US$233 million approved for support in global development by OFID

US$233 million approved for support in global development by OFID

Support for economic recovery, new infrastructure funding and boosting food security are some of the highlights of the projects the OPEC Fund for International Development (OFID) has approved at the 179th session of its Governing Board in Vienna.

The US$233 million in new funding will benefit public sector projects promoting sustainable development worldwide.

The funding projects will target Kosovo with a $40 million loan for the Public Finances and Economic Growth Programme, supporting the government’s priorities set out in its National Development Strategy 2030.

Developed with the World Bank Group, the programme will improve fiscal transparency, promote private sector development by streamlining the country’s regulatory framework, and enable environmental reforms in the energy and waste management sectors.

Also, a $72 million loan will be granted to the Pakistan Mohmand Dam Multipurpose Project, which will finance the construction of a hydropower dam and the provision of equipment. The dam will have a 1.6 million m3 reservoir and diversion tunnels that will feed into new and existing irrigation canals.

Once completed, the Mohmand Dam will increase the country’s installed renewables capacity by 800 MW and provide sustainable potable water to two million residents in Peshawar city. The project will also enhance food security through higher crop yields on almost 15,000 hectares of farmland, while improving the region’s resilience to floods.

In Uzbekistan, OFID has granted a $100 million loan for the Accelerating Uzbekistan’s Transition Programme, which will support the country’s transition to a market economy by improving resource allocation and enabling private sector investment.

The programme will promote competitiveness as a driver of successful markets, improve the management of state-owned enterprises, enhance fiscal transparency and accountability, and increase economic and social inclusion, particularly for women and people with disabilities.

Another $15 million loan will go to Zimbabwe for the Smallholder Agriculture Cluster Project. It aims to increase household incomes and improve food security and nutrition of more than 390,000 people in five provinces through value chain development and infrastructure.

The OPEC Fund’s loan will finance the construction of small-scale, climate-resilient irrigation schemes, the repair of 90 kilometres of feeder roads and the installation of water supply and sanitation facilities.

The Governing Board also approved three grants totaling US$6 million for joint OFID technical cooperation facilities with three co-financing partners: the Asian Development Bank ($3 million), the Development Bank of Latin America ($1 million) and the European Bank for Reconstruction and Development ($2 million).

The facilities will primarily be used to finance project preparation-related activities, such as feasibility studies, to help ensure improved project readiness and build a strong bankable sovereign and non-sovereign operations pipeline. Potential sectors will include agriculture, energy, transportation, water & sanitation, and manufacturing and services.

OFID was established in January 1976 by the then 13 member countries of OPEC, including the United Arab Emirates. The development finance institution is established as an aid channel to developing countries.

News Source: Emirates News Agency

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