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Press Release

OPEC Fund Governing Board holds 110th session

19/2005 March 15, 2005, Vienna, Austria

The Governing Board of the OPEC Fund for International Development today convened its 110th Session at the Fund’s headquarters in Vienna, Austria.

  1. H.E. Mr. Jamal Nasser Lootah of the United Arab Emirates was unanimously re-elected as Chairman of the Governing Board for a period of one year.

  2. Following adoption of the meeting’s agenda, the Director-General of the Fund, Mr. Suleiman J. Al-Herbish, reporting to the Board on the Fund’s activities, indicated that on a cumulative basis, and as of the end of February 2005, US$5,795.7 million had been approved in loans to the public sector and US$3,713.6 million disbursed. These loans, which were extended for project and program financing and balance of payments support, as well as within the framework of the HIPC Initiative, number 1,023. All major economic and social sectors have benefited from the Fund’s assistance, including agriculture, transportation, health, education, water supply and sewerage, industry, energy, etc.

    The Director-General further indicated that a total of 67 operations had been approved under the Fund’s Private Sector Facility. As of the end of February 2005, cumulative commitments through this window totaled US$335.4 million.

    In addition, the Fund has approved a total of 714 grants in support of various activities in the areas of technical assistance, food aid, emergency relief and research. Cumulative grant commitments, as of the end of February 2005, amounted to US$322 million, of which US$223 million has been disbursed. Moreover, the Fund has contributed, in grant form, substantial amounts to the resources of other international development institutions benefiting the South; these contributions total US$971.8 million, most of which has been disbursed. To date, the Fund has provided financial assistance to 113 countries in Africa, Asia, Latin America and the Caribbean, the Middle East and Europe.

  3. In today’s session, the Board approved 11 public sector project loans worth more than US$75 million and detailed as follows:

    4. Data Summary:

    Country Project

    Amount
    (US$ million)

    Albania Kavaja Hospital 2.42
    Azerbaijan Samur - Absheron Irrigation System 8.00
    Bangladesh Secondary Towns Integrated Flood Protection 15.00
    Burkina Faso Ouagadougou – Kongoussi Road 7.00
    Cameroon Yaoundé - Kribi Road 7.00
    Chad Education Support 4.53
    Djibouti Boulaos Power Plant Rehabilitation 5.00
    Honduras Villa San Antonio - Goascoran Road 7.00
    Mali Kayes - Diamou Bafoulab é Road 10.00
    Mauritania Aftout-Es-Saheli Water Supply 6.60
    Nicaragua Las Flores - Nandaime Road Rehabilitation 5.00
    TOTAL   75.55

    All of the above loans have a maturity of 20 years, including a grace period of five years, and the majority carries interest at rates ranging from 1% to 1.5%.

    The projects will be cofinanced with the governments of the beneficiary countries and with other donors including five aid institutions in member countries – the Arab Bank for Economic Development in Africa, the Arab Fund for Economic and Social Development, the Islamic Development Bank, the Kuwait Fund for Arab Economic Development and the Saudi Fund for Development. Other contributors include the African Development Fund, the Asian Development Bank, the Central American Bank for Economic Integration, the European Investment Bank and the Nordic Investment Bank.

  4. The Board also approved five grants directed at financing activities in the social, health and agriculture sectors. They total US$8.2 million (see press releases no. 20/2005-27/2005) and are described below:

    • US$400,000 to promote efficient water use in Arab countries;
    • US$300,000 to help reintegrate Burundian returnees.
    • US$2 million to provide assistance to Palestinian communities affected by the separation wall; to be drawn from the Special Grant Account for Palestine;
    • US$2 million for a joint OPEC Fund/ILO multiregional project on HIV/AIDS workplace policies and programs; to be drawn from the HIV/AIDS Special Account, and
    • US$3.5 million towards an OPEC Fund/WHO project on integrating the "3 by 5" initiative in health systems in Africa; also to be drawn from the HIV/AIDS Special Account.

  5. The Board also discussed the Fund’s Private Sector Facility: two new private sector investment proposals were approved; a number of pipeline proposals were considered and a status report on the Facility examined.

  6. Also in this session, the Board reviewed financial matters. It examined and adopted drafts of the Corporate Plan and of the Fund’s 2004 Annual Report. It discussed a paper on desertification; took note of a completion report on the Fifteenth Lending Program (2002-2004); endorsed a paper on provisioning for public sector loans; reviewed replenishment of the Grant Account for Research and Similar Activities, and the Special Grant Accounts for HIV/AIDS and Palestine. The Board also discussed a progress report and a policy paper on grant operations; and looked at public sector operations under active consideration.


  7. The next Governing Board Session will take place in Seefeld, Austria on June 16, 2005.