OPEC Fund for International Development

The OPEC Fund for International Development (English OPEC Fund for International Development OFID) is a multilateral organization to finance development aid. It was launched in 1976 by the Member States of the Organization of Petroleum Exporting Countries ( OPEC) to life. The original idea for its creation was established in March 1975anlässlich the Conference of Heads of State and Government of OPEC countries in Algiers, Algeria. In a Solemn Declaration of the Conference was " the growing solidarity that links the OPEC countries with other developing countries in their struggle to overcome underdevelopment " reaffirms and called for measures to strengthen the cooperation between these countries.

OFID has set itself the goal of strengthening financial cooperation between OPEC and other developing countries by providing financial assistance for their socio-economic development. The central mission of the organization is to promote South -South cooperation with other developing countries around the world with the aim to overcome poverty altogether. The OFID headquarters is located in Vienna, Austria. Acting Director General Suleiman is Yasser Al- Herbish from Saudi Arabia.

OFID headquarters

The OFID building on the Ringstrasse in the heart of Vienna was originally a private palace of the Austrian Archduke Wilhelm Franz Karl. According to the plans of the architect Theophil von Hansen (1813-1891) built in the years 1864 to 1868, the palace was sold in 1870 to the German Order of Knights and was occupied by the Grand Master, last Archduke Eugen as headquarters. From 1894, the palace became the Grand Master as well as the German masters under the name Palais German Masters as residence. After the dissolution of the German Order of Knights in 1938 the building of the German National Socialists was taken into possession, in 1942 the police authorities handed. So the palace served from 1945 to 1975 as the headquarters of the Vienna Police Department. The building was unused for a long time before it was finally purchased by the OPEC Fund.

History

After the First OPEC Summit in Algiers, Algeria, in 1975, Member States pledged their financial support for developing countries in the framework of a collective financing facility. At the subsequent meeting of finance ministers OPEC countries in 1976, the OPEC Special Fund was established, which was to channel the OPEC financial assistance to developing countries. That same year, the OPEC Special Fund began with an initial endowment of approximately $ 800 million on its activities. End of 1977, 71 loans had been awarded to 58 developing countries. Development aid institutions such as the Trust Fund of the IMF (International Monetary Fund, IMF) and the International Fund for Agricultural Development ( IFAD) had provided non-repayable financial assistance to the OPEC member countries.

The financial assistance has proved so successful that the Member States decided in 1980 to leave the first designed for temporary purposes the financial account to a permanent body with legal personality under the name OPEC Fund for International Development ( OFID) are. From the OPEC Special Fund, finally, a complete, focused on continuous development organization had become at the international level in May 1980. The Council of Ministers, the highest OFID governing body, approved in June 2011, an increase of funds in the amount of U.S. $ 1 billion - the so far last - in response to the increasing needs of developing countries and the impact of the financial crisis on the economy of their countries.

Member States

Algeria
Gabon
Indonesia
Iran
Iraq
Kuwait
Libya
Nigeria
Qatar
Saudi Arabia
United Arab Emirates
Venezuela

Provision of funds

OFID provides financial assistance of various kinds, the priorities shifted over time in proportion as the conditions and requirements of the recipient countries have developed and changed. Among the types of financing include:

Financial aid in the form of concessional loans for development projects and programs, balances of payments and trade finance
Financing of private sector activities in developing countries
Grants for technical assistance, food aid, research and related areas, as well as humanitarian aid
Contributions to other development institutions, developing countries can benefit from their work.

Financial resources

The financial resources of OFID are made up of voluntary contributions from OPEC members, as well as accumulated reserves from the operating activities of the Fund.

Recipient countries

Eligible principle all developing countries, with the exception of the Member States of OPEC itself, however, the least developed countries in the world enjoy higher priority and thus receive the lion's share of OFID grants. Over the years, 134 countries were supported - including 53 from Africa, 43 from Asia, 31 from Latin America and the Caribbean, and seven from Europe. The state of the OFID approved payment obligations at December 31, 2013, a total 16.653 billion U.S. $.

