OPEC Fund approves close to US$1.2 billion new development funding

VIENNA, Sept. 12, 2024 /PRNewswire/ -- The OPEC Fund for International Development (the OPEC Fund) is significantly stepping up its development support with nearly US$1.2 billion in new funding since June. The latest projects approved by the Governing Board, which met for its 189^th session today, support smallholder farmers and businesses, promote the construction of resilient infrastructure, provide clean water & sanitation solutions and increase climate resilience. Partner countries' reform programs will benefit from dedicated OPEC Fund loans.

OPEC Fund Building Inside

OPEC Fund President Abdulhamid Alkhalifa said: "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."

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 (in alphabetical order):

Armenia: A US$50 million policy-based loan will fund a joint World Bank program to support government efforts to foster climate change mitigation and adaptation, improve environmental management and energy efficiency, promote human capital development and strengthen governance.

Benin: A US$26 million loan will support the scaling up of investments in agriculture to enhance food security through the Horticulture Development Support Project in partnership with the International Fund for Agricultural Development. The project will reach 16,000 households and benefit nearly 100,000 smallholder horticulture farmers and family members, nearly half of whom are women and young people.

Colombia: A US$150 million policy-based loan will finance and help the implementation of the government's Decentralization and Biodiversity Support Program. It is promoting territorial development by strengthening institutions, improving environmental governance and enhancing biodiversity protection. The program is expected to benefit nearly 16.5 million people.

Côte d'Ivoire: A US$60 million policy-based loan for the Economic Transformation and Inclusive Governance Program (PATEGI) - Phase I will promote inclusiveness and governance in public finance management; improve competitiveness and boost the green transition in the transport and energy sectors. The program is being co-financed with the African Development Bank.

Democratic Republic of Congo: A US$30 million loan will improve access to potable water through the development of infrastructure in the Ubangi River basin, specifically in the North Ubangi province in Gbadolité and the rural areas of Mobayi-Mbongo, where access to drinking water is significantly lower (8 percent) than the national average (18 percent).

Honduras: A US$15 million loan will enhance food security by promoting resilient and sustainable agriculture in north-central Honduras. The project will benefit around 140,000 people, prioritizing women and youth.

Jordan: A US$100 million policy-based loan will support a joint World Bank program targeting human capital, which aims to improve the governance and effectiveness of education, health and social assistance. It will also promote climate resilience including safeguarding households from the adverse effects of rising temperatures.

Oman: A loan facility of up to US$392 million financing, consisting of two tranches (US$180 million and US$212 million), will support the Dibba-Lima-Khasab road project, a strategic investment covering a total length of 72km. The road will reduce travel times, improve traffic safety and boost tourism.

Tajikistan: A loan facility of up to US$100 million consisting of four tranches (US$25 million each) will support the Rogun Hydropower Plant Project, currently under construction on the Vakhsh River. The power plant will have an installed capacity of 3,780 MW, promoting energy security in the country and providing clean energy for the entire Central Asia region.

Private Sector and Trade Finance Operations (in alphabetical order):

Armenia: A US$10 million loan to a local bank will support on-lending to small and medium-sized enterprises (SMEs) and provide funds for green projects

Botswana: A US$40 million loan to a local development organization will promote economic diversification beyond the diamond industry and support non-mining sectors such as agribusiness, health, education, ICT, finance and energy.

Dominican Republic: A US$17.5 million loan to a local bank will promote on-lending to SMEs, including women-led businesses.

Regional Africa: A US$40 million loan to a regional development bank will support socio- economic development across four countries.

The OPEC Fund also approved four trade finance facilities in Mauritania (US$50 million), Senegal (US$47 million), Egypt (US$35 million) and Pakistan (US$25 million) to support the import of strategic commodities for development.

About the OPEC Fund

The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. The OPEC Fund was established in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), 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. Our vision is a world where sustainable development is a reality for all.

OPEC Fund President Dr Abdulhamid Alkhalifa

source: OPEC Fund for International Development