Development Effectiveness Report 2024

2024

EFFECTIVENESS DEVELOPMENT

REPORT

THE OPEC FUND for International Development

opecfund.org

TABLE OF CONTENTS

Message from the President

Executive Summary

CHAPTER 1 Background

CHAPTER 2 The OPEC Fund and the Sustainable Development Goals

CHAPTER 3 Spotlight on SDG 9: Roads to Development

CHAPTER 4 OPEC Fund Project Results

CHAPTER 5 Preparing to Launch: Lessons from Two Years of Implementing, Testing and Piloting the OPEC Fund Results Framework

CHAPTER 6 Looking Ahead

Bibliography

ANNEX 1. Organizational Chart

2. OPEC Fund SDG Contribution Analysis

3. OPEC Fund Results Data, Methodology and Limitations

List of Acronyms

INTRODUCTION

MESSAGE FROM THE PRESIDENT

On behalf of the OPEC Fund for International Development I am proud to present our latest Development Effectiveness Report. Here we examine the development impact of our projects worldwide in delivering our vision to make “sus- tainable development a reality for all.” This latest review of our work shows encouraging progress, which serves as a powerful incentive to continue our chosen path and further refine our delivery. The OPEC Fund has been making development happen for almost 50 years. As our total volume of financing ap- proaches US$30 billion across more than 125 countries, we have contributed substantially to alleviating poverty, building sustainable infrastructure and taking climate ac- tion. We are supporting key sectors with bespoke financing solutions that address the particular needs of our partners. But we are not just providing financing. The OPEC Fund also aims, as one of its strategic goals, to maximize devel- opment impact. When I have the opportunity to visit our projects, I can see the smile on the face of a young girl in school for the first time thanks to a project we supported; I speak to entrepreneurs who are building up their business- es with the help of OPEC Fund loans; or I listen to small- holder farmers who now have access to markets thanks to roads that we helped finance. These are the moments that count — and our new Develop- ment Effectiveness Report makes them count by matching hard numbers with the outcomes of our work. In doing so it makes an important contribution to our goal of continual

learning and improvement. It also enhances the transpar- ency and accountability of the OPEC Fund’s work vis-à-vis our member and partner countries.

Covering a wide range of activities, our report examines 45 OPEC Fund projects approved and 31 projects completed from July 2023 to June 2024. In terms of alignment with the Sustainable Development Goals (SDGs), the review concludes that all projects are expected to contribute to at least one SDG, while over 90 percent support two or more goals. That the largest share of our projects feeds into SDG 8 – Decent Work and Economic Growth is testament to the im- portance of economic development. Robust yet sustainable economic growth is what lifts people out of poverty, creates jobs, feeds families, generates savings and creates oppor- tunities. The frontrunner was followed by SDG 9 – Industry, Innovation and Infrastructure and SDG 13 – Climate Action, for which our financing included policy-based loans in Para- guay and the Seychelles. With the global economy at a crossroads, international soli- darity is more important than ever — and multilateral devel- opment banks like the OPEC Fund have a key role to play. The review of OPEC Fund projects that reached completion or early operational maturity during the reporting period shows impressive results. To mention just a few, our pro- jects provided 300,000 households with new or improved energy connections, financed 1,250 small businesses and empowered 35,000 women throughout the Global South.

INTRODUCTION

US$30 BILLION IN 125 COUNTRIES The OPEC Fund’s financing approaches contributing to poverty alleviation, sustainable infrastructure development and climate action.

While outputs are important, outcomes are crucial. The OPEC Fund has developed tools to measure our impact and adjust our approach to prepare operations for increased development impact. In recent years, we have put in place a comprehensive results framework. Building on this we are preparing the launch of the OPEC Fund Results Framework indicators. This will be a major step in further guiding the OPEC Fund toward increased impact in our partner coun- tries, while fulfilling our obligations towards our member countries and investors. The OPEC Fund Development Effectiveness Report pro- vides a detailed account of how the institution delivers on its mandate and uses its funds as prudently and effective- ly as possible. In so doing we confirm our commitment to achieving sustainable and impactful development for all.

