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Clear, Hold, Build:
Sustainable strategies to eradicate cholera
Team 6:
Christopher Lee, Raja Narayan, Samir Zaidi, Michael Zucker
Executive summary
• Cholera epidemic in Haiti has exacerbated a pre-existing state of poverty,
malnutrition and underdevelopment
• The program proposed both eradicates cholera and provides the public health
framework to deal with future crises
• The program updates the prior $2.3B MSPP cholera eradication plan,
incorporating new tech deployed more rapidly and at lower cost

• A claims process is essential to ensure justice for the Haitian people. This
proposal is based on strong precedent from prior mass torts
Agenda

• Current situation in Haiti
• Solution overview
• Program deep-dives:
• Remediation
• Claims
• Organization
• UN/DPKO moving forward
Agenda

• Current situation in Haiti
• Solution overview
• Program deep-dives:
• Remediation
• Claims
• Organization
• UN/DPKO moving forward
Haiti before the earthquake
Haiti still facing numerous challenges…

That remain unsolved despite int’l aid

94

$B 7.0

87

6.5

6.0

76
65

630

Int’l Assistance
Haiti GDP

5.0

58

4.2
4.0
3.0

34
22

1.2
Haiti
Americas

Access to
sanitation
(% of pop.)

Access to
clean water
(% of pop.)

7
% living below
poverty line

Maternal
mortality2

Child
mortality1

63

2.0

19

% of children
underweight3

19

3.4

1. Under 5 years, per 1,000 2. Per 100,000 births, 3. % of children under 5
Sources: http://ec.europa.eu/echo/files/aid/countries/Haiti_paper_01102010.pdf, OECD

1.0

0.3

0.6

0.0
2000

2005

2009

Pre-cholera aid supported:
• Government budget, special projects
• Technical assistance, capital equip. transfer
• Debt relief
Earthquake, cholera devastated Haiti
Underdevelopment provided fertile ground for epidemic
and deaths…

High level of infections…
Infections
(‘000)

had disastrous
consequences

Deaths
(‘000)

360

172,000
displaced

7.5
7.0

100

1.5

80
60

Without
intervention
With
intervention

40
20
0

1.0

Without
intervention
With
intervention

0.5
0.0

11 12 13 14e 15e 16e
Source: NEJM, WHO, team analysis

11 12 13 14e 15e 16e

3,000,000
food insecure
Agenda

• Current situation in Haiti
• Solution overview
• Program deep-dives:
• Remediation
• Claims
• Organization
• UN/DPKO moving forward
Approach guided by public health best practices
Strategic principle
Backward inductive approach

Taking an ecological view

Locally informed tactics

Harness positive deviance

Integrate intelligence

Application to program design
• 4 clearly articulated and measurable end-state goals
• Organization of funded projects into 4 well-defined pillars
• Program design considers politics, economics, law, medicine, and public
health in addressing the epidemic

• Clear hierarchy, decentralized mgmt. balances efficiency, control
• Investments in both infrastructure and human capital
• Haitian people included at all levels of mgmt., implementation
• $350M set aside for community-driven programs
• Surveillance pillar prioritized early
• Investment in “rapid response” concept to target epidemic reemergence
4 end-state objectives by 2023

Emergency response teams in place by EOY 2014
Settlement of all claims by 2018
Remediate sanitation and water supply by 2018

Eradication of cholera by 2023
Effort will cost ~$2.8B over 10 years
Program spend by year and activity type ($M)
863

2,816
474
350

396
60

391

397

Claims: Ind
Claims: Comm
Reserve
Prevention

200

1,133

Infrastructure

438
332

332
50

2014

2015

2016

2017

2018

2019-2023

218
Total

Surveillance
Treatment
Administration
Agenda

• Current situation in Haiti
• Solution overview
• Program deep-dives:
• Remediation
• Claims
• Organization
• UN/DPKO moving forward
Holistic program to eradicate cholera by 2023
Four drivers of health system
reconstruction

