01 | THE HIGHLIGHTS – DEVELOPMENT EFFECTIVENESS
DEVELOPMENT EFFECTIVENESS
Delivering impact around the world With its financing the OPEC Fund aims to improve lives — measurably
SDG 7 – Affordable and Clean Energy has long been a focus of the OPEC Fund, as reliable and sustainable access to energy is a key enabler for development. Among others, the OPEC Fund is co-financing, with a US$50 million loan provided alongside the European Bank for Reconstruction and Development (EBRD), a 240 MW wind farm project in Azerbaijan. The Absheron-Khizi plant is the first independent wind power project with international investment in Azerbaijan — and the largest in the Caucasus region. The project is set to provide the country with renewable energy while avoiding 400,000 tons of carbon emissions annually. Analyzing the outcomes of OPEC Fund projects that were completed or reached early operational maturity from July 2023 to June 2024, with a total volume of US$867 million in OPEC Fund commitments, the report finds that these operations delivered significant develop- ment impact across Africa, Asia, Latin America and the Caribbean ( Figure 2 ). The OPEC Fund Results Framework will continue to guide the institution toward development effectiveness. Its application provides important inputs to inform lending decisions and project design to facilitate improved outcomes for vulnerable communities worldwide. The OPEC Fund Development Effectiveness Report provides a detailed account of how the institution lives up to its mandate to deliver impact. In doing so it enhances the transparency and accountability of the OPEC Fund’s work vis-à-vis its member and partner countries. The report makes an important contribution to the OPEC Fund’s goal of continuous improvement and reaffirms its commitment to sustainable development.
The work of development finance institutions delivers results for people in many ways. Infrastructure invest- ments provide people with access to services and create markets, policy support reshapes legal and regulatory frameworks for improving people’s lives, while boosting financial intermediation enables entrepreneurship and economic growth. The OPEC Fund is dedicated to the delivery of the Sustainable Development Goals (SDGs). In order to maximize development impact, the institution has devel- oped a range of tools to review, measure and guide its work. Reporting is an essential part of this process, as captured in the third annual Development Effectiveness Report. The most recent review examined 45 approved OPEC Fund projects and 31 completed projects for the period of July 2023 to June 2024. The review found that all approved projects contribute to at least one SDG, while over 90 percent support two or more goals. The largest share of projects feeds into SDG 8 – Decent Work and Economic Growth, testament to the importance of economic development, especially at a time of uncer- tainty and feeble growth. Numerous examples illustrate the impact of OPEC Fund projects. Under SDG 1 – No Poverty the institu- tion approved a US$50 million loan for a project in Tanzania to boost the sustainability and profitability of the dairy sector, seeking to cut poverty among 120,000 people. Another key focus area, SDG 2 – Zero Hunger, was served with a US$15 million loan for a project in Zimbabwe supporting horticultural production and sales by smallholder farmers.
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