ABDULHAMID ALKHALIFA

OPEC FUND PRESIDENT

INTRODUCTION

EXECUTIVE

SUMMARY

The OPEC Fund’s main strategic objective is to maximize its devel- opment impact. In its third edition, our Development Effectiveness Report compiles the results of newly completed projects, exam- ines the alignment of new oper- ations to the Sustainable Devel-

development. Not only is road infrastructure a central compo- nent of SDG 9 (Industry, Innova- tion and Infrastructure) – it is also a critical ingredient in unleashing development under many other goals such as SDG 1 (No Poverty), SDG 2 (Zero Hunger), SDG 8

supported two or more Sustainable Development Goals 91% of operations

opment Goals (SDGs) and provides an update on the implementation of the OPEC Fund’s Results Framework. A special feature in this year’s edition is the Transport Sector, which has historically been vital for delivering sustainable development to our partner countries. The OPEC Fund’s commitment to fostering sustainable development is evident in this comprehensive review of operations approved between July 2023 and June 2024. The analysis found that all operations are expected to contribute to at least one SDG, with a majority (91 percent) supporting two or more goals. On average, each approved project contributes to four SDGs, while one project bene- fits 13 SDGs. The largest share of operations supports SDG 8 (Decent Work and Economic Growth), with 32 opera- tions (71 percent of those reviewed) contributing to this goal. The projects cover various sectors, including working with financial intermediaries to improve access to finance for micro, small and medium-sized enterprises (MSMEs), international trade and agriculture. The OPEC Fund’s oper- ations also frequently support SDG 9 (Industry, Innovation, and Infrastructure), with 60 percent of projects aligned and SDG 13 (Climate Action), which has seen 51 percent of projects contributing. The Development Effectiveness Report highlights specific aspects of development within the context of the SDGs. The focus this year is on transport due to the essential role played in particular by safe and reliable roads in enabling

(Decent Work and Economic Growth) and SDG 11 (Sustain- able Cities and Communities). Numerous studies confirm the vital role of transport connectivity in driving social and economic development by fostering growth, inclusion and the provision of access to critical services such as health- care and education. Road investment needs are driven not only by the devel- opment requirements of a growing global population; they have become even more acute as climate change exac- erbates the damages to road infrastructure caused by extreme weather events. Continuing to invest at current rates is insufficient to meet projected infrastructure needs, with development finance institutions playing an important role in addressing the particularly large investment gaps in developing countries. Recognizing the enormous needs for more and better infrastructure, the OPEC Fund has committed over US$5.4 billion to the transport sector since 1976, with the vast majority (80 percent) of these funds dedicated to building or upgrading roads. Most of this support has benefited partner countries in Africa, followed by Asia and Latin America and the Caribbean. In addition to taking stock of SDG contributions and discussing the importance of transport infrastructure, this report highlights the delivery of development results. The OPEC Fund reviewed all 31 projects (15 trade finance and 16 non-trade operations) completed or reaching Early Operating Maturity (EOM) between July 2023 and

INTRODUCTION

June 2024, with a total volume of US$867 million in OPEC Fund commitments. These projects delivered significant development results such as facilitating US$553 million in trade, supporting 75,868 farmers, training 37,914 people,

At the aggregate level, the OFRF indicators will consist of key meas- ures which show the OPEC Fund’s development context, its project results, its operational effec- tiveness and its organizational efficiency. Ongoing testing and

92 MW of renewable energy capacity installed

providing 300,000 households with new or improved energy connections and improving water access for 3,040 households. The operations also contributed to improving 269,910 hectares of land, empowering 34,678 women, financing 1,249 MSMEs, installing or refurbishing 180 MW of energy capacity (92 MW of which renewable), building or rehabilitating 505 km of roads and reducing CO 2 emissions by 73,344 tons annually. Most of these results were achieved in Africa, followed by Latin America and the Caribbean. While aggregate numbers help demonstrate the scale of impact, they nevertheless provide an incomplete picture in and of themselves. To further illustrate where the results came from, the report presents several case studies of projects completed or having reached EOM during the review period. These include projects that are reducing poverty and strengthening food security in Burundi, enhancing value chains in Lesotho, funding infrastructure across Latin America and providing access to water in Guinea. In September 2022, the OPEC Fund Governing Board approved the OPEC Fund Results Framework (OFRF) which includes a project-level toolkit and draft aggregate indicators to track performance, inform lending decisions and support reporting on results. The toolkit consists of the Evaluation Readiness Checklist (ERC), the Project Results Framework (PRF) and the Strategic Alignment Checklist (SAC), which have been applied to each OPEC Fund opera- tion to document and enhance impact subsequently.

piloting of a set of draft indicators as well as data compiled through the project-level toolkit and the annual reviews for the Development Effectiveness Reports have generated important insights. These lessons inform ongoing revisions to ensure that the indicators to be featured in the OFRF will align with the OPEC Fund’s strategy and reflect the most relevant aspects of the OPEC Fund’s work and mission. Going forward, the OPEC Fund will further refine and develop the OFRF so that it continues to guide the insti- tution toward its strategic objective of maximizing devel- opment impact. Apart from publicly launching the key OFRF indicators and integrating the ERC and SAC tools into online systems, the Development Effectiveness Unit (DEU) will continue to support project teams, vali- date project quality at entry and enhance staff capacity through training. The OPEC Fund is also in the process of strengthening monitoring and evaluation to close the loop in assessing development effectiveness throughout the project lifecycle. The OPEC Fund’s enhanced focus on development effectiveness provides valuable insights that help track progress toward its goal of maximizing devel- opment impact, ensuring accountability to stakeholders and integrating development effectiveness into deci- sion-making processes. The implementation of the OFRF also generates increasingly rich quantitative and qualita- tive data on development effectiveness which will help the OPEC Fund to continue to share progress made toward achieving our strategic objective of maximizing develop- ment in future editions of this report.

