Background
In this spirit, OFID was established in January 1976
by the then 13 member countries of OPEC. Initially,
it was called The OPEC Special Fund. The idea
was that OFID’s resources are additional to those
already made available by OPEC states through a
number of bilateral and multilateral channels.
The supreme authority of OFID is the Ministerial
Council, made up of finance ministers of member
countries. The Council issues policy guidelines followed by the Governing Board, which oversees the
general operations. The Director-General, who is
appointed by the Council, is Mr. Suleiman Jasir AlHerbish (Saudi Arabia). Mr. Al-Herbish is also the
institution’s Chief Executive Officer.
The resources of OFID consist mainly of voluntary
contributions by OPEC member countries and income derived from OFID’s investments and loans
(interest and service charge).
OFID’s operations were launched in August 1976
with initial resources of about US$ 800m. These
resources have been replenished four times. The
last replenishment of US$1 billion was approved by
the Ministerial Council in June 2011 as a direct response to the increasing needs of developing countries and the negative impact of the financial crisis
on their economies.
All developing countries, with the exception of
OPEC member countries, are in principle eligible for
OFID assistance. The least developed countries,
however, are accorded higher priority and therefore
receive a large share of OFID’s assistance.
OFID has over the years spread its presence to 134
countries, of which 53 are in Africa, 43 in Asia, 31 in
Latin America and the Caribbean, and 7 in Europe.
In the public sector, OFID has implemented eighteen lending programs since its inception. The 19th lending program,
approved for a three-year duration, became effective January 1, 2014. As of January 1, 2014 close to two-thirds of the
outstanding loans were with Low Income Countries and half
of all commitments were to Africa.
Under the Private Sector Facility, established in 1998, 214
operations have been approved in support of private entities
in Africa, Asia, Latin America and Europe. By the end of
Sept. 2014, US$ 2,266m had been committed and US$
1,302m disbursed.
Profile
October 2014
In 2006, a Trade Financing Facility was launched. By the
end of Sept. 2014, US$ 2,080m in lines of credit and US$
2,250m in risk-sharing guarantee programs had been approved and US$ 1,778m had been disbursed.
In the framework of grants, assistance is extended to humanitarian aid and social development operations through
six grant programs; Technical Assistance, Research & Similar Activities, Emergency Relief Aid, HIV/AIDS, Energy Poverty and the Palestine Program. OFID has also established a
special grant account to respond to specific global needs
such as the grants for the establishment of CFC10 and
IFAD11. By the end of Sept. 2014, 1,608 grants, amounting to
US$ 596m, had been extended.
In addition, OFID channelled US$ 972m of OPEC members’
contributions to two international institutions: first to the initial
capital and first replenishment of IFAD and second to the
Trust Fund of the International Monetary Fund.
OFID’s total approved commitments12 (including grants
and contributions to other institutions) as at the end of Sept.
2014, stood at US$ 17,546m, of which US$ 11,522m has
been disbursed.
Focus on Energy Poverty. In November 2007 during the
OPEC Summit in Saudi Arabia, OFID was mandated to align
its programs with energy poverty eradication. In 2008 OFID,
in implementing the above mandate, started action on the
“Energy for the Poor” initiative. To enhance these efforts the
OFID Ministerial Council in its June 2012 Declaration committed a minimum of US$ 1 billion revolving, which was announced by OFID Management at Rio +20.
______________________________________
10
11
12
Common Fund for Commodities
International Fund for Agricultural Development
Further details are found in the OFID Annual Report as well as various other
publications, obtainable through the OFID website.
Design Pic Inc/Alamy
OFID was conceived at the Conference of the Sovereigns and Heads of State of member countries,
held in Algiers, Algeria, in March 1975. A Solemn
Declaration “reaffirmed the natural solidarity which
unites OPEC countries with other developing countries in their struggle to overcome underdevelopment,” and called for measures to strengthen cooperation between these countries.
Since its 2010 Inaugural Summit in London, One Young World
has aimed to connect the young to share their vision and ideas
for creating practical solutions for a positive change in their
communities. OFID has supported the OYW Summit since
inception and has contributed significantly in ensuring the
world’s under-represented and non-represented youth are present at this global forum and is proud to be a sponsor of the
2014 OYW Summit, taking place in Dublin, Ireland, from 15 - 19
October.
