OPEC Fund Quarterly - 2021 Q4

OPEC Fund Quarterly - 2021 4

The OPEC Fund for International Development

OPEC FUND QUARTERLY 4 2021

Fighting COVID-19, securing long-term solutions Healthcare for all

PLUS

World Bank Interview

Evercare Group

OPEC Fund Project News

The OPEC Fund Quarterly is published four times a year by the OPEC Fund for International Development. The OPEC Fund works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. The organization was established by the member countries of OPEC in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. The OPEC Fund Quarterly is available free. If you wish to be included on the distribution list, please contact us via opecfund.org . Back issues of the magazine can be found on our website. The contents of this publication do not necessarily reflect the official views of the OPEC Fund or its Member Countries. Any maps are for illustration purposes only and are not to be taken as accurate representations of borders. Editorial material may be freely reproduced, providing the OPEC Fund Quarterly is credited.

EXECUTIVE EDITOR Tarek Sherlala EDITORS Basak Pamir, Axel Reiserer DEPUTY EDITOR Anna Ilaria-Mayrhofer PHOTOGRAPHS Abdullah Alipour Jeddi, Carlos Opitz (unless otherwise credited) PRODUCTION Iris Vittini Encarnacion DESIGN in association with More Tea Design Ltd PRINTED IN AUSTRIA Druckerei Odysseus This publication is printed on paper produced from responsibly managed forests.

PUBLISHERS THE OPEC FUND Parkring 8, A-1010 Vienna, Austria Tel: (+43-1) 51564-0 Fax: (+43-1) 51392-38 www.opecfund.org

FRONT COVER ILLUSTRATION: Robin Turton @ More Tea Design Ltd COVER PHOTOS (clockwise from top left): Manoej Paateel/Shutterstock.com; Yaw Niel/Shutterstock.com; EZ-Stock Studio/Shutterstock.com

CONTENTS

4/2021

COMMENT 4-5 Healthcare in the developing world

NEW DEVELOPMENT FUNDING 46-49 The OPEC Fund's latest operations OPEC 50 OPEC and City of Vienna launch inaugural Vienna Energy Scholar Program

Revitalizing El Salvador's small businesses

Promoting sustainable development in Latin America and the Caribbean OPEC Fund and AIIB partner to provide infrastructure funding in Egypt

SPECIAL FEATURE 6-19 Healthcare for all 6-7 Introduction 8-11

Temane power plant in Mozambique reaches financial close

Boosting regional integration and international trade in Africa

"Pandemics don't need passports to cross borders"

SPOTLIGHT 36-39 Evercare Group Transforming healthcare in south Asia and Africa EVENTS 40-42 40 Saudi Green Initiative Forum Climate change: when one size does not fit all 41 Annual Meeting of the Asian Infrastructure Investment Bank OPEC Fund delegation calls to step up renewables

12-17

The OPEC Fund's care for global health How to beat Neglected Tropical Diseases

18-19

IN THE FIELD 20-23 20 Introduction 21

Improving road connectivity in Kosovo 22-23 Expanding cancer care in Malawi DEVELOPMENT NEWS 24-35 24 Creating new trade opportunities for Mauritius 25 Supporting SMEs in Paraguay 26 New grants enhance food security in Colombia and air transport in Malawi 27 Ghana’s COCOBOD and OPEC Fund strengthen partnership

Photo courtesy of YDA Group 2018

Kuwait Fund for Arab Economic Development Marking its 60th anniversary

PHOTO: POLACOSTUDIOS/Shutterstock.com

OPEC FUND 43 43 S&P assigns OPEC Fund AA/A-1+, Positive Outlook rating MEETINGS & CONFERENCES 44-45 October–December 2021

Supporting post-pandemic economic recovery of small businesses in El Salvador Promoting sustainable energy and supporting small enterprises in Armenia OPEC Fund and IFAD to boost agricultural trade in Benin and Togo

PHOTO: tools12/Shutterstock.com

COMMENT

HEALTHCARE IN THE DEVELOPING WORLD

W elcome to the OPEC Fund Quarterly. This edition focuses on healthcare, a topic that has dominated news headlines and public debate for almost two years due to the COVID-19 pandemic. The coronavirus has put health systems worldwide under unprecedented strain, with more than 5.45 million deaths to date. As the latest developments demonstrate, the pandemic will continue to test countries’ healthcare capacities to the limit into 2022. Against this backdrop, the OPEC Fund’s mission to help governments strengthen their healthcare systems is more urgent than ever. As we look at how best to aid the public and private sectors during and after the pandemic, we also recognize that the rigors of the last two years may have come at a cost. “If you have to put most of your resources into fighting the COVID-19 pandemic, then you may be forced to neglect the standard healthcare that people also need,” cautions Sharagim Shams, Senior Country Manager in our Public Sector Operations Department in an interview with the OPEC Fund Quarterly. The present challenge is how to ensure continued investment in sustainable

healthcare systems, while focusing on urgent COVID-19 related measures. The private sector can contribute by taking on some of the burden in healthcare. “The more there are good private hospitals, the less pressure there is on public sector infrastructure. Private healthcare also provides job opportunities in a skilled sector, retaining talents,” explains Ramina Samii, Director, Portfolio Management in Private Sector and Trade Finance Operations (see pp 12-17). The World Bank has been concentrating its energies on pandemic damage limitation – it has provided US$150 billion to developing countries so far. But it too is beginning to look to the future. Mamta Murthi, the World Bank’s Vice President for Human Development, sees challenges ahead: “If we look at how much countries have been spending on healthcare in the recent past and at how much they are able to spend projecting forward, we’re very concerned that most developing countries really do not have the resources to fight COVID-19 and to