CHAPTER 1

BACKGROUND To date, the OPEC Fund has committed close to US$30 billion of its loan and grant resources to over 4,000 projects in more than 125 partner countries worldwide with a total project value of over US$200 billion

CHAPTER 1

BACKGROUND

This is the third edition of the annual Development Effectiveness Report of the OPEC Fund for International Development. Initiated in 2023, these reports have helped the OPEC Fund track and highlight progress made toward its strategic objective of maximizing development impact. In recent years, the OPEC Fund has strengthened its development impact assessment practices by rigorously screening each new OPEC Fund operation for its develop- ment impact potential, justification and results. The annual Development Effectiveness Report reflects and comple- ments this work by taking stock of the strategic alignment of new operations and providing a summary of the main results achieved by operations already implemented. As in previous years, the 2024 Development Effective- ness Report takes stock of progress made and knowledge generated by the development results of the OPEC Fund’s activities. The report was prepared by the OPEC Fund’s DEU, which is separate from the OPEC Fund’s operational departments and provides guidance and oversight on all matters related to development effectiveness. This report provides an update of the results completed projects have achieved since the cut-off date of last year’s Development Effectiveness Report. It also provides an over- view of the SDG alignment of projects approved since the stocktaking exercise. As a special topic, this year’s report features a close look at the transport sector, and roads in particular, due to their crucial role in enabling development.

ABOUT THE OPEC FUND FOR INTERNATIONAL DEVELOPMENT

The OPEC Fund for International Development (the OPEC Fund) was established in 1976 as a multilateral institution in support of low- and middle-income countries. It is the only globally mandated devel- opment institution that provides financing from member countries to non-member countries exclu- sively. The OPEC Fund is committed to the delivery of the Sustainable Development Goals. To date, the OPEC Fund has committed close to US$30 billion of its loan and grant resources to over 4,000 projects in more than 125 partner countries worldwide with a total project value of over US$200 billion. In the regional distribution, African partner countries have received 48 percent of commitments, followed by Asia (29 percent) and Latin America and the Caribbean (15 percent). The OPEC Fund provides financing through its Ordinary Capital Resources (OCR) and its Special Capital Resources (SCR). OCR funds are primarily used for lending to middle-income countries, certain less-developed countries and to private sector borrowers in pursuit of social and economic develop- ment. SCR resources are used to provide funding at more concessional terms to lower-income countries.

CHAPTER 1

The OPEC Fund works with the public sector, private sector investors and multilateral development banks. It has a AA+ credit rating from Fitch and S&P and can provide financing in the form of loans, equity and grants. It also offers instru- ments such as trade finance, guarantees and risk-sharing facilities. Leveraging almost 50 years of global devel- opment work the OPEC Fund is also engaged in knowl- edge-sharing and advisory services.

OPEC Fund’s general operations. The Governing Board additionally oversees the OPEC Fund’s activities through four sub-committees (Audit & Risk, Budget & Strategy, Development Effectiveness, and Ethics). The OPEC Fund management is headed by President Abdulhamid Alkhalifa, who assumed his post in November 2018. For the OPEC Fund’s organizational structure, see Annex I of this report.

GOVERNANCE

MORE INFORMATION ABOUT THE OPEC FUND

The OPEC Fund’s resources consist of contributions made by its 12 member countries (Algeria, Ecuador, Gabon, Indo- nesia, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates and Venezuela). Its supreme authority is the Ministerial Council, composed of finance ministers of the member countries. The Council usually meets once a year and issues policy guidelines, approves the replenishment of the OPEC Fund’s resources, authorizes the administration of special funds and makes major policy decisions.

A wide range of publications, announcements and docu- ments by and about the OPEC Fund is available at

www.opecfund.org

including its Annual Reports (available in print and online in English, French, Spanish and Arabic) and its audited Financial Statements. The OPEC Fund also publishes a quarterly magazine dedicated to questions of development and sustainability.

