THE HISTORY OF THE OPEC FUND
1979 and the outbreak of the Iran-Iraq war in the following year. After 1980, oil prices began a steady decline over the next 20 years. Responding to the changes in the global environment and the urgent needs of partner countries, the OPEC Fund revised its basic agreement to make it a permanent legal entity, now named the OPEC Fund for International Development. An important step was empowering the OPEC Fund to administer loans and appraise projects, while maintaining the option of working
with other international or national institutions. The next step in institution building was to make Vienna, the capital of Austria, the permanent and sole legal domicile of the institution. On April 21, 1981 the OPEC Fund signed a Headquarters Agreement with the Republic of Austria. In the same year, the OPEC Fund purchased the Palais Erzherzog Wilhelm, also known as the Deutschmeister-Palais. Hanno Scheuch, Director, Institutional & Administrative Unit, Legal Services, says: “The move
1979, when an amendment to the founding agreement allowed loan repayments to be used in future operations. The same year saw the signing of the OPEC Fund’s 100th loan and the creation of the first OPEC Fund logo. As the 1980s began, political tensions and economic volatility reached new heights. The global economy suffered a significant slowdown, widespread high inflation and worsening economic imbalances. Oil production was severely affected by the Iranian Revolution in
“Life’s caravan never turns back”
As the ocean gateway for six landlocked neighbors, Tanzania, an East African nation of 67 million people, plays an outsize role in regional development. Its ports, particularly Dar es Salaam and Tanga, control access to maritime routes for Zambia, Malawi, Burundi, Rwanda, Uganda and the Democratic Republic of the Congo, enabling them to import and export goods that are crucial for their economies. Yet despite its potential as a conduit country, Tanzania’s transport infrastructure scored just 3.34 out of 100 in the Africa Infrastructure Development Index 2022 – far lower than the regional peers Uganda (6.42), Kenya (10.43) and Rwanda (11.55). To address this deficit and help the country improve its connectivity, the OPEC Fund has joined with partners including the African Development Bank (AfDB) on several road and rail projects across Tanzania. In 2025, the OPEC Fund approved financing for the Uvinza-Malagarasi segment of the Tanzania Standard Gauge Railway (SGR). This project aims to enhance regional integration and improve transportation for passengers and freight. The OPEC Fund’s US$75 million loan provides financial support for the implementation of the 156 km section of the railway line in Tanzania. Juan Felipe Murcia, OPEC Fund Development Effectiveness Officer,
says: “This project significantly enhances regional connectivity, stimulates economic growth and provides a modern, efficient and reliable transportation corridor. It is designed to reduce transport costs, alleviate pressure on existing roads and unlock the region’s economic potential. It will benefit communities by improving access to markets, promoting agricultural value chains and supporting local economic activities.” The OPEC Fund has a strong track record in Tanzania’s transport sector with the construction and upgrading of vital traffic arteries – getting goods to ports, farmers to markets and patients
“This project is designed to reduce transport costs, alleviate pressure on existing roads and unlock the region’s economic potential.” Juan Felipe Murcia, Development Effectiveness Officer, OPEC Fund
to hospitals. As the Swahili proverb has it: “Life’s caravan never turns back.”
The OPEC Fund project team on mission
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