PR94259

VIENNA Jan. 27, 2022 /PRNewswire=KYODO JBN/ --

With a total of US$1.5 billion committed in 2021, the OPEC Fund for

International Development made a strong contribution to the global development

agenda last year. The OPEC Fund, which marks its 46th anniversary on 28

January, focused on helping its partner countries to increase economic

resilience, strengthen economic growth and job creation through support for

micro, small and medium-sized enterprises (MSMEs), provided much-needed funding

for infrastructure investments and responded to the COVID-19 pandemic with the

full deployment of its US$1 billion facility.

OPEC Fund Director-General Abdulhamid Alkhalifa said: "Thanks to our strong

financials and close relationships with our partner countries and clients, the

OPEC Fund was able to respond quickly and effectively to the pressing needs in

these countries in 2021. Our strong delivery benefited a wide range of projects

that aim to address people's needs and improve their livelihoods. While we

continue to pursue the Sustainable Development Goals, we have also been able to

make a sizeable, swift and effective contribution to the global response to the

COVID-19 pandemic. As we mark our 46th anniversary and start a new year, our

2021 performance inspires us with confidence and ambition to deliver another

sizeable contribution to development this year."

The OPEC Fund's standing as a multilateral development institution was also

recognized in 2021 by Fitch and S&P, two of the world's leading rating

agencies. In their inaugural assessment of the OPEC Fund, Fitch awarded a

rating of AA+/Outlook Stable, emphasizing the Fund's "excellent

capitalization", while S&P assigned a AA/A-1+, Positive Outlook rating and

underlined the OPEC Fund's "strong funding and liquidity positions".

Following the outbreak of the COVID-19 pandemic, the OPEC Fund established a

US$1 billion facility which was fully utilized by the end of 2021. In

coordination with partner countries and other donors, the Fund adopted an agile

approval process, enabling the rapid deployment of urgently needed financing.

Operations under the COVID-19 facility included a US$70.5 million loan to

Jordan in support of a government action plan and a US$10.0 million facility to

benefit small and medium-sized enterprises in Maldives.

A breakdown of operations shows that US$496 million of committed amounts was

earmarked for the financial sector, traditionally used for on-lending to MSMEs

or women-led businesses. Other sectors included agriculture (US$211 million),

transport and storage (US$205 million), energy (US$153 million), commodity aid

(US$137 million), water & sanitation (US$20 million) and healthcare (US$15

million). Cross-cutting multisector projects received US$246 million.

In the energy sector, the OPEC Fund financed award-winning projects, which will

significantly increase access to energy in partner countries and help address

the energy transition. In cooperation with international partners, the OPEC

Fund provided loans to support the construction and operation of the Sirdarya

power plant in Uzbekistan, the largest private sector-led project in the

country to date, and the Temane gas power plant in Mozambique, which is

expected to meet the electricity demand of up to 1.5 million households.

OPEC Fund financing was directed to support public sector development

initiatives in partner countries with US$686 million (46 percent), while trade

finance amounted to US$444 million (30 percent) and private sector loans

totaled US$353 million in 2021.

In terms of regional distribution, engagements in Africa came to US$770 million

(51 percent), followed by Asia with US$536 million (36 percent) and Latin

America and the Caribbean with US$177 million (12 percent).

The adoption of an enhanced ESG policy in 2021 by the OPEC Fund's Governing

Board marked another milestone in the implementation of the institution's

Strategic Framework 2030. The Framework is designed to enable the OPEC Fund to

expand its operations and deepen its impact to address long-term challenges

such as the delivery of the Sustainable Development Goals, as well as

emergencies such as the COVID-19 pandemic and its economic and social impact.

An important step towards this goal is leveraging the OPEC Fund's strength by

deepening the cooperation with international development institutions and

partner organizations. In 2021, the OPEC Fund co-financed projects, among

others, with the African Development Bank, the Asian Development Bank, IFAD,

the Arab Coordination Group, the World Bank and the International Finance

Corporation (IFC). The OPEC Fund also signed an agreement to enhance and

promote cooperation in Latin America and the Caribbean with the Andean

Development Bank (CAF – Corporación Andina de Fomento).

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 by the

member countries of OPEC in 1976 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 more than US$22 billion to

development projects in over 125 countries with an estimated total project cost

of US$187 billion. The OPEC Fund has been rated AA+/Outlook Stable by the

rating agency Fitch and AA/A-1+, Positive Outlook by S&P in 2021. Our vision is

a world where sustainable development is a reality for all.

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Source: OPEC Fund for International Development