THE OPEC FUND
The OPEC Fund for International Development was established in 1976 with a unique mandate to foster sustain- able development in the spirit of South-South cooperation. It is the only development finance institution that operates exclusively for the benefit of non-member countries, where it provides financing for projects in key focus areas. Climate finance and energy transition are priorities for the OPEC Fund as the institution continues to contribute to the delivery of the Sustainable Development Goals (SDGs). To date, the OPEC Fund has committed close to US$30 billion in financing to development projects in over 125 countries worldwide with an estimated total project cost of more than US$200 billion. The OPEC Fund’s contribution to development in Small Island Developing States exceeds more than US$2 billion and covers projects in Africa, Asia and Latin America and the Caribbean in a variety of sectors such as, for example, agriculture, financial institutions, health, infrastructure, transport and water & sanitation. All OPEC Fund-financed projects are aligned with the SDGs and comply with rigorous environmental, social, and governance (ESG) standards.
The OPEC Fund’s ESG policy is aligned with institutions such as the World Bank and ensures responsible and inclusive investments. The OPEC Fund follows international best practice in good governance, fiduciary responsibility and prudent financial management, winning a solid reputa- tion with investors, rating agencies and development partners and governments. Rated AA+ with a stable outlook by S&P and Fitch, it shows financial strength, with a capital adequacy ratio (CAR) of 62 percent and a debt-to-equity ratio of only 34 percent as of end-June 2024. The 12 member states Algeria, Ecuador, Gabon, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the United Arab Emirates and Venezuela have provided the financial foundation of the OPEC Fund. In recent years, the institution successfully tapped the global capital market with the issuance of SDG-linked bonds.
More about the OPEC Fund Please visit us at: www.opecfund.org
TURNING COMMITMENTS INTO
The OPEC Fund’s Island Resilience Facility moves beyond traditional financing by delivering tailored solutions and strategic funding approaches specifically designed to enhance climate resilience in Small Island Developing States. By providing innovative financial instruments and targeted technical support, the facility ensures impactful and bankable climate adaptation projects. THE OPEC FUND AND SMALL ISLAND DEVELOPING STATES As an institution dedicated to the delivery of the Sustainable Development Goals the OPEC Fund for International Development has traditionally been a strong supporter of these countries. Raising this engagement to a new level, the OPEC Fund has launched the Island Resilience Facility embedded in a dedicated SIDS Strategy that sets out the OPEC Fund’s overall approach for the period 2025–2027.
• STRENGTHENED RESILIENCE More robust, climate-proof infrastructure • INCREASED FINANCING New channels for adaptation and mitigation funding • EMPOWERED COMMUNITIES Local ownership and skills for long-term sustainability • GLOBAL LEADERSHIP Championing island needs in the international climate agenda
The Island Resilience Facility channels climate financing to SIDS, adapting each project to local conditions aligned with a regional perspective. Through tailored technical assistance, preparation funds, capacity building and financing for bankable green and digital solutions, the facility drives sustainable development across island communities.
• CLIMATE-RESILIENT INFRASTRUCTURE Protecting lives, livelihoods and ecosystems • GREEN DIGITAL SOLUTIONS Early warning systems, data platforms and risk mapping • CAPACITY BUILDING Equipping local agencies with the tools and training for sustainable development • MOBILIZING CLIMATE FINANCE Building pipelines of bankable projects for international funding • SOUTH-SOUTH COOPERATION Amplifying island voices on the global stage
To strengthen project development capabilities, the facility works hand-in-hand with local partners to design strong project proposals and build a robust pipeline. It also scales up resource mobilization efforts by engaging partners such as the Arab Coordination Group (ACG). A preferential financing package will be offered to SIDS under the OPEC Fund SIDS strategy, reinforcing the OPEC Fund’s commitment to expanding development impact in these most vulnerable countries. The OPEC Fund Island Resilience Facility builds on the institution’s long-standing engagement with SIDS and serves as a launchpad for a broader, multi-regional initiative. To date, more than US$2 billion has been committed to projects across some 25 island nations in the Caribbean, Pacific, Africa and Indian Ocean. Loans have supported, among others, projects in transport (ports and harbors), energy (renewables and grids), water and sanitation, health and education.
