Press Release

 OFID and UNIDO agree to collaborate in addressing energy poverty

04/2008 February 22, 2008 Vienna, Austria
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The OPEC Fund for International Development (OFID) and the United Nations Industrial Development Organizations (UNIDO) have agreed to work together in addressing the issue of energy poverty. The decision was made yesterday at a working meeting at OFID headquarters, where the officials discussed avenues for future cooperation and strengthening of ties. OFID Director-General Mr. Suleiman J. Al-Herbish welcomed the UNIDO delegation which was led by its Director-General, HE Dr. Kandeh Yumkella. He was accompanied by six senior officials.

In a presentation, OFID noted that both organizations have similar mandates in fostering sustainable development to reduce poverty, particularly in the areas of energy. Other areas of collaboration include the environment, trade and the private sector. With regard to the energy poverty issue, Mr. Al-Herbish informed the delegation that OFID was planning a workshop in Abuja, Nigeria entitled Energy for the Poor in Africa. He added that UNIDO’s project evaluation and research expertise would provide a valuable contribution to OFID’s activities.

On his part, Dr. Yumkella expressed UNIDO’s readiness to work with OFID and highlighted his institution’s strong commitment to making energy more accessible and affordable in low-income countries. He also indicated that UNIDO would be “pleased to participate” in the Abuja workshop, adding that the lack of a reliable source of energy was of great concern to African countries. The UNIDO CEO said the growing energy problem has exacerbated poverty in the continent, and that this sector needed to be accorded high priority on the development agenda. Dr. Yumkella referred to UNIDO’s Five-year Plan that targeted key areas such as energy access and energy efficiency, especially with regard to industry and transport. Other objectives of the Plan cover renewable energy for household, industrial and commercial use. Dr. Yumkella said various UN organizations will be involved in the Plan, including the United Nations Development Program, the Food and Agriculture Organization and the International Atomic Energy Agency.

In conclusion, Mr. Al-Herbish highlighted OFID’s mutual interest in supporting the development of cleaner energy. He added, however, that OFID was looking at the implications especially for poor countries, if food crops were used in producing renewable energy such as ethanol. The two Directors-General acknowledged the role their institutions will play in giving support to the development of alternative energy sources, but stressed that such effort should not be at the expense of a country’s food supply or cultivable land.

The meeting was concluded with pledges by OFID and UNIDO to continue working closely to share ideas and experiences.