The OPEC Fund for International Development has significantly raised its development support with almost $1.2 billion in new funding since June. The governing board, which met for its 189th session recently, approved the latest projects that seek to support smallholder farmers and businesses, promote the construction of resilient infrastructure, provide clean water and sanitation solutions, and increase climate resilience.
“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,” stated OPEC fund president Abdulhamid Alkhalifa.
Key public sector projects
The OPEC fund approved a loan facility of up to $392 million for Oman, which 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. The fund said that the loan consists of two tranches, an initial $180 million and another $212 million.
For Jordan, the fund also approved a $100 million policy-based loan which will support a joint World Bank program targeting human capital. The program aims to improve the governance and effectiveness of education, health and social assistance. Moreover, it will promote climate resilience including safeguarding households from the adverse effects of rising temperatures.
The OPEC fund also approved a $50 million policy-based loan for Armenia, a $26 million loan for Benin, a $100 million loan for Tajikistan, and a $150 million policy-based loan for Colombia. Côte d’Ivoire will also receive a $60 million policy-based loan to support the Economic Transformation and Inclusive Governance Program (PATEGI).
The Democratic Republic of Congo was awarded a $30 million loan to improve access to potable water while Honduras was awarded a $15 million loan to enhance food security.
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Financing private sector projects and trade operations
The OPEC fund also approved four trade finance facilities in Mauritania ($50 million), Senegal ($47 million), Egypt ($35 million), and Pakistan ($25 million) to support the import of strategic commodities for development.
Moreover, it approved a $10 million loan to a local bank in Armenia that will support on-lending to small and medium-sized enterprises (SMEs) and provide funds for green projects. The OPEC fund also approved a $17.5 million loan to a local bank in the Dominican Republic which aims to promote on-lending to SMEs, including women-led businesses.
Botswana will also receive a $40 million loan to a local development organization that seeks to promote economic diversification beyond the diamond industry and support non-mining sectors such as agribusiness, health, education, ICT, finance, and energy.
In addition, regional Africa will receive a $40 million loan to a regional development bank which will support socio-economic development across four countries.
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