The OPEC Fund’s Governing Board usually meets four times a year and — subject to directives issued by the Ministerial Council — is responsible for the conduct of the

CHAPTER 2

THE OPEC FUND AND THE SUSTAINABLE DEVELOPMENT GOALS Committed to helping achieve the SDGs

CHAPTER 2

THE OPEC FUND AND THE

SUSTAINABLE

DEVELOPMENT GOALS

The OPEC Fund is committed to supporting the delivery of the Sustainable Development Goals (SDGs). The report takes stock of whether and how the OPEC Fund’s oper- ations are expected to contribute to these 17 goals. A systematic review of all operations approved between July 2023 and June 2024 found that all OPEC Fund-approved projects in that period contribute to at least one SDG, with a majority (91 percent) supporting two or more goals. On average, each approved project contributes to 4.2 SDGs, while one project benefits 13 SDGs 1 (Figure 1) . 2

Overall, OPEC Fund operations approved during the analysis period contribute to all SDGs (Figure 2).

Figure 2: SDGs contributed to by OPEC Fund operations approved July 2023 to June 2024

Figure 1: Number of different SDGs supported per project approved from mid-2023 to mid-2024

Number of projects

1 The one project supporting 13 SDGs is an agricultural loan to Lesotho which enhanced the value chain systems for wool and mohair production through sustainable, climate-smart practices and improved governance. It contributed to SDGs 1, 2, 3, 4, 5, 7, 8, 9, 10, 12, 13, 15 and 17. 2 All 45 loan projects approved from July 2022 to June 2023 were assessed for SDG alignment. To do so, each project’s objective, description and targets/ expected development outputs and outcomes were mapped and the appli- cable SDGs to which the project is expected to contribute were identified. To qualify for alignment, a project needed to either plausibly contribute to a specific SDG indicator and/or target. 3 In addition to the projects approved individually, the OPEC Fund also issued US$525 million in numerous short-term trade finance guarantees under risk-sharing facilities during the period. This guarantee program, while not included in the analysis, is also thought to contribute to SDG 8 by fostering economic growth through trade.

Number of different SDGs supported per project

CHAPTER 2

The largest share of OPEC Fund operations contributes to SDG 8 (Decent Work and Economic Growth), with a total of 32 operations (71 percent of all reviewed) aligned (Figure 3). 3 These projects span a variety of sectors, including support to the banking sector to enable access to finance for micro, small and medium-sized enterprises (MSMEs) and interna-

tional trade, as well as in agriculture. The second and third most represented goals were SDG 9 (Industry, Innovation and Infrastructure), with 60 percent of projects contrib- uting, followed by SDG 13 (Climate Action) which saw 51 percent of projects aligned with this objective. For all SDG contributions, see Figure 3 below and Tables 1-17 overleaf.

Figure 3: Number of projects contributing to each SDG per project approved from mid-2023 to mid-2024

SDG 8

SDG 9

SDG 13

SDG 2

SDG 17

SDG 1

SDG 7

SDG 5

SDG 10

SDG 3

SDG 4

SDG 15

SDG 11

SDG 12

SDG 16

SDG 6

SDG 14

Note: The analysis covered the 45 projects approved between July 2023 and June 2024. Numbers sum to more than the total number of projects as most operations contribute to more than one SDG.

CHAPTER 2

Each SDG is further specified by one or more concrete SDG targets which constitute each goal. To offer a clearer picture of the development aspects supported by OPEC Fund-financed projects, the following sections detail the expected contributions of newly approved OPEC Fund projects to specific SDG targets. Note that the total number of projects contributing to the SDG targets within each SDG may exceed the overall number of projects for each goal, as many projects contribute to multiple SDG targets. Under SDG 1 (No Poverty), OPEC Fund operations approved between July 2023 and June 2024 will primarily focus on fighting poverty, raising smallholder farmers’ incomes through efficient irrigation systems in low-income commu- nities, improving household access to basic services, implementing social protection programs and introducing

climate-resilient strategies that directly benefit vulnerable families. Additionally, operations will work to expand access to essential services, improving overall well-being and resil- ience (Table 1) . One example approved between mid-2023 and mid-2024 is a US$31.6 million loan to Guinea-Bissau, co-financed by the International Fund for Agricultural Development (IFAD), which aims to increase rice produc- tion and productivity to improve producers’ income and therefore reduce poverty (target 1.2). Another contribution to SDG 1 is a US$21 million loan for a project in Rwanda co-financed by the Arab Bank for Economic Development in Africa (BADEA), the Abu Dhabi Fund for Development (ADFD), the Saudi Fund for Development (SFD) and EXIM Hungary to improve household access to drinking water. The project aims to improve access to the basic service of drinking water provision (target 1.4) for about 500,000 people by project completion.

