Press Release

OFID releases Annual Report 2007

19/2008 June 20, Vienna, Austria
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The 2007 Annual Report of the OPEC Fund for International Development (OFID) has been released, following its adoption by the Ministerial Council meeting that was held on June 17 in Isfahan, the Islamic Republic of Iran. Published in English, Arabic, French and Spanish, the Report details OFID’s activities during 2007 and gives an overview of operations since the institution’s inception in 1976. Some important highlights are detailed below:

• By the end of 2007, cumulative commitments stood at US$9,480 million and total disbursements had reached US$5,898 million (see Table 1).
• In the course of 2007, US$873.8 million was committed in loans and grants, and US$405.8 million was disbursed (see Table 2).

In his foreword to the Annual Report, OFID Director-General, Mr. Suleiman J. Al-Herbish highlighted a number of landmark events in 2007. Of special note was November’s Third Summit of OPEC Sovereigns and Heads of State in Riyadh, Saudi Arabia, where “the distinguished Member States of OPEC” had “extolled the accomplishments of OFID.” The Summit, he said, “gave thought and expression to the creation and progressive development” of OFID and concluded with a Riyadh Declaration, which highlighted “the pressing issue of energy poverty.” Mr. Al-Herbish described OFID as an institution that had “always recognized the importance of energy to the development process,” and thereby “welcomed the mandate of its stakeholders to intensify efforts in this direction.” He added that OFID had boosted resources that were being reserved for this purpose.

In other areas, OFID contributed to a number of key conferences during the year, one of which was the 15th Session of the UN Commission on Sustainable Development. The organization also hosted several noteworthy gatherings, such as the 61st meeting of the Heads of Institution of the Arab/OFID and Islamic Bank Coordination Group, in which, Mr. Al-Herbish said, “OFID is privileged to have an active role.”

On the operational front in 2007, OFID began implementation of its new lending window, the Trade Finance Facility that was established in the previous year. In terms of annual commitments, the Director-General noted that OFID’s Governing Board had approved a record US$874 million in loans and grants, a sum which represented almost double the average amount approved in the preceding four years.

The year 2007 had ended with the successful conclusion of the 16th Lending Program. The 17th Lending Program, which had commenced in January 2008, would cover the next three years and including all windows, would deliver more than US$3 billion in financing. These fresh resources would “go toward cultivating hope, building infrastructure and fighting poverty,” said the Director-General.

OFID had been honored to receive a host of high-ranking visitors in 2007, including the President of Sierra Leone and the Prime Ministers of Guinea and Burkina Faso, in addition to chief executive officers of international institutions. Further significant outcomes in 2007 included the extension of the second OFID Annual Award and a Scholarship Award. Another noteworthy activity was OFID’s intensification of a campaign to heighten its public profile and visibility.

Public Sector Operations

In 2007, OFID approved 51 project loans worth US$639 million to 44 countries, thus helping to finance development operations in a range of sectors, with transportation (54.5%) and agriculture (19.6%) taking the largest share. Substantial resources were also directed toward the energy, water supply and sewerage and education sectors. A number of projects were multi-sectoral in nature. A further US$10 million was committed within the context of the Heavily Indebted Poor Countries (HIPC) debt relief initiative, and US$93.5 million was given in trade financing.

Trade Finance Operations

Approvals in 2007 for loans and lines of credit amount to US$64.30 million for five operations in five countries. In addition, risk sharing guarantees totaling US$29.2 million were approved.

Private Sector Operations

Through its Private Sector Facility, OFID approved US$130.6 million in fresh commitments in 2007, shared between the financial sector (25%) and the non-financial sector (75%). The funds will support activities ranging from micro-financing, cement production and housing. Others include energy, iron ore and steel manufacturing and oil services.

Grant Operations

In 2007, resources committed in grant financing totalled US$29.9 million and supported 86 projects. In addition to substantial approvals from the Special Accounts for HIV/AIDS and Palestine, 20 grants were provided as Technical Assistance for a diverse range of causes. These include agricultural research, boosting food security and improving agricultural productivity, cancer care, physical rehabilitation and technology exchange. There were 15 research grants, while US$3.3 million was given in emergency aid in the wake of natural disasters and to assist refugees and externally displaced citizens.