OFID Quarterly is published four times a year by the OPEC Fund for International Development (OFID). 4 OFID is the development finance agency established in January 1976 by the Member States of OPEC (the Organization of the Petroleum Exporting Countries) to promote South-South cooperation by extending development assistance to non-OPEC developing countries.

OFID Quarterly is available free-of-charge. If you wish to be included on the distribution list, please send your full mailing details to the address below. Back issues of COMMENT the magazine can be found on our website in PDF format. Energy for all 2 OFID Quarterly welcomes articles and photos on development-related topics, but cannot guarantee SPECIAL FEATURE: publication. Manuscripts, together with a brief biographical note on Sustainable development: Do we have the energy? 4 the author, may be submitted Is now the time for nuclear? 12 to the Editor for consideration.

The contents of this publication A tipping point for solar energy? 16 do not necessarily reflect the official views of OFID or its Member Countries. Any maps are for OFID IN THE FIELD illustration purposes only and are not to be taken as accurate Nicaragua powers down poverty 18 representations of borders. Editorial Finance helps family-run pharma flourish material may be freely reproduced, providing the OFID Quarterly is in El-Salvador 20 credited as the source. A copy to the Under pressure: Editor would be appreciated. Infrastructure in Jordan and Lebanon 22

MINISTERIAL COUNCIL HOLDS 39TH SESSION

Ministerial Council meets to set OFID policy 24

BRAC receives 2018 OFID Annual Award for Development 32

OFID launches Annual Report 2017 34

OFID Scholars announced 35 CONTENTS JULY 2018

16 60

32

FRONT COVER PHOTO: GETTYIMAGES/ALFRED PASIEKA/SCIENCE PHOTO LIBRARY

NEWSROUND SPOTLIGHT

OFID appoints new Director-General 36 Eliminating neglected tropical diseases: the story so far 60 Better prospects for Palestinians 37

US$200m to boost development PERSPECTIVES in seven partner countries 40 International agri-food business Phoenix Global’s Executive Chairman Gaurav Dhawan 65 Road out of poverty US$40 million to improve Belize’s transport industry 41 OPEC SDG 7: Partnerships, innovation and investment 43 OPEC Secretary General receives Energy Access Platform showcased at lifetime achievement award 67 major energy meeting 44

VEF contributes to energy-development agenda 45 PUBLISHERS THE OPEC FUND FOR Future Aleppo INTERNATIONAL DEVELOPMENT (OFID) Parkring 8, P.O. Box 995, A-1010 Vienna, Austria One boy’s dream to rebuild his city 47 Tel: (+43-1) 51564-0; Fax: (+43-1) 51392-38 www.ofid.org Bridging the data gap in the Arab World 49 EXECUTIVE EDITOR Fernando J Garay EDITOR Steve Hughes Central America set to receive development boost 50 DEPUTY EDITOR Anna Ilaria-Mayrhofer CONTRIBUTORS Fatma Elzahra Elshhati, Joaquim Levy, Legal leaders discuss sustainable development 52 Silvia Mateyka, Manya Tandan, UNDP, Justine Würtz PHOTOGRAPHS Abdullah Alipour Jeddi, Carlos Opitz Modern mall to boost Zambia’s economy 53 (unless otherwise credited) PRODUCTION Susanne Dillinger OFID Diary 54 DESIGN etage.cc Meetings attended by OFID 57 PRINTED IN AUSTRIA Druckerei Odysseus

163rd Governing Board photo gallery 58 This publication is printed on paper produced from responsibly managed forests. 2 | OFID QUARTERLY JULY 2018 | COMMENT