Operating activities

Focus

Agriculture
Education
Energy
Financial sector
Health
Industry
Infrastructure and mining
Intersectoral and Urban Development
Telecommunications
Traffic
Water and sanitation

Projects in the public sector

Loans to the public sector provide the bulk of the OFID activities; they comprise 68% of the total cumulative commitments. Using this window, 31 December 2013 were $ approved soft loans to the public sector in 105 developing countries for 1411 total 11.118 billion U.S.. Although the OFID offer has now been extended to a larger number of partners also middle-income situation, the bulk of these funds was true to the OFID mandate to low-income countries forgive who enjoy to be a priority.

All loans to the public sector are with the governments of the recipient countries, and frequently with other donors, including the regional development banks, and especially the bilateral and multilateral development agencies of the OPEC countries, co-financed. Under the principle of effectiveness, the success OFID assistance is always coordinated with sister organizations and other institutions to streamline joint projects and to avoid duplication or overlaps. With regard to sustainability represent capacity building and strengthening of institutions integral part of all projects that handles OFID with the public sector. The projects themselves are demand-driven and reflect the strategic priorities of partner countries. Cumulative make the loan for the Nexus water - food - energy, which is supported by the transport sector, 76 % of all loans to the public sector at the end of 2013.

Among the public sector as well as the OFID 's contribution falls to the HIPC Initiative for Heavily Indebted Poor Countries (Heavily Indebted Poor Countries). OFID supports the initiative since its launch in 1996 and now has over $ payment obligations of approximately 270 million for debt relief to 26 HIPC countries.

Projects in the private sector

The facility for the private sector (PSF ) was established in response to the changes in the economic policies of the OFID partner countries into being in 1998. The support of the private sector by providing loans and equity finance is regarded as a natural adaptation that allows OFID to continue to offer help as wide a range of countries while still responding to the needs of their development.

The objectives of the PSF are to promote the growth of productive private enterprises and to stimulate the development of local capital markets. Economic growth is thus stimulated by successful measures to create jobs and generate income, which in turn causes poverty is alleviated.

In cooperation with other development finance organizations ( EFI) and commercial banks, the Facility supports economically viable private enterprises. State-owned enterprises are eligible if they are operated as autonomous enterprises by economic standards and pass on the assistance provided to local private enterprises. In addition, public-private Kooperationssprojekte are supported if they are managed according to private sector principles. The projects are faithfully chosen the OFID mandate after their developmental significance.

The facility prioritizes the support of micro-enterprises and small and medium-sized enterprises (SMEs), whose activities stimulate economic growth and play a key role in creating jobs and alleviating poverty. The PSF support these SMEs mainly as intermediary with respect to financial institutions, including national and regional development banks, commercial banks, leasing companies, microfinance institutions and investment funds.

The received with the end of 2013 financial obligations amount to 2.041 billion U.S. $ for 197 projects to support private enterprises in Africa, Asia, Latin America and Europe.

Trade finance

In 2006, a package to finance trade ( Trade Finance Facility TFF) was launched. It is starting to developmental and socio-politically acceptable Import and export promotion and on the financing of working capital in developing countries. One of the basic considerations that are provided under the Facility, include the impact of the measure on the development and the objectives of South -South cooperation. Measures on trade finance are open to governments, private institutions, commercial banks, regional development financial institutions and any other organizations that are engaged in a OFID recipient country. The OFID offer includes import, export and export pre-financing, commercial loans, SME trade promotion activities, working capital loans and unsecured risk investments.

At year-end 2013 lines of credit in the amount of 1.949 billion U.S. $ and warranty programs with risk-sharing in the amount of 2 billion U.S. $ were approved.

Subsidies

As part of the OFID grant program much needed funds for a variety of activities are provided, which can not be financed through loans for various reasons. Although these OFID grants account for less than 4% of the total cumulative commitments which the projects are, however, considered to be particularly meritorious, as they cover basic needs and actually help change the daily lives of people. Under this non-repayable grants funding for humanitarian aid and social development over six grant programs are provided, specifically for technical assistance, research and related activities, emergency assistance, HIV / AIDS, overcoming energy poverty and Palestine. The new program against energy poverty, a particular priority and complete the financing actions under other mechanisms to support " Energy for the Poor " the OFID initiative.

For December 31, 2013 was granted the status of non-repayable grants more than 573 million U.S. $, for more than 1,500 grant services.

