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OPEC Fund’s US$20 million loan will improve climate resilience of rural communities in Honduras
July 22, 2021: The OPEC Fund for International Development has signed a US$20 million loan agreement with Honduras to co-finance the ‘Northeastern Small Producers’ Economic and Social Inclusion Project – PROINORTE.’ The project, co-financed with the International Fund for Agricultural Development (IFAD) and the government of Honduras, aims to enhance incomes and living conditions for some 70,000 people in rural communities, with a strong emphasis on boosting livelihoods for women and youth, reducing urban migration and strengthening the country’s resilience to climate change.
Honduras’ north-eastern region is characterized by high poverty levels and food insecurity. The region is also highly vulnerable to the effects of climate change, which threatens the livelihoods of small subsistence farmers that comprise the majority of the population. PROINORTE project will work with up to 90 producer organizations and support them to enhance their organizational and business capacities increasing access to market value chains and optimizing primary production, transformation and commercialization models.
The OPEC Fund’s contribution will specifically finance rural production infrastructure, water management and climate change mitigation activities, including the construction / upgrading of 220 km of roads, water storage and sanitation facilities, irrigation and food crops storage and processing facilities. In addition, around 10,500 energy efficient cooking stoves will be installed and environmental activities implemented, including reforestation of circa 1,000 hectares. Approximately 2,200 new on- and off-farm jobs will also be created under the project.
OPEC Fund Director-General Dr. Abdulhamid Alkhalifa said: “We are pleased to support Honduran rural communities that are affected by the impact of climate change, food insecurity and urban migration. By providing communities with the necessary infrastructure and technical assistance, the project will promote self-sufficiency and sustainability.
Honduras and the OPEC Fund have been partners in development since 1976. OPEC Fund’s operations to the country have focused on energy, agriculture, transportation, financial (SMEs), water and sanitation sectors, among others.
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.