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OPEC Fund and CAF sign agreement to promote efficient project preparation
October 14, 2022: The OPEC Fund for International Development is providing US$1 million to CAF, Development Bank of Latin America, in support of a technical assistance facility to improve project preparation in countries of common operations in the Latin America and the Caribbean (LAC) region.
The new facility will support the development of a pipeline of bankable investment projects in priority sectors for the OPEC Fund and CAF and support the strengthening of institutions, sector policies, strategies and programs in common countries of operation.
The agreement was signed today on the sidelines of the IMF-World Bank Annual Meetings in Washington DC. OPEC Fund Director-General Dr. Abdulhamid Alkhalifa said:
“This initiative will support our partner countries in the LAC region by ensuring improved readiness of investment projects and by facilitating more effective and efficient implementation. It is another important milestone in our longstanding partnership with CAF, expanding our cooperation in the area of technical assistance.”
Sergio Diaz-Granados, CAF Executive President, added:
“CAF is developing an ambitious agenda of alliances by bringing together international actors to accelerate the exchange of knowledge and ensure that the LAC region can actively offer solutions to major global challenges. The technical assistance facility agreement with the OPEC Fund will allow us to double our efforts to strengthen the impact and efficiency of our financing in key areas of development in the countries of the region.”
The agreement builds on a cooperation framework agreement signed in 2021, when the OPEC Fund and CAF committed to enhance strategic and operational cooperation and to co-finance public and private sector projects that contribute to sustainable economic development in the LAC region. Based on the agreement, the OPEC Fund will provide financing of up to US$600 million for public sector projects in partnership with CAF until 2024.
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. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA, Positive Outlook by S&P in 2021. Our vision is a world where sustainable development is a reality for all.
The mission of CAF, Development Bank of Latin America, is to promote sustainable development and regional integration by financing public and private sector projects, providing technical cooperation, and other specialized services. Established in 1970 and currently made up of 21 countries -19 from Latin America and the Caribbean, together with Spain and Portugal- and 13 private banks, it is one of the main sources of multilateral financing and an important generator of knowledge for the region. More information at www.caf.com