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.
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