DEVELOPMENT NEWS
A US$26 million loan to Benin will bolster the Horticulture Development Support Project (PADMAR-E) aimed at enhancing food security and increasing the income of small-scale horticulture farmers. The project is co-financed with the International Fund for Agricultural Development (IFAD), which is providing US$15 million in financing. PADMAR-E is expected to directly benefit approximately 16,000 households with almost 100,000 people in the West African country, of whom 40 percent are women and 50 percent young people. The focus will be on improving market access for farmers, enhancing productivity and supporting project implementation. Strengthening agricultural development in Benin
Boosting hydropower in Bhutan
OPEC Fund signs first loan in the Himalayan kingdom
A US$50 million loan to Bhutan, the OPEC Fund’s first in the Himalayan kingdom, will support the development of two hydropower plants, aimed at strengthening Bhutan’s energy security. Nestled in the Himalayas, Bhutan has enormous hydropower potential, boasting over 35,000 MW of clean renewable energy from more than 150 sites nationwide. The country has so far developed just 7 percent of its hydropower potential.
The two new plants – Gamri (45 MW) in the east of the country and Begana (25 MW) in the west – will mainly cover local demand through mini grids, but will have the option to plug into Bhutan’s main grid, which already exports energy to neighboring countries. The facilities are expected to improve power reliability for around 50,000 households in key regions including Trashigang, the most densely populated area of the country and the primary route for trade with the capital Thimphu.
First OPEC Fund sustainability-linked financing to boost agriculture in Africa
T he OPEC Fund’s first sustainability-linked loan of US$40 million to ETC Group will strengthen food systems and support the livelihoods of more than 600,000 smallholder farmers across sub-Saharan Africa. The financing, part of a US$394 million package, will support one of Africa’s largest
agricultural commodity supply chain managers. Sustainability-linked loans are a financing tool that tie lending terms to meeting environmental, social and governance targets. The loan incentivizes ETC Group to improve farmer livelihoods, reduce environmental impacts and enhance food security.
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