Energy for all

his edition of the OFID Quarterly magazine focuses on energy and the related Sustainable Develop- ment Goal (SDG) 7. TA new report called Tracking SDG 7: The Energy Progress Report aims to gauge momen- tum on meeting the targets of SDG 7: ensuring universal energy access, doubling progress on energy efficiency and substantially increas- ing the share of renewable energy by 2030. The report was launched recently by a num- ber of organizations including the World Health Organization and the World Bank. See our lead feature on pages 4 to 11 to discover what it tells us. Other energy-related features include: an interview with David Earl Shropshire from the International Atomic Energy Agency about how nuclear energy can contribute to SDG 7, its continued ‘image problem’ and why this form of energy is so important in the fight against climate change (page 12); and a short but informative insight penned by Joaquim Levy, Managing Director and World Bank Group Chief Financial Officer, about how solar energy is poised to transform low-income economies (page 16). COMMENT | OFID QUARTERLY JULY 2018 | 3

The United Nations states that the ‘inter- But OFID has a special area of interest, too; linkages and integrated nature’ of the SDGs and it’s one that was inspired directly by its are crucial in ensuring that the 2030 Agenda own Member Countries. Eradicating energy for Sustainable Development is achieved: “If we poverty has been at the top of OFID’s long realize our ambitions across the full extent of list of priority areas since 2007. Around one the Agenda, the lives of all will be profoundly billion people still do not have access to elec- improved and our world will be transformed tricity and three billion people cook using for the better.” polluting open fires and traditional biomass But while the 17 SDGs are unquestionably fuels. Each year, close to four million people interdependent – it would be impossible to die prematurely from illnesses attributable achieve SDG 1 on ending poverty, for example, to household air pollution from inefficient without making significant progress with SDG cooking and heating practices. 10 on reduced inequalities – many people and In 2017, OFID approved US$464 million for organizations will have their favorite SDG, or operations in the energy sector across the ‘focus areas’: in other words, SDGs or develop- world. This took its cumulative approvals for ment areas in which they feel they can make energy operations to some US$4,769 million. a particular difference. These efforts – along with those of friends in OFID has committed to contributing the international arena – have helped to make to the entire 2030 Agenda. For example, this sure energy for all is recognized as a stand- organization works with developing countries alone goal in Agenda 2030. And while some and the international community (SDG 17) sections in this magazine may not make for to stimulate economic growth (SDG 8) and uplifting reading (we’re currently ‘off track’ alleviate poverty (SDG 1). It does this by pro- on SDG 7), others may inspire hope, since over- viding financing to build essential infrastruc- all, the prospects for achieving the targets of ture (SDG 9) and support projects that meet SDG 7 appear to have improved. N basic needs – such as food (SDG 2), clean water and sanitation (SDG 6) healthcare (SDG 3) and education (SDG 4). SPECIAL FEATURE PHOTO: TRIFF/SHUTTERSTOCK.COM PHOTO: OFID QUARTERLY JULY 2018 | 5

Sustainable development: Do we have the energy?

A new publication called Tracking SDG 7: The Energy Progress Report aims to gauge progress on meeting the targets of Sustainable Development Goal 7 (SDG 7): ensuring universal energy access, doubling progress on energy efficiency and substantially increasing the share of renewable energy by 2030. It was launched recently by the International Energy Agency (IEA), the Interna- tional Renewable Energy Agency (IRENA), the United Nations Statistics Division (UNSD), the World Bank, and the World Health Organization (WHO). Steve Hughes considers what it tells us and whether we’re on track for a sustainable energy future. 6 | OFID QUARTERLY JULY 2018 | SPECIAL FEATURE

et’s not beat around the bush. Current remains wide, with almost 87 per- Despite much work by many progress cent of the world’s rural population different actors, the world without electricity. Three billion is not currently on track to falls short people – or more than 40 percent Lmeet Sustainable Development Goal on all four of the planet’s population – do not 7 (SDG 7). This SDG calls on the in- of the SDG 7 have access to clean cooking fuels ternational community to ensure or technologies. Household air pol-

