OPEC Fund renews partnership with CAF, pledges up to US$1 billion for sustainable development in Latin America

October 25, 2024: The OPEC Fund for International Development and CAF-Development Bank of Latin America and the Caribbean have signed a new Cooperation Framework Agreement to enhance their partnership in promoting sustainable development across Latin America. The agreement focuses on co-financing infrastructure projects and fostering economic growth in the region.

Key objectives of the partnership include:

•        Co-financing public and private sector projects in common partner countries

•        Collaborating on project identification, preparation, appraisal and supervision

•        Sharing knowledge and expertise through joint research, consulting services and staff exchanges

•        Promoting sustainable infrastructure development to drive social and economic progress

Under the agreement, the OPEC Fund aims to contribute up to US$1 billion in co-financing for public sector projects over the three-year period from 2024 to 2027.

OPEC Fund President Abdulhamid Alkhalifa said: 

“We are proud to renew this partnership in a region so critical to our global priorities of climate action and food security. Investments in infrastructure, particularly with the support of the private sector, are helping to future-proof sustainable development worldwide.”

CAF's Executive President Sergio Díaz-Granados said: 

“This agreement with the OPEC Fund reinforces our commitment to driving sustainable development in Latin America. By combining our resources and expertise, we can have a greater impact on critical infrastructure projects that will improve lives and foster economic growth across the region.”

The collaboration will focus on countries where both institutions are active, including Bolivia, Brazil, Colombia, Costa Rica, Dominican Republic, Mexico, Panama, Paraguay, Peru and Uruguay, among others. The agreement also emphasizes the importance of knowledge sharing and capacity building to ensure the effective implementation of co-financed projects.

This renewed partnership builds on the long-standing cooperation between CAF and the OPEC Fund, updating their previous agreements to address the evolving context of development in Latin America.

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.