DEVELOPMENT NEWS
Promoting climate action in Colombia T he OPEC Fund is co-financing Colombia’s “Climate Action Policy and Energy Transition Program” with a US$150 million policy-based loan. The program aims to foster economic opportunities based on the sustainable use of natural resources, develop circular economy models and promote the energy transition. Colombia’s program focuses on three components: strengthening implementation capacity to manage climate action; fostering economic opportunities based on the sustainable use of natural resources and the development of circular economy models; and promoting the energy transition. Policy actions include the conservation and protection of biodiversity, consolidation of green businesses, promotion of climate- smart agriculture and diversification of the country’s energy mix.
Enhancing North Macedonia’s climate transition
Reform program will strengthen sustainable public finances
T he OPEC Fund is supporting a multi- sector reform program in North Macedonia with a €50 million loan. The funding will bolster the climate transition of the energy and financial sectors and strengthen sustainable public finances. The OPEC Fund’s policy-based lending will be complemented by a US$100 million Development Policy Operation from the World Bank. While North Macedonia is one of the youngest countries in Europe, it has inherited major environmental challenges including a legacy of heavy industry and
dependence on fossil fuels for generation of power, heat and energy. Addressing these key issues, the government has launched a comprehensive climate transition reform program to improve efficiency and boost investments in renewable energy. The country has been severely affected by the dual shocks of the COVID-19 pandemic and the war in Ukraine, which have negatively impacted macroeconomic growth. The reform program aims to get North Macedonia back on track by strengthening public financial management while safeguarding financial sector stability.
Improving rural transportation in Uganda T he OPEC Fund is extending a US$30 million loan to support the development of a key transportation link in Uganda. The rehabilitation of the Katine-Ochero road will provide better, faster and safer transport connections in the central-east Soroti district of the country . The 70 km section will be upgraded from gravel to paved road, enabling faster and safer travel for underserved rural communities. Co-financed by the Islamic Development Bank (IsDB) and the government of Uganda, the project will also benefit local small businesses by providing access to marketplaces and shops.
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