Press Release

OFID signs US$10.5 million loan agreement with China to rehabilitate key rural water source

19/2009 April 6, 2009 Vienna, Austria
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The OPEC Fund for International Development (OFID) yesterday signed its second public sector loan agreement with China. The funds will support a project to rehabilitate the Bosten Lake Basin in Xinjiang located in the north-western region of the country. The US$10.5 million agreement was signed by OFID Director-General, Mr. Suleiman J. Al-Herbish, and by HE Mr. Li Yong, Vice-Minister of Finance of China.

Mr. Al-Herbish expressed his pleasure that OFID and China were able to solidify their cooperation in such a short period of time. The Director-General was referring to the signing of the first loan agreement in January this year to co-finance the Yunnan Vocational Educational Project. Mr. Al-Herbish had signed the agreement during his mission to China, where he led a high-level delegation (see press release 02/2009). Commenting on the latest funding, which is being co-financed by the Chinese Government and OFID sister institution the Kuwait Fund for Arab Economic Development, the Director-General said the project would “help enhance agricultural production, develop the local economy and ultimately improve the standard of living of the beneficiary population.” Mr. Al-Herbish assured Mr. Yong that OFID was determined to expand its portfolio of operations in China so as to “contribute to sustaining the socio-economic developments of the country.”

Responding, the Vice Minister thanked Mr. Al-Herbish for inviting him to come to Vienna personally to sign the loan agreement. Mr. Yong also expressed enthusiasm for the newly-forged relationship between OFID and China, which his government considers highly important. The Vice Minister said he appreciated OFID’s support. In particular, Mr. Yong referred to OFID’s commitment to helping support the country’s impoverished rural communities in Central and Western China, areas to which the government attaches high priority. The Vice Minister also spoke of enhancing cooperation with OFID in order to target other key sectors, especially in the area of education. In conclusion, Mr. Yong expressed strong interest in pursuing projects under OFID’s other lending windows, such as the Private Sector Facility.

To date, OFID has provided more than US$10.3 billion in much needed development financing to 121 developing countries worldwide. The funding, which is targeted at the poorest countries, includes project and program loans, balance of payments support and HIPC debt relief, as well as financing under OFID’s Trade Finance Facility. Others are private sector financing, grant assistance and contributions to other international institutions such as the Common Fund for Commodities and the International Fund for Agricultural Development. These OFID financial contributions are helping raise living standards among thousands of needy communities in scores of developing countries around the world.

For detailed information on individual projects, please visit the country profiles pages of the OFID website.

 

Arabic version