Relentless focus on the coronavirus has obscured the toll other illnesses continue to inflict. Neglected tropical diseases (NTDs) are a group of communicable conditions that affect 1.5 billion people worldwide – causing disability and disfigurement, and killing over 170,000 a year. “In 2020, NTDs caused far more illnesses, disability and mortality in Africa than COVID-19,” says Dr. Maria Rebollo Polo, Team Leader for the WHO’s Expanded Special Project for Elimination of Neglected Tropical Diseases (ESPEN) partnership (see pp 18-19), which includes the OPEC Fund. ESPEN is already having a tremendous impact, having protected 450 million of the 600 million Africans affected by NTDs up to 2020. But now is not the time to let up, says Rebollo: “It is critical that we do not allow the pandemic to reverse years of hard-fought progress. We are so close to the finish line and we need to keep the momentum going.” Private healthcare is invaluable in filling the gaps where the public sector cannot meet demand. This is especially true in emerging economies, whose weaknesses have been further exposed by the pandemic, says Massimiliano Colella, CEO of the healthcare equity platform Evercare (see pp 36-39): “The COVID-19

strengthen their health systems”. For more on what COVID-19 has

taught the World Bank about building responsive and resilient medical systems, see pp 8-11.

Against the backdrop of COVID-19, the OPEC Fund’s mission to help governments strengthen their healthcare systems is more urgent than ever.

pandemic exposed and exacerbated gaps in healthcare systems across the world and really highlighted the ever- increasing disparity between healthcare in developed and emerging economies.” Evercare – an OPEC Fund beneficiary – aims to bridge this gulf: It has a network of 30 hospitals, 16 clinics and 82 diagnostic centers across Africa and south-east Asia, where it is seeking new opportunities to strengthen healthcare for underserved communities. Promoting sustainable development in more than 125 countries since its foundation in 1976, the OPEC Fund has a longstanding involvement in healthcare

projects. In total, we have pledged US$1.1 billion to sovereign and non- sovereign health projects. In March 2020, we committed US$1 billion to COVID-19-related projects – nearly all of which has now been deployed. Guided by the Sustainable Development

Goal (SDG) 3 – Good Health and Well-Being, we will continue to

increase our engagement with our client countries, partners and the international development community and focus our efforts on contributing to immediate

relief and longer-term economic recovery, where support is most needed.

SPECIAL FEATURE

HEALTHCARE FOR ALL The COVID-19 pandemic continues to hold the world in its grip. But the coronavirus is only one of many challenges developing countries are facing

In this issue of the OPEC Fund Quarterly we are looking at the bigger picture behind the coronavirus crisis. The pandemic has exposed global weaknesses which go beyond the current emergency. Governments, multilateral development organisations and the private sector are put to the test like never before

PHOTO: DisobeyArt/ Shutterstock.com

SPECIAL FEATURE

Photo courtesy of The Rise Fund – Impact Report 2020

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PANDEMICS DON’T NEED PASSPORTS TO CROSS BORDERS In a conversation with Mamta Murthi , World Bank Vice President for Human Development, we discuss lessons learned from the COVID-19 pandemic, its impact on global healthcare and the way forward to build more equitable and sustainable systems

OPEC Fund Quarterly : What has the COVID-19 pandemic taught us about global pandemic preparedness and healthcare systems? Mamta Murthi: The COVID-19 pandemic has savagely exposed the weaknesses of healthcare systems and pandemic preparedness. Even countries that were considered to have been well-prepared initially faced incredible difficulties. On the supply side, health services have been disrupted because resources are being prioritized for the pandemic, while at the demand side we see issues such as loss of livelihoods and economic hardship caused by the pandemic. The pandemic has clearly shown that there is a need for much more investment in healthcare, including preventive systems such as surveillance and monitoring, in addition to the capacity to treat people when a disease becomes an epidemic or a pandemic. This requires financing, institutional

strength, development and cooperation across borders.

OFQ : Has the pandemic changed the way the World Bank Group is working? Did you, for example, hire extra staff or change your priorities? MM: The pandemic has led to the largest ramp-up in our financial support to the public and the private sectors in our history. In the past 18 months, the World Bank Group provided over US$150 billion in financing to support developing countries. Our financing has helped provide governments with resources to expand safety nets for people. We have supported emergency health measures and education systems. We helped farms and businesses and provided trade finance. We also extended budget support to governments, which have been squeezed due to falling tax revenues and economic inactivity.

In the past 18 months, the World Bank Group provided over US$150bn in financing to support developing countries

SPECIAL FEATURE

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The pandemic has clearly shown that there is a need for much more investment in healthcare, including preventive systems such as surveillance and monitoring, in addition to the capacity to treat people when a disease becomes an epidemic or a pandemic. This requires financing, institutional strength, development and cooperation across borders.