targets. BLACK WHO/CHRISTOPHER PHOTO: “access to affordable, reliable, sus- lution from burning biomass for tainable and modern energy for all” cooking and heating is responsible by 2030. That we’re ‘off track’ with for millions of deaths each year, it – such a lynchpin of an SDG – is with women and children at the one of the many disappointing mes- greatest risk (for a more detailed sages of Tracking SDG 7: The Energy summary of findings, please see Dr Maria Neira, WHO Progress Report, the new publication boxouts). by a number of organizations in- “It is unacceptable that, in 2018, protect vulnerable people, nearly cluding WHO and the World Bank. three billion people still breathe 11 percent of the bloc’s population The report shows that current deadly smoke every day from cook- is in a situation where their house- progress falls short on all four of ing with polluting fuels and stoves. holds are unable to adequately heat the SDG 7 targets, which comprise: Every year, household air pollution their homes at an affordable cost. universal access to electricity; kills around four million people The study – Energy poverty and clean fuels and technologies for from diseases including pneumonia, vulnerable consumers in the energy cooking; a doubling of the rate of heart disease, stroke, lung disease sector across the EU: analysis of poli- improvement in energy efficiency; and cancer,” says Dr Maria Neira, cies and measures – showed the situ- and a substantial increase in the Director, Department of Public ation is estimated to affect around share of renewables in the global Health, Environmental and Social 54 million people in Europe (2012 energy mix. Determinants of Health, WHO. figures). A large part of the problem Among the statistics of the new Even in developed countries, is explained by rising energy prices, report is that one billion people – it’s not plain sailing. The European low incomes and poor energy effi- or 13 percent of the world’s popula- Commission published a study in ciency in homes; and it’s particularly tion – still live without electricity. 2015 that found while many EU coun- prevalent in Central Eastern and The urban-rural chasm in access tries do have measures in place to Southern Europe.

Percentage of population with access to electricity (%)

PHOTO: HEMIS/ALAMY STOCK PHOTO

0% 100% 0% 100%

Status as of baseline year in 2010 83% Status as of baseline year in 2010 83% Progress between 2010 and 2016 87% Progress between 2010 and 2016 87% Projected progress up to 2030 under current trajectory 92 % Projected progress up to 2030 under current trajectory 92 % Remaining gap towards achievement of 2030 SDG7 target 10 0% Remaining gap towards achievement of 2030 SDG7 target 10 0%

Source: World Bank Source: World Bank SPECIAL FEATURE | OFID QUARTERLY JULY 2018 | 7

Impossible without energy Access to energy is important on a number of levels – not simply to How can data for tracking heat homes and prevent indoor SDG 7 be improved? pollution. The IEA states that ener- gy access brings with it a number Many challenges remain in providing a comprehensive picture of of important benefits, not least im- the global energy situation, and sustained efforts are needed to proved health and economic pros- improve data quality and availability. pects. Former UN Secretary-General Ban Ki-moon called energy the One key area of focus is to improve the coverage and precision of “golden thread that connects eco- household survey questionnaires to more accurately reflect the na- nomic growth, social equity, and ture and quality of service for electricity and clean cooking. Current environmental sustainability.” indicators do not make it possible to capture the affordability and Though the 17 SDGs are interdepen- reliability dimensions emphasized by SDG 7. In addition, the off-grid dent, SDG 7 is seen as an integral solar revolution is making it increasingly challenging to accurately enabler for the achievement of the reflect trends in rural electrification. other 16. The World Bank in its Toward a Sustainable Energy Future Equally important is to strengthen statistical capacity to produce for All report is even more blatant: accurate energy balances, particularly in the developing countries, “Energy is an important engine of where many challenges remain in capturing, for instance, the tra- economic growth, on which both ditional uses of biomass. Furthermore, there is still relatively little poverty reduction and shared pros- information on the energy efficiency of major consuming sectors perity depend. Inclusive economic outside of the major economies that is critical to inform policy growth is the single most effective interventions. means of reducing poverty and Source – Tracking SDG 7: The Energy Progress Report boosting prosperity. Most economic activity would be impossible with- Summary Overview of out energy.” Energy, of course, also contrib- SDG 7 Targets and Indicators utes to some of the planet’s prob- lems. But providing energy access, SDG 7 Ta rgets Indicator if done correctly, doesn’t have to contribute to climate change. According to the International Energy Agency’s Energy Access Proportion of population with access to electricity Outlook 2017, achieving energy for 7.1 By 2030, ensure all by 2030 will have no net in- universal access to crease on global greenhouse-gas affordable, reliable and modern energy services emissions. “Providing energy for Proportion of population 0% 100% all would have a minimal impact with primary reliance on on global energy demand, with an clean fuels and technologies increase of 0.2 percent relative to our base case,” states the report. “However, the corresponding rise 7.2 By 2030, increase Renewable energy substantially the share in carbon dioxide (CO2) emissions share in total final of renewable energy in of around 0.2 percent in 2030 is energy consumption the global energy mix Status as of baseline year in 2010 83% more than offset as reducing the Progress between 2010 and 2016 87% biomass used for cooking provides a net reduction in greenhouse-gas Projected progress up to 2030 under current trajectory 92 % emissions, which would save the 7.3 By 2030, double the Energy intensity measured global rate of improvement in terms of primary energy Remaining gap towards achievement of 2030 SDG7 target equivalent of around 165 Mt of car- 10 0% in energy efficiency and GDP bon dioxide equivalent from meth- ane and nitrous oxide.” E Source: World Bank 8 | OFID QUARTERLY JULY 2018 | SPECIAL FEATURE