Technical Help

Technical assistance measures set from the beginning the core area of OFID grant benefits dar. This national as well as regional development projects are subsidized, the focus on sustainable development and poverty eradication and the poorest of the society, especially the people in the least developed countries of the world (Least Developed Countries, LDCs) benefit. Women and children have a high priority. Technical assistance grants are awarded primarily due to the type of project and turn off on profit expectations, the number of beneficiaries and the socio-economic situation of the recipient country.

OFID not only works with UN agencies and a number of international and national NGOs, but also with numerous other partners to respond specifically to the needs of vulnerable population groups.

Research and related areas

This type of aid is geared to activities to enhance South -South cooperation and North- South cooperation, as well as improved capacity building. This includes the development of human resources, especially in the LDCs. Research topics and studies of specific importance for poorer countries and the promotion of science and technology with a special focus. The promotion of seminars, trainings and workshops represent measures to strengthen the human capital

Emergency

To the distress of victims of various disasters worldwide, and also alleviate in OFID Member States, OFID provides emergency aid. In terms of sustainable development, OFID grants after the relief was often conventional, low-interest loans to support the longer-term reconstruction in devastated areas. Such emergency measures should be provided on specific aid agencies, such as by the International Federation of Red Cross and Red Crescent Societies ( IFRC), the High Commissioner for Refugees (UNHCR ), the United Nations Office for the Coordination of Humanitarian Affairs ( OCHA) and the World Food Programme (WFP ).

HIV / AIDS-Hilfe

Once approved by the Council of Ministers, the OFID program to fight HIV / AIDS in June 2001 with an initial endowment of $ 15 million was launched. Other budget increases the account balance increased $ 80 million U.S.. Today OFID works with a broad-based alliance of strategic partners in the fight against the pandemic in more than 90 countries. The support measures cover many sectors, such as Education, prevention, testing and counseling, as well as care, treatment, support and development of vaccines.

Aid to Palestine

OFID provides assistance to Palestine since 1979. In response to the increasing need for assistance critical extent, however, OFID launched in 2002, stepping up its presence in Palestine with the creation of a special program for the acceleration of aid. Equipped with its own resources, this program is now able to support areas of long- term significance, such as the provision of basic infrastructure, the necessary health care and various social services. In urgent humanitarian action in the context of the program also emergency aid for food supplies, medical supplies and various other needs will be provided.

Contributions to other organizations

Common Fund for Commodities ( Common Fund for Commodities, CFC)

The Common Fund for Commodities ( Common Fund for Commodities, CFC) supports OFID for a long time. To date, the Fund with a total of 83.6 million U.S. $ was promoted. This amount is composed of a voluntary contribution in the amount of 46.4 million U.S. $ to the Second Account of the CFC, as well as a payment of a further 37.2 million U.S. $ to cover the subscription of shares of the 35 least developed countries directly to the paid-up capital of the CFC. As part of the Second Account of payment obligations in the amount of 32 million U.S. $ for resource projects in 29 African countries, 15 Asian countries and six Latin American countries were taken over.

At the 30th annual meeting of the OFID Ministerial Council on 17 June 2009, three new countries (Democratic Republic of Congo, Senegal and Mozambique ) were placed on the list of eligible countries, which now of subscriptions to the first account of the CFC (and thus from receiving can benefit from payments on the capital subscriptions ). OFID followed the activities of the CFC with great interest and enjoys in the two highest organs of the Fund observer status.

International Fund for Agricultural Development ( IFAD)

With the emergence of IFAD, OFID played an important role by the OPEC countries contributed payments in the amount of 861.1 million U.S. $ to the initial capital as well as to the first increase in funding of the Fund. The OPEC countries to support IFAD since its inception active, by they contribute to additional budget increases. In addition, OFID presented itself from its own resources additional U.S. $ 20 million as a special contribution available.

Trust Fund of the International Monetary Fund ( IMF)

A number of OPEC countries which established in May 1976, administered by the IMF Trust Fund funds amounting to U.S. $ 110m paid a OFID account. These funds are made up of profits that seven of these countries lukrierten from the sale of gold, which managed the Fund on their behalf. They were asked to concessional balance of payments of eligible low-income countries that are members of the IMF at the same time, available.