Mamta Murthi, World Bank Vice President, Human Development

OFQ : Can you give us concrete examples of the World Bank’s impact with its pandemic response? MM: The global COVID-19 pandemic vaccination campaign is the largest in history, presenting challenges unprecedented in scale, speed, and specificities, especially in low- and middle-income countries. In November 2020, together with the World Health Organization (WHO), UNICEF, the Global Fund and the Vaccine Alliance (GAVI), we rolled out readiness assessments in over 140 countries. Based on our findings, we provided project financing for the purchase of vaccines and filling supply gaps. We are making US$20 billion available to help countries purchase and deploy vaccines. This builds on a US$8 billion global health platform, which has helped in the initial emergency response.

PHOTO: Erick KAglan/World Bank

OFQ : How can countries make their health systems more equitable and more sustainable, ensuring that the most vulnerable like women and children are not left behind? MM: In the short term, it's still all about addressing COVID-19. Countries have to focus on acquiring and deploying vaccines and ensuring that national vaccine deployment plans are prioritized and inclusive. Programs should benefit vulnerable populations and help ensure gender equality. In the medium to long term, I think it's extremely important to have well- resourced and well-staffed basic healthcare. We support countries to raise resources so that they can fund the basics adequately, but also to make sure that money is well spent and resources are reaching the targeted populations. We are very concerned that most developing countries do not have the resources to fight COVID-19 or to strengthen their healthcare systems. Their resources are insufficient to prepare for the next pandemic and to expand health coverage. This is why we are making the case that healthcare needs to be prioritized within government spending. There is also a very strong role for external financing,

especially in the short and medium term. Over time, we can expect countries to fund more of their healthcare with their own domestic resources. OFQ : What should the countries focus on? MM: Funds need to be focused on the building blocks of healthcare such as strong surveillance and monitoring, primary healthcare and robust supply chains. Surveillance and monitoring systems are needed to detect a disease outbreak. Such systems need to scan for environmental factors, animal diseases, as well as human diseases. Ebola, Zika, or COVID-19 are zoonotic diseases that have leaped from animals to humans. Systems also need to function at national and regional levels. Pandemics don’t need passports to cross borders. Another fundamental building block is the decentralized manufacturing of medical equipment. The pandemic has taught us that this capacity is very concentrated. There have been serious supply chain issues when COVID-19 first struck with the supply of personal protective equipment, medical equipment and ventilators. Now, the global supply of vaccines is very uneven.

This is why it is very important that we increase capacities for manufacturing in a decentralized manner. This would strengthen resilience. OFQ : In June, the G7 pledged US$2 billion to purchase doses of vaccine. How much of these have been deployed? MM: So far only about 15 percent of the pledges have been delivered. In sub- Saharan Africa vaccination rates are as low as five to six percent – compared to well over 50 percent in richer parts of the world. It is sobering. The two factors behind this inequity have been the limited supply and speed of donations. It is a big challenge that we have this huge inequity in access to vaccines. Initially the supply was limited, then the available supply was picked up by richer countries. We have set up a Multilateral Leaders Task Force with partners such as WHO, International Monetary Fund and World Trade Organization and asked countries who made pledges to accelerate their donations. We're also asking them to favor low-income countries or vaccine procurement mechanisms like the COVID-19 Vaccines Global Access (COVAX) initiative and the African

SPECIAL FEATURE

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We are making the case that

healthcare needs to be prioritized within government spending.

WORLD BANK SUPPORT The World Bank has supported fragile countries with early detection and rapid response to contain the spread of COVID-19. In Yemen, along with the World Health Organization and UNICEF, it helped to establish 37 isolation units and supply medicines and medical equipment. It also supported training and deployment of rapid response teams to 84 high-priority districts, where they are helping detect and respond to COVID-19. In addition to first response and supporting countries with a focus on the purchase of PPE, medicines and the upgrading of health facilities, the World Bank supports vaccine operations. In Ecuador, the World Bank’s US$150 million financing will be used to purchase vaccines as well as manage supply chains, logistics and distribution. With this funding, the government expects to vaccinate approximately 30 percent of the population.

Mamta Murthi, World Bank Vice President, Human Development

Vaccine Acquisition Trust. The World Bank is also working with countries to participate in these pools so they can use joint purchasing power. OFQ : Did you change your strategy towards partnerships in the context of the pandemic? MM: The COVID-19 pandemic has made everyone work with each other a lot more, because nobody can handle this crisis on their own. What we see now

and want to encourage even more is the power of coming together. There's a partnership in virtually every activity that we engage in, it's almost hard to imagine what we could do on our own. The pandemic really showed how institutions, despite their different mandate and operating styles, rules and procedures, can actually come together when there is a global emergency that needs to be addressed by everyone.