Treatment

Surveillance

Implemented over three
phases

Phase 1:
Rapid response & relief

Phase 2:
Contain & control

Prevention

Infrastructure

Source: CDC, PAHO, WHO

Phase 3:
Eradicate & build

To yield sustainable results

• Death rate from infection
<0.5% by 2014, <0.01% by
2020
• Emergency response teams
in place EOY 2014
• 100% have access to
sanitation, clean drinking
water by 2018
• Cholera eradicated by 2023
Aggressive implementation of treatment pillar in phase 1
Treatment overview

Phase 1

Phase 2

Phase 3

218M

91

104

22

Health care
services

Essential
medicine

Micronutrients

• Standardize
management tools for
cholera

• Update information
databases
• Improve logistics,
support networks

• Supplement surveillance
in high-risk spots

• Purchase medicines and
supplies for emergency
response
• Establish communelevel medical depots

• Strengthen MSPP
supervisory
capabilities
• Purchase trucks

• Implement pharmacovigilance unit

• Introduce zinc, oral
rehydration solutions

• Micronutrient
distribution to all
communes

• Strengthen staff in the
nutrition unit as needed

Source: MSPP Cholera Eradication, team analysis
Scale-up of surveillance in phases 1-2 will enable flexible
responses
Surveillance overview
332M
1
Follow up
& evaluation
6
Epidemiologic
information

12

314

Research
capacity

Strengthen
DINEPA

Phase 1

Phase 2

Phase 3

• Build add’l surveillance
infra.

• Scale surveillance as
needed

• Repurpose unneeded
surveillance facilities

• Enable rapid
transmission, real-time
analysis of reports

• Train community
health agents to use
surveillance tools

• Disseminate regular
epidemiological bulletin

• Institutional support

• Construct regional
laboratories

• Integrate cholera
diagnostics in hospital
laboratories

• Organize sectoral
governance
• Implement standards,
performance metrics

• Build cooperative
mechanism for NGO
participation

• Monitor evolution of
water and sanitation
sector

Source: MSPP Cholera Eradication Plan, team analysis
Innovative water distribution solution saves >$500M over
original UN plan
Infrastructure overview

Phase 1

1,133M1

Phase 2

Phase 3

• Distribute Sunspring
system to Port-au-Prince,
medium-sized cities

• Complete Sunspring
rollout
• Commence chlorine
production

• Plan and begin building
permanent water supply
system
• Construction, repair of
sanitary facilities
• Develop sanitary
standards
• Review facilities
• Begin implementing
national plan

209

Water supply

515

Wastewater
& excreta
treatment

• Develop national
sanitation plan

• Develop & disseminate
education materials
• Build social awareness

407

Waste
collection
& treatment

• Triage and address
hotspots with temporary
improvements

• Plan to rationalize,
expand waste treatment
network

1. Includes 3M for institutional strengthening for solid waste
Source: MSPP Cholera Eradication Plan, team analysis
Ongoing prevention efforts required for eradication
Prevention overview
60M
8

39

Community
hygiene

Institutional
strenghtening:
health
promotion

Phase 1

Phase 2

Phase 3

• Mass communications
campaign

• Develop education &
entertainment materials

• Community & household
level programming

• Develop community
health agent training
facilities

• Recruit community
health agents

• Supervision and follow
up and agent network

• Develop public awareness • Re/train health
guide
inspectors
3
10

Food hygiene
Hospital
hygiene

• Construct 15 wastewater
treatment stations

Source: MSPP Cholera Eradication Plan, team analysis

• Develop
comprehensive
prevention plan

• Train food handlers
• Train communal staff on
hospital hygiene
Two categories for damages
Individual damages
• Damages for death:
• Based on economic loss
• Scaled up by “plus factors” (e.g.
marital status, children)
• Damages for illness = $100
• Most claims involve filling out a form,
attaching one add’l record
• Claims processed outside of Haiti
• Funds paid in 3 installments over 6 years
to minimize inflationary impact

Community-based damages
• “Highly impacted communities” can
petition for Community Bank funding
• In highly impacted communities:
• >10% of population infected
• Death rates >2% of infected
• Community Bank funds used for local
initiatives proposed by local gov’ts,
community leaders
• Projects should be high-impact and
scalable
• Projects overseen by UN-Haiti Project
Management Teams if >$1M
~670M in awards expected over 5 years
Awards by injury type and year ($M)
783
117
Full implementation
of ind’l settlement
program mid-2015

