OPEC Fund Quarterly - 2023 Q4

SPECIAL FEATURE

SOLTRAIN technology in operation

PHOTO: SOLTRAIN

OFQ : Shortly after you started in your new job as ADA managing director in June 2021, Russia attacked Ukraine. How has this affected or even changed the work of your agency? FS: Humanitarian aid has become more important, the share of humanitarian aid in our total portfolio has increased. The Austrian government increased its foreign disaster fund from €55 million to almost €109 million in 2022. Out of this, more than €59 million were used for humanitarian aid for Ukraine and its neighboring countries. ADA was responsible for handling most of these funds – a challenging task that we successfully mastered. Beyond that, the repercussions of Russia’s war of aggression against Ukraine have serious implications for our work in other countries. The Republic of Moldova, for example, a priority country of Austrian Development Cooperation, is one of the countries most affected by the war. Providing shelter and food for displaced persons from Ukraine is an immense challenge for the Moldovan authorities. We made a serious effort to stand by Moldova and adjusted and increased our financial support for the country. OFQ : Now we are confronted with another crisis in the Middle East. What is your assessment? FS: We are monitoring the recent events with great concern. Our primary goal is to help the people affected to cope with this situation within the scope of our possibilities and as best as we can. OFQ : Last year ADA supported 558 projects with a total volume of €723 million. What are the expectations for this year and the next? FS: Our three primary goals – reduce poverty, protect the environment and promote peace – will continue to be at the heart of our work in the coming years. The initiatives we support provide the basis for people to be more resilient, have better prospects for their future and better living conditions in the long run. We have entered long-term commitments with our partners, and we will make sure that we remain true to these obligations.

Mauritania AFTOUT AL CHARGUI RURAL ELECTRIFICATION PROJECT Approved: June 2012 Completed: March 2023 Total project cost: US$30.4 million OPEC Fund financing: US$11.9 million AND THE OPEC FUND

FS: Donor harmonization must remain our ultimate goal. There is no other way to deliver aid effectively – especially when you are operating in a complex context like development cooperation. This core principle becomes even more crucial when rapid responses are desperately needed. We must be cautious not to sacrifice aligned approaches for the sake of speedy reactions. OFQ : Migration remains a major challenge, both within and between countries and continents. How does ADA address the issue through its work? FS: Development cooperation aims to achieve a better life for all. We are committed to improving living conditions for people in countries of the Global South. Nobody leaves their home country lightly. In many cases, people simply see no other choice. I am convinced that development cooperation can help prevent people from being forced to flee. Our aim is to make people who are threatened by the effects of climate change more resilient. Farmers who can no longer make a living from their harvest are supported with improved seeds or training in modern farming methods. We also support small entrepreneurs and agricultural businesses so that they can feed their families from their work. Austrian Development Cooperation supports the poorest population groups – and these are usually those who cannot leave their countries. Most refugees remain in developing countries, trying to wait in safe areas close to their homes to return as soon as the danger has passed. We are here to support our partner countries dealing with this exceptional challenge. In Uganda, for example, we have provided a total of €14.7 million between 2017 and 2021 for refugees and also in support of host communities.

T he project supported government electrification targets aiming to further access in urban areas and within the rural population. It also had a second target of generating 15 percent of electricity from renewable sources by 2015, mainly from PV. Main achievements were the construction of a 90 kV transmission line, the construction of a 450 km distribution network and the implementation of related infrastructure. The project delivered the electrification of 5,450 households. Benin HEALTH SYSTEM EMERGENCY SUPPORT Approved: August 2020 Completed: December 2022 Total project cost: US$15 million OPEC Fund financing: US$15 million T he project supported Benin in its fight against the threats posed by COVID-19 and strengthened the preparedness of the national public health emergency system. It improved the country’s national detection and response mechanism through the acquisition of rapid diagnostic tests, laboratory consumables and drugs for treatment centers. Part of the funding was allocated towards procuring medicine.

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