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OPEC Fund signs loan agreements totaling US$122 million
53/2005 April 21, 2005, Vienna, Austria
The OPEC Fund for International Development today signed financing agreements worth more than US$122 million with 16 developing countries of Africa, Asia, Central America, the Caribbean and Europe.
Public sector loans valued at US$99 million were extended to Armenia, Bosnia and Herzegovina, Honduras, Jamaica, Kenya, Laos, Namibia, Samoa, Sierra Leone and Tanzania, for projects in, among others, the agriculture, transportation and energy sectors, as well as for debt relief within the context of the Heavily Indebted Poor Countries (HIPC) Initiative. The loans to Armenia and Namibia represent the Fund’s first operations in these countries. The projects are detailed in the table below:
Click project name for more information.
| Country | Purpose |
Amount (US$ million) |
| Armenia | Rural Areas Economic Development | 5.00 |
| Bosnia & Herzegovina | Sarajevo Bypass | 18.00 |
| Jamaica | National Community Development | 5.00 |
| Honduras |
Rehabilitation and Expansion of the CA-5 North Road Enhanced HIPC Debt Initiative Relief |
7.00 9.60 |
| Kenya | Emali-Oloitokitok Road | 14.57 |
| Namibia | Tandjieskoppe Irrigation | 6.00 |
| Samoa | Petroleum Bulk Storage Facility (Phase III) | 4.825 |
| Sierra Leone | Hillside Bypass Road Tokeh-Lumley Road |
6.00 7.00 |
| Tanzania | Poverty Reduction | 10.00 |
| Lao PDR | Roads for Rural Development | 6.00 |
| Total | 98.995 |
All of the above loans will be co-financed with the concerned governments and by a number of international development institutions, including the Arab Bank for Economic Development in Africa, the African Development Bank, the International Fund for Agricultural Development, the European Bank for Reconstruction and Development, the European Investment Bank, the Inter-American Development Bank, the International Bank for Reconstruction and Development, the Asian Development Bank, and the Kuwait Fund for Arab Economic Development.
The public sector loans carry interest at rates ranging from 1% to 2.75%, except for the loan to Bosnia and Herzegovina, which carries interest at LIBOR + 0.6%. All loans have a maturity of 20 years, including a grace period of five years.
In addition, through the Fund’s private sector window, six agreements totaling US$23.6 million were signed with private concerns in Mali, Pakistan, Senegal, Sri Lanka, Uzbekistan and Yemen. Comprising five loans and one line of credit, this financing will support projects in a variety of sectors, from housing, leasing and transportation, to industry and materials. The operations are detailed in the table below:
Click project name for more information.
| Country | Name of Recipient | Amount (US$ million) |
| Mali | La Société Immobilière Franco-Africaine (IFA-BACO) | 1.400.000 (Euro) |
| Pakistan | Pakistan Container Terminal Limited (Phase II) | 6.00 |
| Senegal | United Contractors and Builders (Sénégal) Limited | 1.905.613 (Euro) |
| Sri Lanka | Lanka Orix Leasing Company Limited | 5.00 |
| Yemen | Radfan For Manufacturing Construction Materials Company Ltd. | 5.00 |
| Uzbekistan | Subsidiary Company UzArctech | 3.30 |
| Total | 23.60 |