Table 1: Project contributions to SDG 1 targets

No. of contributing projects

% of contributing projects

SDG target

1.1 By 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 a day 2

1.2 By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions

1.4 By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate new technology and financial services, including microfinance 3 1.5 By 2030, build the resilience of the poor and those in vulnerable situ- ations and reduce their exposure and vulnerability to climate-related extreme events and other economic, social and environmental shocks and disasters 3

1.a Ensure significant mobilization of resources from a variety of sources, in- cluding through enhanced development cooperation, in order to provide adequate and predictable means for developing countries, in particular least developed countries, to implement programs and policies to end poverty in all its dimensions

CHAPTER 2

Under SDG 2 (Zero Hunger), the highest number of projects contribute to target 2.3 (Table 2) which focuses on increasing agricultural productivity and farmers’ access to inputs, markets and services. Aligning with the objectives of SDG 2, OPEC Fund-supported initiatives focused on this goal generally prioritize the sustainable enhancement of agricultural productivity, practices and incomes. Addition- ally, these projects contribute to broader rural develop- ment efforts and strengthen food security. SDG 2-aligned projects approved during the reporting period include, for example, a US$15 million loan to a project co-financed with IFAD in Zimbabwe to support and increase sustainable horticultural production and sales by smallholder farmers

(target 2.3) and micro, small and medium-sized enterprises engaged in the horticulture value chain. The project also aims to address key challenges such as poverty, food inse- curity and malnutrition (target 2.1), creating sustainable agricultural opportunities for local communities. Another relevant operation is a US$50 million loan to Türkiye, co-fi- nanced by the Islamic Development Bank (IsDB), providing financing to the agriculture and food production sectors, via a public development bank, in the aftermath of the earthquakes that caused significant damage in early 2023. The project is expected to strengthen the resilience of farmers and other companies in the country’s agriculture and food production sectors (target 2.3).

Table 2: Project contributions to SDG 2 targets

No. of contributing projects

% of contributing projects

SDG target

2.1 By 2030, end hunger and ensure access by all people, in particular the poor and people in vulnerable situations, including infants, to safe, nutri- tious and sufficient food all year round 5

2.3 By 2030, double the agricultural productivity and incomes of small-scale food producers, in particular women, indigenous peoples, family farmers, pastoralists and fishers, including through secure and equal access to land, other productive resources and inputs, knowledge, financial services, markets and opportunities for value addition and non-farm employment

2.4 By 2030, ensure sustainable food production systems and implement resilient agricultural practices that increase productivity and production, that help maintain ecosystems, that strengthen capacity for adaptation to climate change, extreme weather, drought, flooding and other disasters and that progressively improve land and soil quality 8

2.5 By 2020, maintain the genetic diversity of seeds, cultivated plants and farmed and domesticated animals and their related wild species, includ- ing through soundly managed and diversified seed and plant banks at the national, regional and international levels, and promote access to and fair and equitable sharing of benefits arising from the utilization of genetic resources and associated traditional knowledge, as internationally agreed 2.a Increase investment, including through enhanced international coopera- tion, in rural infrastructure, agricultural research and extension services, technology development and plant and livestock gene banks in order to enhance agricultural productive capacity in developing countries, in particular least developed countries

CHAPTER 2

Most projects supporting SDG 3 (Good Health and Well- Being) are dedicated to improving health outcomes by upgrading healthcare infrastructure and services (Table 3) . Projects approved since mid-2023 that support SDG 3 include a US$15 million loan to help the government of Guatemala improve the cold-chain logistics, custody and distribution of vaccines and vaccine supplies (targets 3.8 and 3.b). Another example of a project aligned to

this goal is a US$17 million loan to a project co-financed with the World Bank and IsDB to develop and build a general hospital with a 300-bed capacity in the Union of the Comoros. The hospital will provide comprehen- sive medical services and meet the growing healthcare needs of the country (target 3.8), including the continued roll-out of COVID-19 and other vaccination programs (target 3.b).

Table 3: Project contributions to SDG 3 targets

No. of contributing projects

% of contributing projects

SDG target

3.6 By 2020, halve the number of global deaths and injuries from road traffic accidents 2

3.8 Achieve universal health coverage, including financial risk protection, ac- cess to quality essential health-care services and access to safe, effective, quality and affordable essential medicines and vaccines for all 3

3.9 By 2030, substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution and contamination 2

3.a Strengthen the implementation of the World Health Organization Frame- work Convention on Tobacco Control in all countries, as appropriate 1

3.b Support the research and development of vaccines and medicines for the communicable and non‑communicable diseases that primarily affect developing countries, provide access to affordable essential medicines and vaccines, in accordance with the Doha Declaration on the TRIPS Agreement and Public Health, which affirms the right of developing coun- tries to use to the full the provisions in the Agreement on Trade-Related Aspects of Intellectual Property Rights regarding flexibilities to protect public health and, in particular, provide access to medicines for all

CHAPTER 2

Under SDG 4 (Quality Education), OPEC Fund projects primarily aim to contribute to target 4.a (Table 4) by supporting the development, provision, expansion and improvement of education infrastructure. Projects approved since mid-2023 that support this goal include a US$56.5 million loan to the People’s Republic of China to expand and enhance the vocational education system in Pengshui County. The new and upgraded education facil- ities (target 4.a) are expected to serve 9,000 young job

seekers and update skills for 30,000 workers each year (target 4.3). Another example is a US$25.5 million loan to the government of Benin for the reconstruction and modernization of technical professional high schools in the cities of Djougou and Ouidah. Beyond upgrading educa- tional facilities (target 4.a), the project also aims to expand and improve the quality of educational offerings by intro- ducing more specialized trainers and implementing new curricula with an emphasis on digital skills (target 4.3).

