The OPEC Fund approved a non-reimbursable cooperation of USD 1 million in favour of CAF, Development Bank of Latin America, with the aim of improving the structuring of quality projects that result in lower costs, time, environmental impact and contingencies. The funds will also contribute to project preparation and structuring, 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 to promote sustainable development in the region, also aims to mobilise resources to generate future credit opportunities for both institutions based on adequate project preparation in infrastructure sectors such as transport, energy, communications, water and sanitation, health and climate change. This facility comes as a result of the cooperation framework signed between the two organisations in October 2021.
OPEC Fund Director-General Dr. 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 in the field of technical assistance".
"From CAF we are developing an ambitious agenda of alliances to link international actors with the development of Latin America and the Caribbean and, with this, accelerate the exchange of knowledge and ensure that the region is an active part of 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 strengthen the impact and efficiency of our financing in key areas of development in the countries of the region," said Sergio Diaz-Granados, CAF's Executive President.
The relationship between CAF and the OPEC Fund began in 1982. A joint cooperation agreement was signed in Venezuela in June 2010, which was renewed in 2021 with the OPEC Fund's commitment to co-finance projects with CAF for up to $600 million until 2024.