666
68

87

124

177

504
406

Award type

224

193

24
2014

2015

2016

High Case
Assumptions:
• Total # ill up 10%
from 750K to 825K
• False reports 40%
instead of 20%

2017

2018

Note: Assumes only 75% of those with valid claim file, all claims filed between 2014-2018
Source: Team analysis

193

Total

High
Case

Illness
Death
Community Awards
Agenda

• Current situation in Haiti
• Solution overview
• Program deep-dives:
• Remediation
• Claims
• Organization
• UN/DPKO moving forward
Clear hierarchy ensures management efficiency
Settlement trust
Managed by a
court-appointed
Funds held in
separate acct to
ensure payment to
Haitian ppl.

Joint
Board of
Directors

UN-Haiti Project
Management Boards

Executing NGOs/Governmental
Agencies

Supporting
Agencies:
• Int’l agencies
(e.g. WHO,
World Bank)
• Donor nation
health
ministries
• NGOs,
independent
experts
Hierarchy balances local control, donor competency
Composition

Mission

Responsibilities

Provide project
leadership, monitor
progress and
funding

• Drive progress towards program
goals
• Coordinate with UN, donors
• Approve funded projects, monitor
program budget

UN-Haiti Project
Management
Boards

4 boards, each with
5 members
• UN: 1
• Ind. experts: 2
• Haiti: 2

Project management
and support for one
of four pillars

• Recommend projects for program
funding
• Oversee funded projects
• Liaise between funded programs
and UN leadership

Executing
Agencies

Varies, but must
include some local
leadership

Implement funded
programs

• Day to day project management
• Must engage with local leadership,
hire locally wherever possible

Joint Board of
Directors

15 members
• UN: 4
• Donors: 4
• Haiti gov’t: 4
• NGOs: 3
Agenda

• Current situation in Haiti
• Solution overview
• Program deep-dives:
• Remediation
• Claims
• Organization
• UN/DPKO moving forward
DPKO action must be taken to prevent repetition
New guidelines for future DPKO operations…
• Screening of all relief workers to limit such
future public health crisis
• More detailed pre-departure health
examination
• Expand screening to cover all UN
forces, workers, and contractors
• Expand medical monitoring of DPKO forces
once deployed
• Educate foreign workers on sound public
health practices
• Continued research into cholera incidence
and treatment methods to improve future
responses

and a new screening form

Need to tailor U.N. foreign health screening form
for infectious diseases endemic to DPKOcontributing nations
High visibility UN actions will help build trust

UN apologies

Convert MINUSTAH
camp in Méyè to medical
center

•
•
•
•
•

Public apology by UN Office of the Secretary General
News conference in Port-au-Prince to government and people of Haiti
Admit responsibility for introducing South Asian Vibrio cholerae strain
Will help strengthen relationship between UN and local population
Trust critical for program success

• MINUSTAH camp in Méyè was origin site for epidemic
• Camp serves as a contentious reminder to the world and local population of
U.N. culpability in cholera epidemic
• Convert and re-design camp as a medical center, focused on the active
treatment and prevention of transmittable diseases
• Serves as a symbolic mea culpa
Questions?
Appendix 1: Team analysis
Two methods for determining damages
Fill out the form
• Formula-based determination of damages
• Requires a simple form and one (injury)
to two (death) affidavits
• Forms will be distributed to local clinics,
government offices, …
• Payment will be paid out of the
settlement trust through check, wire, or
mobile transfer
• Expect the vast majority of damages to be
paid out this way

Administrative determination
• Used for special cases, or where
claimants dispute calculation
• Requires claimants to present evidence
before an administrative panel
• Panel uses the settlement factors as a
guide to determining damages
• Decisions of the administrator are final
and binding
Fill out the form: calculation of damages
Economic damages
• Calculation of lost earnings
• Based on higher of last 3 yrs of income, or
$4561
• Assumptions:
• Income growth = discount rate
• Life expectancy = 63 years
• For victim at age 30:
• Minimum award = ~$15,000
• Average award = ~$24,000