_____________________________________
The OPEC Fund for International Development (OFID)
Parkring 8, A-1010 Vienna, Austria;
Email: [email protected];
www.ofid.org
as at 30 Sept. 2014
US$ m
The OPEC Fund for International Development
3
Disbursements
10,243
724
333
281
50
11,632
5,752
714
312
263
50
7,091
Commitments
Date Established
January 28, 1976
Start of Operations
August 9, 1976
Headquarters
Vienna, Austria
Member Countries
Algeria
Ecuador
Gabon
Indonesia
Iran
Iraq
Kuwait
Mandate
Libya
Nigeria
Qatar
Saudi Arabia
UAE
Venezuela
To reinforce financial cooperation
between OPEC member countries
and other developing countries and
promote South-South solidarity.
Beneficiaries
All developing countries other than
OPEC member states, with priority
given to the less developed among
them.
Resources (January 1, 2014) in US$ m
Contributions1
4,261
Reserve
2,624
Total Resources
1. Public Sector Operations
Project Financing
Balance of Payment Support
Program Financing
HIPC Initiative
PRGF Trust5
Sub-total
2. Trade Finance Operations6
2,080 *
1,778
3. Private Sector Operations4
2,266
1,302
4. Grant Operations
Technical Assistance
Emergency Relief Aid
Research & Similar Activities
HIV/AIDS Program
Energy Poverty Program
Food Aid Special Grant Account
Grant Program for Palestine
Special Contribution to IFAD
Common Fund for Commodities
Sub-total
5. IFAD
7
7
6. IMF Trust Fund
TOTAL
163
72
22
86
16
147
72
19
81
6
20
113
20
84
596
20
101
20
42
508
861
732
111
111
17,546
11,522
OFID may also act as an agent on behalf of OPEC member countries
in their relations with other international financial institutions.
_______________________________________________
This amount excludes US$ 972m in contributions from OPEC Member Countries channelled through OFID to IFAD and the IMF Trust Fund.
Total Number of Approved Operations
Public Sector Loans
Private Sector Operations
Trade Finance Operations
Grants
1440
214
105
1608
Total
3367
Balance of
Payment
Support
Project
Loans
4
6,885
Means:
OFID is empowered to engage in all functions necessary or
incidental to the achievement of its objective, including the following:
 Extending concessionary financial assistance in the form of
loans for development projects and programs and for balance
of payments support.
 Participating in the financing of private sector enterprises
located in developing countries.
 Supporting developing countries’ trade with lines of credit
and guarantees.
 Providing grants in support of social & humanitarian development projects, capacity building, research and similar activities,
HIV/AIDS operations as well as emergency food and relief operations.
 Contributing to the resources of other development
institutions whose work benefits developing countries.
1
Regional Distribution
o f P u b l i c S e c t o r O p e r a t i o n s (US$ m) 8
Cumu l ativ e Ac t iv it ie s 2
OFID
Program
Loans
HIPC
Loans
Africa
4,872
430
195
230
5,727
Asia
3,579
176
64
0
3,820
1,524
118
74
51
1,767
268
0
0
0
268
10,243
724
333
281
11,582
LAC
9
Europe
Total
Sectoral Distribution
of Public Sector Project Loans
( % b y va l u e )
Energy
Transportation
Agriculture
Education
Health
21
32
14
8
6
Water & Sanitation
Development Banks
Industry, Telecom.
Multi-sectoral
Total
53
Asia
Latin America & Caribbean
Europe
43
31
7
Total
Europe &
MultiRegional
5%
Latin America
& Caribbean
7%
Asia
37%
134
______________________________________________________________________
2
Due to rounding, totals may not add up.
Gross Approvals by Governing Board.
4
Part of these operations is in €, which has been converted into US$,
excluding US$150m credit guarantees.
5
Poverty Reduction and Growth Trust Fund.
6
Excluding US$ 2,250m in risk-sharing guarantee programs.
7
Contributions from Member Countries channeled through the OFID.
* Additionally US$625m have been renewed for TFF operations.
3
9
2
1
7
100
Regional Distribution of OFID’s Commitment to the
Education, Health & Social Sectors
US$ 1.66 billion
Number of Beneficiary Countries
Africa
Total
_________________________________
8
9
Excluding the PRGF, which is a multi-regional facility.
Latin America and Caribbean
Africa
51%