VIENNA, June 27, 2024 /PRNewswire/ -- The third OPEC Fund
Development Forum, a global South-South cooperation event,
concluded with firm commitments, new project signings and
partnership agreements in Vienna
today. Partners vowed to tackle urgent global development issues
such as climate change, food security and energy transition and to
accelerate progress towards the 2030 Agenda for Sustainable
Development.
The Forum, hosted by the OPEC Fund for International
Development, attracted more than 350 public and private sector
development partners, who discussed pressing topics such as
strengthening institutions, developing smart infrastructure and
building human capacity. Focusing on concrete results, the OPEC
Fund announced US$585 million in
fresh financing approved by its Governing Board.
The institution also celebrated the 25th anniversary
of its private sector operations and inaugurated its extended
Headquarters in Vienna, following
the renovation of the Palais Colloredo-Mannsfeld on the historic
Ringstrasse.
OPEC Fund President Abdulhamid
Alkhalifa said: "Our collective efforts at this Forum have
laid the groundwork for impactful initiatives that will drive
progress in addressing global challenges. Collaboration and
innovation are key to our success. We are committed to turning
plans into action and to delivering effective solutions together
with our partner countries."
New signings and announcements during the high-level events week
included:
Partnerships for global food security and climate
resilience:
- The OPEC Fund and the United Nations World Food Programme (WFP)
announced the establishment of the OPEC Fund's Food Security and
Climate Adaptation Facility to strengthen climate-resilient food
systems and improve food security in the most vulnerable regions of
the world. An initial US$3 million
grant from the OPEC Fund will seed the facility, which aims to
catalyze US$500 million in
investments by 2030 and will kick-off with pilot initiatives in
sub–Saharan Africa.
- The OPEC Fund and the International Fund for Agricultural
Development (IFAD) signed a cooperation agreement to expand their
partnership and boost co-financing of projects that enhance food
security and climate resilience and provide critical support to
smallholder farmers.
Promoting climate resilience and the global energy
transition
- The OPEC Fund provided a US$200,000 grant to Sierra Leone for the establishment of a
Climate Finance and Energy Innovation Hub. A round table event with
the President of Sierra Leone,
Julius Maada Bio, and representatives of the international
development community aimed to mobilize investments for renewable
energy and agricultural investments in the country. The OPEC Fund
also announced its intention to earmark US$250 million until 2030 in support of planned
projects for energy access and transition and food security in the
country.
- The OPEC Fund, its member country Saudi Arabia, and Somalia entered into a three-way arrangement
to reduce Somalia's debt burden
with the OPEC Fund and restart financing operations in the country.
The transaction is aligned with the IMF and World Bank's Enhanced
Heavily Indebted Poor Countries (HIPC) initiative and followed
Somalia's recent progress in
reducing its financial burdens. Saudi
Arabia provided a bridge loan to allow the clearance of
arrears by Somalia. Meanwhile, the
OPEC Fund approved a US$36 million
loan. Two separate grants totaling $6.06
million will support project implementation in coordination
with the United Nationals Development Program (UNDP).
- The OPEC Fund signed a cooperation agreement with
the Organisation of Eastern Caribbean States (OESC), an
intergovernmental body dedicated to promoting sustainable
development. The partnership will ramp up collaboration to boost
sustainable development and climate resilience in the region. The
International Renewable Energy Agency (IRENA) and the Arab Bank for
Economic Development in Africa
(BADEA) joined the OPEC Fund's Climate Finance and Energy
Innovation Hub, which works towards unlocking investments at scale
to accelerate the energy transition, with a particular focus on
clean cooking in low-income countries. SEforALL and UNIDO are also
members of the hub.
Strengthening commitment to Central Asia:
- The OPEC Fund signed Country Partnership Framework agreements
with Turkmenistan
and Kazakhstan, defining a five-year roadmap for areas of
cooperation such as infrastructure development, energy transition
and regional integration. The OPEC Fund also signed a Framework
Financing Memorandum with Tajikistan for US$100
million support to co-finance the Rogun Hydropower Plant
Project, designed to boost Tajikistan renewable energy capacity.
Mobilizing the private sector for development:
- The OPEC Fund signed a US$25
million loan agreement with Nepal's Global IME Bank to increase
access to finance for micro, small and medium-sized enterprises,
including women-owned businesses, as well as climate-smart projects
in the country.
- The OPEC Fund and Saudi Eximbank signed a Memorandum of
Understanding to deepen cooperation in partner countries.
- On June 24, the OPEC Fund hosted
an event to mark the 25th anniversary of its private
sector operations. With over 600 projects for a total commitment of
more than US$10.5 billion to date,
private sector operations have directly contributed to the OPEC
Fund's development impact in more than 70 countries globally.
The OPEC Fund also signed cooperation agreements with member
countries Saudi Arabia to expand
cooperation and the UAE to collaborate with the World Governments
Summit Organization, a global brain trust dedicated to shaping the
future of governments and organizer of an annual summit of global
leaders.
About the OPEC Fund
The OPEC Fund for International
Development (the OPEC Fund) is the only globally mandated
development institution that provides financing from member
countries to non-member countries exclusively. 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 in 1976 with a distinct
purpose: to drive development, strengthen communities and empower
people. Our work is people-centered, focusing on financing projects
that meet essential needs, such as food, energy, infrastructure,
employment (particularly relating to MSMEs), clean water and
sanitation, healthcare and education. To date, the OPEC Fund has
committed about US$27 billion to
development projects in over 125 countries with an estimated total
project cost of more than US$200
billion. The OPEC Fund is rated AA+/Outlook Stable by
Fitch and AA+, Outlook Stable by S&P. Our vision is a
world where sustainable development is a reality for all.
Contact:
Basak Pamir
T+43151564174
B.Pamir@opecfund.org
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