THE OPEC FUND’S CARE FOR GLOBAL HEALTH Long before the COVID-19 pandemic demonstrated to the world the fundamental importance of public health, the OPEC Fund had made healthcare a priority. Over the years, the Fund has provided more than US$1.1 billion to the sector in its partner countries, supporting the development of primary to tertiary healthcare and training facilities, manufacturing medical supplies and increasing hospital beds

A t the start of the pandemic, the OPEC Fund committed US$1 billion to support the rapid response to the crisis and economic rebuilding efforts. Nearly all of these funds have now been committed. But the massive mobilization in response to the unprecedented public health crisis has confronted many governments with a new problem, says Sharagim Shams, Senior Country Manager for Eastern and Southern Africa in the OPEC Fund’s Public Sector Operations Department: “If you have to put most of your resources into fighting the COVID-19 pandemic,

then you may be forced to neglect the standard healthcare that people also need.” The longer-term responsibility for the OPEC Fund and its partner governments and development institutions is now to rebalance priorities and strengthen countries’ broader healthcare capacity. Much as the public sector has been at the forefront of the fight against the coronavirus pandemic, it will also lead the healthcare sector during the recovery phase. It is the conduit for the majority of the OPEC Fund’s investments in the sector, attracting almost 77 percent of the

Fund’s healthcare financing to date. The Fund’s Public Sector Operations Department will continue to cooperate with countries to identify projects that best meet their needs and conform with its mandate to promote partner countries’ socio-economic development. This is especially urgent in Africa, which in its sub-Saharan region still only spends just over five percent of total GDP on healthcare (around 50 percent lower than the world average). African governments often have to operate within fiscal constraints that reduce their own ability to invest

SPECIAL FEATURE

PHOTO: Vlad Karavaev/Shutterstock.com

in healthcare – and their borrowing capacity from multilateral development institutions such as the OPEC Fund. Another issue is the lack of reliable and accurate data that hinders informed and effective policy-making needed to attract outside partners. Implementing the specifics of individual projects often brings further challenges. “At concept level, the technical and financial capacity for preparing bankable healthcare projects for external funding is less in Africa compared to other continents,” says Shams. “Take technical documents, for example feasibility studies, due

Sub-Saharan Africa spends only slightly more than 5% of GDP on healthcare

Photo courtesy of the Ministry of Health Uganda

diligence reports, detailed engineering and design reports. Even in more developed African countries the line ministries don’t necessarily have all technical expertise in-house. So it has to be outsourced – but then you need the financial resources to recruit those specialists.” The OPEC Fund recognizes the importance of building countries’ capacity for these crucial planning stages – it has recently introduced a new technical assistance grant facility for financing and recruiting consultants to prepare technical documents. Equally, during project implementation, the capacity of the executing agencies

and the local skills base are paramount to its success – something the organization is also committed to developing. One country currently strengthening its healthcare sector is Uganda. The OPEC Fund – co-financing with the Arab Bank for Economic Development in Africa (BADEA), the Saudi Fund for Development and the national government – contributed to a US$41 million project for the renovation and upgrade of two hospitals in the Yumbe and Kayanga provinces. Once fully in operation during the first quarter of 2022, the project will be a game-changer in the quality of medical

services and facilities provided, as well as opening up wider access to the 950,000 inhabitants of these largely rural areas, addressing a long-standing problem in most African countries. The development of a specialized cardiovascular care facility in Uganda has been identified as a top priority in the country’s national healthcare plan. This has led to the recent approval of the Uganda Heart Institute, a US$73 million hospital project in the capital Kampala, to be financed by the same parties. The OPEC Fund responded by fast-tracking the project and the new hospital is expected to be operational by 2025.

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The funding in Uganda will improve access to medical services and facilities for 950,000 inhabitants

If you have to put most of your resources into fighting the COVID-19 pandemic, then you may be forced to neglect the standard healthcare that people also need.

Sharagim Shams, OPEC Fund Senior Country Manager for Eastern and Southern Africa, Public Sector Operations

SPECIAL FEATURE

PRIVATE AND PUBLIC COOPERATION

T he OPEC Fund’s Private and Trade Finance Operations – which represent just under 10 percent of the Fund’s healthcare investments – primarily respond to the needs and opportunities identified by private sector operators to build and operate state-of-the-art health facilities. Ramina Samii, OPEC Fund Director, Portfolio Management, explains: “Private healthcare depends on three things to succeed: firstly, economic development so that people can actually afford it. Second, employers’ health insurance schemes covering private healthcare. Finally, the state of the healthcare market development: Where the financial sector is providing healthcare insurance, you see more demand for private healthcare.” Ultimately, Samii reminds us, private sector involvement benefits the public health sector too: “The more there are good private hospitals, the less pressure

tourism which is costly for citizens and governments as it utilizes limited foreign exchange. Healthcare also provides job opportunities in a skilled sector, retaining talents.” The OPEC Fund finances private healthcare in one of four ways: wholly private initiatives, where the capital is provided and the market risk is underwritten by the private sector; public-private partnerships (PPP), where the capital is provided by the private sector while the market risk is

The more there are good private hospitals, the less pressure there is on public sector infrastructure. Ramina Samii, OPEC Fund Director, Portfolio Management “

there is on public sector infrastructure. Moreover,

13 operational hospitals and health campuses have been developed under Turkey's PPP program

good healthcare, whether public or private, at home reduces health

Manisa City Hospital in Turkey

PHOTO: Kursova Photography

Once it’s 'mission “

accomplished' a new mission starts in how to maintain the facility and train the people to keep them there. Sharagim Shams, OPEC Fund Senior Country Manager for Eastern and Southern Africa, Public Sector Operations

underwritten by the sovereign also acting as the ultimate guarantor; equity funds that include healthcare in their investment portfolios; and trade finance

populations that has helped Pakistan meet demand for testing during the COVID-19 pandemic. For more detail on how Evercare is expanding access to healthcare, see pp 36-39. In the coming years, the OPEC Fund will continue to drive progress towards Sustainable Development Goal (SDG) 3 – Good Health and Well-Being, with targeted public and private healthcare investments. In Africa, even as the continent strengthens economically, Shams believes the effort to achieve better healthcare is ongoing – even with better infrastructure in place. “Once it’s 'mission accomplished' on a project, a new mission starts in how to maintain the facility and train the people to keep them there,” he says. Beyond patients’ welfare, perhaps this is the hidden reward of building quality healthcare: the deeper, cascading effects on society when fostering the required technology, knowledge and skills. Succeeding in helping people to live healthier and longer lives is healthcare’s defining mission.

