First OPEC Fund Development Forum commits to mobilize funds to address global challenges
- Written by PR Newswire
VIENNA, June 24, 2022 /PRNewswire/ -- Development partners attending the OPEC Fund's Development Forum in Vienna this week demonstrated their resolve to address urgent global challenges by entering new commitments for financial support and signing cooperation agreements.
Signings and announcements included the following:
- The OPEC Fund and the Republic of Kosovo signed a "Framework Agreement for Private Sector Operations," which aims to strengthen the private sector in Kosovo with a focus on infrastructure, connectivity, energy and water. OPEC Fund Director Dr. Abdulhamid Alkhalifa had visited Kosovo in June and expressed the ambition to deepen the partnership.
- The Asian Development Bank and the OPEC Fund launched a trust fund to improve project readiness in developing countries. As a first contribution, the OPEC Fund is committing US$3 million to the fund, which will provide technical assistance to improve the delivery of investment projects through enhanced preparation, design, and procurement.
- The OPEC Fund and the regional South American development bank FONPLATA signed a "Cooperation Agreement" to broaden and deepen the partnership through more co-financing of strategic projects in the Latin America and Caribbean region, where FONPLATA operates.
- The OPEC Fund is teaming up with the UN Capital Development Fund (UNCDF) and Sustainable Energy for All (SEforALL) to design and deliver a new Climate Finance and Energy Innovation Hub, which is set to be launched at the UN climate conference COP27 in Egypt in November. Designed as a global end-to-end policy and finance platform, this hub will harness the power of financial innovation to source, unlock, de-risk and scale-up investments in energy access and transition. Recognizing the crucial role of clean cooking the OPEC Fund is earmarking US$100 million in support of relevant projects in DRC, Madagascar, Malawi, and Rwanda as part of the initiative.
- The International Renewable Energy Agency (IRENA) and the OPEC Fund signed a Memorandum of Understanding to facilitate access to innovative financing solutions, unlock investment and support project development to advance renewable energy investment and enable access to sustainable finance in emerging and developing economies.
OPEC Fund Director-General Dr. Alkhalifa said: "These new commitments and signings are a declaration of our intent to join forces in the face of unprecedented challenges. One clear takeaway from our event was the need for urgent, targeted and joint action in areas such as climate change, energy access and food supply. We are very encouraged by the success and positive momentum generated at our Forum which provides the energy to move forward swiftly and forcefully."
The OPEC Fund Development Forum "Driving Resilience & Equity" gathered government leaders, ministers from OPEC Fund member and partner countries, heads of the Arab Coordination Group institutions, senior officials of multilateral development banks and international organizations as well as private sector representatives. The event included panels on "Climate Challenges vs Energy Needs - Development Perspectives," "Innovations that Enable a Smart Energy Future," and "Turning Public Ambition into Effective Action," and closed with a conversation on "South-South Co-ownership in Development Progress."
The date of the 2023 OPEC Fund Development Forum will be announced shortly.
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 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 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 is rated AA+/Outlook Stable by Fitch and AA/Positive Outlook by S&P in 2021. Our vision is a world where sustainable development is a reality for all.
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