Letter of Transmittal to the Ministerial Council

March 2, 1999

Dear Mr. Chairman:

In accordance with Article 5, Section 2 (iv) of the Agreement Establishing the OPEC Fund for International Development, I have the honor to present to the Ministerial Council the Annual Report of the Fund for the year ended December 31, 1998.

The Report contains a general review of the Fund's activities, a survey of its operations in 1998, a description of its loans and grants during the year, and statistical tables and appendices.

These detail the cumulative project, balance of payments support, and program loans, as well as the grants provided by the Fund. A statement on contributions to the Fund by Member Countries, until the end of 1998, is also included.

Yours sincerely,

Saleh A. Al-Omair

Chairman of the Governing Board

Chairman of the Ministerial Council

The OPEC Fund for International Development