Despite having “not constructed a port anywhere in the world since the 1970s”, USAID allocated $72 million dollars to build one, according to a Government Accountability Office (GAO) report released last week. The port is meant to help support the Caracol Industrial Park (CIP) which was constructed with funding from the Inter-American Development Bank (IDB) and $170 million in funding from the U.S. for related infrastructure. The CIP has been held up as the flagship reconstruction project undertaken by the international community in Haiti. Even after putting aside criticisms of the location, types of jobs and the environmental impact of the CIP, the “success” of the entire project hinges on the new port. A prior study found that, “the CIP will only succeed if expanded, efficient port facilities are developed nearby.”
Despite a lack of experience in building ports, USAID decided to take on this critical project. However, over two years since it began the project is delayed, is over budget and its sustainability has been thrown into doubt. The GAO found that USAID “lacks staff with technical expertise in planning, construction, and oversight of a port,” and a ports engineer and advisor position has been empty for over two years. Additionally, the feasibility study for the port, contracted out by USAID, was delayed and “did not require the contractor to obtain all the information necessary to help select a port site.” As a result, while construction was set to begin in the spring of 2013, USAID “has no current projection for when construction of the port may begin or how long it will take because more studies are needed before the port site can be selected and the port designed,” reports the GAO.
Read the full article from the Center for Economic and Policy Research.