The future of Small Island Developing States carries profound significance, not only for the people who call these islands home, but as a powerful symbol of what effective global development cooperation can achieve. Though these nations contribute less than 1 percent of global greenhouse gas emissions, they face disproportio- nate risks from climate change, economic vulnerability and capacity constraints. We need to act now to prevent worse. Through our Island Resilience Facility, the OPEC Fund is stepping up to lead: mobilizing finance, delivering targeted technical assistance and fostering knowledge exchange to help these nations build a more resilient and sustainable future. Together, we can chart a different course.
Abdulhamid Alkhalifa President, OPEC Fund
ISLAND RESILIENCE FACILITY
Scaling up engagement through regional expansion and strengthening technical assistance for project preparation will elevate the facility‘s role in delivering impactful solutions for SIDS
SCALING UP FACILITY THROUGH A GLOBAL PLATFORM
Regional Expansion
Project pipelines prepared through targeted support
Policy advocacy (NDCs, climate strategies)
Climate resilience infrastructure
SIDS Regional Organizations
Climate smart technologies
• Advancing project pipelines • Expanding strategic partnerships and deepening engagement in the SIDS space • Promoting shared goals for resilient and sustainable development
DELIVERING PARTNERSHIPS
Although the 39 SIDS listed by the United Nations are responsible for less than 1 percent of global greenhouse gas emissions, they are disproportionately affected by climate change with sometimes severe impacts on the environment, economy, human health and well-being. Supporting these countries, which show wide variations in their GDP, fiscal space and economic performance is very much a question of international solidarity. The OPEC Fund has recently formalized partnerships with the Organisation of Eastern Caribbean States (OECS) and the Pacific Islands Forum Secretariat (PIFS) — two active partners of the UN Framework Convention on Climate Change (UNFCCC). This cooperation has helped to enhance skills in crafting project proposals, build climate-resilient infrastructure, foster knowledge sharing, mobilize funding and promote regional cooperation. Today, the Island Resilience Facility is at the center of key international dialogues, driving island priorities across global climate and development platforms. The OPEC Fund will use international forums such as the UN Climate Change Conference in Brazil (COP30) in November 2025, the Fourth International Conference on Financing for Development (FfD4) in June 2025, along with regional consultations such as the Caribbean Community to amplify island voices, forge new partnerships and accelerate global climate action.
• In parallel with the grant and technical assistance support provided by the Island Resilience Facility, the OPEC Fund is aiming to provide SIDS with an attractive financing proposition for its development projects. • Even though some SIDS are middle- income countries and not eligible for concessional financing, the OPEC Fund is cognizant of the special characteristics and unique climate vulnerabilities of SIDS and has decided to create a particular regime for these countries in its own operations. • To operationalize the OPEC Fund’s ambitious plan for SIDS and in order to increase engagement in these countries, the OPEC Fund has developed a SIDS Strategy dedicating a special classification, funding allocation and financing package to these countries.
FROM “SMALL ISLANDS — BIG ISSUES” TO “SMALL ISLANDS — BIG POTENTIAL”
The OPEC Fund is turning concepts into action, ensuring climate resilience initiatives reach successful completion and directly benefit vulnerable communities. Building on decades of experience in project financing the OPEC Fund is providing hands-on advisory services from first design to final implementation. The OPEC Fund SIDS Summit has established a platform for interested parties to actively collaborate to refine proposals, pitch project ideas and unlock much-needed financing.
TAILORING ASSISTANCE TO SMALL ISLAND DEVELOPING STATES
How the OPEC Fund is increasing impact in vulnerable countries To better manage its resources, the OPEC Fund split its portfolio in 2021 into Ordinary Capital Resources (OCR) and Special Capital Resources (SCR). While OCR includes partner countries with a higher level of economic development, the new SCR special fund allows the institution to provide long-term and low-cost loans for economic and social development in more complex and difficult environments.
