OPEC Fund approves $500 million for global development projects

The OPEC Fund for International Development (OPEC Fund) has announced approval of over $500 million for support of development projects in low- and middle-income countries around the world.

The loans were approved at the most recent meeting of the Governing Board of the organisation and in the final quarter of 2022.

In a statement sent to Financial Nigeria, the OPEC Fund said 15 new projects approved reflected the launch of its $1 billion Food Security Action Plan and the adoption of its first dedicated Climate Action Plan earlier this year. In addition, it said the new engagements will support infrastructure development and investments to improve communities in the Fund's partner countries around the world.

"In a very challenging year, the OPEC Fund was able to significantly increase its support and strengthen its impact,” said OPEC Fund Director-General Abdulhamid Alkhalifa.

“Our new approvals will provide much-needed financing to address urgent global issues such as food, energy and climate security in line with our strategic priorities. At the same time, we recognize the need to accelerate support for sustainable development to ensure people's livelihoods and well-being worldwide."

The projects include those that promote access to energy and renewable energy; food security; and social infrastructure, international trade, and MSME support.

The loan support for energy access projects includes a $25 million for Niger Republic to provide solar energy to connect 80,000 households to the national electrical grid through the construction and grid integration of a 10 MWp solar photovoltaic plant. The Fund will also co-finance the construction of electrical transmission lines in the southern region of the country and in the capital city Niamey.

In Bangladesh, a $38 million private sector loan will support the construction of a 584 MW power plant, projected to create more than 1,000 jobs and strengthen the country's energy security. Another $20 million private sector loan for the South Asian country will contribute to the financing of a 500 MW wind farm and 160 kilometres of transmission lines, helping the country to modernize its energy infrastructure.

Uzbekistan will benefit from a $20 million private sector loan to finance a 500 MW wind farm and 128 kilometres of transmission lines, while a $60 million tranche financing facility to Tanzania’s Benaco-Kyaka Transmission Line Project will support the construction of more than 160 kilometres of transmission lines and a substation to deliver reliable energy services from the national grid to the north-western region of the country.

Benin Republic will benefit from a $14 million supplementary loan for a food security project and $10 million was also approved for Liberia for similar project.

Under its social infrastructure, international trade and MSME support,
$50 million loan was approved for an African regional multilateral development bank, $40 million loan to a private sector institution to support the import and export of agricultural commodities and fertilizer across multiple African countries, €70 million for budget support in Cote d'Ivoire, and €50 million for SMEs and green energy projects in some West African countries.

Kyrgyz Republic got $15 million approved for a road project; $36.5 million financing package was approved for Madagascar, $40 million loan for a water project in Mauritania, and $20 million loan to support women-owned MSMEs in Botswana.

Headquartered in Vienna, Austria, the OPEC Fund is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. It was established in 1976 by the member states of the Organization of the Petroleum Exporting Countries (OPEC), with a purpose to drive development, strengthen communities, and empower people. To date, the Fund has committed more than $22 billion to development projects in over 125 countries with an estimated total project cost of US$187 billion.