THE HISTORY OF THE OPEC FUND
farm was the first and largest privately sponsored utility–scale renewable energy project in the Middle East. It is a landmark project which led the way and opened the door to more than US$4 billion of investment in the country.” More OPEC Fund renewables projects in Jordan followed swiftly: In 2014, the OPEC Fund co-financed the solar photovoltaic plants Falcon Ma’an Solar Power and Jordan Solar One. This was followed in 2017 by a US$17 million loan to the 200 MW Baynouna Solar Plant, the largest single solar project in Jordan, developed by the UAE conglomerate Masdar and powerful enough to supply 360,000 homes with energy. It was in this period that working with financial institutions became increasingly important for the OPEC Fund also in its mission to fight poverty and create sustainable living conditions. “Poverty is not a natural condition. It is man-made and can be overcome and eradicated by the actions of human beings,” Director- General Al-Herbish said in 2013. In some cases, namely emergencies, fighting poverty requires the rapid deployment of aid. But overcoming poverty by eradicating its root causes takes a more structured and in-depth approach, as expressed in the famous saying: “Give a man a fish, and you feed him for a day; teach him how to fish, and you feed him for a lifetime.” Working with local banks and micro- finance institutions allowed the OPEC Fund to substantially increase its activities and impact where it matters most – in its more than 125 partner
New solar and wind energy projects are now the cheapest form of electricity generation in many markets
US$10 million loan for on-lending in 2024, the OPEC Fund arranged a US$30 million syndicated loan facility in 2015, contributing US$10 million as A-lender and mobilizing US$20 million from the European Fund for Southeast Europe (EFSE) and the Green for Growth Fund (GGF). The funding expands Evocabank’s lending capacity and supports climate- related investments to strengthen Armenia’s private sector and foster sustainable economic growth. To date, the OPEC Fund has approved more than US$3 billion to financial institutions, the vast majority of which (81 percent) with the private sector and the remainder (19 percent) earmarked for the public sector. Nearly three-
quarters of the total was deployed in Africa (39 percent) and Asia (34 percent). A key activity is the provision of finance to MSMEs in partner countries through local financial institutions. A vibrant economy needs a strong financial sector. This approach allows the OPEC Fund to reach recipients on the ground without having a local presence. It facilitates access to finance for enterprises and supports their growth for the benefit of the wider economy. And it supports institution building through knowledge transfer and technical assistance.
While no grants were deployed to partner financial institutions,
Equal Dreams
On the occasion of the OPEC Fund’s 40th anniversary, the institution launched the Equal Dreams campaign in 2016 to highlight the fact that 50 percent of refugees are children. In partnership with the initiative Child of Play, a series of activities drew attention to the rights of children involving 350 children living in a refugee camp in Jordan. In the same year, the OPEC Fund also hosted the “Refugee Heroes” session at the One Young World Summit in Ottawa, Canada.
countries across the world. Partnerships on the ground made it possible to provide much-needed access to finance for micro, small and medium-sized enterprises (MSMEs), which drive the economies of most developing countries. A recent engagement is the OPEC Fund’s cooperation with Evocabank, an Armenian commercial bank established in 1990 and privately owned. The bank is ranked among the top 10 banks in Armenia and specifically serves local MSMEs. Following a first
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