The OPEC Fund for International Development (OPEC Fund) is significantly scaling up its development support, committing nearly US$1.2 billion in new funding since June. The latest projects approved by the Governing Board, which met for its 189th session, focus on empowering communities and fostering sustainable development across various sectors.
Investing in a Sustainable Future
The OPEC Fund’s recent investments target crucial areas, including:
*
Supporting Smallholder Farmers and Businesses:
Funding is allocated to initiatives that bolster agricultural practices, enhance food security, and provide economic opportunities for smallholder farmers and businesses. This includes a US$26 million loan to Benin to support the Horticulture Development Support Project, which will benefit nearly 100,000 smallholder horticulture farmers and their families.*
Promoting Resilient Infrastructure:
The OPEC Fund is investing in projects that build robust infrastructure, improving transportation networks and access to essential services. This includes a US$392 million loan facility for Oman’s Dibba-Lima-Khasab road project, a strategic investment that will reduce travel times, enhance safety, and boost tourism.*
Providing Clean Water and Sanitation Solutions:
The OPEC Fund is addressing the critical need for clean water and sanitation, particularly in regions facing significant challenges. A US$30 million loan to the Democratic Republic of Congo will improve access to potable water in the Ubangi River basin, specifically in the North Ubangi province, where access to drinking water is considerably lower than the national average.*
Increasing Climate Resilience:
Recognizing the urgent need to combat climate change, the OPEC Fund is supporting projects that enhance climate resilience and promote sustainable practices. This includes a US$50 million policy-based loan to Armenia to support the government’s efforts to mitigate and adapt to climate change, improve environmental management, and promote human capital development.A Commitment to Transformative Development
OPEC Fund President Abdulhamid Alkhalifa emphasized the organization’s dedication to transformative development. “The OPEC Fund is ramping up its efforts with significant new financing approvals which underscore our commitment to transformative development. These investments in our partner countries will boost infrastructure and build resilience, delivering tangible benefits for the people and communities we serve.”
Key Projects Approved by the OPEC Fund
The OPEC Fund’s Governing Board approved the following new projects in today’s meeting and since its last meeting in June 2024:
Public Sector Operations
*
Armenia:
US$50 million policy-based loan to support climate change mitigation and adaptation, improve environmental management, and promote human capital development.*
Benin:
US$26 million loan to support the Horticulture Development Support Project, aimed at enhancing food security through investments in agriculture.*
Colombia:
US$150 million policy-based loan to finance and support the government’s Decentralization and Biodiversity Support Program, promoting territorial development and biodiversity protection.*
Côte d’Ivoire:
US$60 million policy-based loan for the Economic Transformation and Inclusive Governance Program (PATEGI) – Phase I, promoting inclusiveness and governance in public finance management and boosting the green transition in the transport and energy sectors.*
Democratic Republic of Congo:
US$30 million loan to improve access to potable water through infrastructure development in the Ubangi River basin.*
Honduras:
US$15 million loan to enhance food security by promoting resilient and sustainable agriculture in north-central Honduras.*
Jordan:
US$100 million policy-based loan to support a joint World Bank program targeting human capital and promoting climate resilience.*
Oman:
Loan facility of up to US$392 million to support the Dibba-Lima-Khasab road project, a strategic investment in infrastructure development.*
Tajikistan:
Loan facility of up to US$100 million to support the Rogun Hydropower Plant Project, promoting energy security and providing clean energy for the entire Central Asia region.Private Sector and Trade Finance Operations
*
Armenia:
US$10 million loan to a local bank to support on-lending to small and medium-sized enterprises (SMEs) and provide funds for green projects.*
Botswana:
US$40 million loan to a local development organization to promote economic diversification and support non-mining sectors.*
Dominican Republic:
US$17.5 million loan to a local bank to promote on-lending to SMEs, including women-led businesses.*
Regional Africa:
US$40 million loan to a regional development bank to support socioeconomic development across four countries.*
Mauritania:
US$50 million trade finance facility to support the import of strategic commodities for development.*
Senegal:
US$47 million trade finance facility to support the import of strategic commodities for development.*
Egypt:
US$35 million trade finance facility to support the import of strategic commodities for development.*
Pakistan:
US$25 million trade finance facility to support the import of strategic commodities for development.About the OPEC Fund
The OPEC Fund for International Development (the OPEC Fund) is a globally mandated development institution that provides financing from member countries to non-member countries exclusively. The organization works in partnership with developing countries and the international development community to drive economic growth and social progress. The OPEC Fund was established in 1976 with a distinct purpose: to drive development, strengthen communities, and empower people. Its work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment, clean water and sanitation, healthcare, and education. To date, the OPEC Fund has committed about US$27 billion to development projects in over 125 countries with an estimated total project cost of more than US$200 billion. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA+, Outlook Stable by S&P. Its vision is a world where sustainable development is a reality for all.