We’re proud to launch the OPEC Fund’s Island Resilience Facility– an initiative designed to deliver meaningful, long-term support to Small Island Developing States. SIDS face immense climate and economic challenges, and we’re committed to helping them strengthen their resilience. With dedicated support from our member countries, we believe this facility has the potential to be a game changer. At the OPEC Fund, we know that real impact comes through partnership, and we’re ready to get to work.
Musab Alomar Vice President, Strategy, OPEC Fund
SCR partner countries — including Small Island Developing States (SIDS) — face multiple challenges including climate change, fragility, indebtedness andinstitutional weakness. In addition, further difficulties that SIDS face include: • VULNERABILITY TO NATURAL DISASTERS CLIMATE CHANGE Many are highly vulnerable to disasters (such as the Caribbean with volcanic eruptions, hurricanes and rising sea levels). • SHALLOW ECONOMIES Many lack deep, broad economies with multiple sub-sectors producing employment, tax revenues and export earnings. Many have just a few key sectors that generate revenues, such as agricultural exports (Guinea-Bissau) or tourism (Caribbean islands). Lack of diversification creates strong interdependence with shifts in global commodity prices, leading to booms and busts. • DEBT BURDEN Many suffer growth volatility, ongoing large spending pressures
• POPULATION SIZE Many are micro states (i.e. with a population of less than 200,000) such as Tuvalu’s roughly 11,200 citizens (see above). This is important because a small population cannot drive or sustain a large and sophisticated economy. Even a high GDP per capita does not mean a country is in a stable economic position and not fragile (for example, the Maldives and Grenada). • REMOTENESS Many are among the most remote in terms of distance from international markets (e.g. the Pacific islands). • LAND AREA Many have a very small land area (e.g. Nauru is just 20 km 2 ). • FRAGMENTATION AND DISPERSION Some are archipelagos spanning broad ocean areas. Kiribati, covering 810 km 2 , is spread across 35 atolls or islands covering around 3.6 million km 2 of ocean; the Maldives has an area of nearly 300 km 2 comprising a chain of 26 atolls spanning almost 90,000 km 2 .
and weak fiscal management leading to substantial debt accumulation.
Special criteria help the OPEC Fund strengthen and tailor its engagement in difficult and complex SCR partner countries. This has led to the development of the OPEC Fund’s annual Country Policy and Institutional Assessment (CPIA) as a key input to the SCR Performance Based Allocation (PBA) system, which shares the annual SCR funding envelope to provide larger, more reliable funding streams with a greater focus on development impact. The CPIA is an annual assessment of national policies and institutions (based on publicly available information) along with fragility and weakness. CPIA scores feed into the PBA, while accounting for among others population size and GDP per capita. Based on country needs, the PBA allocates SCR resources to set funding envelopes in line with the OPEC Fund’s rolling three-year business plans.
LONGER-TERM LENDING AND SUPPORT Despite SCR partner countries’ large financing needs, multilateral development banks have been unable to provide full support because of various challenges (including limited resources, disruptions from the war in Ukraine and global economic uncertainty). The PBA system provides an assurance that a systematic allocation of funds is available over the three-year cycle to help meet these needs. The OPEC Fund has the ability to engage more actively, underpinned by a solid PBA framework over the longer term. This should drive a virtuous circle, whereby more consistent and planned lending envelopes will enable more partnerships to be developed; that in turn will leverage more funds to generate higher levels of investment into SCR partner countries — stimulating resilient and sustainable growth, poverty reduction and overall development effectiveness. This way a vicious circle is being transformed into a virtuous circle.
Comoros To date, the OPEC Fund has approved 11 public sector loans for US$45.75 million. The institution has also provided two national grants worth US$1.1 million, while the country also benefited from four national grants with a total of US$1.6 million. A US$17 million loan for the modernization of the 300-bed El Maarouf Hospital, the largest medical facility in the country and serving the entire population. The new hospital will be constructed in Moroni, the largest and most accessible city of the Comoros archipelago, an island union with more than 800,000 inhabitants.
