The OPEC Fund for International Development is continuing to rapidly grow its portfolio and activities with $605 million in new financing. The fund’s governing board held its 188th meeting in Vienna recently to conclude a series of high-level engagements that included the approval of key development projects in priority sectors such as global food security, climate finance, and critical infrastructure.
Vienna headquarters expansion
Prior to the board’s meeting, the OPEC fund inaugurated its extended headquarters building on Vienna’s historic Ringstrasse. “This is a symbolic moment because it shows the institution at its best and demonstrates the ambition and the achievements that characterize the OPEC Ffund,” stated chairman of its Ministerial Council and Saudi Arabian Minister of Finance, Mohammed Al-Jadaan.
OPEC fund president Abdulhamid Alkhalifa reflected on the institution’s ambitions stating: “We are committed to the delivery of the Sustainable Development Goals.” He also confirmed the organization’s strong ties with its host country Austria and promised, “With our new headquarters we intend to strengthen our presence and visibility.”
Approved projects
The OPEC fund’s governing board approved the following new projects since its latest meeting in March 2024:
Public sector operations
Bangladesh: A $35 million loan to a private bank to support on-lending to small businesses and women-owned businesses and to promote food security and climate action.
Bhutan: A $50 million loan to support the development of 65 MW renewable energy capacity with the Begana and Gamri-I Integrated Hydropower Project to strengthen energy security and reduce import dependency in dry seasons.
China: A $56.5 million loan to finance the Pengshui Vocational Education Project to expand and strengthen the existing capacity and deliver market-oriented education for about 9,000 young students in Pengshui County.
Guinea Bissau: A $15 million loan to co-finance the Economic Development of Southern Regions Project – Phase II with the International Fund for Agricultural Development (IFAD) to increase agricultural resilience with climate-smart practices.
India: A $100 million loan to co-finance the Mumbai Metro Line 5 Project, together with the Asian Infrastructure Investment Bank (AIIB), to meet the growing demand for urban transportation in the metropolitan region with a population of over 26 million.
Other funding also included a $20 million loan to Lesotho, a $100 million loan to Morocco, a $20 million loan to Rwanda, a $36 million loan to Somalia, and a $50 million loan to Tanzania, among others.
Private sector and trade finance operations
The OPEC fund’s governing board also approved:
Bosnia and Herzegovina: A $13.37 million loan to Raiffeisen Bank Bosnia and Herzegovina for on-lending to micro, small, and medium-sized enterprises, including women-led companies.
Mauritania: A $40 million participation in a multi-lender trade finance facility to support energy security.
Uzbekistan: A $40 million loan to a bank in Uzbekistan to support small and medium-sized enterprises and agribusinesses.
Read: UAE’s MoF issues Public-Private Partnership Manual, defines priority sectors for first phase
Grants
The OPEC fund’s governing board also approved a $3 million grant to establish the OPEC Fund Food Security and Climate Adaptation Facility. This initiative aims to strengthen climate-resilient food systems and improve food security in the most vulnerable regions of the world. The facility also aims to catalyze $500 million in investments by 2030 and will kick off with pilot initiatives in sub-Saharan Africa.