Plus factors

X

• The settlement committee should develop
formulas for various plus factors, including:
• Marital status
• Number of children
• Special adjustments to income for
students
• Pain & suffering
• Plus factors will serve as a multiplier to the
award, and shall not exceed 3x of the award
value

• For those who fall ill and recover, fixed
damages of $100 + health expenses
Payments for deaths will be made in 3 installments over 6 years to minimize inflation
1. World Bank poverty line, at $1.25/day
Source: World Bank, Team analysis
Misappropriation of funds will be a significant challenge to
program implementation
WEF Global Competitiveness Index Ratings (selected items, 1-7 scale, 1 is worst)
5.0
4.6
4.1

4.1

3.5

3.2

3.0
2.5

2.3

3.2

3.2

2.4

Haiti
Global Average

Diversion of
public funds
Rank/148
Source: WEF

Irregular
payments,
bribes

Favoritism by
gov’t officials

Wastefulness in
gov’t spending

Organized
crime

Strength of
auditing,
reporting

126

122

118

119

114

138
~10-20% of increased costs due to local challenges assumed
for program
Estimates of local misappropriation of funds (% of total spend misappropriated, selected examples)
87
79

24
8

13

18

14

8
2

Uganda:
bribes,
all firms

Indonesia: Mozambique: Uganda:
trucking shipping bribes education
bribes
graft

Source: Olken & Pande, “Corruption in Developing Countries”

Indonesia:
infra. graft

Indonesia:
graft in
subsidies

Iraq: Oilfor-Food

2

India:
subsidy
graft

Brazil:
municipal
gov’t audits

India:
municipal
gov’t
Cost reduction of ~$450M over MSPP plan achieved by
utilizing Sunspring system
Sunspring overview

Calculation

• Flexible, rapidly deployable water treatment
& purification system
• Each unit serves 2,500-10,000 people
• Only decentralized solar powered system
WQA Gold Seal certified
• Sunspring systems serving 200,000+ already
in place in Haiti

• MSPP plan $ for water supply = $650M
• Sunspring cost:
• 1 unit per 2500 people
• 4000 units x $25,000/unit = $100M
• 4000 units x maintenance @ $24/unit/year
* 10 years = ~$10M
• 4000 units * failure rate @ 0.5%/year *
$25,000/replace = $10M
• Train local personnel to maintain replace
systems = $10M
• Total = $190M * 10% corruption scale-up
= $209M
Appendix 2: Prior MSPP plan budget
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Team 6

