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Canada pledges $400M in money and debt relief for Haiti

UNITED NATIONS — Canada bought a seat Wednesday at the global table that will direct Haiti’s ambitious earthquake-recovery effort, pledging $400 million in money and debt relief over two years.

UNITED NATIONS — Canada bought a seat Wednesday at the global table that will direct Haiti’s ambitious earthquake-recovery effort, pledging $400 million in money and debt relief over two years.

The commitment at the major international donors’ conference at United Nations headquarters includes $110 million of the money the government promised in matching donations by Canadians.

Canadian officials said the announcement, part of $5.3 billion pledged at the gathering, left no doubt the country would be granted membership on the Interim Haitian Recovery Commission. Each prospective member was required to pledge $100 million over two years, or $200 million of debt reduction.

The commission of two dozen countries and agencies will co-ordinate recovery projects by drawing on the action plan of Haiti’s battered government and the largesse of the international community. It will be headed by former U.S. president Bill Clinton and Haitian Prime Minister Jean-Max Bellerive.

The commission will preside over one of the most ambitious exercises in nation building, aimed at bringing the poorest country in the Western Hemisphere back from the brink after the devastating Jan. 12 earthquake. The quake killed more than 200,000, including at least 46 Canadians.

Participants pledged they will not squander the promised funds or the opportunity to build Haiti.

“There will be a high level of accountability and transparency,” said Clinton, the UN special envoy to Haiti. “Once we get this up and running you’ll be able to see what did every government commit, what did every NGO commit, how much have they paid for their commitment . . . .Where did they spend it? Where did the money go?”

International Co-operation Minister Bev Oda touted the exceptional generosity of Canadians, who contributed $220 million in a public appeal. Ottawa is matching those donations, and is drawing on half of that amount — $110 million — to fund part of Wednesday’s commitment.

None of the money raised in the public appeal will go toward Wednesday’s announcement; that money remains earmarked for Canadian and international aid agencies.

Ottawa promised to match donations soon after the quake struck, and has already pledged or spent $85 million on Haitian relief.

Wednesday’s commitment also includes $8 million in debt relief to Haiti, part of a broader cancellation of the impoverished country’s overall $40 million World Bank debt.

“We all know the recovery and reconstruction of Haiti will take many years. Canada will stand behind Haiti,” said Oda.

However, the minister could not explain how Canada will ultimately finance its long-term involvement in Haiti given that it will freeze its entire overseas development assistance budget next year at $5 billion to help slay the deficit.