transactions that enable trade in essential medical equipment or

goods such as pharmaceutical drugs. A new 558-bed hospital in Turkey’s western Manisa province demonstrates how the private sector successfully fills gaps in public infrastructure. A PPP initiative building on the country’s successful track record, the US$267 million project is targeting a marked shortfall of hospital beds. National health insurance coverage in Turkey has reached close to 100 percent since the inception of a national health plan in 2003. Now, the PPP model is vital for rapidly raising finance for the construction of medical units: the city hospital in Manisa is one of 13 hospitals and health campuses under the PPP program. Private equity, meanwhile, can provide a route for high-quality interventions on a broader scale in the healthcare sector. Since 2016, the OPEC

Fund has invested US$20 million in Evercare, a healthcare-focused equity platform that seeks opportunities for building quality medical infrastructure in Africa and south-east Asia. Evercare also supports an existing network, which currently consists of 30 hospitals, 16 clinics and 82 diagnostic centers, including the Islamabad Diagnostic Center, a chain of laboratory and imaging services for low-income

MANISA CITY HOSPITAL The OPEC Fund financed the construction of Manisa City Hospital in Turkey, which has been in operation since 2018. The COVID-19 pandemic resulted in an increased need for large-capacity and modern hospitals equipped to handle the needs of an unprecedented number of patients. Manisa Hospital is providing vital assistance to patients, thanks to an increased bed and intensive care capacity.

SPECIAL FEATURE

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At the onset of the pandemic the OPEC Fund announced a US$1bn COVID-19 response programme

THE OPEC FUND AND COVID-19

As the world faced the coronavirus pandemic, the OPEC Fund immediately mobilized support for governments and the private sector – announcing a US$1 billion COVID-19 response program. Across its full range of co-financed projects, nearly all financing has already been committed. Sovereign loans were initially directed towards emergency relief efforts, for example purchasing medical supplies such as testing kits and laboratory equipment. The OPEC Fund’s public and private sector investments focused on minimizing the economic disruption caused by

the pandemic: ensuring access to capital for small- and medium-sized enterprises to sustain employment levels and create new jobs, while strengthening supply chains helped promote international trade and connectivity. The pandemic saw the OPEC Fund implement “fast track” approvals to respond to the rapidly- changing priorities in this unprecedented time. The global nature of the crisis also means that the OPEC Fund, more than ever, engages in partnerships with multilateral, regional and bilateral development organizations.

The pandemic saw the OPEC Fund implement “fast track” approvals to respond to the rapidly-changing priorities in this unprecedented time.

HOW TO BEAT Dr. Maria Rebollo Polo explains why the fight against Neglected Tropical Diseases is vital for the combat against COVID-19 and the achievement of the Sustainable Development Goals (SDGs) NTDs

I n this interview, Dr. Maria Rebollo Polo, Team Leader for the Expanded Special Project for Elimination of Neglected Tropical Diseases (ESPEN) at the World Health Organization’s (WHO) Regional Office for Africa, discusses how directing more investments to combat Neglected Tropical Diseases (NTDs) can help in the fight against the COVID-19 pandemic and achieving the SDGs. OPEC Fund Quarterly : Can you tell us about NTDs and how they impact communities across Africa? Maria Rebollo Polo: Neglected tropical diseases affect about 600 million people on the African continent, causing more than 500,000 annual deaths. They are a global problem: NTDs pose a threat to more than 1.5 billion people worldwide, making them one of the biggest health problems in the developing world. They disable, disfigure and sometimes kill – keeping children out of school and adults out of work. They imprison afflicted communities in a vicious cycle of poverty and disease, which also creates a significant barrier to achieving the SDGs. But there is also hope. NTDs are curable when you detect them early, and they are preventable. They can be

controlled and eliminated by applying preventive chemotherapy through Mass Drug Administration (MDA). MDA involves giving treatment to every member of a population or every person living in a defined geographical area regardless of whether or not they are infected. OFQ : How does ESPEN contribute to fighting NTDs? What has the program achieved so far? MRP: ESPEN has made it its mission to accelerate the elimination of the most common NTDs in Africa that can be prevented and treated by preventive chemotherapy delivered through MDA, complemented by the water, sanitation and hygiene (WASH) program, the most cost-effective elimination strategy against NTDs. Since its launch in May 2016, ESPEN has worked with national and international partners to leverage US$17.8 billion in drug donations from pharmaceutical companies to expand coverage and access to treatment, strengthen healthcare systems and provide universal health coverage of NTD interventions in Africa. Our goal is the final elimination of these devastating diseases. ESPEN aims to equip all

