A Survey of Haiti’s Private Sector

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A Survey of Haiti’s Private Sector

This survey of private sector engagement in Haiti includes descriptive listings of major businessinvestments, private sector-NGO partnerships and investment-related conferences about Haitisince 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-NGOactivities over the past three years. The survey was completed using reviews of publishedinvestment information, interviews with members of international finance institutions andmeetings with Haitian business leaders in Port-au-Prince. The document is not meant as acomprehensive 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 FOCALroundtable “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 expansionof light industrial parks, largely anchored by firms in the apparel industry intending totake advantage of advantageous American import rules via HOPE II.

- Major agricultural investments for processing or storage facilities are rare. Agriculture iscurrently 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 alsothe most significant Haitian diaspora-led investment in the country.

- There have been a significant number of events and initiatives aimed at organizinginvestment 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 andworking 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 todetermine 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 onschool construction.

- Basic infrastructure investments in roads and building reconstruction are primarilygovernment-led (and have largely been left out of this document unless directly related toanother 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-PrinceSector: Energy Status: Completed Jan. 2011 Investment: $59.5 million

Participants: 54 Haitian and Haitian-American investors led by Daniel-Gérard Rouzier (60%) andKorean East-West Power (30%).The heavy fuel oil plant is among the first private sector power plants in the country. It will make15MW available to the industrial park in which it is located and 15MW to state-owned Électricitéd'Haïti (EDH) on a 15-year power purchase agreement. The International Finance Corporation(IFC) provided $17 million.

New pier and expanded resort LabadieSector: Tourism Status: Completed Aug. 2009 Investment: $55 millionParticipants: 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-HaïtienSector: Industrial Status: Signed commitment Jan.

2011. Opening in 2012.Investment: $240 million

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-Haïtien port improvements); IDB ($50 million grant for factory shellsand infrastructure).The new 623-acre park for export businesses is targeted at creating 20,000 apparel jobs via the

Sae-A investment, making it Haiti’s largest employer, plus another planned 15,000 jobs fromother proposed tenants.

Terminal Varreux Redevelopment Port-au-PrinceSector: Transport Status: Proposed March 2010 Investment:Participants: WIN Group; Santé Holding Corp; Rovirosa family.The proposed redevelopment of the private terminal includes a new port, additional jetties, a 150-acre terminal, a container and break-bulk shipping terminal and ancillary facilities, plusremediation and expansion of existing piers.

Knitted fabrics plantSector: Industrial Status: Proposed 2010 Investment:Participants: Wilbes Haïtien.Proposed 60 tonne per day fabric plant employing 3,000 workers.



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New apparel industry investments – variousSector: 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 plantemploying 3,000 workers.

Belle Rive Hotel/condominium project JacmelSector: Tourism Status: Proposed 2009 Investment: $50 millionParticipants: SimACT (Société Immobilière d'Agriculture, de Commerce, et de Tourisme) withChoice Hotels International.Planned development with 94 townhouses and tower apartments, plus a 120-room hotel, marinaand private club.

Structured insulated panel (SIP) manufacturing facilities (2) Port-au-Prince or Cap-Haïtien

Sector: Manufacturing Status: Investment:Participants: The RLJ Companies; WIN Group; Global Building Solutions, LLC.

Expansion of CODEVI apparel facilities OuanamintheSector: Industrial Status: Ongoing Investment:Participants: Grupo M; IDB.Expansion of existing facilities at the Dominican Republic border.

Hotels – various Port-au-PrinceSector: Tourism Status: Proposed Investment:Participants : Montana Group; Best Western; Digicel; Horser Group; Visa Lodge Group; SociétéImmobilière et Financière (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-PrinceSector: Tourism Status: Opened 2008.

Expansion proposed for 2012.Investment:

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-PrinceSector: Tourism Status: Under construction Investment: $33 millionParticipants: 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 toToussaint L’Ouverture International Airport.

Serve Hotel Port-au-PrinceSector: Tourism Status: Under construction,

opening April 2011Investment:

Participants : Richard Buteau – Kinam.Located by Port-au-Prince airport, built using shipping containers re-fitted in the U.S.

El Rancho Hotel expansion Port-au-Prince

Sector: Tourism Status: Under construction,opening 2011 Investment:Participants :

West Indies Free Zone – Industrial park Port-au-PrinceSector: Industrial Status: MOU with IDB Aug.

2010, on holdInvestment: $45 million

Participants: WIN Group and Soros Economic Development Fund.This 60-acre industrial park near the Port-au-Prince airport was being planned before theearthquake.

BioTek Agro-Energy Project LéogâneSector: Agriculture andEnergy

Status: Announced May 2010 Investment:

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 canesyrup and to produce energy from the sugar cane bagasse biomass.

Expansion of mango export businessSector: 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-PrinceSector: Tourism Status: Under construction,

opening late 2011Investment:

Participants : Oasis (Jerry Tardieu); Occidental Hotels & Resorts (OHR); Banque Nationale de

Crédit (BNC); IFC. New 132-room hotel.