AFRICA | COMOROS Having extended the first facility to the government of the Comoros in 2018 for the construction of El-Maarouf Hospital and the acquisition of medical equipment, TDB Group is delighted to see such an august group of multilateral development finance institutions joining in to cofinance this landmark medical facility in the country. The hospital will not only serve all Comorians, reduce the need for medical tourism abroad — helping to retain foreign currency within the country — but also help to promote tourism sector developments and further economic diversification.
Admassu Tadesse Group President and Managing Director, Eastern and Southern African Trade and Development Bank (TDB)
ASIA | MALDIVES One of the main government strategies is to reduce the cost of utilities and expand and improve transportation within the country. Thanks to this innovative trade financing, we have been able to pass on price reductions to our end customers. Lower costs for trans- portation, staple foods and utilities have ultimately led to a higher standard of living in the country.
Mohamed Nizam CFO, State Trading Organization, Maldives
Maldives To date, the OPEC Fund has approved 29 loans in the public and private sectors for US$256.1 million. The institution has also provided US$208.5 in trade finance for 7 transaction and 6 national grants worth US$2.8 million. A US$50 million project signed in 2015 and currently under implementation will raise health standards and living conditions of approximately 124,000 people in 49 selected islands. The goals will be achieved through the construction of extensive water supply systems and distribution networks, the development of a regional waste management system in the upper north region of the Maldives and the construction of 21 fully equipped waste management centers.
THE NATURE SOLUTIONS FINANCE HUB
Rising sea levels and extreme weather events highlight the importance of integrating nature-based solutions (NBS) into broader climate strategies. NBS encompass actions that protect, sustainably manage and restore natural ecosystems, providing not only environmental benefits but also socioeconomic advantages. These solutions are critical in building climate resilience, with ecosystems like forests, wetlands and oceans playing key roles in carbon sequestration and temperature regulation. To address this key issue, the Nature Solutions Finance Hub was inaugurated by the Asian Development Bank (ADB) and the OPEC Fund in December 2023 at the UN Climate Change Conference COP28. The hub is a platform that combines innovative finance approaches with policy support, capacity building and the development of bankable NBS projects. The overarching objective is to catalyze at least US$5 billion in capital flows into NBS projects across Asia and the Pacific, with a minimum of 15 percent sourced from the private sector.
The OPEC Fund’s SIDS approach emphasizes inclusivity and collaboration, reinforcing regional partnerships among policy-makers, development finance institutions and the islands. Together, we can ensure that the unique needs and vulnerabilities of each state are addressed, building collective resilience, learning from each other and leaving no community behind.
LIST OF SIDS PROJECTS
Total Commitments (in US$m)
Small Island Developing State
Number of Operations
Region
SDGs
Antigua and Barbuda
Caribbean 1.0
1
1, 17
Barbados
Caribbean 5.2
4
1,7,17
Belize
Caribbean 150.0
17
1,3,4,11,17
Cabo Verde
AIMS*
78.0
22
1,2,4,5,6,7,9,12,17
Comoros
AIMS
41.3
10
1,2,3,11,16,17
Cuba
Caribbean 278.4
18
1,2,5,6,7,10,11
Dominica
Caribbean 13.9
5
1,3,4,17
Dominican Republic
Caribbean 376.2
19
1,2,4,7,11,17
Fiji
Pacific
0.1
1
7
Grenada
Caribbean 49.1
16
1,4,7,11,17
Guinea-Bissau
AIMS
31.9
12
1,2,7,11,17
Guyana
Caribbean 48.5
9
1,4,11,17
Haiti
Caribbean 89.4
33
1,2,4,6,7,11,17
Jamaica
Caribbean 132.7
22
1,4,7,11,17
Kiribati
Pacific
0.1
1
7
1,2,3,4,5,6,8,9, 11,14,17
Maldives
AIMS
417.5
39
