The OPEC Fund and CAF will promote efficiency in development project structuring

The OPEC Fund approved a non-reimbursable cooperation facility totaling USD 1 million for CAF—development bank of Latin America—, with the purpose of improving high-quality project structuring, resulting in reduced costs, times, environmental impact and unforeseen events. The funds will also help prepare and structure projects, including feasibility studies, legal and financial due diligence, environmental and social assessments, final and detailed designs for projects of mutual interest.

This cooperation between the OPEC Fund and CAF, which have been working for 40 years on promoting sustainable development in the region, also aims to mobilize funds to create future credit opportunities for both institutions by adequately preparing infrastructure sector projects such as transport, energy, communications, water and sanitation, health and climate change. This was made possible thanks to the cooperation framework signed by both organizations in October 2021.

OPEC Fund Director General Abdulhamid Alkhalifa said: “This initiative will support our partner countries in the LAC region by ensuring better preparation of investment projects and facilitating more effective and efficient implementation. It is another important milestone in our long-standing partnership with CAF, which expands our cooperation into the area of technical assistance.”

“CAF is developing an ambitious partnership agenda to link international stakeholders with development in Latin America and the Caribbean and at the same time to accelerate knowledge exchange, ensuring that the region plays an active role in the search for solutions to major global challenges. In this case, the agreement with the OPEC Fund will allow us to double our efforts to enhance the impact and efficiency of our financing in key development areas for countries in the region,” said Sergio Díaz-Granados, executive president of CAF.

The relationship between CAF and the OPEC Fund dates back to 1982. In June 2010, a joint cooperation agreement was signed in Venezuela, which was renewed in 2021 with the OPEC Fund’s commitment to co-finance projects with CAF for up to USD 600 million until 2024.