Above: Haiti’s hydro plant in Peligre

By the Caribbean Journal staff

Haiti’s is receiving a $12 million grant aimed at modernizing the Haitian energy sector, the Inter-American Development Bank announced Thursday.

The funding, which is the second in a series of three policy-based grants, is designed to provide budgetary support as Haiti seeks to establish a legal and regulatory framework for its energy sector.

Haiti is also seeking to strengthen the country’s Ministry of Public Works.

The $12 million grant will aid Haiti’s efforts to turn the country’s Electricité d’Haïti into a “viable and operational” company, according to the IDB.

The utility’s current shortfalls cost the government as much as 2.8 percent of GDP in 2011.

“This new grant underscores the significant progress Haiti has made toward transforming its energy sector,” said IDB Energy Division Chief Leandro Alves. “Coupled with the investments Haiti has made in infrastructure and systems, the policy measures covered by this operation will be critical to achieving a sustainable reform.”

The grant follows similar efforts by the IDB to create a legal framework for Haiti’s land tenure.

Haiti’s energy sector also received IDB help when the bank approved a $20 million grant to refurbish the Peligre hydroelectric plant, the country’s principal source of green energy.