HOUSING THE OPEC FUND IN ACTION LEAVING NO ONE BEHIND Embracing the challenges of urban development and turning them into opportunities – from Bangladesh to Senegal and from India to Liberia By Walid Mehalaine, Head of Grants, OPEC Fund
U rbanization in developing countries has been rapid and transformative, driven by various factors such as rural-urban migration, industrialization and urban-biased policies. Cities currently hold 55 percent of the world’s population, and 90 percent of urban population increases are expected to happen in cities in developing countries, according to the World Bank. Africa and Asia will have the fastest growth rates. This process has led to significant economic growth and development, but it also poses unprecedented challenges – in particular lack of adequate infrastructure, including housing, transport, energy, water and sanitation, compounded by poor urban planning, weak capacities and lack of resources among local authorities and utilities as well as the adverse impacts of climate change. Mindful of these challenges, the OPEC Fund for International Development actively supports urban development projects worldwide, with a focus on improving and building climate resilient and sustainable urban infrastructure and enhancing access to basic services for urban populations – leaving no one behind. Beyond improving infrastructure, these interventions aim to enhance the capacity of local governments and utilities in partner countries to implement, manage and maintain basic urban services and to improve service delivery in both formal and informal settlements where most of the new city dwellers tend to live, particularly in Africa. In highly urbanized developing countries, concentrated in Asia and Latin America, there is also an increased focus on making cities more liveable and addressing issues of urban pollution and traffic congestion. Meanwhile, in low- and middle-income countries across Africa where urbanization is accelerating rapidly (the percentage of population living in urban areas increased from 35
percent in 2000 to 45 percent in 2023 and is expected to triple by 2025, reaching 1.5 billion people), the priority is to upgrade existing infrastructure alongside building new infrastructure, including housing, to cope with growing needs, including of millions of people living in informal settlements. With this underpinning and goals, the OPEC Fund is, for example, co- financing the Cities Modernization Program in Senegal, which aims to develop urban roads and improve social and economic infrastructure in the six cities Podor, Richard-Toll, Ourossogni, Mékké, Dahra and Kébémer. A €38 million loan will also co-finance the improvement of social and economic infrastructure. Addressing urban development from a different direction is the involvement in the Mumbai Metro Line 5 Project in India. The OPEC Fund is joining forces with the Asian Infrastructure Investment Bank (AIIB) with a US$100 million loan to finance civil works, rolling stock and operational systems. The 25 km underground line is currently under construction and will alleviate traffic congestion in a metropolitan region with over 26 million people. Together with the Asian Development
The OPEC Fund is helping to finance the Mumbai Metro Line 5 in India
project in Greater Monrovia, Liberia with a US$420,000 grant. The project is part of a broader program aimed at upgrading existing slums and informal settlements, while providing better access to affordable and adequate housing in Greater Monrovia as well as improving the living conditions of vulnerable and low- income communities. It specifically aims to address these issues within a slum on Peace Island, a large settlement of Monrovia with around 36,000 people. Another example is a housing improvement project in Nairobi. In collaboration with the non-profit organization Water and Sanitation for the Urban Poor (WSUP), the OPEC Fund provided a US$400,000 grant for a project aimed at providing improved water services to informal settlements. The project will be implemented with the support of Borealis and Borouge, two private international companies. The program provided an estimated 56,000 people with access to improved water supplies, 48,000 in Korogocho and 8,000 in Kahawa Soweto, two settlements in Nairobi. Approximately 10,000 people will have access to water via pre-paid dispensers, while the opportunity to benefit from individual and communal connections has been opened up within the areas of supply. The number of beneficiaries connected to the systems will develop over time
Bank (ADB), the OPEC Fund also supported the third phase of the
Urban Governance and Infrastructure Improvement Project in Bangladesh. A US$40 million loan was dedicated to reducing poverty by improving urban infrastructure and service delivery in 56 municipalities in the South Asian country. In addition to the provision of loans for large urban infrastructure projects, the OPEC Fund has also provided grants to support projects aimed at improving infrastructure and service delivery in informal settlements. In line with Sustainable Development Goal 11, Target 1 – Safe and Affordable Housing, the OPEC Fund supported a slum upgrading
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