Telecommunication network investments – Voilà NationalSector: Telecom Status: Ongoing Investment: Tens of millionsParticipants: 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; expandedlocal TV (UHF, mobile, cable, etc.) service; local data centre(s); mobile money.

Telecommunication network investments – Digicel NationalSector: Telecom Status: Ongoing, initiated 2006 Investment: Hundreds of

millionsParticipants: The Digicel Group.Creation and expansion of full service mobile network; mobile money.

Telecommunication network investments – Natcom NationalSector: Telecom Status: Proposed Investment:Participants : ViettelPlans 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 routeSector: Transport Status: Ongoing Investment:Participants : Santé Shipping.Ocean cargo service from the Miami River to Cap-Haïtien and Gonaïves.

Mango processing plant expansion Port-au-PrinceSector: Agriculture Status: Under way Investment:Participants: JMB; Soros Economic Development Fund.Existing facilities near port being expanded.



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Events and Private Sector Initiatives

32nd Miami Conference on the Caribbean andCentral America

Dec. 1-3, 2008

Location: Miami Organizers: Caribbean Central AmericanAction (CCAA)

Participants: International investors and Caribbean government representatives.Regional and international stakeholders involved in the economic development of the Caribbeanand Central America. Sections of the conference were focused on Haiti.

Conference on Haiti’s Social and EconomicDevelopment

April 14, 2009

Location: Washington, D.C. Organizers: IDBParticipants: IDB President Luis Alberto Moreno, Former Prime Minister Michèle Duvivier Pierre-Louis, Canadian Minister of International Co-operation Beverley J. Oda, United StatesSecretary of State Hillary R. Clinton, United Nations Secretary General Ban Ki-moon, OASSecretary General José 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 theHaitian Diaspora

Aug. 9, 2009

Location: Miami Organizers: Haitian Diaspora UnityCongress

Participants: Haitian diaspora

The conference is aimed at leveraging diaspora resources to help build Haiti’s economy.

Americas Conference 2009 Sept. 1, 2009Location: Miami Organizers: The Americas Conference,

Miami Herald, World Bank Participants: Business leaders and investors from across Latin AmericaBusiness and political forum on Latin America and the Caribbean.

Haiti Open for Business Oct. 1, 2009Location: Port-au-Prince Organizers: IDB, Canadian government

Participants: 500 foreign and Haitian private sector representatives, 150 officials and delegatesfrom non-governmental institutions, Haitian Prime Minister Michele Duvivier Pierre-Louis,Haitian government representatives, United Nations Special Envoy to Haiti Bill ClintonExplore opportunities in key economic sectors for Haiti, including garment manufacturing,sustainable energy production and agribusiness.

10th Business Forum of the Greater Caribbean Oct. 21-24, 2009Location: Port-au-Prince 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

Nov. 30-Dec. 2, 2009

Location: Miami Organizers: Caribbean Central AmericanAction (CCAA)

Participants: International investors and Caribbean government representatives.Regional and international stakeholders involved in the economic development of the Caribbeanand Central America. Sections of the conference were focused on Haiti.

Private Sector Consultation on Reconstruction March 15, 2010Location: Indigo Hotel, Côte des Arcadins Organizers: IDBParticipants: Haitian public and private sector representatives including Prime Minister Jean-MaxBellerive and members of the Forum Économique du Secteur Privé.The meeting was intended to help coordinate efforts by both the private and public sectors todevelop Haiti’s economy. The meeting was part of a broader process to reach out to differentsectors of Haitian society to seek consensus on a national reconstruction and development plan

Sustainable Haiti Conference March 17-19, 2010Location: Miami Organizers: The Working Group for a

Sustainable Future for HaitiParticipants: Haitian diasporaFostering sustainable development initiatives for Haiti.

Haitian Diaspora Forum March 21-23, 2010

Location: Washington Organizers: OASParticipants: Haitian diaspora and civil society organizations, OAS member states and permanentobservers, United Nations agencies, and regional organizations.Contributing to a Strategic Plan for Reconstruction and Development in Haiti.

Forum Économique du Secteur Privé meeting March 21, 2010Location: Indigo Hotel, Côte 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 theUnited Nations in New York. The forum led to the production of the "Private Sector Economic

Forum Vision and Roadmap for Haiti."

Haiti Business Development Committeeconference

March 21-23, 2010

Location: Washington, D.C. Organizers: Organization of American StatesParticipants: Haitian diasporaPlanning for the Haiti donors’ conference at the United Nations on March 30.



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Construire une Nouvelle Haïti: Affaires,Commerce et Investissements

June 10-11, 2010

Location: Indigo Hotel, Côte des Arcadins Organizers: American Chamber of Commerce of the Dominican Republic

(AMCHAMDR),Participants: Dominican, Haitian and American business peopleThe goal was to build a network among participants in order to facilitate exchanges and to createtrade alliances among Dominican, Haitian and American businesses.

