In response to the earthquake, Congress provided more than $1.14 billion  in reconstruction funds for Haiti in the Fiscal Year 2010 Supplemental  Appropriations Act. The Act required State to provide periodic reports to Congress on the  program. Specifically, the Act required State to submit five reports to the  Senate Committee on Appropriations, beginning in October 2010 and  every 180 days thereafter until September 2012, on funding obligations  and disbursements and program outputs and outcomes. Most of USAID’s 2010 Supplemental Funds Have Not Been Obligated or Disbursed, and State’s Reports to Congress Generally Met Requirements but Were Incomplete and Not Timely

As of March 31, 2013, the majority of supplemental funding for USAID’s  program sector activities had not been obligated or disbursed. Of the $651 million in  funding from the 2010 Supplemental Appropriations Act that USAID has  allocated for bilateral earthquake reconstruction activities, USAID had  obligated about $293 million (45 percent) and disbursed about $204  million (31 percent). In its periodic reports to Congress, State reported on the general amounts  of supplemental funding obligated and disbursed, as required in the Act. State also included some anecdotal information on program outputs and  outcomes, which the Act also required. However, State’s reports  did not include, among other things, (1) a detailed program-by-program  description of USAID’s activities; (2) a description, by goal and objective,  and an assessment of the progress of U.S. programs; and (3) amounts of  funding obligated and disbursed on the programs during the preceding 6  months, as directed by the Senate Committee on Appropriations in its  report accompanying the Act. USAID Completed the Power Plant for Less Than Allocated but the Port Was Delayed; Their Sustainability Depends on the CIP’s Success

USAID has committed $170.3 million to construct a power plant and port  to support the newly developed CIP, with mixed results to date. In June  2012, the USAID mission completed the first phase of the CIP power  plant for $17.0 million, 11 percent less than the $19.1 million allocated,  and in time to supply the first CIP tenant with power. Planning for the port  is behind schedule and will result in port construction beginning at least 2  years later than initially planned. The mission has had a vacant port  engineer position for more than 2 years, having made one unsuccessful  attempt to fill this position prior to May 2013 when it issued a second  solicitation to fill the position. The lack of port expertise at the mission has contributed to (1)  unrealistic initial time frames, (2) delays in awarding the contract for a  feasibility study, and (3) incomplete information in the feasibility study. According to initial estimates of port construction costs, USAID funding  will be insufficient to cover approximately $117 million to $189 million of  projected costs, and it is unclear whether the Haitian government will be  able to find a private sector company willing to finance the remainder of  the project. 2). In January 2011, the mission in Haiti put out a solicitation  to fill the vacant port engineer position. As a result, as of June 18, 2013, the position  remains unfilled. USAID’s Development of New Housing Settlements in Haiti Has Been More Costly and Slower Than Expected; Sustainability Challenges Remain

Since its initial planning and cost estimating began in 2010, USAID’s  funding for the New Settlements program has significantly increased,  while the number of permanent houses USAID projects will be completed  has been reduced by over 80 percent. USAID underestimated  construction costs at the time the New Settlements program was  developed, and construction costs further increased after the Haitian  government requested design changes that included larger houses with  features such as flush toilets. USAID experienced problems securing  clear land title for the new housing sites and in coordinating with NGOs  and other partner donors. All together USAID  increased program funding to approximately $97 million, about a 65- percent increase. Therefore, the estimated number  of houses and completion dates may vary from current projections. USAID also reduced the total number of projected beneficiaries from an  original estimate of 75,000 to 90,000 to its current estimate of  approximately 13,200 to 15,900. The agency has dedicated some  funding to help ensure sustainability through the development of  community support mechanisms; however, it is unclear if funding for  these support mechanisms will be available for each new settlement. Matter for Congressional Consideration

To ensure that Congress has current information on the status of Haiti  earthquake reconstruction activities and is able to provide appropriate  oversight at a time when most funding remains to be disbursed, Congress  should consider requiring State to reinstitute the requirement to provide it  with periodic reports until most of the funds in each sector are disbursed. USAID agreed with both of our recommendations. Appendix I: Scope and Methodology