stakeholders with evidence-based data to improve decision-making and target investments efficiently, and has therefore established the ESPEN Portal, a global system for data collection. In the past few years much has been accomplished: African governments, with the support of the ESPEN Partnership and an OPEC Fund grant, have protected 450 million of the 600 million people affected by NTDs until 2020, demonstrating that investments in ESPEN deliver significant impact. ESPEN reduces the cost of treating all five of the high-burden diseases it targets to just US$0.50 per person annually. To support its goal to improve the effective use of donated medicines through enhanced supply chain management, ESPEN has identified gaps in supply chains in 45 countries and recovered and repurposed about 930 million tablets worth more than US$106 million from 2017 to 2020. Through the ESPEN partnership we have managed to improve access to data, scale up treatment and enhance the capacity to effectively deliver NTD interventions across 45 countries in Africa. Two diseases have been extinguished as a public health problem from four

SPECIAL FEATURE

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NTDs are curable when you detect them early. They can be controlled and eliminated by applying preventive chemotherapy through Mass Drug Administration. Dr. Maria Rebollo Polo, World Health Organization, Team Leader ESPEN

Photo courtesy of WHO/ESPEN

Rather than slowing down our efforts, we should work in synergy to combat COVID-19 and NTDs. Both can be averted by taking similar preventive measures, engaging NTD community health workers, laboratory and testing services, medicine distribution channels, health education, behavior change training and implementing improved WASH facilities. NTD programs will continue to serve as well-established grassroots platforms to implement interventions along with other preventive health measures for people, including those living in the most remote regions. Controlling NTDs can curb COVID-19

FACTFILE: NTDs

The following six NTDs can be controlled or eliminated through mass administration of safe and effective medicines or other interventions: • Dracunculiasis (Guinea Worm Disease) • Lymphatic Filariasis • Onchocerciasis • Schistosomiasis • Soil-transmitted Helminths e.g. Ascaris, Hookworm, and Whipworm • Trachoma Controlling the vectors (mosquitoes, black flies) that transmit these diseases and improving basic water, sanitation and hygiene are highly effective strategies against these NTDs.

countries: Togo and Malawi eliminated lymphatic filariasis, Ghana and The Gambia eliminated trachoma. Meanwhile, Ethiopia achieved full geographical treatment coverage for trachoma. OFQ : How relevant is the fight against NTDs in times when the world is battling COVID-19? Can you tell us about the wider benefits that investing in NTDs can have? MRP: While the world continues to battle COVID-19, it is critical that we do not allow the pandemic to reverse years of hard-fought progress against NTDs. In 2020, NTDs caused far more illnesses, disability and mortality in Africa than COVID-19.

and other future health threats. We must work together in our

battle to improve the well-being of the population, whether it is NTDs, COVID-19 or any other health threat. We must ensure that the most vulnerable get the necessary medicines to prevent suffering and avoidable deaths. Now many African governments have access to the tools, the drugs and the data to implement long-term solutions. We are close to the finish line and need to keep the momentum going. It is in the interest of the global community to sustain investments in the fight against NTDs that directly impact the health and poverty alleviation of vulnerable communities.

Source: CDC (Centers for Disease Control and Prevention)

IN THE FIELD

The Sustainable Development Goals (SDGs) have long guided the OPEC Fund as it works to meet essential needs – such as food, energy, infrastructure, clean water and sanitation, healthcare, employment and education – in low- and middle-income countries. By providing affordable development finance to countries and regions that often find funds difficult to secure,

we are helping to solve challenges in a market-supportive manner, while promoting cooperation with and among the more vulnerable parts of our world. The following pages showcase some of the OPEC Fund's recent investments and underline our commitment to increasing our development impact in a wide range of sectors and countries across the world.

PHOTO: hecke71 – stock.adobe.com

IN THE FIELD

IMPROVING ROAD CONNECTIVITY IN KOSOVO Construction is underway in Kosovo on an upgrade of the main road linking Milloshevë and Mitrovica thanks to an international group of lenders including the OPEC Fund with a US$20 million loan

A recent mission to the country allowed MENA, Eastern Europe & Central Asia Country Manager Fatma Elzahra Elshhati to familiarize herself with the project’s progress and she underlines: “We were very encouraged by what we saw on the ground. The new road will in many ways be a game-changer, because improving connectivity is absolutely critical for the successful development of the country.” The 26.7-km section, financed by the OPEC Fund together with the Islamic Development Bank, the Saudi Fund for Development and the government of Kosovo is part of the road connecting Mitrovica with the capital Pristina. The modernization is vital for the economic development and regional and pan- European integration of this landlocked country in a strategic position in south- eastern Europe. The total project cost is US$112 million. Better roads will benefit Kosovo in many ways, Elshhati says. Shorter travel times will support the integration of the country. Better roads will facilitate exports and imports, offering new business and trade opportunities. They will provide local producers with faster, easier and better access to external markets. While road transport dominates over other modes in Kosovo, road density is among the lowest in Europe. Modern roads also improve safety and reduce the number of accidents. Kosovo is a small open economy and imports more goods and services than it exports. The development of a competitive private sector remains