  • 1. Clear, Hold, Build: Sustainable strategies to eradicate cholera Team 6: Christopher Lee, Raja Narayan, Samir Zaidi, Michael Zucker
  • 2. Executive summary • Cholera epidemic in Haiti has exacerbated a pre-existing state of poverty, malnutrition and underdevelopment • The program proposed both eradicates cholera and provides the public health framework to deal with future crises • The program updates the prior $2.3B MSPP cholera eradication plan, incorporating new tech deployed more rapidly and at lower cost • A claims process is essential to ensure justice for the Haitian people. This proposal is based on strong precedent from prior mass torts
  • 3. Agenda • Current situation in Haiti • Solution overview • Program deep-dives: • Remediation • Claims • Organization • UN/DPKO moving forward
  • 4. Agenda • Current situation in Haiti • Solution overview • Program deep-dives: • Remediation • Claims • Organization • UN/DPKO moving forward
  • 5. Haiti before the earthquake Haiti still facing numerous challenges… That remain unsolved despite int’l aid 94 $B 7.0 87 6.5 6.0 76 65 630 Int’l Assistance Haiti GDP 5.0 58 4.2 4.0 3.0 34 22 1.2 Haiti Americas Access to sanitation (% of pop.) Access to clean water (% of pop.) 7 % living below poverty line Maternal mortality2 Child mortality1 63 2.0 19 % of children underweight3 19 3.4 1. Under 5 years, per 1,000 2. Per 100,000 births, 3. % of children under 5 Sources: http://ec.europa.eu/echo/files/aid/countries/Haiti_paper_01102010.pdf, OECD 1.0 0.3 0.6 0.0 2000 2005 2009 Pre-cholera aid supported: • Government budget, special projects • Technical assistance, capital equip. transfer • Debt relief
  • 6. Earthquake, cholera devastated Haiti Underdevelopment provided fertile ground for epidemic and deaths… High level of infections… Infections (‘000) had disastrous consequences Deaths (‘000) 360 172,000 displaced 7.5 7.0 100 1.5 80 60 Without intervention With intervention 40 20 0 1.0 Without intervention With intervention 0.5 0.0 11 12 13 14e 15e 16e Source: NEJM, WHO, team analysis 11 12 13 14e 15e 16e 3,000,000 food insecure
  • 7. Agenda • Current situation in Haiti • Solution overview • Program deep-dives: • Remediation • Claims • Organization • UN/DPKO moving forward
  • 8. Approach guided by public health best practices Strategic principle Backward inductive approach Taking an ecological view Locally informed tactics Harness positive deviance Integrate intelligence Application to program design • 4 clearly articulated and measurable end-state goals • Organization of funded projects into 4 well-defined pillars • Program design considers politics, economics, law, medicine, and public health in addressing the epidemic • Clear hierarchy, decentralized mgmt. balances efficiency, control • Investments in both infrastructure and human capital • Haitian people included at all levels of mgmt., implementation • $350M set aside for community-driven programs • Surveillance pillar prioritized early • Investment in “rapid response” concept to target epidemic reemergence
  • 9. 4 end-state objectives by 2023 Emergency response teams in place by EOY 2014 Settlement of all claims by 2018 Remediate sanitation and water supply by 2018 Eradication of cholera by 2023
  • 10. Effort will cost ~$2.8B over 10 years Program spend by year and activity type ($M) 863 2,816 474 350 396 60 391 397 Claims: Ind Claims: Comm Reserve Prevention 200 1,133 Infrastructure 438 332 332 50 2014 2015 2016 2017 2018 2019-2023 218 Total Surveillance Treatment Administration
  • 11. Agenda • Current situation in Haiti • Solution overview • Program deep-dives: • Remediation • Claims • Organization • UN/DPKO moving forward
  • 12. Holistic program to eradicate cholera by 2023 Four drivers of health system reconstruction Treatment Surveillance Implemented over three phases Phase 1: Rapid response & relief Phase 2: Contain & control Prevention Infrastructure Source: CDC, PAHO, WHO Phase 3: Eradicate & build To yield sustainable results • Death rate from infection <0.5% by 2014, <0.01% by 2020 • Emergency response teams in place EOY 2014 • 100% have access to sanitation, clean drinking water by 2018 • Cholera eradicated by 2023
  • 13. Aggressive implementation of treatment pillar in phase 1 Treatment overview Phase 1 Phase 2 Phase 3 218M 91 104 22 Health care services Essential medicine Micronutrients • Standardize management tools for cholera • Update information databases • Improve logistics, support networks • Supplement surveillance in high-risk spots • Purchase medicines and supplies for emergency response • Establish communelevel medical depots • Strengthen MSPP supervisory capabilities • Purchase trucks • Implement pharmacovigilance unit • Introduce zinc, oral rehydration solutions • Micronutrient distribution to all communes • Strengthen staff in the nutrition unit as needed Source: MSPP Cholera Eradication, team analysis
