OPEC Fund approves $ 352 million for global development operations

VIENNA, December 15, 2021 / PRNewswire / – OPEC Fund for International Development (OPEC Fund) Approved US $ 352 million for sustainability operations around the world at the organization’s 178th session of the board, held virtually today.

Board members also reviewed several milestones achieved under the OPEC 2030 Fund’s strategic framework, including the organization’s inaugural credit ratings of S&P Global (AA; Positive Outlook) and Fitch Ratings (AA + ; Stable outlook). The 2030 Strategic Framework is designed to diversify the financial resources of the OPEC Fund and provide greater impact on the development of partner countries.

New funding from the OPEC Fund will support the following public sector projects:

Bosnia herzegovina: 25 million euros (US $ 27.15 million) ready for the Vc corridor of the motorway, section Nemila-Donja Gracanica (Zenica North), in order to improve transport links for some 150,000 people in the town of Zenica, the most important mining and steel production center in the country. This loan will finance a 17.6 km section of road comprising roads, tunnels and viaducts. Corridor Vc will improve the connectivity of Bosnia herzegovina with its neighbors and the Western Balkans region. The reduction in travel times is expected to boost trade and tourism, thereby strengthening the local economy.

Ivory Coast: $ 60 million ready for the North Agro-Industrial Pole Project (2 PAI-North). The project will support the construction and rehabilitation of social and market infrastructure, including rural roads, health centers and schools, warehouses and collection centers, as well as infrastructure related to fishing and livestock. It will strengthen food security and household incomes of around 400,000 people and promote the export of cash crops. Capacity building and institutional strengthening are also part of the project.

Dominican Republic: $ 60 million loan for the Electricity Grid Extension and Technical Loss Reduction in Distribution Systems Program to support government efforts to reduce electricity distribution losses and improve the efficiency of electricity infrastructure in the nationwide. Civil works will include the construction of new substations and distribution networks and the rehabilitation of existing ones in the provinces located in the north and east of the country. About 1.3 million people are expected to benefit from the program.

Ghana: Loan of US $ 20 million for the integrated rural development project (phase 2) to expand socio-economic infrastructure and improve the livelihoods of some 120,000 people in selected very poor districts through a focused approach on demand. The works will include the construction and equipping of classrooms, housing for teachers, dispensaries, market infrastructure and drainage works, as well as the provision of credit to the small and medium-sized enterprises (SMEs) involved. in various activities along the agricultural value chain – especially those affected by the COVID-19 pandemic.

Kenya: US $ 40 million loan for the development of urban roads in five counties – Phase 1 project to build a road network of 66 km in the northeast region of Wajir country, a very poor area populated by 720,000 people . When completed, the project will facilitate trade, improve access to social services and markets, and increase employment opportunities.

Lesotho: US $ 19 million loan for the Landscape and Livelihoods Regeneration Project (ROLL) aimed at improving livelihoods and promoting resource use practices, thereby reducing environmental degradation in more 2,200 villages populated by 630,000 people. Project components include a “Regeneration Coalition Facility” which will bring together various stakeholders to identify the measures needed to achieve these goals, and a “Regeneration Opportunities Fund” which will catalyze investments in land regeneration projects. Technical assistance will also be provided to rural SMEs wishing to switch to more sustainable practices, while seed funding will support research and development.

Malawi: US $ 15 million loan for Dowa Town Water Supply and Sanitation Project to expand and modernize the existing water supply system to meet current demand and expand the offer. The project will include the construction of a wastewater treatment plant, a pumping station and a 51 km long distribution pipeline, as well as the installation of new municipal water points and the rehabilitation of existing ones. . The replacement of the sewage system at the Dowa District Hospital and the installation of sanitation facilities in the Dzaleka refugee camp are also planned. The project is expected to improve the health and living conditions of around 100,000 people.

Nicaragua: Loan of US $ 23 million for the Empalme La Tronquera – Pueblo Nuevo rural road project aimed at promoting sustainable development and regional integration in the northern department of Estelí, where agriculture is the main economic activity. The project includes upgrading a 22 km road – currently only usable during the dry season – to provide year-round access to some 110,000 people. The improved road will facilitate the transport of crops to markets and improve connectivity to social services and employment opportunities.

Rwanda: US $ 18 million loan for the Nyacyonga-Mukoto road project to modernize a 36 km stretch that will improve connections for about 2.8 million people engaged in economic activities such as agriculture, mining and tourism. In addition to strengthening livelihoods, the project will improve access to production areas, markets and social amenities. The project will also help boost trade with neighboring countries, particularly DR Congo and Uganda.

Turkmenistan: $ 45 million ready for merchant marine fleet project. It will include the construction of three new ships for rail, passenger and dry freight. Once operational, the new ships will increase the use of the seaport of Turkmenbashi on the Caspian Sea, which is part of the Europe-Caucasus-Asia transport corridor and one of the largest ports in the country. The project will also provide technology transfer by providing training in shipbuilding and repair to shipyard personnel. In addition to stimulating trade and economic activity, the project will create employment opportunities, especially for young graduates.

New funding from the OPEC Fund will also support a $ 25 million private sector operation to support infrastructure projects in Latin America and Caribbean countries.

About the OPEC Fund

The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that exclusively provides funding from member countries to non-member countries. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. The OPEC Fund was established by OPEC member countries in 1976 with a distinct goal: to foster development, strengthen communities and empower people. Our work is people-centered, focusing on funding projects that meet basic needs, such as food, energy, infrastructure, employment (especially as it relates to MSMEs), drinking water and sanitation, health care and education. To date, the OPEC Fund has committed more than US $ 22 billion to development projects in more than 125 countries with an estimated total project cost of 187 billion US dollars. Our vision is a world where sustainable development is a reality for all.

SOURCE OPEC Fund for International Development

About Eleanor Blackburn

Check Also

Russian ‘trampling’ of nuclear safety in Ukraine risks disaster, says UN

Plus: Georgian helicopter crash, fragmentary Romanian scan, razed Slovak “bio-project”, and more. The big story: …