SDG 7 and women Access to electricity F Dr Neira from the WHO says: “By expanding access to clean, afford- able household energy, the global L One billion people – or 13 percent of the community has the power to lift IISD/ENB/ENB PHOTO: world’s population – still live without electricity. a terrible health burden from mil- Sub-Saharan Africa, and Central and South Asia, lions of marginalized people – in continue to be the areas of the world with the particular women and young chil- largest access deficits. Almost 87 percent of the dren who face the greatest health world’s people without electricity live in rural risks from household air pollution.” areas. The UN Women website is more specific still, stating: “The lack of L The number of people gaining access to modern energy sources has other power has been accelerating since 2010, but consequences for women and girls, needs to increase further to achieve universal who are often the primary house- access to electricity by 2030. If current trends hold energy managers. They may continue, an estimated 674 million people will spend hours each day collecting fuel Rachel Kyte, SEforALL CEO still live without electricity in 2030. and carrying heavy loads. In house- holds that cook with solid fuels, girls even decades, to access electricity L Some of the strongest gains were made in spend 18 hours a week, on average, through the grid instead of more Bangladesh, Ethiopia, Kenya and Tanzania, which gathering fuel.” quickly deployed decentralized all increased their electricity access rate by 3 The UN’s Sustainable Energy for renewable energy solutions. percent or more annually, between 2010 and All (SEforALL) CEO Rachel Kyte re- The Why Wait? Seizing the Ener- 2016. Over the same period, India provided cently told this magazine: “Energy gy Access Dividend report shows electricity to 30 million people annually, more access is crucial to allow all women that households in Bangladesh, than any other country. and girls to achieve their full poten- Ethiopia and Kenya – countries tial. From powering health clinics, used as case studies – can save hun- L Tens of millions of people now have access supporting new mothers and light- dreds of dollars, equivalent to the to electricity through solar home systems or ing houses, to illuminating streets average annual income of between mini-grids. However, these remain concentrated to make them safer, providing job 61,800 and 406,000 people (depend- in around 12 ‘pioneering countries’. opportunities and making it possi- ing on the country and timeframe ble to cook cleanly, energy access to deliver universal access), by bring- empowers women. It reduces hours ing electricity access forward via THE WAY FORWARD of drudgery (time spent collecting solar to power services like lighting firewood, for example) and instead and mobile-phone charging instead SDG 7 calls for access to affordable, reliable, sus- enables women to put their time to of using kerosene or costly external tainable and modern energy for all. Affordability more productive use. To achieve sus- phone-charging services. is an added challenge for countries still working tainable energy for all, women and The introduction of decentral- to reach universal access to electricity. In these the most marginalized must have a ized services also supports educa- countries, households spend on average (and voice in the design of energy systems tion by providing more time for relatively) twice as much on electricity. and services.” people to study. This added time is equivalent to the time spent in school The experience of countries with universal ac- SDG 7 and when each year of between 142,000 and cess suggests that attaining affordability takes But it’s not just about access or the 2 million students (again depending strong leadership commitment, backed by sus- type of energy; it’s about when ac- on the country and timeframe to tained public financing for grid extension. The cess to energy is provided. Like so deliver universal access). private sector can increasingly play a role in cat- many things, it may seem obvious, The report also shows significant alyzing uptake of off-grid solar solutions, under- but it needs saying: time is of the black carbon emission reductions scoring the importance of a suitable enabling essence. A 2017 report by SEforALL across the three countries – as much environment for new technologies, as well as and Power for All illustrated that as 330 million metric tons of CO2 strategic planning. rural and vulnerable populations in equivalent emissions, or roughly developing countries could miss out the emissions from 60 million pas- Source – Tracking SDG 7: The Energy Progress Report on multiple wide-ranging benefits senger vehicles driven for one year– if they are forced to wait years, or due to reduced kerosene use. E SPECIAL FEATURE | OFID QUARTERLY JULY 2018 | 9

