WATER FORWARD
The OPEC Fund’s delivery Building infrastructure is one of the key operational priorities of the OPEC Fund’s Strategic Framework 2030, through which the institution supports expanding access to water and sanitation. The OPEC Fund has a long-standing history of promoting water security across three core areas: Water for People; Water and Sanitation (WASH); Water for Food (e.g. improved irrigation) and Water for Planet (e.g. flood and drought risk reduction, as well as the protection of water sources). Based on the 42 water projects that have been completed or that have reached early operational maturity between 2018 and mid‑2025 and reported developmental results, the OPEC Fund has contributed to initiatives in the water and sanitation, rural and urban development and agriculture sectors that have collectively supported approximately 5.4 million people in strengthening water security. Of this total, around 2.5 million beneficiaries can be attributed directly to the OPEC Fund’s own efforts with US$600 million in financial contributions. Most of these operations were in Africa,
followed by Latin America and the Caribbean.
The Economics of Water By Angus Downie, Principal Economist, OPEC Fund
The OPEC Fund’s enhanced ambition With its US$1 billion pledge in support of Water Forward, the OPEC Fund aims to reach an additional 15 million people by 2030. Along with project financing and the provision of essential grant funding, the OPEC Fund is also increasingly active at the level of policy making with the goal to create an institutional framework that will allow for the delivery of successful projects. The OPEC Fund Climate Solutions Week in April saw the launch of the Green-Blue Connect Accelerator, a pre-investment platform designed to move climate-resilient water and urban initiatives from early-stage concepts to bankable operations. The tool captures the multiple dimensions of water ranging from food to development. First projects have since been initiated, for instance supporting decentralized water storage for drought resilience, mangrove restoration in Sierra Leone or improved access to safe drinking water for children in climate-vulnerable areas of Bangladesh and Zambia.
W ater is unlike anything else. It is the foundation of life, but it also underpins economic activity and environmental sustainability. Unlike other economic inputs, there is no substitute for water: it is essential for drinking, sanitation, food production, energy generation, industrial processes and ecosystem health. In recognizing this irreplaceability, development banks increasingly view water security as a prerequisite for economic growth, poverty reduction, climate resilience and social stability. The World Bank’s recent report Investing in Water for People, Food, and Planet estimates that water- dependent sectors support around 1.7 billion jobs worldwide, illustrating
Food Security and Rural Development Program, Burundi Completed 2022 Financing US$51.6 MN • US$19.1 million OPEC Fund • US$30 million Global Agriculture and Food Security Programme • US$1 million IFAD • US$1.5 million Government and beneficiaries Results • The project treated 10,848 ha of land through watershed protection and reforested 890 ha, while 2,418.54 ha of marshlands were developed or rehabilitated for rice irrigation. • Irrigation works included 1,500 ha developed. • Rural connectivity improved through 214.5 km of rehabilitated/constructed roads. • Value-chain achievements included 1,205 vulnerable rice farmers receiving input kits.
Impact • The program reached more than 65,000 households, or about 400,000 individuals, and supported thousands of farmers through cooperatives, farmer field schools, and value chain services. • Nutrition interventions helped more than 2,000 malnourished children. • Overall, beneficiaries' annual income increased by 155 percent, and poverty dropped from 72.6 percent to 53.6 percent among participant households.
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