  • 14. Scale-up of surveillance in phases 1-2 will enable flexible responses Surveillance overview 332M 1 Follow up & evaluation 6 Epidemiologic information 12 314 Research capacity Strengthen DINEPA Phase 1 Phase 2 Phase 3 • Build add’l surveillance infra. • Scale surveillance as needed • Repurpose unneeded surveillance facilities • Enable rapid transmission, real-time analysis of reports • Train community health agents to use surveillance tools • Disseminate regular epidemiological bulletin • Institutional support • Construct regional laboratories • Integrate cholera diagnostics in hospital laboratories • Organize sectoral governance • Implement standards, performance metrics • Build cooperative mechanism for NGO participation • Monitor evolution of water and sanitation sector Source: MSPP Cholera Eradication Plan, team analysis
  • 15. Innovative water distribution solution saves >$500M over original UN plan Infrastructure overview Phase 1 1,133M1 Phase 2 Phase 3 • Distribute Sunspring system to Port-au-Prince, medium-sized cities • Complete Sunspring rollout • Commence chlorine production • Plan and begin building permanent water supply system • Construction, repair of sanitary facilities • Develop sanitary standards • Review facilities • Begin implementing national plan 209 Water supply 515 Wastewater & excreta treatment • Develop national sanitation plan • Develop & disseminate education materials • Build social awareness 407 Waste collection & treatment • Triage and address hotspots with temporary improvements • Plan to rationalize, expand waste treatment network 1. Includes 3M for institutional strengthening for solid waste Source: MSPP Cholera Eradication Plan, team analysis
  • 16. Ongoing prevention efforts required for eradication Prevention overview 60M 8 39 Community hygiene Institutional strenghtening: health promotion Phase 1 Phase 2 Phase 3 • Mass communications campaign • Develop education & entertainment materials • Community & household level programming • Develop community health agent training facilities • Recruit community health agents • Supervision and follow up and agent network • Develop public awareness • Re/train health guide inspectors 3 10 Food hygiene Hospital hygiene • Construct 15 wastewater treatment stations Source: MSPP Cholera Eradication Plan, team analysis • Develop comprehensive prevention plan • Train food handlers • Train communal staff on hospital hygiene
  • 17. Two categories for damages Individual damages • Damages for death: • Based on economic loss • Scaled up by “plus factors” (e.g. marital status, children) • Damages for illness = $100 • Most claims involve filling out a form, attaching one add’l record • Claims processed outside of Haiti • Funds paid in 3 installments over 6 years to minimize inflationary impact Community-based damages • “Highly impacted communities” can petition for Community Bank funding • In highly impacted communities: • >10% of population infected • Death rates >2% of infected • Community Bank funds used for local initiatives proposed by local gov’ts, community leaders • Projects should be high-impact and scalable • Projects overseen by UN-Haiti Project Management Teams if >$1M
  • 18. ~670M in awards expected over 5 years Awards by injury type and year ($M) 783 117 Full implementation of ind’l settlement program mid-2015 666 68 87 124 177 504 406 Award type 224 193 24 2014 2015 2016 High Case Assumptions: • Total # ill up 10% from 750K to 825K • False reports 40% instead of 20% 2017 2018 Note: Assumes only 75% of those with valid claim file, all claims filed between 2014-2018 Source: Team analysis 193 Total High Case Illness Death Community Awards
  • 19. Agenda • Current situation in Haiti • Solution overview • Program deep-dives: • Remediation • Claims • Organization • UN/DPKO moving forward
  • 20. Clear hierarchy ensures management efficiency Settlement trust Managed by a court-appointed Funds held in separate acct to ensure payment to Haitian ppl. Joint Board of Directors UN-Haiti Project Management Boards Executing NGOs/Governmental Agencies Supporting Agencies: • Int’l agencies (e.g. WHO, World Bank) • Donor nation health ministries • NGOs, independent experts
  • 21. Hierarchy balances local control, donor competency Composition Mission Responsibilities Provide project leadership, monitor progress and funding • Drive progress towards program goals • Coordinate with UN, donors • Approve funded projects, monitor program budget UN-Haiti Project Management Boards 4 boards, each with 5 members • UN: 1 • Ind. experts: 2 • Haiti: 2 Project management and support for one of four pillars • Recommend projects for program funding • Oversee funded projects • Liaise between funded programs and UN leadership Executing Agencies Varies, but must include some local leadership Implement funded programs • Day to day project management • Must engage with local leadership, hire locally wherever possible Joint Board of Directors 15 members • UN: 4 • Donors: 4 • Haiti gov’t: 4 • NGOs: 3