Clean cooking Source – Tracking SDG 7: The Energy Progress Report

L Three billion people – or more than 40 percent of the world’s population – do not have access to clean cook- ing fuels or technologies. Household air pollution from million burning biomass for cooking and heating is responsible deaths each year for around four million deaths a year, with women and 4 children at the greatest risk.

L Parts of Asia have seen access to clean cooking out- THE WAY FORWARD pace growth in population. This has been driven largely by widespread dissemination of LPG or piped natural gas. The need for rapid deployment of clean cooking fuels and technologies has not received the attention it deserves L Clean cooking continues to lag the furthest behind of from policy-makers, and lags well behind the rate of elec- all the four energy targets, due to low consumer aware- trification in almost every country. Lower entry costs for ness, financing gaps, slow technological progress, and lack clean cooking solutions, better consumer awareness of of infrastructure. If the current trend continues, 2.3 billion their benefits, and closing financing gaps for producers people will continue to use traditional cooking methods would help, as would better infrastructure for fuel pro- in 2030. duction and distribution.

Access to clean cooking Four out of the world’s 20 lowest-access countries did not see any increase in access to clean cooking over 2010-2016

Annualized increase in Access decit, 2016 (million) Access rate, 2016 (%) access (pp), 2010-2016

- 20 40 60 80 100 - 20 40 60 80 100 0.05 0.15 0.25 0.35 0.45 0.55

Rwanda 11.8 0.6 0.02 South Sudan 12.2 0.6 0.01 Liberia 4.6 0.7 0.01 Uganda 41.2 0.8 -0.01 Burundi 10.4 0.8 0.02 Madagascar 24.7 0.9 -0.01 Mali 17.8 1.0 -0.01 Central African Rep. 4.6 1.0 0.03 Sierra Leone 7.3 1.0 0.08 Guinea 12.2 1.2 0.00 Guinea-Bissau 1.8 1.5 0.01 Niger 20.3 1.9 0.06 Tanzania 54.4 2.2 0.08 Somalia 14.0 2.3 0.16 Malawi 17.6 2.5 0.05 Chad 14.0 3.1 0.00 Gambia, The 2.0 3.3 0.02 Ethiopia 98.8 3.5 0.14 Mozambique 27.8 3.7 0.05 Congo, Dem. Rep. 75.6 4.0 0.04

World Average, 15.7 World Average, 59.1 World Average, 0.52

The 20 countries with lowest access to clean cooking over the 2010-2016 tracking period

Source: World Health Organization. Population estimates based on the use of UN population data. 10 | OFID QUARTERLY JULY 2018 | SPECIAL FEATURE