Americas Conference Sept. 14-15, 2010Location: Miami Organizers: The Americas Conference,

Miami Herald, World Bank Participants: Business leaders and investors from across Latin AmericaBusiness and political forum on Latin America and the Caribbean.

Quebec-Haiti Business Forum Oct. 7-8, 2010Location: Montréal Organizers: Nancy RocParticipants: Business people from Haiti and QuebecOrganized by the Haitian Embassy in Canada, the Haitian Consulate in Montreal, the JCCH(Jeune chambre de commerce haïtienne), the CCIHC (Chambre de commerce et d’industriehaïtiano-canadienne), the FCCQ (Fédération des chambres de commerce du Québec), andsponsored by Digicel Haiti and the Quebec government among others.

34th Miami Conference on the Caribbean andCentral America

Dec. 3, 2010

Location: Miami Organizers: Caribbean Central AmericanAction (CCAA)Participants: International investors and Caribbean government representatives.Regional and international stakeholders involved in the economic development of the Caribbeanand Central America. Sections of the conference were focused on Haiti.

Sustainable Haiti Conference April 4-6, 2011Location: Miami Organizers: The Working Group for a

Sustainable Future for HaitiParticipants: Haitian diasporaFostering sustainable development initiatives for Haiti.



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Business-NGO Partnerships

Construction and upgrade of 150 schools NationalSector: Education Status: Ongoing (70 projects

completed)

Investment:

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 École Mixte Lageho in the Pont Janvier community of Thomazeau. The program expanded in 2010 with a new USAID partnership after the earthquakehit communities, including Léogâne’s École Louis de Borno.

Haiti Hope Project Various locationsSector: Agriculture Status: 5-year project started in 2010 Investment: $7.5 millionParticipants: 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 futurewith investments in mango juice facilities. It is implemented by Technoserve.

Brand Haiti Initiative NationalSector: Investment Status: Ongoing Investment: $1.4 millionParticipants: Soul of Haiti; Digicel.Highlights positive developments in Haiti and investment opportunities by connecting non-governmental organizations and businesses.

École Lakay trade school Le SoleilSector: Education Status: Planned Investment:

Participants: Canadian Construction Association (CCA); Builders Without Borders (BWB).Reconstruction and expansion of the school.

L'École Nouvelle Royal Caribbean Between Labadie & CapHaitien

Sector: Education Status: Opened Oct 2010 Investment:Participants: Royal Caribbean; InnoVida; St. Coleman’s School; ProDev, L'École NouvelleZoranje; Solano Foundation.Construction and ongoing support for the school.

École Nationale Jacob Martin Henriquez JacmelSector: Education Status: Under construction Investment:Participants: Honeywell; Operation USA; City of Jacmel.Construction and ongoing support for the school



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Digicel Entrepreneur of the Year NationalSector: 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-PrinceSector: Education Status: Announced Aug. 2010 Investment: $250,000Participants: Citi; Soros Economic Development Fund (SEDF); CODEVI.Professional training program for garment industry employees.

Haitian Apparel Centre (HAC) Port-au-PrinceSector: 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.

Marché de Fer Port-au-PrinceSector: Commercial Status: Completed Jan. 2011 Investment: $12 millionParticipants: Denis O’Brien.Reconstruction of earthquake-damaged market.

Installing solar panels at hospitals NationalSector: 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 Américains” Port-au-PrinceSector: Transport Status: Complete 2008 Investment: $7 millionParticipants: Tevasa Corporation (Mevs family - $2 million in land, office space and constructionwork) 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, constructionmachines and CHF provided training; USAID funding via "Konbit Ak Tet Ansanm" (KATA).

School rehabilitation projects NationalSector: Education Status: Ongoing Investment:



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Participants: CHF and USAID (KATA).School reconstruction and local job creation projects including at École Nationale de Vialet.

Traçabilité du Café – WiMAX pilot project Cap RougeSector: Commercial Status: Started 2007 Investment:

Participants: Fondation Voilà, Cafes Malongo, Alcatel-Lucent, the University of Nice SophiaAntipolis.The project provides three coffee cooperatives representing 1,200 farmers with internet accessfrom their plantations by applying WiMAX and RFID technologies. Internet access will enablethe 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 NationalSector: Education Status: Ongoing Investment:Participants: Fondation Voilà.Providing scholarships for primary, secondary and university students across Haiti.

Carnaval JacmelSector: Status: Ongoing Investment:Participants: Fondation Voilà.Sponsor of Jacmel’s annual carnival.

IDB Projects NationalSector: 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 includeseveral with investment and private sector focus, including a business plan competition, supportfor agri-business exports, and mango business development. These projects are primarily co-ordinated through partnerships with the Haitian government rather than with the private sector or non-governmental actors.

Documents

A Survey of Haiti’s Private Sector