Table 4: Project contributions to SDG 4 targets

No. of contributing projects

% of contributing projects

SDG target

4.1 By 2030, ensure that all girls and boys complete free, equitable and qual- ity primary and secondary education leading to relevant and effective learning outcomes 1

4.2 By 2030, ensure that all girls and boys have access to quality early childhood development, care and pre‑primary education so that they are ready for primary education 1

4.3 By 2030, ensure equal access for all women and men to affordable and quality technical, vocational and tertiary education, including university 3

4.4 By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship 1

4.5 By 2030, eliminate gender disparities in education and ensure equal access to all levels of education and vocational training for the vulnerable, including persons with disabilities, indigenous peoples and children in vulnerable situations 1

4.a Build and upgrade education facilities that are child, disability and gender sensitive and provide safe, non-violent, inclusive and effective learning environments for all 5

4.c By 2030, substantially increase the supply of qualified teachers, includ- ing through international cooperation for teacher training in developing countries, especially least developed countries and small island develop- ing States 1

CHAPTER 2

Under SDG 5 (Gender Equality), OPEC Fund projects are mainly expected to contribute to target 5.a (Table 5) by supporting the full participation of women in economic life. Projects contributing to SDG 5 approved between mid-2023 and mid-2024 include a US$20 million loan to a project co-financed with the Green Climate Fund (GCF) and IFAD in Rwanda to enhance the incomes, nutrition and resilience

of rural households through a more inclusive, sustainable and digitalized dairy sector. Among its numerous targets, the project aims to create employment opportunities for 2,095 women by 2030. In addition to SDG 5, this project also aligns with the OPEC Fund’s cross-cutting strategic themes of climate action and food security.

Table 5: Project contributions to SDG 5 targets

No. of contributing projects

% of contributing projects

SDG target

5.1 End all forms of discrimination against all women and girls everywhere 2

5.5 Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life 3

5.a Undertake reforms to give women equal rights to economic resources, as well as access to ownership and control over land and other forms of property, financial services, inheritance and natural resources, in accor- dance with national laws 5

5.b Enhance the use of enabling technology, in particular information and communications technology, to promote the empowerment of women 1

5.c Adopt and strengthen sound policies and enforceable legislation for the promotion of gender equality and the empowerment of all women and girls at all levels 1

A single project of the review period supported SDG 6 (Clean Water and Sanitation) across the three targets 6.1, 6.3 and 6.a. (Table 6). Projects supporting this goal gener- ally focus on expanding access to safe drinking water and sanitation, while also enhancing water efficiency and improving wastewater treatment systems. The OPEC Fund

project supporting SDG 6 in this review period is a US$21.2 million loan to a project co-financed with BADEA and ADFD in Rwanda, which aims to strengthen economic and social resilience by ensuring the equitable provision of sufficient water supply to targeted areas.

Table 6: Project contributions to SDG 6 targets

No. of contributing projects

% of contributing projects

SDG target

6.1 By 2030, achieve universal and equitable access to safe and affordable drinking water for all 1

6.3 By 2030, improve water quality by reducing pollution, eliminating dump- ing and minimizing release of hazardous chemicals and materials, halving the proportion of untreated wastewater and substantially increasing recycling and safe reuse globally 1 6.a By 2030, expand international cooperation and capacity-building support to developing countries in water- and sanitation-related activities and programs, including water harvesting, desalination, water efficiency, wastewater treatment, recycling and reuse technologies 1

CHAPTER 2

SDG 7 (Affordable and Clean Energy) has traditionally been a focus area of the OPEC Fund, as reliable and sustainable access to energy is a key enabler for development. Target 7.a is the main area supported by OPEC Fund projects analyzed in this edition of the report (Table 7) . One recently approved example is a US$50 million loan to Azerbaijan for the devel-

opment, construction and operation of two wind farms with an aggregate capacity of 240 MW. Increasing its renewable energy capacity will help Azerbaijan reduce greenhouse gas emissions and improve electricity security by diversi- fying power generation sources. This project contributes to various targets under SDG 7, namely 7.1, 7.2, 7.a and 7.b.

