Following approval of its Strategic Framework 2030, the OPEC Fund (see box) in 2019 embarked on a journey to becoming a more effective multilateral development bank (MDB) that is larger, financially sustainable for the long term, responsive, relevant to the needs of partner countries, an excellent steward of resources, and a strong contributor to the achievement of the Sustainable Development Goals. The Strategic Framework defines the OPEC Fund’s strate- gic objective as the “maximization of Development Impact through a competitive, specialized, and efficient organiza- tion that strives to maintain a stable and financially sustaina- ble growth trajectory” . To achieve this objective, the OPEC Fund has introduced en- hancements to the way it operates, particularly in reporting project results, strengthening the ability to learn continu- ously and deepening development impact. In that context, the Fund has introduced a number of tools which will, in the coming years, increasingly allow it to broaden and deepen the development insights from its activities, while providing more accountability to stakeholders. ABOUT THE OPEC FUND FOR INTERNATIONAL DEVELOPMENT BACKGROUND 1
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 develop- ment institution that provides financing from mem- ber countries to non-member countries exclusively. The OPEC Fund is committed to the delivery of the Sustainable Development Goals. To date, the OPEC Fund has committed over US$22 billion of its own resources to over 4,000 pro- jects in more than 125 partner countries worldwide with a total project value of some US$190 billion. In the regional distribution of commitments, Africa stands at 49 percent, followed by Asia at 31 percent and Latin America & the Caribbean at 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 development. SCR resources are used to provide funding at more concessional terms to lower-income countries.
This first Development Effectiveness Report takes stock of progress made and knowledge generated on the develop- ment effectiveness of the OPEC Fund’s activities to date. It was prepared by the OPEC Fund’s Development Effective- ness Unit, which is separate from the OPEC Fund’s opera- tional departments and provides guidance and oversight on development effectiveness matters. Each subsequent edi- tion of this report will build on the growing volume and vari- ety of information gained from the Fund’s strengthened de- velopment effectiveness assessment and tracking practices.
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