Initiative " Energy for the Poor "

OFID is the belief that human development and energy use are inextricably linked. Without energy as the motor industry and as a support of businesses and social services such as hospitals and schools is not possible economic or social progress.

OFID believes that alleviating energy poverty - even though no own goal - is essential for achieving the eight Millennium Development Goals welcomed internationally. For this reason, OFID refers to the overcoming energy poverty as the " 9 Millennium Development Goal ". Over the years, OFID and the OFID Member Countries have proved that poverty and thus regarded human misery are a serious concern for them. At the Second OPEC summit in Caracas, Venezuela, in September 2000, the Heads of State and Government of poverty referred to as "the greatest environmental disaster " in the world.

In keeping with this position promised OPEC leaders on the occasion of their third summit in the Kingdom of Saudi Arabia in the Declaration of Riyadh in November 2007, the programs of their organizations, including those of the OFID, continue towards the goal of sustainable development and the eradication of energy poverty aligning in the developing countries.

In June 2008, proclaimed King Abdullah bin Abd al- Aziz Al Saud of Saudi - Arabia, Custodian of the Two Holy sites in Mecca and Medina, "Energy for the Poor" initiative and called OFID and the World Bank to undertake a leading to take part in the development of the program.

In May 2009, the same issue has been discussed at the meeting of energy ministers of the G8 in Rome. The ministerial meeting ended with a joint statement by the G8 Energy Ministers, the European Commissioner and the Energy Ministers of several other states, including the OFID members Algeria, Indonesia, Libya, Nigeria and Saudi Arabia. In the statement, the ministers pledged their support for initiatives to combat energy poverty, including the initiative of King Abdullah's " Energy for the Poor ". OFID and a number of other institutions were also asked to draw up strategies and funding mechanisms for the development of energy networks and pooling of energy markets in Africa.

In March 2010, energy poverty was again in the flash, as the energy ministers of the producer and consumer countries in the world in Cancun, Mexico for the 12th International Energy Forum (IEF ) met. At a special meeting of the Forum on "The role of energy in the promotion of human development " OFID issued a statement that threw a spotlight on the OFID efforts to alleviate energy poverty.

In 2010, the United Nations all the people gave the intention, the year 2012 as the year of the " Sustainable Energy for All " (Sustainable Energy for All, SE4ALL ) to declare, an international initiative with the aim by 2030 access to to enable energy. Various initiatives, in particular the global SE4ALL initiative in 2012, the attention of the world hinged on the important issue of energy poverty and the need to address this issue in order to achieve the Millennium Development Goals and to overcome poverty. Because of the importance of the causal relationship between energy and poverty, and with regard to the preservation of the dynamics that currently dominates the efforts to solve the problem, the United Nations General Assembly has the decade 2014 - 2014 Beyond " for All Decade of Sustainable Energy " declared and so that the attention of the international community drawn to meet this challenge.

OFID Director-General Al- Herbish was named one of the 39 directors of the High Level Group SE4All. Al- Herbish is also a member of the SE4All Advisory Board, an elite forum of representatives from business, finance, public administration and civil society. These appointments were made to the leading role of the OFID in the global fight against energy poverty in recognition.

OFID was one of the first institutions to the call for dealing with this urgent question obeyed. As a development finance institution, the organization is widely recognized as one of the pioneers, who should put this issue on the international agenda. The fight against energy poverty through its initiative " Energy for the Poor " was launched in 2008. In June 2012, the Council of Ministers gave OFID in a statement its commitment known to assign OFID funds in the amount of at least U.S. $ 1 billion to finance the initiative, underlining the importance of OFID 's contribution to the fight against energy poverty is again underlined.

The legal profession, which took over OFID on this issue, was the emphasis on the crucial link between energy and development are crucial. OFID has supported a number of projects ranging from the construction and renovation of power plants and the laying of natural gas pipelines to the construction of wind farms and solar energy plants. At the end of 2013 energy measures were reported with a total of more than U.S. $ 3.3 billion, equivalent to 21 % of the cumulative commitments. In addition, projects were co-financed in 85 countries.

Suleiman Jasir Al-Herbish

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