	Background

In September 2004, four major hurricanes and storms, including Ivan and  Jeanne, caused extensive damage in the Caribbean, particularly in  Grenada, Jamaica, and Haiti. U.S. However,  although USAID reduced targets, in part because of cost increases for  these projects in all three countries, USAID contractors did not complete  many of them by December 31, 2005—in particular, new housing  construction—and required extensions to finish these projects. USAID Expended Majority of Recovery Funds within 1 Year

As of December 31, 2005, USAID had expended approximately 77 percent  of the $92.4 million that it allocated for recovery efforts in the three  countries. In  addition, USAID contractors encountered various construction-related  challenges, such as shortages of materials and labor, and difficulty in  fulfilling USAID requirements. Severe Weather Delayed Program Activities in Jamaica and Haiti

Hurricanes and heavy rains in 2005 affected the progress of USAID  reconstruction and recovery activities in Jamaica and Haiti. Coordination challenges in Grenada. In addition, the agency  has not issued guidance that incorporates lessons learned from designing  and implementing its prior recovery and reconstruction programs. However, our recent interviews with USAID staff and contractors, as well  as previous GAO work, suggests that in agreeing to the December 31, 2005,  deadline, USAID faced a trade-off in trying to complete a broad spectrum  of activities within the 1-year time frame and ensure that activities  supported through these programs have the intended impact in helping  beneficiaries recover, rebuild, and find jobs in the postdisaster  environment and can be sustained by host government staff after the  programs end. USAID Did Not Implement Some Prior Staffing Recommendations and Encountered Challenges Related to Use of Management Firm

USAID did not adopt several prior recommendations that could have  helped it to more rapidly hire and transfer staff in response to recovery  and reconstruction needs, and as a result of hiring Wingerts Consulting to  quickly staff the Hurricane Ivan Program in Grenada and Jamaica, the  agency encountered additional challenges. According to USAID’s Regional Inspector General, USAID staff, and  contractors, the agency’s decision to hire Wingerts Consulting to oversee  the program in Grenada and Jamaica led to additional challenges. Recommendations for Executive Action

To better facilitate USAID’s ability to design and implement future disaster  recovery programs and address its previously documented recurring  staffing challenges, we recommend that the USAID Administrator take the  following two actions:    Develop disaster recovery and reconstruction program guidance that  incorporates lessons learned from the Hurricane Ivan Recovery and  Reconstruction Program and Tropical Storm Jeanne Recovery Program as  well as previous disaster recovery programs. In this report, we (1) review the recovery and  reconstruction activities in Grenada, Jamaica, and Haiti, including the  status of activities as of December 31, 2005; (2) identify factors that  affected USAID’s ability to implement and complete the programs within  the 1-year time frame; and (3) assess USAID’s use of guidance and  application of lessons learned from similar previous programs as well as  its efforts to draw lessons from the current programs. This approach was adopted in the Caribbean programs.
Why GAO Did This Study

In September 2004, Hurricane Ivan and Tropical Storm Jeanne passed through the Caribbean, taking lives and causing widespread damage in several countries. After initial U.S. emergency relief, in October 2004 Congress appropriated $100 million in supplemental funding, primarily for Grenada, Jamaica, and Haiti, which were significantly affected. The U.S. Agency for International Development (USAID), leader of the U.S. recovery programs, agreed, in consultation with the Office of Management and Budget, to complete the programs by December 31, 2005, giving the agency a 1-year time frame. GAO was asked to (1) review the nature and status of the programs in Grenada, Jamaica, and Haiti as of December 31, 2005; (2) identify factors that affected the programs' progress; and (3) assess USAID's use of guidance and lessons learned from previous similar programs and efforts to draw lessons from the current programs.

What GAO Found

As of December 31, 2005, USAID had spent about 77 percent of funds allocated for assistance in Grenada, Jamaica, and Haiti and completed many disaster recovery activities, such as providing business and agriculture grants. However, the agency significantly reduced its targets for building and repairing houses, in part because of cost increases, and granted contractors extensions to complete some of these projects. Severe weather delayed the progress of recovery activities in Jamaica and Haiti--for example, two hurricanes in the summer of 2005 disrupted Jamaican housing repairs. In addition, difficulty coordinating activities with the Grenadian and Jamaican governments hampered housing construction. Further, other construction-related challenges--for example, shortages of cement--delayed projects in Grenada and Jamaica. Finally, frequent security problems in Haiti hindered contractors' progress. USAID has not issued guidance that incorporates lessons learned from previous recovery and reconstruction programs, such as ways to mitigate challenges commonly faced in rebuilding after disasters. USAID staff inexperienced with disaster recovery efforts said that this made it difficult to design and implement the programs. Further, in agreeing to complete the programs within 1 year, USAID faced challenges in designing a broad spectrum of activities that would help rebuild residents' lives and that could be sustained after the programs ended. In addition, the agency did not adopt recommendations from GAO and USAID reviews of past recovery programs that could have helped it more rapidly hire and transfer staff for the Caribbean programs. Although the agency contracted with a management firm to quickly staff its program in Grenada and Jamaica, this led to additional challenges, such as confusion about the management firm's roles and responsibilities in relation to USAID staff and other contractors. USAID staff and contractors are recording lessons learned from the programs in each country.