OPEC Fund and World Bank Group strengthen cooperation for climate action, food security and infrastructure

October 22, 2024: The OPEC Fund for International Development (the OPEC Fund) and the World Bank Group have signed a Memorandum of Understanding (MoU) and a Co-financing Framework Agreement (CFA) to enhance cooperation on key global development challenges and boost efficiencies in project implementation. The documents were signed during the World Bank/IMF Annual Meetings in Washington, D.C. today by OPEC Fund President Abdulhamid Alkhalifa and World Bank Group President Ajay Banga. The agreements reinforce the institutions’ commitment to joint efforts in addressing the energy-food-water nexus, promoting climate-friendly investments and fostering regional cooperation and connectivity in an efficient and cost-effective way.

OPEC Fund President Alkhalifa said: 

“Today marks a milestone in our decades-long partnership with the World Bank Group. Our renewed partnership underscores the OPEC Fund’s commitment to tackling the most pressing development challenges of our time. From energy access and climate resilience to food security and regional connectivity, these are areas where collaboration can truly amplify our impact. By accelerating project development and implementation at country level and leveraging our collective strengths, we are committed to delivering sustainable development for all.”

World Bank Group President Ajay Banga said: 

“We need all shoulders at the wheel to realize our vision of a world free of poverty on a livable planet. Partnership plays a critical role in turning out ambitions into action, and this new chapter in our cooperation with the OPEC Fund will allow us to do that.”

The agreements provide the basis for increasing cooperation in areas such as climate-friendly energy technologies, food security and regional infrastructure projects. The CFA will allow closer coordination during the appraisal, co-financing and implementation of projects. More efficient preparatory work will accelerate delivery. The institutions will also partner in supporting private sector engagement in renewable energy, climate adaptation and job creation for women and youth.

The partnership between the two multilateral development banks has flourished over nearly five decades. Since 1977, the two partners have worked together on 232 projects with a total value of US$37.8 billion in multiple sectors and regions across the world.

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 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 about US$27 billion to development projects in over 125 countries with an estimated total project cost of more than US$200 billion. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA+, Outlook Stable by S&P. Our vision is a world where sustainable development is a reality for all.

About the World Bank Group

The World Bank Group works to create a world free of poverty on a livable planet through a combination of financing, knowledge, and expertise. It consists of the World Bank, including the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA); the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org.