CAF and OPEC Fund join forces to boost funding for sustainable development in Latin America
For thirty-nine years, both financial institutions have joined forces to promote sustainable infrastructure project development in the region. And now they have signed an agreement to strengthen joint cooperation through the co-financing of post-pandemic economic recovery projects in Latin America.
To collaborate on the economic and social reactivation plans being led by national authorities across the region, the Organization of the Petroleum Exporting Countries Fund (OPEC Fund) and CAF Development Bank of Latin America, signed a framework cooperation agreement to commit to joint resources mobilization. Specifically, the OPEC Fund offers resources to CAF for co-financing of infrastructure projects for up to USD 600 million over the next 3 years.
The agreement was signed by Abdulhamid AlKhalifa, Director General of the OPEC Fund and Sergio Díaz-Granados, Executive President of CAF, in order to encourage, develop and facilitate joint activities through financing and other forms of investment to support the public and private sectors in Latin American and Caribbean countries.
When signing this agreement, CAF's Executive President, Sergio Díaz-Granados, emphasized: "This agreement reflects CAF's interest in fostering strategic alliances that allow enhancement of capacities and opportunities for both institutions in Latin America and the Caribbean, while allowing us to play an important catalytic role by providing resources, products and experiences from other regions to mitigate the effects of the pandemic and aid economic recovery for countries across the region. Our partnership with the OPEC Fund is key to advance in our mission of supporting Latin American and Caribbean countries in their path towards sustainable and inclusive development, and to fulfill my aspiration for CAF to become the Green Bank of Latin America."
OPEC Fund Director General, Abdulhamid Alkhalifa said: “The SDGs can only be realized through strong international cooperation and partnerships. We are pleased to increase our cooperation with CAF to ensure a greater joint impact in our partner countries. To date, the OPEC Fund has allocated more than US$3.4 billion in financing to LAC and remains committed to supporting sustainable development operations in the region.”
This agreement also highlights the joint desire to commit non-reimbursable technical assistance resources for better structuring of mutual interest projects in the region. These resources will be directed to pre-feasibility, feasibility, as well as design and detail studies, ensuring more optimal project implementation.
In recent years, CAF and the OPEC Fund have co-financed projects in countries such as Bolivia, Colombia, Panama and Paraguay in the transport, roads and highways, energy, water and sanitation sectors, thereby allowing development of sustainable projects contributing to SDGs attainment.
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