The OPEC Fund for International Development (OPEC Fund) has concluded its involvement in the 2024 World Bank-IMF Annual Meetings, announcing substantial new financing commitments amounting to nearly half a billion dollars. This strategic initiative highlights the OPEC Fund’s dedication to supporting global development objectives, which encompass climate resilience, energy transitions, sustainable agriculture, and socio-economic empowerment.
OPEC Fund President Dr. Abdulhamid Alkhalifa commented, “The Annual Meetings presented a crucial opportunity for the OPEC Fund to engage with key stakeholders and align our strategies to address the development priorities of our partner countries. This year’s meetings served as an exceptional platform for cultivating partnerships and enhancing collaboration. Through our new financing agreements, we are taking important strides to improve connectivity, foster economic resilience, and empower communities across our partner nations.”
In a landmark decision aimed at enhancing collaboration, the OPEC Fund and the World Bank Group formalised a Co-Financing Framework Agreement (CFA) alongside a Memorandum of Understanding (MoU) during the meetings. These agreements, signed by Dr. Alkhalifa and World Bank Group President Ajay Banga, are anticipated to significantly amplify co-financing opportunities. The OPEC Fund delegation also held discussions with each regional Vice President of the World Bank to delve deeper into the countries’ operational priorities and challenges.
Among the newly announced loans to partner countries are:
- Benin: A loan of US$26 million designated for the Horticulture Development Support Project (PADMAR-E), focusing on enhancing food security and increasing the incomes of small-scale horticulture farmers.
- Bhutan: A US$50 million loan aimed at the development of two hydropower plants, which will bolster Bhutan’s energy security and expand renewable energy generation capabilities.
- Côte d’Ivoire: A €60 million Program-Based Loan (PBL) aimed at upgrading infrastructure and enhancing the economic competitiveness within the transport and energy sectors.
- Jordan: A US$100 million PBL designed to support the Jordan Human Capital Program, which seeks to enhance and preserve human capital in the country.
- Oman: An initial loan of US$180 million as part of a US$392 million financing facility for the Khasab-Daba-Lima Road Project, aimed at improving regional connectivity.
- SQB Bank of Uzbekistan: A US$40 million loan aimed at supporting small and medium-sized enterprises (SMEs) and the agriculture sector in Uzbekistan.
Additionally, the OPEC Fund has signed partnership agreements to further cooperation with partner institutions such as Fonplata and CAF, aiming to enhance development initiatives in the Latin America and Caribbean (LAC) region.
The commitment by the OPEC Fund during the World Bank meetings underscores its role as a pivotal player in fostering sustainable development. By aligning resources with pressing global challenges, the OPEC Fund is poised to make a lasting impact in the regions it serves.
As the world faces unprecedented challenges related to climate change, economic inequality, and food security, these financing commitments demonstrate the OPEC Fund’s proactive approach to addressing these issues. The partnerships formed at the World Bank meetings are expected to pave the way for innovative solutions and collaborative efforts that empower communities and enhance resilience against future adversities.
The OPEC Fund remains steadfast in its mission to support the sustainable development of its partner countries through strategic financing, collaborative partnerships, and a commitment to excellence in development practices.