The OPEC Fund for International Development (OPEC Fund) has entered into its first loan agreement with Montenegro, granting a EUR50 million ($52 million) loan aimed at enhancing fiscal sustainability and facilitating the green transition in the southeastern European nation.
Supporting sustainable development
The Resilient Fiscal and Sustainable Development Program is designed to promote Montenegro’s public financial management, support climate initiatives, and drive sustainable practices in sectors such as waste management, forestry, and renewable energy. This program is co-financed by the World Bank with EUR80 million ($83.3 million) and the French Development Agency (AfD) with EUR50 million, aligning with Montenegro’s EU accession objectives and its climate commitments under the Paris Agreement.
New financing initiatives
Earlier this week, the OPEC Fund approved nearly $1 billion in new development financing during the final quarter of 2024, which was discussed during its 190th Governing Board meeting in Vienna. These initiatives are intended to support countries globally, with a focus on improving infrastructure, food security, renewable energy, and promoting economic resilience, as stated by the Fund.
The announcement from the Fund identified several countries that will benefit from this latest financing initiative, including 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.
Read more: OPEC Fund authorizes nearly $1 billion in new development financing
Enhancing co-financing opportunities
In October 2024, the OPEC Fund concluded its participation in the 2024 World Bank-IMF Annual Meetings by announcing substantial new financing commitments, having signed loan agreements totaling nearly half a billion dollars with various partner countries. These agreements underscore the OPEC Fund’s commitment to advancing global development goals, including climate resilience, energy transition, sustainable agriculture, and socio-economic empowerment.
During the meetings, the OPEC Fund and the World Bank Group formalized a Co-Financing Framework Agreement (CFA) and a Memorandum of Understanding (MoU).
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.
