The OPEC Fund for International Development (OPEC Fund) has considerably expanded its backing for global development initiatives, allocating close to US$1.2 billion in fresh funding since June. These projects aim to strengthen various sectors, including smallholder farming, business growth, infrastructure, clean water and sanitation solutions, and climate resilience. Moreover, several partner countries will receive dedicated loans to support their reform programs.
OPEC Fund President Abdulhamid Alkhalifa commented on the recent approval, saying: “The OPEC Fund is intensifying its efforts with substantial new financial commitments that reflect our dedication to transformative development. These investments in our partner countries will bolster infrastructure and resilience, providing real benefits to the communities we serve.”
During the 189th session, the OPEC Fund’s Governing Board approved several projects, which include both public and private sector operations, as well as trade finance. The latest funding allocations are focused on various regions and initiatives.
Public Sector Operations:
- Armenia: A US$50 million loan will support a joint program with the World Bank to address climate change mitigation and adaptation. The project aims to enhance environmental management, promote energy efficiency, and improve governance structures, benefiting the country’s human capital.
- Benin: A US$26 million loan will be used to scale up agricultural investments through the Horticulture Development Support Project. In collaboration with the International Fund for Agricultural Development, the project will reach around 16,000 households, benefiting close to 100,000 smallholder farmers, with a focus on women and youth.
- Colombia: A US$150 million policy-based loan will contribute to the implementation of the Decentralization and Biodiversity Support Program. The program, focused on territorial development and environmental governance, is expected to benefit approximately 16.5 million people, improving biodiversity protection efforts across the nation.
- Côte d’Ivoire: A US$60 million loan will support the first phase of the Economic Transformation and Inclusive Governance Program (PATEGI). The initiative seeks to promote inclusiveness in public finance management and foster a green transition in the transport and energy sectors. Co-financing is provided by the African Development Bank.
- Democratic Republic of Congo: A US$30 million loan will focus on improving access to potable water in the Ubangi River basin, specifically targeting areas like Gbadolite and Mobayi-Mbongo, where water access is significantly lower than the national average.
- Honduras: A US$15 million loan is set to strengthen food security through sustainable agricultural practices in northern Honduras, benefiting approximately 140,000 people, including women and youth.
- Jordan: A US$100 million loan will support human capital development, focusing on education, health, and social assistance sectors. The project also includes climate resilience initiatives to safeguard households from the rising temperatures’ adverse effects.
- Oman: A total of US$392 million, divided into two tranches, will finance the Dibba-Lima-Khasab road project, covering a 72 km stretch. The road will enhance travel safety, reduce journey times, and boost tourism in the region.
- Tajikistan: A loan of US$100 million, divided into four tranches, will support the ongoing construction of the Rogun Hydropower Plant on the Vakhsh River. This project will provide clean energy and ensure energy security for Central Asia.
Private Sector and Trade Finance Operations:
- Armenia: A US$10 million loan to a local bank will offer on-lending to SMEs, including support for green projects to foster sustainable business practices.
- Botswana: A US$40 million loan will diversify the economy beyond its reliance on diamonds by supporting sectors such as agriculture, healthcare, ICT, finance, and renewable energy.
- Dominican Republic: A US$17.5 million loan to a local bank will provide financial support to SMEs, with a particular focus on women-led businesses.
- Regional Africa: A US$40 million loan to a regional development bank will facilitate socio-economic development in multiple African countries, helping to improve infrastructure and access to essential services.
Trade Finance Facilities:
In addition to these public and private sector initiatives, the OPEC Fund approved four trade finance facilities to support the import of strategic commodities. These include:
- Mauritania: US$50 million
- Senegal: US$47 million
- Egypt: US$35 million
- Pakistan: US$25 million
These projects are part of the OPEC Fund’s ongoing efforts to drive sustainable development and create resilient communities worldwide.
