OPEC Fund Annual Report 2023

01 | THE HIGHLIGHTS – PRIVATE SECTOR @25

PRIVATE SECTOR @25

The OPEC Fund launched its private sector operations in 1998 with its first transaction in 1999, complementing its long-standing engagement with the public sector in its partner countries. While public sector operations often aim to create the infrastructure and enable an environment for a successful economy, it is the private sector that produces and trades essential goods and services. The private sector drives economic growth, the generation of employment and the creation of wealth. Support to the private sector perfectly complements the OPEC Fund’s development mandate. Trade finance provides essential funding to keep the wheels of the

economy turning and allows importers and exporters to benefit from the advantages of mutual exchange and burden-sharing. To date, the OPEC Fund has approved more than 600 private sector, trade finance and equity transactions totaling a commitment of more than US$10.5 billion, including roll-overs, of which about US$10 billion came in the form of loans. The OPEC Fund’s private sector efforts have directly boosted the economies of more than 70 countries globally through its funding channels. Since 2006, the Private Sector and Trade Finance De- partment has provided over 11,000 unfunded guaran- tees globally for more than US$12 billion.

SUPPORTING MICROFINANCE INVESTMENTS GLOBALLY

TAFILA WIND POWER PLANT

Country Global

Type Equity

1 st transaction 2009

Country Jordan

Type Project Finance

1 st transaction 2013

The Microfinance Enhancement Facility (MEF) was cre- ated in 2009 by the International Finance Corporation, KfW Development Bank and the Development Bank of Austria in response to the financial crisis and liquidity challenges faced by microfinance institutions worldwide. The OPEC Fund invested US$20 million in 2009, fol- lowed by an additional US$20 million in 2014. Between 2009 and 2022, MEF invested US$2.9 billion across 312 microfinance institutions in 64 countries, reaching 740,000 end borrowers — of which 78 percent were women and 69 percent were living in rural areas.

The OPEC Fund co-financed the construction of a 117 MW wind power plant and associated facilities on a build-own-operate basis in Tafila, Jordan. The plant helped the country to diversify its energy mix and reduce its reliance on gas-fired power plants. Developed by the power developer and operator Masdar, Tafila is the first commercial utility scale wind power plant in the country. The plant generates some 390 GWh of electricity annually, powering around 83,000 homes while cutting nearly 235,000 tonnes of CO 2 emissions.

OPEC Fund total commitment: US$40 million

OPEC Fund total commitment: US$20 million

Operation Implementation: Completed