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OPEC Fund and Corporación Andina de Fomento (CAF) join forces to boost funding for sustainable development in Latin America
OPEC Fund Director-General Abdulhamid Alkhalifa.
October 18, 2021: The OPEC Fund for International Development (the OPEC Fund) and Corporación Andina de Fomento (CAF) have today signed a Cooperation Agreement, pledging to enhance strategic and operational cooperation and co-finance public and private sector projects that contribute to sustainable economic development in the Latin America and the Caribbean (LAC) region.
Based on the expanded Agreement, the OPEC Fund will provide funding of up to US$600 million to public sector projects over the next three years, representing a contribution of up to US$200 million annually through 2022-2024 to co-finance projects of partner countries’ priority sectors. The Agreement provides a platform for enhanced engagement and strengthens the ability of the two development institutions to co-finance projects, improve joint project preparation and technical assistance and enhance knowledge sharing.
Signing the agreement on behalf of the OPEC Fund, Director-General Abdulhamid Alkhalifa said: “The SDGs can only be realized through strong international cooperation and partnerships. We are pleased to increase our cooperation with CAF to ensure a greater joint impact in our partner countries. To date, the OPEC Fund has allocated more than US$3.4 billion in financing to LAC and remains committed to supporting sustainable development operations in the region.”
At the time of the agreement signing, CAF's Executive President Sergio Díaz-Granados, emphasized: "This agreement reflects CAF's interest in fostering strategic alliances that allow enhancement of capacities and opportunities for both institutions in LAC. It is allowing us to play an important catalytic role by providing resources, products and experiences from other regions to mitigate the effects of the pandemic and aid economic recovery in the region. Our partnership with the OPEC Fund is key to advance in our mission of supporting LAC countries in their path towards sustainable and inclusive development, and to fulfill my aspiration for CAF to become the Green Bank of Latin America."
The OPEC Fund and CAF share the common objective of advancing sustainable economic development in the LAC region and already have collaborated on a number of projects in both the public and private sectors. To date, the organizations have co-financed 15 public sector operations with a total project cost of around US$2.7 billion, focusing primarily on the transport and energy sectors, as well as water, agriculture and education in mutual countries of operations since 2010.
CAF is a development bank created in 1970 and owned by 19 countries - 17 of which are the Latin America and the Caribbean region, Spain and Portugal - as well as 13 private banks in the region. The bank promotes a sustainable development model through credit operations, non-reimbursable resources, and support in the technical and financial structuring of projects in the public and private sectors of Latin America. CAF has supported development operations in infrastructure, water and sanitation, urban mobility, digitization, and education, among other areas, for US$ 14,174 million in approvals for the development of LAC countries. With headquarters in Caracas, Venezuela , CAF has offices in Buenos Aires, La Paz, Brasilia, Bogota, Quito, Madrid, Mexico D.F, Panama City, Asuncion, Lima, Montevideo and Port of Spain.
About the OPEC Fund
The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. The OPEC Fund was established by the member countries of OPEC in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education. To date, the OPEC Fund has committed more than US$22 billion to development projects in over 125 countries with an estimated total project cost of US$187 billion. Our vision is a world where sustainable development is a reality for all.