*Africa, Indian Ocean, Mediterranean and South China Sea
Mauritius
AIMS
99.1
9
1,4,5,9,17
Papua New Guinea
Pacific
73.6
7
3,4,7,11
St. Kitts and Nevis
Caribbean 0.5
1
4
St. Lucia
Caribbean 4.4
3
4,6,11
St. Vincent & Grenadines Caribbean 50.8
5
1,3,4,11,17
Samoa
Pacific
27.5
12
1,2,7,17
São Tomé and Príncipe AIMS
19.2
14
1,2,4,6,7,17
Seychelles
AIMS
53.2
15
1,3,4,8,17
Solomon Islands
Pacific
5.2
4
1, 11, 17
Suriname
Caribbean 71.9
4
3,7,11
Tonga
Pacific
1.0
1
1,17
TOTAL
2,119.6
304
CARIBBEAN | ST. VINCENT AND THE GRENADINES The Strengthening Health System Resilience Project, co-financed by the OPEC Fund for International Development, supports the implementation of the government’s vision for the redevelopment and modernization of the health sector; improving the quality and sustainability of the health system; and strengthening the system’s capacity to plan and respond to emergencies while maintaining continuity of care. Through this project, the scope and quality of secondary healthcare services delivered to the people of St. Vincent and the Grenadines will be expanded and significantly improved.
Marcelle Edwards-John Deputy Director of Economic Planning, Ministry of Finance, Planning and Information Technology, St. Vincent and the Grenadines
St. Vincent and the Grenadines To date, the OPEC Fund has approved five public sector loans for US$51 million. The country has also benefitted from two regional grants supporting agriculture in the Caribbean. In addition to healthcare the institution has also supported road infrastructure, education and agriculture projects.
The goal of the OPEC Fund Island Resilience Facility is to shift from examining challenges to addressing issues through concrete action — to enable Small Island Developing States to fulfill their potential. This means translating policy discussions into practical, bankable and viable solutions that directly enhance resilience. Joint projects will play an important role in our delivery. But it is equally important to find ways to diversify economies, lessen depen- dencies and create conditions for long-term resilient prosperity.
Valerie Herzog Island Resilience Facility Manager, OPEC Fund
OUR
The OPEC Fund Island Resilience Facility is at the center of key international dialogues, driving island priorities across global climate and development platforms.
COP (UN Climate Conferences) Showcasing pilot successes and mobilizing global climate finance for SIDS resilience.
OPEC Fund SIDS Summit — May 2025, Vienna A dedicated summit convening island leaders, development partners, and financiers to scale solutions and advance investment pipelines. FfD4 — UN Conference on Financing for Development, June 2025 Elevating island financing needs and promoting innovative funding models for sustainable development. Ongoing Regional Forums & Investment Platforms Collaboration with regional bodies like CARICOM, IOC, and OECS to align financing strategies and showcase bankable projects.
Through these platforms, the OPEC Fund amplifies island voices, forges new partnerships and accelerates global climate action.
For further information please contact the OPEC Fund Strategy Department, Sustainability & Climate Change Unit, at strategy@opecfund.org
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More about the OPEC Fund Please visit us at: www.opecfund.org
COPYRIGHTS
Cover: Unsplash Page 4: OPEC Fund/Petra Rautenstrauch Page 6: Lucky-photographer/Shutterstock Page 7: Patrick Rose/UNDP Solomon Islands, Unsplash Page 8: OPEC Fund/Petra Rautenstrauch Page 9: Romaine W/Shutterstock Page 10: UNDP, iStock Page 11: Jose Cendon/Getty Images, TDB Page 12: Courtesy of Mohamed Nizam, OPEC Fund/Mohammed Shanoon Page 13: iStock Page 16: Courtesy of Marcelle Edwards-John, Marco Garofalo/Panos Pictures Page 17: Unsplash, Courtesy of Valerie Herzog
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THE OPEC FUND for International Development Parkring 8 1010 Vienna, Austria
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