Press Release

OFID releases Annual Report 2006

15/2007 June 13, 2007, Pörtschach, Carinthia, Austria,
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The 2006 Annual Report of the OPEC Fund for International Development (OFID) was released today, following its adoption by the Ministerial Council, meeting in Pörtschach, Austria. Published in English, Arabic, French and Spanish, the Report details OFID’s activities during 2006 and gives an overview of operations since the institution’s inception in 1976. Some important highlights are detailed below:

• By the end of 2006, cumulative commitments stood at US$8,606.1 million and total disbursements had reached US$5,492 million (see Table 1).
• In the course of 2006, US$699.7 million was committed in loans and grants, and US$304.8 million was disbursed (see Table 2).

In his foreword to the Annual Report, OFID Director-General, Mr. Suleiman J. Al-Herbish described 2006 as “a defining year in the history of the institution.” Among the many milestones, he noted in particular the institution’s 30th anniversary observance and the many events and activities organized to mark the occasion. Chief among these, said Al-Herbish, was the crafting of “a new corporate identity to better define OFID’s image as a modern, progressive, outward-looking institution.” A logo and website redesign had formed the key pillars of this re-branding exercise.

The Director-General also highlighted landmarks on the operational front, notably the launch of a new trade financing window and a record US$700 million approved in fresh commitments. Endowed with resources of US$500 million, the new Trade Finance Facility was seen as “a natural progression in the evolution of OFID, as it strives to embrace the diverse and changing needs of the countries it works with,” he said.

Yet another noteworthy event was the two major meetings held at OFID Headquarters in May: the Tenth Conference of Heads of Arab Development Institutions and a High-level Roundtable on Partnership for Arab Development: a Window of Opportunity. “That OFID was deemed a worthy host and that the meetings attracted such high profile participants is testament to the respect in which the institution is held among its peers in the international development community,” said Al-Herbish.

Also in May, OFID was honored to receive a stream of top-level visitors, including the Presidents of Bolivia and Nicaragua and the Prime Minister of Belize. Mr. Al-Herbish described the visits as “a unique opportunity to discuss collaboration at the highest level and evidence of the strong ties OFID enjoys with its partner countries.”

Further significant highlights in 2006 were: the granting to OFID of observer status in the UN General Assembly; participation in several international conferences, including AIDS 2006; and a number of productive missions to cooperating countries.

Public sector operations in 2006

In 2006, OFID approved 44 project loans worth US$524.2 million to 32 countries, thus helping to finance development operations in a range of sectors, with energy (34.8%) and transportation (30.1%) taking the largest share. Substantial resources were also directed toward the agriculture, water supply and sewerage, health and education sectors. A number of projects were multi-sectoral in nature. A further US$34.4 million was committed within the context of the Heavily Indebted Poor Countries (HIPC) debt relief initiative, and US$10 million was given in trade financing.

Private sector operations in 2006

Through its private sector window, OFID approved US$100.2 million in fresh commitments in 2006, shared between the financial sector (34%) and the non-financial sector (66%). The funds will support activities ranging from micro-financing, copper mining, oil refining and mobile telecommunications to stainless steel and cement production, among others.

Grant operations in 2006

In 2006, resources committed in grant financing totalled US$31 million and supported 78 projects. As well as substantial approvals from the Special Accounts for HIV/AIDS and Palestine, eight grants were provided as Technical Assistance for a diverse range of causes, such as avian flu control, cancer care, marine resource management and vocational training for women. Research grants numbered 17, while US$3.5 million was given in emergency aid in the wake of natural disasters.

Table 1 - Total commitments and disbursements as of December 31, 2006 (in millions of dollars)

Table 2 - Commitments and disbursements in 2006 (in millions of dollars)