The OPEC Fund for International Development (OPEC Fund) has sanctioned nearly $1 billion in new development financing during the last quarter of 2024, which includes discussions held at its 190th Governing Board meeting in Vienna.
These initiatives are set to support nations around the world, focusing on enhancing infrastructure, food security, and renewable energy, as well as fostering economic resilience, according to a statement from the Fund.
Commitment to change
OPEC Fund President Abdulhamid Alkhalifa mentioned that 2024 has been a pivotal year for the OPEC Fund, characterized by a notable rise in project approvals and commitments across vital sectors. He noted that this progress aids in building resilience, developing sustainable infrastructure, and addressing climate change. He added that the most recent financings underscore the OPEC Fund’s unwavering commitment to providing impactful solutions that create meaningful change for millions. He emphasized the organization’s continued focus on collaborating with partners globally to confront today’s challenges and pave the way for a brighter future.
Beneficiary countries
The Fund’s announcement also listed the countries that will benefit from this latest financing initiative: Bangladesh, Burkina Faso, Chad, Comoros, El Salvador, Gambia, Honduras, Kenya, Malawi, Mauritania, Montenegro, Senegal, Sierra Leone, Sri Lanka, Türkiye, Uzbekistan, Côte d’Ivoire, the Dominican Republic, Egypt, Ghana, Paraguay, and Uzbekistan.
In October 2024, the OPEC Fund wrapped up its involvement in the 2024 World Bank-IMF Annual Meetings by announcing significant new financing commitments, having signed loan agreements amounting to nearly half a billion dollars with various partner countries.
Advancing development goals
These agreements highlight the OPEC Fund’s dedication to promoting global development objectives, including climate resilience, energy transition, sustainable agriculture, and socio-economic empowerment, as stated in a release from the OPEC Fund.
During the meetings, the OPEC Fund and the World Bank Group formalized a Co-Financing Framework Agreement (CFA) and a Memorandum of Understanding (MoU). Moreover, these documents, signed by OPEC Fund President Dr. Abdulhamid Alkhalifa and World Bank Group President Ajay Banga, are anticipated to enhance co-financing opportunities.
New loan initiatives
The new loans from the OPEC Fund to partner countries include:
- Benin: A $26 million loan to support the Horticulture Development Support Project (PADMAR-E), aimed at enhancing food security and increasing the income of small-scale horticulture farmers.
- Bhutan: A $50 million loan intended to develop two hydropower plants, thereby strengthening Bhutan’s energy security and renewable energy production.
- Côte d’Ivoire: A $62.9 million Program-Based Loan (PBL) designed to upgrade infrastructure and enhance economic competitiveness in the transport and energy sectors of the country.
- Jordan: A $100 million PBL to support the Jordan Human Capital Program, which focuses on enhancing and preserving human capital.
- Oman: A $180 million loan, representing the first tranche of a $392 million financing facility for the Khasab-Daba-Lima Road Project, aimed at improving regional connectivity.
- SQB Bank of Uzbekistan: A $40 million loan to Sanoat Qurilish Bank (SQB), intended to support small and medium-sized enterprises as well as the agriculture sector in Uzbekistan.
Expanding partnerships
Additionally, the OPEC Fund signed partnership agreements to strengthen cooperation with institutions like Fonplata and CAF, further enhancing development initiatives in the Latin America and Caribbean (LAC) region.