Table 7: Project contributions to SDG 7 targets

No. of contributing projects

% of contributing projects

SDG target

7.1 By 2030, ensure universal access to affordable, reliable and modern energy services

7.2 By 2030, increase substantially the share of renewable energy in the global energy mix

7.3 By 2030, double the global rate of improvement in energy efficiency

7.a By 2030, enhance international cooperation to facilitate access to clean energy research and technology, including renewable energy, energy efficiency and advanced and cleaner fossil-fuel technology, and promote investment in energy infrastructure and clean energy technology 8

7.b By 2030, expand infrastructure and upgrade technology for supplying modern and sustainable energy services for all in developing countries, in particular least developed countries, small island developing States and landlocked developing countries, in accordance with their respective programs of support

CHAPTER 2

SDG 8 (Decent Work and Economic Growth) is predomi- nantly supported by projects that aim to expand access to finance via financial institutions, addressing target 8.10 in particular (Table 8) . Projects approved since mid-2023 that back this goal include a ¤20 million private sector loan to Raiffeisenbank Albania to grow its lending to MSMEs and

women-led MSMEs and the agribusiness sector (targets 8.3 and 8.10). Another project example is a US$35 million private sector loan to Asaka Bank in Uzbekistan to support the agriculture sector and climate action projects in the country (target 8.10).

Table 8: Project contributions to SDG 8 targets

No. of contributing projects

% of contributing projects

SDG target

8.1 Sustain per capita economic growth in accordance with national circum- stances and, in particular, at least 7 per cent gross domestic product growth per annum in the least developed countries 6

8.2 Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labour-intensive sectors 6

8.3 Promote development-oriented policies that support productive activi- ties, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medi- um-sized enterprises, including through access to financial services

8.5 By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabili- ties, and equal pay for work of equal value 3

8.6 By 2020, substantially reduce the proportion of youth not in employment, education or training 4

8.10 Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all 15

8.a Increase Aid for Trade support for developing countries, in particular least developed countries, including through the Enhanced Integrated Frame- work for Trade-related Technical Assistance to Least Developed Countries 7

CHAPTER 2

The main targets that reviewed OPEC Fund operations contribute to under SDG 9 (Industry, Innovation and Infra- structure) were 9.3 and 9.4 (Table 9) , given the OPEC Fund’s strong support to infrastructure and MSME finance. Projects approved since mid-2023 in support of SDG 9 include a US$41 million loan to Tanzania for upgrading a road which is

expected to significantly reduce travel times and cost while improving mobility, safety and accessibility (targets 9.1 and 9.a). Another project example is a US$10 million loan to Tajikistan for a project co-financed with IsDB to reconstruct and significantly improve an existing road which currently exhibits rutting, potholes and cracks. (targets 9.1 and 9.a).

Table 9: Project contributions to SDG 9 targets

No. of contributing projects

% of contributing projects

SDG target

9.1 Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic develop- ment and human well-being, with a focus on affordable and equitable access for all 12

9.3 Increase the access of small-scale industrial and other enterprises, in par- ticular in developing countries, to financial services, including affordable credit, and their integration into value chains and markets 8

9.4 By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial process- es, with all countries taking action in accordance with their respective capabilities 8 9.a Facilitate sustainable and resilient infrastructure development in devel- oping countries through enhanced financial, technological and technical support to African countries, least developed countries, landlocked devel- oping countries and small island developing States 15

CHAPTER 2

Under SDG 10 (Reduced Inequalities), a key area of the OPEC Fund’s support is target 10.1, which focuses on helping increase and sustain income growth for lower-in- come segments (Table 10). In addition to several rural development projects which aim to increase the incomes of some of the poorest population segments (target 10.1)

in Malawi, Zimbabwe, Guinea-Bissau, Tanzania, Rwanda, Lesotho and Liberia, another example of support to SDG 10 is a policy-based loan of ¤50 million to North Macedonia co-financed by the World Bank. Among other reforms, the aim is to safeguard financial sector stability via improved regulation in the aftermath of several crises (target 10.5).

Table 10: Project contributions to SDG 10 targets

No. of contributing projects

% of contributing projects

SDG target

10.1 By 2030, progressively achieve and sustain income growth of the bottom 40 per cent of the population at a rate higher than the national average 7

10.2 By 2030, empower and promote the social, economic and political inclu- sion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status 3

10.5 Improve the regulation and monitoring of global financial markets and institutions and strengthen the implementation of such regulations 1

10.b Encourage official development assistance and financial flows, includ- ing foreign direct investment, to States where the need is greatest, in particular least developed countries, African countries, small island developing States and landlocked developing countries, in accordance with their national plans and programs

Five OPEC Fund projects approved between mid-2023 and mid-2024 support SDG 11 (Sustainable Cities and Commu- nities) targets which focus on building and strengthening inclusive, safe, resilient and sustainable cities and commu- nities. (Table 11). One example is a US$100 million loan to India for a project co-financed with the Asian Infrastructure

Investment Bank (AIIB) for the construction and installation of a new metro line section in Mumbai which is set to cut travel times, provide a climate-friendly, fast and accessible metro system, while enhancing women’s safe mobility and meeting growing demand for urban transportation (targets 11.2 and 11.6).