a government priority. The provision of the necessary infrastructure and services has been recognized as a key condition for sustainable economic development. The construction of new and upgrading of existing road and rail connections are key pillars of the National Development Strategy 2030. Following a steep decline of output resulting from the outbreak of the COVID-19 pandemic in 2020, the Kosovar economy quickly recovered in 2021 thanks to a favorable external environment and a substantial inflow of remittances. Most recently, the authorities responded to the forth wave of the coronavirus in December 2021 with strict measures in order to protect the current low infection rates against the latest variant. The road financed by the OPEC Fund and its partners is part of the M2, one of the most important arterial routes of Kosovo’s 647 km core road network. Some sections have the highest average traffic in the country. The upgrade of the

and Hysen Durmishi, representatives of the Ministry of Finance, and other partners from the World Bank and the European Bank for Reconstruction and Development to discuss future cooperation and co-financing opportunities. She said: “I am very pleased with the good progress our project is making. But Kosovo needs more, as a modern transport infrastructure is key to its successful development. The OPEC Fund is committed to supporting this goal.” The OPEC Fund and Kosovo have been partners since February 2013, when the Fund decided to provide financial support to the country’s development priorities in accordance with its mandate. The Milloshevë- Mitrovica road is the OPEC Fund’s first engagement in the country.

“ Better roads [...] will provide local producers with faster, easier and

road from a single to a dual carriageway is a priority in the authorities’ economic development plans for the country. During her visit, Elshhati also met with government ministers including the Minister and Deputy Minister for Environment Spatial

better access to external markets.

Fatma Elzahra Elshhati, OPEC Fund, MENA, Eastern Europe & Central Asia Country Manager

Planning and Infrastructure, Liburn Aliu

During a recent mission to Lilongwe, Malawi, an OPEC Fund team charted progress of a healthcare project that will bring the full spectrum of cancer treatment services to patients THE OPEC FUND- FINANCED NATIONAL CANCER TREATMENT CENTER IN MALAWI

B uilt adjacent to the Kamuzu Central Hospital, the National Cancer Treatment Center will be the country’s first dedicated facility that offers both radiotherapy and chemotherapy. “Cancer is a significant public health problem in Malawi,” says Khaled Al-Zayer, OPEC Fund Director, Public Sector Operations, Eastern and Southern Africa (below right). “While some hospitals in the country provide chemotherapy, radiation therapy is non-existent. Patients must instead travel abroad to seek treatment – an option that isn’t available to everyone.” The OPEC Fund provided the majority of funding for the National Cancer Treatment Center with a loan of US$13.2 million, along with finance from the

Malawian government and technical assistance from the International Atomic Energy Agency. Al-Zayer recently visited the project site. Part of the center has been completed and is offering in- and out-patient chemotherapy. “The design process for the final project phase is making good progress and will soon be completed,” he reports. “Works are expected to commence after Malawi’s rainy season ends in the spring of 2022, when additional buildings to house radiotherapy equipment will be constructed. The aim is to have the center fully operational by the end of 2022.” The center will not only reduce mortality rates in Malawi, it will also address shortages in qualified human resources by providing in-service training of oncologists, nurses, technicians and administrative staff. The facility will be equipped to treat around 2,000 patients per year and will also serve as a referral center from other healthcare facilities in the country.

“ In addition to making it easier for Malawians to access the specialized care they need, the project will significantly reduce costs for the government. Khaled Al-Zayer, OPEC Fund Director, Public Sector Operations, Eastern and Southern Africa

“In addition to making it easier for Malawians to access the specialized care they need, the project will significantly reduce costs for the government as it currently spends well over US$1 million annually sending patients abroad for treatment”, explains Al-Zayer. “This will in turn free up funding that can be re-allocated to

other priority areas for the

benefit of the population.”

IN THE FIELD

IN PICTURES: THE NATIONAL CANCER TREATMENT CENTER

US$13.2m for the National Cancer Treatment Center has been provided by the OPEC Fund

The design process is making good progress and will soon be completed. The aim is to have the center fully operational by the end of 2022. Khaled Al-Zayer, OPEC Fund Director, Public Sector Operations, Eastern and Southern Africa “

PHOTO (large frame): Christian Delbert – stock.adobe.com

DEVELOPMENT NEWS

The proceeds of the syndicated facility will be used for general corporate purposes, refinancing and trade finance. The transaction marks the OPEC Fund’s first cooperation with the Mauritius Commercial Bank (MCB) I n its first transaction with the Mauritius and Economic Growth. The facility’s coordinators and help generate economic growth. The proceeds of the OPEC Fund’s OPEC Fund and Mauritius Commercial Bank deepen partnership with trade facility participation

Commercial Bank (MCB), the OPEC Fund is participating in a US$1 billion syndicated loan facility with an amount of US$42.5 million to help bolster MCB’s regional diversification strategy. As the leading bank in Mauritius, MCB plays an active role in promoting the country as a platform for facilitating trade and investment to and from Africa, supporting economic progress and generating employment opportunities, contributing to SDG 8 – Decent Work

bookrunners included Abu Dhabi Commercial Bank PJSC, Citi, Intesa Sanpaolo S.p.A., Mizuho Bank Ltd, Standard Chartered Bank and SMBC Bank International plc. Thirty-one banks participated in the successful syndication alongside the co-arrangers. At a virtual signing ceremony OPEC Fund Director-General Abdulhamid Alkhalifa said: “Strong trade ties and integration into international markets

participation in the syndication facility will provide funding to bolster critical sectors in Mauritius during these challenging times.” Alain Law Min, Chief Executive Officer, MCB Ltd, added: “We are pleased with this first cooperation with the OPEC Fund. The success of the deal demonstrates the support of the international loan markets for MCB despite the challening local and international environment. This facility, which also highlights our robust credit history, will support the expansion of our international business in the region and Africa.” ABOUT MCB Founded in 1838, MCB is the longest-standing and leading banking institution in Mauritius and an increasingly prominent regional player. MCB is among the sub-Saharan African financial institutions rated as investment- grade by Moody’s Investors Service. It is the main subsidiary of MCB Group Limited, a blue chip company listed on the Mauritian stock exchange since 1989.

