OFID Governing Board approves new loans and grants to boost socio-economic development

Report
from OPEC Fund for International Development
Published on 17 Jun 2013

Vienna, Austria, June 17, 2013. The Governing Board of the OPEC Fund for International Development (OFID), meeting in its 143rd Session on June 13, has approved 17 loans and grants totaling over US$234 million to boost socio-economic development in over 44 partner countries. The majority of the public sector funding will co-finance transportation, energy and water supply and sanitation projects.

The approved public sector loans are as follows:

Burkina Faso

The New Ouagadougou Donsin International Airport. To enhance the safety and efficiency of air travel and help promote tourism, which will have a significant impact on the country’s economy. The project will promote the creation of jobs both during and after the project’s implementation.

US$ 24.0 million

Cuba Guantanamo City Water and Sanitation System Rehabilitation. To enhance access to safe drinking water and sanitation services through the rehabilitation and expansion of related infrastructure.

US$20.0 million

Egypt

South Helwan Power Plant. To improve the delivery of electricity through the expansion of the Helwan power plant. This will benefit households, agricultural workers, businesses and industries, and in turn, help create jobs and boost the economy.

US$70.0 million

Ghana

Colleges of Education. To construct, rehabilitate and equip/furnish 14 teacher training colleges across the country. When completed, the facilities will enable approximately 3,000 more enrolments, thus helping build the country’s human resource base.

US$10.0 million

Honduras

Central District (Tegucigalpa-Comayagüela) Public Transport. To build bus rapid transit corridors and related infrastructure, benefiting around 80,000 passengers per day from improved access to social and economic services.

US$8.0 million

Jamaica

Kingston Metropolitan Area Water Supply Improvements. To raise the efficiency, quality and sustainability of water supply and sanitation services and increase access to water supplies in rural areas, thus improving health and living conditions.

US$48.0 million

Kosovo

Upgrading of the Milloshevë – Mitrovica M2 Main Road. To upgrade a 26.7 km road that will facilitate the local population’s access to health, education, social amenities and production centers, as well as job opportunities.

US$20.0 million

Malawi

Liwonde Naminga Road (supplementary loan). To complete the upgrading of a road that serves nearly two million people. This will enable the year-round transportation of people and goods and help promote trade opportunities.

US$6.0 million

Pakistan

Promotion of Rainwater Harvesting in the Earthquake Affected Areas (Phase II). To improve the health and living conditions of approximately 230,000 people by providing sustainable access to potable water supplies.

US$5.0 million

Sri Lanka

Western Province Road Development. To upgrade 27 km of roads to improve the population’s access to health, education and other social services and lower the cost of transporting agricultural produce and other goods.

US$17.0 million

Total US$228.0 million

Seven grants totaling just over US$6.4 million were also approved at the meeting in support of the following projects/programs:

· UNESCO. US$1.2 m. To support the solar electrification of rural schools in Benin, Madagascar, Mauritania, Niger and Togo, directly benefitting nearly 16,000 children attending 75 schools.

· CGIAR. US$1.3 m. To support 10 programs at eight CGIAR-sponsored agricultural centers. Activities will be carried out in 25 countries in Africa, Asia and Latin America.

· Assistance to Social and Development Projects in Palestine. US$1 m. To support nine NGOs and other entities that are providing assistance to deprived communities in Palestine. Over 20,000 people are expected to benefit from the wide-range of projects.

· Patient’s Friends Society of Hebron. US$1 m. To equip an “OFID surgical department” at the Al-Ahli Hospital in Hebron. Around 8,000 patients will directly benefit from the new medical services that will be available.

· UN Habitat Global Water Operators’ Partnership Alliance. US$1 m. To help fund a one-year project to support public water and sanitation operators in Ethiopia, Guinea, Ghana, Kenya, Malawi, Namibia, Tanzania, Togo and Zambia.

· World Vision Austria. US$600,000. To improve primary school enrolment and quality of education in the Kono and Bonthe districts of Sierra Leone through the furnishing and rehabilitation of 10 schools, construction of six new ones and provision of teacher training, benefiting nearly 2,000 children.

· International Partnership for Microbicides. US$300,000. To implement an access strategy to ensure the availability of microbicide products for girls and women for protecting against HIV/AIDS in areas of highest need in Kenya, Malawi and Zimbabwe.

In addition to the public sector projects approved at the meeting, four financing facilities for a total of US$55 million were approved under OFID’s private sector lending window. These will support the agriculture sector in Paraguay and promote wind energy in Jordan. They will also help financial institutions in Nicaragua and Ghana expand their financing services for low and middle income housing and increase on-lending to growth sectors such as mining, oil and gas, energy and telecommunications.

Under OFID’s Trade Finance Facility, three financing facilities for a total of US$45 million were approved that will support the import and export of strategic commodities in Ghana, Turkey and Uganda and enhance access to trade financing to small and medium-sized enterprises in these countries.

Since its inception, OFID has committed over US$15.4 billion in much-needed concessional development financing to 134 developing countries around the world, with priority given to the poorest amongst them.