School Funding - Haiti Observer Blog

The Haiti PetroCaribe oil deal was signed just moments following the inauguration of René Préval; one mile away, in the Port-au-Prince bay, was the first shipment of diesel and unleaded fuel from Venezuela. Such decisive movements showed plainly that, while allaying US fears of a Haiti alliance with Venezuela, President Préval had already intended to join the Caribbean oil alliance.

The benefits were immediate, though it would take a few more years before regular deliveries of oil would be possible and construction on the promised oil refinery, an additional gift in the deal, would be complete. But Haiti's new fortune, while it came cheaply, was not without considerable price. The estimated $100 million US that the GOH would save from the delayed payment plan (with 60% up front and the remainder payable over 25 years at 1% interest) was paid for by the anger of the US Government and the US oil companies Chevron and ExxonMobil. Not only was PetroCaribe the project of Ugo Chavez, but it would mean significant losses to US investors.

Read more →