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Sr. Member - Chef de la Patrie
Total Posts: 9794
Joined 1969-12-31
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Speaking of PetroCaribe....the good and bad.
What is PetroCaribe in Haiti?
Monday, 02 April 2012 11:17
Written by S. Maxime
ORLANDO, USA (defend.ht) - With so much discussion on irregular contracts signed and paid to the tune of $500 million [US], it is important that young Haitians, especially, understand where this money comes from and what it is. It is from PetroCaribe and it is not humanitarian aid, it is a loan from Venezuela.
Former President Rene Preval should be credited for a lot of things during his terms as president. His administration amended the Constitution of 1987, developed the national statistical system in accordance with international practices, established the law for the Superior Council of the Judicial Power (CSPJ) and began and ended two terms in office, passing power to a successor. But one of Preval's most underrated achievements was getting Haiti into PetroCaribe against the efforts of the international community.
In 2011, Haiti collected $232 million [US] in tax revenue, this was one of the best years. PetroCaribe brings in about $300 million [US] per year in revenue that goes directly to the Haitian government. PetroCaribe more than doubles the government of Haiti and its institution's capacity to serve the Haitian people.
Unlike humanitarian aid which bypasses the state and is allocated to specific projects by the donor and often isn't injected into the Haitian economy, PetroCaribe is the opposite. Funds are not earmarked and go directly into the National Treasury where elected officials can decide on how they should be used. PetroCaribe is empowering for Haiti and is helpful in the fight for sovereignty and sustainability - if used correctly.
Because PetroCaribe is a Loan.
PetroCaribe funds are loans that are to begin being repaid in about 18 years.
Venezuela is a producer of energy and provides Haiti a certain number of barrels of pre-refined crude.
Of those barrels Haiti sells, only 40% has to be given back to Venezuela. The other 60%, Haiti can keep, can use to do whatever it wishes, to build a sustainable economy, stable nation, etc. But this 60%, will have to be repaid.
PetroCaribe and the Emergency Law
When a disaster occurs in Haiti, the Haitian Parliament can vote the country into emergency status which will give the Executive government freedom to use government funds in short order and with little red tape.
Often it would take months, up to a year, with many signatures, oversight, bidding of contracts, and other steps to allocate millions of dollars to a project but with the emergency law, much of these speed bumps are removed to get money where it is needed.
In the past administration of Jean-Max Bellerive, there were funds in the Interim-Haiti Recovery Commission (IHRC) but even under the emergency law, Bellerive would have had to get the approval from commission members that included donors from the international community and members of the Haitian government and civil society. But Bellerive did not have that same oversight with government funds which included the 60% revenue from PetroCaribe.
The situation today in Haiti is in trying to figure out what happened with the hundreds of millions of dollars of money spent during the emergency law. This money was loaned to Haiti and the younger generation will have to pay it back.
So far, the former Prime Minister Jean-Max Bellerive and the President he advises, Michel Martelly, have worked with other members of the executive to not disclose all the contracts signed with the PetroCaribe funds.
One contract, for $4.5 million [US] was signed during the emergency law to build 10 football stadiums throughout the country. Details of this project has not been disclosed. A number of other contracts signed with Dominican companies remain undisclosed as well. Herein, lies a problem.
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