CHAPTER 3
OPEC FUND SUPPORT TO THE TRANSPORT SECTOR
For almost half a century, the OPEC Fund has financed a wide range of economic sectors, including transporta- tion, to stimulate growth and social progress in low- and middle-income countries around the world, both through public and private sector operations. Since inception in 1976, the OPEC Fund has committed more than US$5.4 billion (21 percent of total commitments) in loans to the transport sector (Figure 12). This includes loans fully dedicated to the transportation sector as well as operations funding transportation components of projects in other sectors, including agriculture, water and sanitation, industry, as well as projects classified as multisector.
The vast majority of commitments in the transport sector supported road transport (80 percent), with the remainder covering infrastructure financing for air (5.5 percent), water (4.5 percent) and rail transport (4 percent), as well as storage and various other types of transport funding (6 percent). Most of the OPEC Fund’s transport sector support has benefited partner countries in Africa (43 percent), followed by Asia (34 percent) and Latin America and the Caribbean (15 percent) (Figure 13).
43+ 34+8+15+H % REGION 43 34 8 15
21+ 18+12+14+12+7+6++10+H % SECTOR 21 18 12 14 12 7 6 10
Figure 12: OPEC Fund commitments since 1977 by sector (%)
Figure 13: OPEC Fund transport sector commitments since 1977 by region
Transport
Latin America and the Caribbean
Africa
Other
Water & Sanitation
Europe
Education & Health
Commodity Aid & General Program Assistance
Banking & Financial Services
Energy
Agriculture
Asia
In addition, the OPEC Fund has provided around US$2.2 million in grants for transport projects, supporting seven projects in Africa and Asia. Two of the allocated grants financed project feasibility studies on the development of the transport sector in four West African countries and a feasibility study for the construction of a new airport in Malawi. The remainder supported road transport efficiency, the construction and installation of a metro line via a cost- sharing contribution and upgrading civil aviation systems in seven African countries.
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