Press Release

OFID releases Annual Report 2008

28/2009 June 18, 2009 Vienna, Austria
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The 2008 Annual Report of the OPEC Fund for International Development (OFID) has been released, following its adoption by the Ministerial Council at its meeting in Vienna, Austria on June 16. Published in English, Arabic, French and Spanish, the Report details OFID’s activities during 2008 and gives an overview of operations since the institution’s inception in 1976. Some important highlights are:

• By the end of 2008, cumulative commitments stood at US$10,299 million and total disbursements had reached US$6,382 million (see Table 1)
• In the course of 2008, US$815.3 million was committed in loans and grants, and US$483.9 million was disbursed (see Table 2).

In his foreword to the Annual Report, OFID Director-General, Mr. Suleiman J. Al-Herbish, pointed out that despite 2008 being a year beset by soaring food and fuel prices, as well as a global financial crisis that pushed many economies into a recession, OFID maintained its steadfast delivery of untied assistance to vulnerable countries. For example, in March, OFID responded swiftly to an appeal by the World Food Program to help bridge a major funding gap by extending a US$1.5 million grant. OFID also redoubled efforts to encourage growth and help create employment in the private sector with commitments totalling US$216 million – a 66% increase over the previous year. The institution also boosted resources of its Trade Finance Facility, which was launched in December 2006 to help meet the “rising demand for trade finance credits in the South.” In 2008 alone, US$44.5 million in loans and lines of credit was approved together with US$104.5 million in risk-sharing guarantees. The latter reflects more than a three-fold increase over 2007.

Mr. Al-Herbish also highlighted a major event when the Custodian of the Two Holy Mosques, King Abdullah bin Abdulaziz Al Saud of Saudi Arabia, mobilized the donor community to launch an Energy for the Poor Initiative that aims at providing a reliable, affordable source of energy to impoverished countries. Against the backdrop of the Initiative, OFID organized and hosted a highly successful Workshop on Energy Poverty in Africa, which held in Abuja, Nigeria in June.

OFID could not have been able to continue its poverty-fighting mission without the “generous support” of its Member Countries, the Director-General said. He emphasized that OFID would continue to “play its part” in helping to lessen the impact of the global recession on the “poorest and hardest-hit countries.”

Public Sector Operations

In 2008, OFID approved 45 project loans worth US$517.9 million to 38 countries, thus helping to finance development operations in a range of sectors, with transportation (35%), agriculture (30.1%) and multi-sectoral (13.8%) taking the largest share. Substantial resources were also directed toward the water supply and sewerage, energy, health and education sectors.

Private Sector Operations

Through its Private Sector window, OFID approved US$216.6 million in fresh commitments in 2008. The amount was shared between the financial sector (32%) and the non-financial sector (68%). The funds will support activities ranging from micro-financing, iron and steel production and sugar refining, to expanding a container terminal and expansion of river barge operations, among others.

Trade Finance Operations

US$44.5 million was approved in 2008 in loans and lines of credit, and US$104.5 million in risk-sharing guarantees to various development banks.

Grant Operations

In 2008, resources committed in grant financing totalled US$27 million and supported 74 projects. There were substantial approvals from the Special Accounts for HIV/AIDS and Palestine. Furthermore, nine grants were provided as Technical Assistance for a diverse range of causes. These included affordable electrical energy to the poor, a polio eradication initiative and strengthening the delivery of health care services, as well as knowledge management and vocational training for women. Research grants numbered 14, while US$3.5 million was given in emergency aid following a spate of natural disasters.

Arabic version