Table 11: Project contributions to SDG 11 targets

No. of contributing projects

% of contributing projects

SDG target

11.1 By 2030, ensure access for all to adequate, safe and affordable housing and basic services and upgrade slums 1

11.2 By 2030, provide access to safe, affordable, accessible and sustainable transport systems for all, improving road safety, notably by expanding public transport, with special attention to the needs of those in vulnerable situations, women, children, persons with disabilities and older persons 2 11.5 By 2030, significantly reduce the number of deaths and the number of people affected and substantially decrease the direct economic losses relative to global gross domestic product caused by disasters, including water-related disasters, with a focus on protecting the poor and people in vulnerable situations 1

11.6 By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management 2

CHAPTER 2

Four OPEC Fund projects examined in this report contribute to SDG 12 (Responsible Consumption and Production), as shown in Table 12 . One project aligned to this goal is a US$40 million private sector loan to the ETC Group, a commodity trader, to help finance initiatives related to renewable energy, energy efficiency, circular economy,

deforestation, reforestation and capacity building for farmers, as well as increasing access to finance for women farmers across Africa (targets 12.5 and 12.a).

Table 12: Project contributions to SDG 12 targets

No. of contributing projects

% of contributing projects

SDG target

12.1 Implement the 10‑Year Framework of Programs on Sustainable Consump- tion and Production Patterns, all countries taking action, with developed countries taking the lead, taking into account the development and capa- bilities of developing countries 1 12.4 By 2020, achieve the environmentally sound management of chemicals and all wastes throughout their life cycle, in accordance with agreed in- ternational frameworks, and significantly reduce their release to air, water and soil in order to minimize their adverse impacts on human health and the environment 1

12.5 By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse

12.a Support developing countries to strengthen their scientific and techno- logical capacity to move towards more sustainable patterns of consump- tion and production 1

CHAPTER 2

Under SDG 13 (Climate Action), targets 13.1 and 13.2 (Table 13), which aim to strengthen countries’ climate change resilience and mitigation measures are again the main areas of support for the OPEC Fund during this report’s review period. One example for expected greenhouse gas emission reductions (an indicator for target 13.2) includes the aforementioned ¤50 million public sector policy-based loan to North Macedonia co-financed with the World Bank which includes measures to incentivize the banking sector to actively manage and disclose risks stemming from climate change, as well as to report green loans. Another

example is a US$3 million grant for clean cooking provided by the OPEC Fund to Somalia in the context of the US$4.5 billion debt relief package provided to Somalia under the Heavily Indebted Poor Countries (HIPC) initiative launched by the International Development Association (IDA) and the International Monetary Fund (IMF). In addition to the grant for clean cooking, the OPEC Fund also provided US$36.4 million in highly concessional loans and US$3 million in policy-based grant resources. The clean cooking grant is expected to help the country reduce deforestation and emissions due to cooking with polluting fuels (target 13.2).

Table 13: Project contributions to SDG 13 targets

No. of contributing projects

% of contributing projects

SDG target

13.1 Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries 8

13.2 Integrate climate change measures into national policies, strategies and planning 14

13.3 Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning 3

13.a Implement the commitment undertaken by developed-country parties to the United Nations Framework Convention on Climate Change to a goal of mobilizing jointly US$100 billion annually by 2020 from all sources to address the needs of developing countries in the context of meaningful mitigation actions and transparency on implementation and fully oper- ationalize the Green Climate Fund through its capitalization as soon as possible

One OPEC Fund project approved during the reporting period aligns with three different targets within SDG 14 (Life Below Water), as shown in Table 14. This US$20 million loan

to Liberia aims to improve the sustainable management and productivity of fisheries in the country while improving livelihoods and incomes of the project’s beneficiaries.

Table 14: Project contributions to SDG 14 targets

No. of contributing projects

% of contributing projects

SDG target

14.a Increase scientific knowledge, develop research capacity and transfer marine technology, taking into account the Intergovernmental Ocean- ographic Commission Criteria and Guidelines on the Transfer of Marine Technology, in order to improve ocean health and to enhance the contri- bution of marine biodiversity to the development of developing countries, in particular Small Island Developing States and least developed countries 1

14.b Provide access for small-scale artisanal fishers to marine resources and markets 1

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