US embassy cable - 05PORTAUPRINCE1669

UNCLAS PORT AU PRINCE 001669 
 
SIPDIS 
 
WHA/CAR 
EAP/CM 
EAP/RSP/TC 
EB/IFD/OFD 
WHA/EPSC 
INR/IAA (BEN-YEHUDA) 
INR/EC 
DRL/IL 
STATE PASS AID FOR LAC/CAR 
TREASURY FOR ALLEN RODRIGUEZ, GREGORY BERGER, WILLIAM 
BALDRIDGE, LARRY MCDONALD 
USDOC FOR 4322/ITA/MAN/WH/OLAC (SMITH, S.) 
 
E.O. 12958: N/A 
TAGS: ELAB, PHUM, ECON, EINV, HA 
SUBJECT: Taiwan: Aid Gains Favor in Haiti 
 
1. Summary. Taiwan is on schedule to spend USD 20.32 million 
in Haiti over FY2004 and 2005 on infrastructure development 
and disaster assistance.  Taiwanese Counselor Sophie Lin 
said that it quickly disburses its money because it uses a 
quasi-governmental Taiwanese contractor and only 
subcontracts with local firms.  Lin strongly defended 
Taiwan's motives in Haiti.  She insisted that Taiwan is not 
trying to benefit politically from Haiti's poverty, and has 
no secret agenda.  End Summary. 
 
2. Taiwan projects that their aid to Haiti over FY 2004 and 
2005 will be USD 20.32 million.  Their assistance is focused 
largely on infrastructure development, with some projects in 
disaster assistance.  Taiwan is not a part of the Interim 
Cooperation Framework (ICF).  However based on the July 2004 
pledges, Taiwan's projected contribution would make it the 
fifth largest donor during the transition period, even 
without considering its possible FY 2006 contribution. 
 
3. Taiwan's aid projects are largely focused on road 
building.  They include: a 25 km Road from Les Cayes to 
Coteaux (along the southern coast), with a 100m bridge in 
Port Salut; an 8 km road from the airport at Les Cayes (in 
southern Haiti) to the center of town; and a bypass road in 
Carrefour (just south of Port-au-Prince) that Taiwan is 
constructing in conjunction with the EU and Canada. 
 
4. In addition, Taiwan plans to: install turf and lights at 
the national stadium and clean-up the facility; extend 
electricity wires to Fonds Parsien (in central Haiti near 
the Dominican boarder); construct the National Laboratory 
building in Port-au-Prince; build a government building and 
roads in Ganthier (near Fonds Parsien); fund reconstruction 
in Gonaives including rehabilitating the Gonaives square, 
and constructing the regional delegation building, a medical 
center and public market. 
 
5. According to Lin, the Taiwanese process allows for quick, 
timely disbursements and limits overhead.  Taiwan limits its 
contracts to a quasi-governmental Taiwanese construction 
company.  The Taiwanese company hires Haitian companies to 
subcontract different elements of the project.  When the 
work, or a phase of the work, is finished, the Taiwanese 
firm submits a report to the GOH and to Taiwan.  Only after 
both Taiwan and GOH approve the progress that has been made 
is the Taiwanese firm paid. 
 
6. Lin said that since the change over to the CCI in 2004, 
Taiwan has been excluded from the donors' meetings, and 
would like to participate again so that it could better 
coordinate with the other donors.  She said Haitians 
regularly call the Taiwanese Embassy to complain about 
Taiwan exploiting Haiti's poverty for political gain.  Lin 
bristled at these accusations, insisting that Taiwan does 
not have a secret agenda in Haiti, and that Taiwan has been 
committed to Haitian development for 40 years.  Finally, Lin 
said that she hoped that MINUSTAH's mandate would be 
extended promptly, and expressed disappointment with what 
she called China's politicking.