Press Release

OFID Ministerial Council holds Twenty-Seventh Annual Session

53/2006 June 13, 2006, Jeddah, Saudi Arabia
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The Ministerial Council of the OPEC Fund for International Development (OFID), the institution's highest policy-making body, today held its 27th Annual Session in Jeddah, Kingdom of Saudi Arabia. The Council elected a new chairman, HE. Dr. Ibrahim Al-Assaf, Honorable Minister of Finance of Saudi Arabia.

In an opening address, outgoing Council Chairman H.E. Dr. Mohamed Khalfan Bin Khirbash, Minister of State for Finance and Industry of the United Arab Emirates, touched on the theme of OFID’s 30th Anniversary, which is “Thirty years of partnership and cooperation.” He said the slogan was appropriate, as it marked strong and growing partnership with 119 developing countries, worldwide. He noted the strengthening of alliances with OFID sister institutions and strategic partners aimed at achieving greater synergies to assist partner countries to realize the Millennium Development Goals.

Dr. Khirbash declared that OFID Member States could proudly look back at some of their achievements, individually and collectively through the Fund. The Ministerial Council, the Governing Board and the Management and Staff of OFID have, in 30 years, “turned an idea into a highly effective institution with a mission, a vision and a solid track record,” he declared. “The institution we are leading today is a tribute, not only to the foresightedness of our governments, but also a tribute to the countries we work with,” Dr. Khirbash concluded.

The new Council Chairman Dr. Al-Assaf conveyed greetings from the Custodian of the Two Holy Mosques, King Abdullah. Dr. Al-Assaf hailed the accomplishments of 30 years and pledged that the Fund will continue to aim high in all it does. He said the Fund had, despite obstacles, achieved success and recognition among cooperating countries and agencies.

1. In his own statement to the Council, H.E. Mr. Jamal Nasser Lootah, Chairman of OFID’s Governing Board, gave a brief overview of developments in the world economy during 2005. He said world economic growth tapered off to 4.3% in 2005; from a record 5.1% in 2004. The slowdown was widespread, with output dropping to 2.5% in the advanced economies, and to 6.4% in developing and emerging market economies. Projections for 2006 are for global economic expansion to be sustained at 4.3%. However, considerable risks cloud this generally positive outlook.
   
   Looking back on the OPEC Fund’s record of the past 30 years, Mr. Lootah said one could not escape feelings of satisfaction and pride. “Developing from a temporary special account into a fully-fledged development financing institution, the OPEC Fund today is recognized as an established and reliable partner.”
   
   He listed some of the key accomplishments of the Fund, recalling, among others, the construction of numerous roads, hospitals, and schools as part of a portfolio of public and private sector loans, and grants. As of March 14, 2006, the Governing Board had approved 1070 public sector loans, worth US$6.6 billion. This amount includes loans extended by the Fund under the Blend Facility, as well as under the Heavily Indebted Poor Countries (HIPC) Initiative. These public sector operations were complemented by private sector lending. As for grant aid, the Fund had extended 765 grants amounting to US$351 million to finance research, technical assistance, and emergency aid.

2. Mr. Suleiman J. Al-Herbish, Director-General of OFID, presented the Council with an overview of the institution’s operational status. He reported that, regarding the Fund’s Public Sector Operations, in 2005, the Governing Board had approved a total of 36 projects worth US$289.58 million within the framework of the 16th Lending Program and the Blend Facility, and an additional US$32.9 million for the HIPC Initiative, totalling US$322.48 million. As in the past, the bulk of the funds went to the Low Income Countries which are favoured by the highly concessional loans. He said the Private Sector Facility had strengthened its operations and is gaining popularity among the Middle Income Countries as well as Low Income Countries. At the end of 2005, a total of 16 loans and one equity investment, worth US$82.45 million were approved for projects in Africa, Asia, the Caribbean and Europe.
   
   Mr. Al-Herbish spoke of the activities lined up to mark the 30th Anniversary of the OFID. These include the OFID Annual Award for Development; the OFID Annual lecture series; and exhibitions. “While this was a time for celebrations,” Mr. Al-Herbish said, “it was also a time to re-focus our thoughts and vision.”





3. The Ministerial Council considered and adopted the Fund's Annual Report for 2005 (see separate press release no. 54/2006). It also reviewed and approved the audited financial statements of the Fund for the fiscal year 2005. External Auditors were appointed for fiscal 2006.




4. The Council reviewed a Note on the implementation of the Fund’s Corporate Plan; and noted Reports on the special grant accounts for HIV/AIDS and Palestine.




5. Also examined were Reports on provisioning for public sector loans and a Note on the tenure of external auditors.




6. The Council unanimously approved US$15 million to buttress the Fund’s Special Grant Account for Palestine (see separate press release, no. 55/2006)




7. At the close of the Council Session, a new feature film on OFID projects and programs across the world, Uniting against Poverty, was screened to Council approval; and the first OFID Annual Award for Development was presented by the Council Chairman to Humana, People to People non-governmental organization, based in southern Africa (also see separate press release no. 56/2006)




8. The 28th Session of the Ministerial Council will take place June 13, 2007, in Vienna, Austria.