OFID is a staunch supporter of the Energy for the Poor Initiative.
As part of its commitment to the Energy for the Poor Initiative, on September 12, 2012, OFID's Governing Board met at its 140th session and approved over US$100 million in public sector loans and grant funding to help bolster the energy sector in partner countries. Commenting on the fresh funding, OFID Director-General, Mr. Suleiman J. Al-Herbish, said: "OFID has embraced the Sustainable Energy for All Initiative, having supported projects that best meet the needs of its partner countries - without imposing any conditionalities. OFID has supported projects that range from the construction and rehabilitation of power plants and installation of natural gas pipelines, to the construction of wind farms and solar energy systems. This has been made possible thanks to the support of OFID Member Countries and a long-standing cooperation with a host of financial partners."
The energy-related public sector loans approved at the meeting comprise the following:
- Morocco. US$37.2 million. Kenitra Power Plant Facility Expansion - Phase I. To help satisfy the country’s increasing demand for electricity through the installation of three new gas turbine units. On completion the project will help provide an uninterrupted and affordable supply of energy for nearly 2 million inhabitants. (€30 million)
- Rwanda. US$12 million. Electricity Access Scale Up (Supplementary Loan). To improve access to reliable and cost-effective electricity services for households and priority public institutions (such as schools and health centers) in urban and peri-urban areas, as well as densely-populated rural areas presently unconnected to the grid.
- Tunisia. US$50 million. Sousse-D Combined Cycle Power Plant. To help meet growing energy demands through the construction of a power plant situated 140 km south of the capital Tunis. The project is expected to help create jobs, enhance food security, boost important industries and improve living standards.
The Board also approved grants that will fund two energy initiatives:
- Corporación Andina de Fomento (CAF): OFID/CAF joint initiative Energy for the Poor Projects and Policies Preparation Facility in the Latin American Region, which aims at providing modern energy services to 15 developing countries (Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Jamaica, Mexico, Panama, Paraguay, Peru, Trinidad and Tobago and Uruguay).
- Yabous Foundation: To finance the purchase of an electricity generator to help address energy shortages at the Jerusalem-based Yabous Cultural Center. Some 400,000 people are expected to benefit from the scheme.
See press release 15/2012 for a complete list of projects/grants approved at the meeting that will support the agriculture, education, health and transportation sectors. .
See also: RIO+20: OFID commits US$1 billion to address Energy Poverty Alleviation