The OPEC Fund for International Development (the OPEC Fund) and the Asian Infrastructure Investment Bank (AIIB) have signed a Memorandum of Understanding (MoU) to expand their operational and strategic cooperation to finance global public and private sector projects, promoting sustainable, resilient and high-standard infrastructure development.
Signing the agreement, OPEC Fund Director-General Abdulhamid Alkhalifa said: “We are very pleased to take our cooperation with AIIB to the next level. This MoU signals the ambition and preparedness of our institutions to deliver more by combining our experiences and resources. The size of the global infrastructure gap is so huge that all actors, public and private, must work together. Multilateral development banks play a particularly significant role, because our lending is counter-cyclical and acts as a catalyst to mobilize additional investment. ”
“We look forward to further strengthening our collaboration with OPEC Fund and fostering a deeper partnership in exploring common strategic areas of interest,” said AIIB President and Chair of the Board Jin Liqun. “This MOU will allow AIIB and the OPEC Fund to leverage our respective resources to more effectively develop sustainable infrastructure projects. It will also enable AIIB to scale up efforts to unlock private capital for our Members to finance Infrastructure for Tomorrow.”
To date, AIIB and the OPEC Fund have co-financed five projects for in excess of US$1.0 billion in Bangladesh, Egypt, Nepal, Pakistan and Uzbekistan. The new cooperation agreement will allow the institutions to identify co-financing and co-investment opportunities for projects and programs of common interest in infrastructure development including energy, water, transport, digital and social infrastructure in health and education sectors.
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About AIIB
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank whose mission is financing the Infrastructure for Tomorrow—infrastructure with sustainability at its core. The AIIB began operations in Beijing in January 2016 and has since grown to 105 approved members worldwide. It is capitalized at USD100 billion and Triple-A-rated by the major international credit rating agencies. Collaborating with partners, AIIB meets clients’ needs by unlocking new capital and investing in infrastructure that is green, technology-enabled and promotes regional connectivity.
About the OPEC Fund
The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. 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. The OPEC Fund was established by the member countries of OPEC in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education. To date, the OPEC Fund has committed more than US$22 billion to development projects in over 125 countries with an estimated total project cost of US$187 billion. Our vision is a world where sustainable development is a reality for all.
