The OPEC Fund for International Development has signed a US$25 million loan agreement with Corporación Interamericana para el Financiamiento de Infraestructura (CIFI) to finance the development of private sector infrastructure projects in Latin America and the Caribbean (LAC) region.
OPEC Fund Director-General said: “More investments are needed to meet the growing infrastructure needs of the region. Our cooperation with CIFI will promote private sector participation in infrastructure development, support mid-size projects across the energy, water and sanitation, transport, and telecommunications sectors, and improve the quality of life for citizens across the region. This is an important contribution to the Sustainable Development Agenda.”
In Latin America and the Caribbean, the public sector finances approximately 60 percent of all infrastructure development. Despite the impact of COVID-19 shutdowns and the 9 percent economic contraction in 2020, the infrastructure sector and associated investments remained resilient, highlighting the high demand.
The OPEC Fund has supported CIFI through two previous loans in the amount of US$30 million to provide funds for 60 mid-size infrastructure projects. CIFI is a non-banking financial institution established in 2001, offering financing and advice for infrastructure projects in the private sector.
César Cañedo-Argüelles, CIFI CEO, said: “CIFI is a long term player with longstanding relationships with our partners. This new credit facility with the OPEC Fund shows that CIFI and OPEC Fund are trusted partners working towards similar objectives and vision to focus on projects that meet basic infrastructure, drive development, strengthen communities, and generate wellbeing in our region. Working together as a team with the OPEC Fund makes us proud.”
The OPEC Fund and CIFI are united in the ambition to deliver the sustainable development goals (SDGs), and the new financing will specifically include SDG 7 – Affordable and Clean Energy, SDG 8 – Decent Work and Economic Growth, SDG 9 – Supporting Industry, Innovation and Infrastructure and SDG 13 – Climate Action.
According to the 2021 CIFI impact monitoring results, more than 48 percent of its portfolio was in renewable energy and provided access to clean energy for nearly two million people. CIFI financing also contributed to an additional operational installed capacity of renewable energy of 538MW and cut CO2 emissions by more than one million tons.
The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that exclusively provides financing from member countries to non-member countries. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world.