Development News 2023 Q4

Helping Armenia’s green, inclusive and sustainable development 

The OPEC Fund is supporting green, inclusive and sustainable development in Armenia with a €50 million loan through its program lending instrument. 

This program aims to support the government’s developmental efforts to foster climate change mitigation and adaptation, improve environmental management and energy efficiency, enhance equity, promote human capital development and strengthen governance. The program was developed with the World Bank, which has provided a parallel loan of €92.3 million (US$100 million equivalent) for its implementation. 

Armenia’s Green Inclusive and Sustainable Development Program is aligned with the government’s five-year development plan (2021-2026) and includes fundamental steps such as a reform of the public investment management framework, a review of the justice system and relevant environmental legislation, an overhaul of the social assistance system and a modernization of the national curriculum strengthening Science, Technology, Engineering, and Mathematics (STEM). 

Promoting SMEs and green energy in West Africa 

The OPEC Fund has signed a €50 million loan with the West African Development Bank to support small and medium-sized enterprises (SMEs) in green energy projects. Sub-loans will be available in the countries of the West African Monetary Union: Benin, Burkina Faso, Côte d’Ivoire, Guinea- Bissau, Mali, Niger, Senegal and Togo. The loan is aligned with the OPEC Fund’s Climate Action Plan. 

Empowering Benin’s workforce through vocational education 

About 2,000 students annually are expected to benefit 

The OPEC Fund is extending a US$25.5 million loan to Benin to support the Ouidah & Djougou Vocational Training Schools Project which will upgrade existing school infrastructure and improve the educational curricula. 

The program also includes training for teachers to provide them the latest skills. The schools will empower about 2,000 students every year, one fourth of whom are female. The project is aligned with a government program to tackle youth unemployment and reduce the informal sector. 

Delivering clean energy development in Azerbaijan 

300,000 households expected to benefit 

The OPEC Fund is providing a US$50 million loan to ACWA Power to support the 240 MW Khizi-Absheron wind power project in Azerbaijan, which will strengthen the country’s electricity supply, diversify its energy mix and reduce carbon emissions. 

This will be the first utility-scale wind power project in the country and the largest in the Caucasus region. 

The PPP project is also the first independent wind power plant with foreign financing in Azerbaijan. Upon completion, it will generate 3.7 percent of Azerbaijan’s current energy production, supplying 300,000 households and offsetting 400,000 tons of emissions. 

Enhancing Rwanda’s water supply 

An expanded water plant will serve the capital city and surrounding areas 

The OPEC Fund is supporting sustainable water supply in Rwanda with a new US$21 million loan. The expansion of the Karenge Water Supply System Project will benefit the population of Rwanda’s capital Kigali and surrounding areas in the Rwamagana District. 

The OPEC Fund loan complements a US$143.3 million financing package provided together with the Abu Dhabi Fund for Development (AFDF), the Saudi Fund for Development (SFD), the Arab Bank for Economic Development in Africa (BADEA) and the Export-Import Bank of Hungary. 

The centerpiece of the project is the expansion of the Karenge water treatment plant on the shores of Lake Mugesera, about 50 km southeast of Kigali. The enlargement of the plant is expected to quadruple its capacity to 48,000 m3/day, meeting the local water demand until 2050. 

Supporting small enterprises in Albania 

Special focus on women-led businesses and companies supporting food security or green energy projects 

The OPEC Fund is providing a €20 million loan to Raiffeisen Bank Albania (RBAL) for on-lending to micro, small and medium-sized enterprises (MSMEs), especially women-led businesses and companies that are supporting food security or green energy projects. 

The OPEC Fund’s loan, the first to a financial institution in Albania, is extended in parallel with a €50 million loan by the European Bank for Reconstruction and Development (EBRD). The funds are eligible against RBAL’s Minimum Requirements for own funds and Eligible Liabilities, helping the bank to achieve its target as set by the Bank of Albania. 

Micro, small and medium-sized enterprises are the backbone of Albania’s economy, accounting for 99 percent of all businesses, providing 82 percent of employment and producing 64 percent of all exports. The loan will also support RBAL’s lending to the agribusiness sector to strengthen food security and value chain resilience.