: Ongoing Investment: Participants: SolarWorld; SunEnergy Power International (SunEPI); Solar Energy International (SEI); USAID / PA Consulting. Power provision projects at Haitian hospitals. Construction of Boulevard des Amricains Port-au-Prince Sector: Transport Status: Complete 2008 Investment: $7 million Participants: Tevasa Corporation (Mevs family - $2 million in land, office space and construction work) and CHF; USAID. Reconstructed road through Cite Soleil; USAID funding via "Konbit Ak Tet Ansanm" (KATA). Machinery operator training Port-au-Prince Sector: Education Status: Investment: Participants: Haytrac; CHF; USAID. Haiti lacked qualified Caterpillar operators, so Haytrac donated land, equipment, construction machines and CHF provided training; USAID funding via "Konbit Ak Tet Ansanm" (KATA). School rehabilitation projects Sector: Education Status: Ongoing National Investment:

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Participants: CHF and USAID (KATA). School reconstruction and local job creation projects including at cole Nationale de Vialet. Traabilit du Caf WiMAX pilot project Cap Rouge Sector: Commercial Status: Started 2007 Investment: Participants: Fondation Voil, Cafes Malongo, Alcatel-Lucent, the University of Nice Sophia Antipolis. The project provides three coffee cooperatives representing 1,200 farmers with internet access from their plantations by applying WiMAX and RFID technologies. Internet access will enable the cooperatives to monitor the traceability of their fair trade certified products and sell their coffee on the best possible terms by reducing the number of intermediaries. Education for Success National Sector: Education Status: Ongoing Investment: Participants: Fondation Voil. Providing scholarships for primary, secondary and university students across Haiti. Carnaval Sector: Status: Ongoing Participants: Fondation Voil. Sponsor of Jacmels annual carnival. Jacmel Investment:

IDB Projects National Sector: Various Status: Ongoing Investment: Participants: IDB and various partners. The IDB has supported more than 150 projects in Haiti in the last three years. These include several with investment and private sector focus, including a business plan competition, support for agri-business exports, and mango business development. These projects are primarily coordinated through partnerships with the Haitian government rather than with the private sector or non-governmental actors.

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