DEVELOPMENT NEWS

OPEC Fund loan to Banco Regional Paraguay supports agro-related SMEs

Value of OPEC Fund/Banco Regional loan for the agribusiness sector: US$30m Proportion of employment provided by SMEs in the agribusiness sector: 80%

T he OPEC Fund signed a US$30 million loan with Banco Regional of Paraguay for on-lending to small- and medium-sized enterprises (SMEs), particularly agribusiness companies severely impacted by the economic slowdown resulting from the COVID-19 pandemic. Agribusiness is a key driver of Paraguay’s economy and food exports are the main source of the country’s foreign currency. The sector is composed primarily of agro-related SMEs, providing over 80 percent of employment. The OPEC Fund loan will help Banco Regional address SMEs’ needs for liquidity caused by business disruptions in connection with the partial COVID-19 lockdown in the country. Banco

Regional is one of the leading financial institutions in Paraguay with a strong focus on lending to agribusiness, representing around half of the bank’s portfolio. This is the third facility the OPEC Fund is extending to Banco Paraguay. The first loan was on-lent to 36 sub- borrowers in the agriculture sector. The second facility provided 53 sub-loans to Paraguayan enterprises for international trade finance, the pre-export financing of cash crops and the import of agricultural supplies and machinery. The OPEC Fund has supported Paraguay’s development-focused goals for over four decades and financed projects in the financial, transport, energy and agriculture sectors through loans, trade finance and grants.

New grants to develop sustainable food production in Colombia and air transport in Malawi

The OPEC Fund has approved two technical assistance grants to the non-profit organization CODESPA and the government of Malawi

CODESPA in Colombia: US$270,000

Airport in Mzuzu, Malawi: US$350,000

CODESPA, a non-profit organization, will receive a US$270,000 grant to support the development of rural infrastructure projects in Colombia. The project aims at developing sustainable regional food production systems to improve the living conditions of 200,000 families in the departments of Cauca and Nariño. The total of direct and indirect beneficiaries is estimated at one million people. The organization was established in 1985 with the aim to create income-generating opportunities in low- and middle-income countries, particularly in Latin America. An earlier OPEC Fund grant to CODESPA helped finance food security and women empowerment in Nicaragua with a project that was successfully completed in 2019. Read more about CODESPA here: https://www.codespa.org/en/

A second OPEC Fund grant of US$350,000 will co-finance a technical and economic feasibility study for a new airport in Mzuzu City in Malawi. The planned regional airport is intended to offer reliable air services in the capital city of the Mzuzu region in the north of the country. Presently, Mzuzu City is serviced only by a small, outdated airport used solely by low-capacity aircraft. The new hub will help strengthen business, trade and tourism links and bring socio-economic benefits to the region and country. A feasibility study was co-financed

by the Arab Bank for Economic Development in Africa (BADEA).

DEVELOPMENT NEWS

Ghana’s COCOBOD and OPEC Fund

strengthen partnership T he OPEC Fund was one of the lead arrangers of a major finance

Alkhalifa said: “Agriculture, specifically the cocoa industry, is the backbone of Ghana's economy and recognized as the number one contributor to the fight against poverty and hunger in line with the Sustainable Development Goals. We are pleased to further expand our partnership with Ghana and participate in this exemplary international effort

facility for the Ghana Cocoa Board (COCOBOD). The US$50 million contribution is the fifth by the OPEC Fund to COCOBOD to help bolster the country’s cocoa industry. The US$1.5 billion facility will support the financing needs for Ghana’s main and light cocoa crop for the 2021/22 season and other cocoa-related operations. A consortium of 28 banks joined the facility and the proceeds will be used to purchase an expected 950,000 tonnes of cocoa for the period. Ghana is the second largest cocoa exporter in the world with a 20 percent global market share. Cocoa is the mainstay of Ghana’s economy. More than 800,000 farmers and their families are involved in cocoa farming

to support COCOBOD in preserving and promoting the cocoa sector.”

and related activities. The crop generates around US$2 billion in foreign exchange annually and is a major contributor to the country’s national income. OPEC Fund Director- General Abdulhamid

ABOUT COCOBOD

We are pleased to further expand our partnership with Ghana [...] to support COCOBOD in preserving and promoting the cocoa sector. Abdulhamid Alkhalifa, OPEC Fund Director-General “

COCOBOD is the main body of the Ghanaian cocoa industry, encouraging and facilitating the production, processing and marketing of high-quality cocoa in Ghana. It is also leading initiatives to help improve farmers’ livelihoods and environmental sustainability through industry-wide training and programs promoting the adoption of sustainable cocoa production methods.

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