The OPEC Fund for International Development (the OPEC Fund) concluded its participation in the 2024 World Bank-IMF Annual Meetings, announcing substantial new financing commitments totaling nearly $500 million. These agreements underline the OPEC Fund’s unwavering commitment to advancing global development initiatives, with a focus on critical areas such as climate resilience, energy transition, sustainable agriculture, and socio-economic empowerment.
Ongoing Commitment to Global Development
OPEC Fund President Dr. Abdulhamid Alkhalifa expressed optimism about the outcomes of the Annual Meetings, stating, “The Annual Meetings provided a vital opportunity for the OPEC Fund to engage with key stakeholders and align our efforts to address the pressing development needs of our partner countries. This year’s meetings have proven to be an excellent platform for fostering partnerships and enhancing collaboration. Through new financing agreements, we are taking decisive steps to improve connectivity, bolster economic resilience, and empower communities across our partner countries.”
Strengthening Collaborations with Key Institutions
In a significant move to enhance collaboration, the OPEC Fund and the World Bank Group signed a Co-Financing Framework Agreement (CFA) and a Memorandum of Understanding (MoU) during the meetings. These crucial agreements, executed by OPEC Fund President Dr. Abdulhamid Alkhalifa and World Bank Group President Ajay Banga, are anticipated to greatly enhance co-financing opportunities. During the meetings, the OPEC Fund President and his delegation engaged in comprehensive discussions with each regional Vice President of the World Bank to dive deeper into the countries and operational priorities, establishing a roadmap for future collaboration.
New Financing Commitments to Partner Countries
The OPEC Fund’s newly signed loan agreements with partner countries include:
- Benin: A $26 million loan to support the Horticulture Development Support Project (PADMAR-E), which aims to enhance food security and increase the income of small-scale horticulture farmers in the region.
- Bhutan: A $50 million loan aimed at developing two hydropower plants, bolstering Bhutan’s energy security and capacity for renewable energy generation, crucial for the country’s sustainable development.
- Côte d’Ivoire: A €60 million Program-Based Loan (PBL) designed to upgrade infrastructure and enhance economic competitiveness in the transport and energy sectors, driving overall growth.
- Jordan: A $100 million PBL focused on supporting the Jordan Human Capital Program, which seeks to enhance and preserve human capital through targeted initiatives.
- Oman: A $180 million loan, constituting the first tranche of a $392 million financing facility for the Khasab-Daba-Lima Road Project, which will enhance regional connectivity and support economic growth.
- Uzbekistan: A $40 million loan to Sanoat Qurilish Bank (SQB) aimed at fostering support for small and medium-sized enterprises, along with strengthening the agriculture sector in Uzbekistan.
Expanding Cooperation and Development Efforts
In addition to these loans, the OPEC Fund also formalised partnerships with various institutions, including Fonplata and CAF, to enhance development efforts within the Latin America and Caribbean (LAC) region. These collaborations will further the OPEC Fund’s mission to provide financial resources for impactful projects that contribute to sustainable development across the globe.
As the OPEC Fund continues to strengthen its partnerships and expand its financing initiatives, it remains steadfast in its commitment to empowering communities, promoting sustainable development, and addressing the diverse needs of its partner countries. The OPEC Fund’s proactive approach to development financing illustrates its dedication to fostering global prosperity and well-being.