We reviewed infrastructure-related post-earthquake reconstruction efforts  in Haiti undertaken by the U.S. Agency for International Development  (USAID). This report addresses (1) USAID’s progress in obligating and  disbursing program allocations and the Department of State’s (State)  periodic reporting to Congress on the status of the U.S. reconstruction  efforts; (2) USAID’s progress in planning and constructing two activities  related to the Caracol Industrial Park (CIP)—a power plant and port; and  (3) USAID’s progress in planning and constructing permanent housing. We met in  Washington, D.C., and in Port-au-Prince, Haiti, with officials from USAID  and State.
Why GAO Did This Study

On January 12, 2010, an earthquake in Haiti caused about 230,000 deaths, resulted in 300,000 injuries, and displaced about 2 million persons. Following immediate relief efforts, Congress provided $1.14 billion for reconstruction in the Supplemental Appropriations Act, 2010. USAID is responsible for implementing $651 million of this amount, and it has allocated about $268 million of this and other funding to construct a power plant and port to support the CIP in northern Haiti and permanent housing in several locations. The Act required State to report periodically to Congress on funding obligated and disbursed and program outputs and outcomes. GAO was asked to review USAID's efforts in Haiti. This report examines USAID's (1) funding obligations and disbursements and State's reports to Congress on funding and progress; (2) USAID's progress in two CIP-related activities--a power plant and port; and (3) USAID's progress in constructing permanent housing. GAO reviewed documents and interviewed U.S. officials in Washington, D.C., and Haiti, and visited planned and active sites.

What GAO Found

As of March 31, 2013, the U.S. Agency for International Development (USAID) had obligated $293 million (45 percent) and disbursed $204 million (31 percent) of $651 million in funding for Haiti from the Supplemental Appropriations Act, 2010 (the Act). The Department of State (State) submitted four of five periodic reports to Congress, as required by the Act. The reports included information on funding obligated and disbursed and anecdotal information on outputs and outcomes of some activities, as the Act required. The Senate Appropriations Committee, in its Committee Report accompanying the Act, had also directed State to report more detailed information on funding and sector activities in Haiti, which State did not include in the reports. Although most funds have not been disbursed, State's reporting requirement ended in September 2012. As a result, Congress lacks information on the amounts of funds obligated and disbursed and program-by-program progress of U.S. reconstruction activities.
USAID has allocated $170.3 million to construct a power plant and port to support the newly developed Caracol Industrial Park (CIP), with mixed results. According to USAID documents and external studies, the sustainability of the CIP, power plant, and port are interdependent; each must be completed and remain viable for the others to succeed. USAID completed the power plant's first phase with less funding than allocated and in time to supply power to the first CIP tenant. Port construction will not begin until at least 2 years later than originally planned due in part to a lack of USAID expertise in port planning in Haiti. In January 2011, the mission made an unsuccessful attempt to solicit a person to fill a vacant port engineer position but made no additional attempts prior to May 2013 and this position currently remains unfilled. As a result, planning has been hindered by (1) unrealistic initial timeframes, (2) delays in awarding the contract for a feasibility study, and (3) incomplete information in the feasibility study. According to initial estimates of port construction costs, USAID funding will be insufficient to cover a majority of projected costs. The estimated gap of $117 million to $189 million is larger than initially estimated, and it is unclear whether the Haitian government will be able to find a private sector company willing to finance the remainder of the project.
USAID has reduced its permanent housing construction targets in Haiti. USAID initially underestimated the funding needed for its New Settlements housing program. As a result, the agency increased the amount allocated by 65 percent, from $59 million to $97 million, and decreased the projected number of houses to be built by over 80 percent, from 15,000 to 2,649. The estimated number of beneficiaries was reduced from 75,000 to 90,000 to its current estimates of approximately 13,200 to 15,900. Cost increases resulted from inaccurate original estimates that used inappropriate cost comparisons and from the Haitian government's request for larger houses with improvements such as flush toilets. USAID currently estimates construction will be completed almost 2 years later than initially scheduled. Delays occurred due to the difficulties of securing land titles and coordination issues with partner donors. USAID is attempting to mitigate potential sustainability risks, such as the possible lack of economic opportunities, affordability of housing and services, and community cohesion, but gaps in the support of community development mechanisms may increase these risks.

What GAO Recommends

Congress should consider requiring State to provide it with periodic reports on reconstruction progress, funding, and schedules until most funding for each program sector has been disbursed. Also, GAO is recommending USAID (1) hire a port engineer to oversee port planning and construction and (2) provide timely community support mechanisms for each new settlement to help ensure sustainability of its permanent housing program. USAID agreed with GAOs recommendations.