SUMMARY EXECUTIVE
Following approval of its Strategic Framework 2030, the OPEC Fund has since 2019 embarked on a journey to becoming a more effective and financially sustainable multi- lateral development bank (MDB) that is relevant to the needs of partner countries. To achieve this objective, the OPEC Fund has introduced enhancements to the way it operates
Furthermore, recognizing the synergies and scale that can be achieved when joining forces with partners, the OPEC Fund closely cooperates with bilateral and multilateral in- stitutions around the world. Facilitating increased lending through collaboration was particularly important during the COVID-19 pandemic and more recently at the outset of the food security crisis arising from the war in Ukraine.
in order to deepen development impact, while providing more ac- countability to stakeholders. This first Development Effectiveness Report takes stock of progress made and knowledge generated on the development effectiveness of the OPEC Fund’s activities to date.
240,409 households with new or improved water connections
As part of its commitment to achieving the Sustainable Development Goals (SDGs), in 2022 the OPEC Fund reviewed all operations approved since 2018 to assess delivery on this commit-
Since its establishment in 1976, the OPEC Fund has committed about US$22 billion in loans for 114 partner countries via sov- ereign operations (SO) and non-sovereign operations (NSO). The Fund finances projects in low- and middle-income coun- tries around the world and does not lend to its own mem- ber countries. The OPEC Fund also has a significant grants program providing free or concessional resources to mainly low-income countries. Projects support a variety of sectors critical to development such as infrastructure, agriculture, education and health, and the financial sector. More recently, support through trade finance and financial institutions have become important channels of OPEC Fund’s development finance. Meanwhile, the Fund has also dedicated significant resources to the cross-sectoral issues of climate action and food security. In its Climate Change Action Plan, the OPEC Fund has committed to further increasing these activities. In response to partner country development needs, the OPEC Fund has diversified its lending toolkit over time: SO instruments have expanded in past years to include program and policy-based lending to complement project lending, while NSO instruments include long- and short-term senior debt along with subordinated debt, guarantees and equity.
ment. The review found that all approved projects contrib- ute to at least one SDG, with a majority contributing to two or more. The top two SDGs that projects were aligned to were SDG 8 (Decent work and economic growth) and SDG 9 (Industry, innovation and infrastructure). This is in line with the OPEC Fund’s strong support for economic growth and development through infrastructure (including transport, energy, water & sanitation), as well as through the financial sector, rural development and multisector projects. To assess the extent to which the OPEC Fund’s lending re- sources have in fact helped to change people’s lives, the OPEC Fund also conducted a comprehensive review of the documented main results of all OPEC Fund projects hav- ing reached completion (for SO) or early operating maturity (EOM, for NSO) between 2018 and July 2022. Looking ahead, this evaluation exercise will be undertaken annual- ly and the results presented in each year’s Development Effectiveness Report.
The results of the review on the basis of available information point to significant development impacts, even though re- sults data were not documented for 31 percent of all analyzed
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