  • 22. Agenda • Current situation in Haiti • Solution overview • Program deep-dives: • Remediation • Claims • Organization • UN/DPKO moving forward
  • 23. DPKO action must be taken to prevent repetition New guidelines for future DPKO operations… • Screening of all relief workers to limit such future public health crisis • More detailed pre-departure health examination • Expand screening to cover all UN forces, workers, and contractors • Expand medical monitoring of DPKO forces once deployed • Educate foreign workers on sound public health practices • Continued research into cholera incidence and treatment methods to improve future responses and a new screening form Need to tailor U.N. foreign health screening form for infectious diseases endemic to DPKOcontributing nations
  • 24. High visibility UN actions will help build trust UN apologies Convert MINUSTAH camp in Méyè to medical center • • • • • Public apology by UN Office of the Secretary General News conference in Port-au-Prince to government and people of Haiti Admit responsibility for introducing South Asian Vibrio cholerae strain Will help strengthen relationship between UN and local population Trust critical for program success • MINUSTAH camp in Méyè was origin site for epidemic • Camp serves as a contentious reminder to the world and local population of U.N. culpability in cholera epidemic • Convert and re-design camp as a medical center, focused on the active treatment and prevention of transmittable diseases • Serves as a symbolic mea culpa
  • 26. Appendix 1: Team analysis
  • 27. Two methods for determining damages Fill out the form • Formula-based determination of damages • Requires a simple form and one (injury) to two (death) affidavits • Forms will be distributed to local clinics, government offices, … • Payment will be paid out of the settlement trust through check, wire, or mobile transfer • Expect the vast majority of damages to be paid out this way Administrative determination • Used for special cases, or where claimants dispute calculation • Requires claimants to present evidence before an administrative panel • Panel uses the settlement factors as a guide to determining damages • Decisions of the administrator are final and binding
  • 28. Fill out the form: calculation of damages Economic damages • Calculation of lost earnings • Based on higher of last 3 yrs of income, or $4561 • Assumptions: • Income growth = discount rate • Life expectancy = 63 years • For victim at age 30: • Minimum award = ~$15,000 • Average award = ~$24,000 Plus factors X • The settlement committee should develop formulas for various plus factors, including: • Marital status • Number of children • Special adjustments to income for students • Pain & suffering • Plus factors will serve as a multiplier to the award, and shall not exceed 3x of the award value • For those who fall ill and recover, fixed damages of $100 + health expenses Payments for deaths will be made in 3 installments over 6 years to minimize inflation 1. World Bank poverty line, at $1.25/day Source: World Bank, Team analysis
  • 29. Misappropriation of funds will be a significant challenge to program implementation WEF Global Competitiveness Index Ratings (selected items, 1-7 scale, 1 is worst) 5.0 4.6 4.1 4.1 3.5 3.2 3.0 2.5 2.3 3.2 3.2 2.4 Haiti Global Average Diversion of public funds Rank/148 Source: WEF Irregular payments, bribes Favoritism by gov’t officials Wastefulness in gov’t spending Organized crime Strength of auditing, reporting 126 122 118 119 114 138
  • 30. ~10-20% of increased costs due to local challenges assumed for program Estimates of local misappropriation of funds (% of total spend misappropriated, selected examples) 87 79 24 8 13 18 14 8 2 Uganda: bribes, all firms Indonesia: Mozambique: Uganda: trucking shipping bribes education bribes graft Source: Olken & Pande, “Corruption in Developing Countries” Indonesia: infra. graft Indonesia: graft in subsidies Iraq: Oilfor-Food 2 India: subsidy graft Brazil: municipal gov’t audits India: municipal gov’t
  • 31. Cost reduction of ~$450M over MSPP plan achieved by utilizing Sunspring system Sunspring overview Calculation • Flexible, rapidly deployable water treatment & purification system • Each unit serves 2,500-10,000 people • Only decentralized solar powered system WQA Gold Seal certified • Sunspring systems serving 200,000+ already in place in Haiti • MSPP plan $ for water supply = $650M • Sunspring cost: • 1 unit per 2500 people • 4000 units x $25,000/unit = $100M • 4000 units x maintenance @ $24/unit/year * 10 years = ~$10M • 4000 units * failure rate @ 0.5%/year * $25,000/replace = $10M • Train local personnel to maintain replace systems = $10M • Total = $190M * 10% corruption scale-up = $209M
  • 32. Appendix 2: Prior MSPP plan budget