Grant Program

Through its grant window, OFID channels much-needed resources into a wide variety of schemes and activities for which loan assistance is not an option. OFID grants include technical assistance for deserving social causes, funding for research and studies, and emergency relief following natural or man-made calamities. In addition to its regular grant program, OFID operates three special accounts: HIV/AIDS, Palestine and Food Aid. OFID has also contributed to the resources of other organizations whose work benefits developing countries.

   Technical Assistance Grant Operations

Since OFID's inception, technical assistance operations have constituted its core grants activities. Such grants are extended to national and regional development projects that aim at sustainable development and poverty reduction, and that serve the poorest segments of society, particularly those in the Least Developed Countries (LDCs). Women and children, especially, are accorded high priority.

Technical assistance grants are awarded largely on the basis of the type of project and its expected outcomes, the number of beneficiaries and the recipient country’s socio-economic situation.

   Research and Similar Intellectual Activities

This type of assistance focuses on activities that increase South-South and North-South cooperation and enhance capacity-building, including human resource development, particularly in the LDCs. A heavy emphasis is placed on research topics and studies of particular relevance to poorer countries and on the advancement of science and technology. Human capital is enhanced through the sponsorship of seminars, training courses and workshops.

   Emergency Aid Operations

Emergency assistance from OFID is extended to help mitigate the suffering of victims of all kinds of catastrophes around the world, including OFID Member States. In the interests of sustainable development, OFID often follows up emergency assistance with conventional, low-interest loans to aid longer-term reconstruction in devastated regions. Emergency aid is channelled through specialized relief agencies, such as the IFRC,UNHCR, OCHA and the WFP.

                                    

   Special Grant Account for HIV/AIDS Operations

OFID's HIV/AIDS Account was launched in June 2001, with an initial endowment of US$15 million, following authorization from the Ministerial Council, OFID’s highest policy-making body. The decision was inspired by a deeply felt obligation to help alleviate the threat of HIV/AIDS “before humanity faces another plague.” Subsequent replenishments have boosted the Account to US$65 million.
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   Special Grant Account for Palestine

OFID has been extending assistance to Palestine since 1979. However, after the second Intifada began in 2000 the socio-economic situation in the area deteriorated so fast that humanitarian and development assistance was required on a much larger scale. In November 2002, and in coordination with its sister organizations, OFID set up its Special Grant Account to Address the Needs of Palestine. Endowed initially with $10 million, the Special Account has accelerated social and economic assistance to Palestinians in both the West Bank & Gaza. Subsequent replenishments have boosted the Account to US$55 million.
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  Special Food Aid Account

The Food Aid account was set up to combat a stubborn enemy faced every day by poor people around the world: hunger. Although OFID has always responded to famine situations (most notably those of 1981 and 1984), it felt that more substantial assistance was needed in 2003, when drought-prone sub-Saharan Africa faced one of the worst food shortages in living memory. As soon as the scale of the famine became apparent, OFID allocated US$20 million to finance rapid food delivery to the affected populated in nine hardest hit African countries.

                                    

  Contributions to other organizations

The Common Fund for Commodities (CFC)
OFID was instrumental in the establishment of the CFC in the early 1980s, providing a total of US$83.56 million to its resources. Of this sum, US$37.16 million was given to cover the subscriptions of 35 LDCs to enable them to become members of the CFC. The remaining US$46.4 million is being utilized to help finance projects undertaken by the CFC or the benefit of resource-poor commodity producers in the developing world.

 

International Fund for Agricultural Development (IFAD)
OFID played a significant role in the establishment of IFAD, channeling US$861.1 million in contributions from OPEC Member Countries towards the agency’s initial capital and first replenishment. From its own resources, OFID provided US$20 million to the first replenishment as a special grant

Related links

Cumulative Grant Commitments
Commitments in 2006: Grants
Commitments in 2007: Grants