Energy efficiency Source – Tracking SDG 7: The Energy Progress Report

L There is mounting evidence of the uncoupling of is a particular challenge for high-income countries. In low growth and energy use. Global gross domestic product and middle-income countries, the energy intensity of the (GDP) grew nearly twice as fast as primary energy supply residential sector has been increasing since 2010. in 2010-15. Economic growth outpaced growth in energy use in all regions, except for Western Asia, where GDP is L Six of the 20 countries that represent 80 percent of heavily tied to energy-intensive industries. However, prog- the world’s total primary energy supply, including Japan ress continues to be slow in low income countries, where and the US, reduced their annual primary energy supply energy intensity is higher than the global average. in 2010-15 while continuing to grow GDP – indicating a peak in energy use. Among the large energy-intensive L Globally, energy intensity – the ratio of energy used developing economies, China and Indonesia stood out per unit of GDP – fell at an accelerating pace of nearly with annual improvement exceeding 3 percent. 3 percent in 2015, the fastest decline since 2010. This improved the average annual decline in energy intensity to 2.2 percent for the period 2010-2015. However, per- THE WAY FORWARD formance still falls short of the 2.6 percent yearly decline needed to meet the SDG 7 target of doubling the global While progress is encouraging, proven energy efficiency rate of improvement in energy efficiency by 2030. policies remain to be systematically adopted in many countries. Building codes for residential and commercial L Improvement in industrial energy intensity, at 2.7 per- facilities should include energy performance standards for cent per annum since 2010, was particularly encouraging, new construction and major renovation. Increasingly, it as this is the largest energy consuming sector overall. would be good to adopt ambitious cross-sectoral inte- Progress in the transport sector was more modest, and grated policy approaches.

Look on the bright side among a large proportion of the and developing worlds. With regards F Tracking SDG 7 shows that while world’s population has serious and to electrification, for example, the overall progress falls short on meet- widespread negative health, environ- report noted that among countries ing all targets, gains can be seen in mental, climate and social impacts. with the largest access deficits, specific areas: the expansion of ac- More encouraging than global some strong performances were cess to electricity in poorer coun- trends, however, are the strong witnessed. Since 2010, Bangladesh, Source – Tracking tries has begun to accelerate, with SDG 7: The Energy performances seen within specific Ethiopia, Kenya and Tanzania pro- progress overtaking population Progress Report countries, across both the developed vided access to at least an additional growth for the first time in sub- three percent of their populations Saharan Africa; energy efficiency is Improvement in energy intensity annually, while India provided elec- improving, boosted by advances in by end-user sector (2010-16) tricity to 30 million people each the industrial sector; and renewable year. When it comes to energy effi- energy is making good gains in the ciency, the report notes, large energy- Freight electricity sector, although these intensive emerging economies – gains are not matched in the trans- notably China and Indonesia – are portation and heating sectors, Transport among the fastest improvers. Sev- which together account for 80 per- eral developed economies that have cent of global energy consumption. Residential already reached high levels of effi- The report also shows that access ciency – Japan and the UK, for to clean cooking fuels and technolo- example – are also continuing to Industry gies – an area that has been typically improve. These experiences can overlooked by policymakers – lags 0.00.5 1.01.5 2.02.5 3.0 provide valuable lessons for other behind. Use of traditional sources Compound annual growth rate countries. SPECIAL FEATURE | OFID QUARTERLY JULY 2018 | 11

What can be done? “It is clear the energy sector must be at the Despite the remaining challenges, that the heart of any effort to lead the world the new Tracking SDG 7 report con- on a more sustainable pathway. cludes that overall, the prospects energy sector There is an urgent need for action for achieving the targets of SDG 7 must be at the on all technologies, especially on have improved. The falling cost of heart of any renewables and energy efficiency, renewable electricity is accelerating PHOTO: IEA/ERIC M/ENRE NOIRE effort to lead which are key for delivering on the deployment of low-carbon elec- three critical goals – energy access, tricity and making decentralized the world climate [change] mitigation and electricity more affordable. And on a more lower air pollution.” new policies are raising ambitions sustainable Tracking SDG 7 states that fur- and improving the energy intensity pathway.” ther improvements need greater of the global economy. The report Dr Fatih Birol, IEA Executive Director policy commitment and increased also notes, however, that scenarios funding, as well as a willingness to reflecting current and planned current ambitions, through 2040. embrace new technologies on a much policies show there’s much work to Delivering on the goals, however, wider scale. While it may take us be done. “requires immediate and dramatic time and money to get on track to The IEA’s Sustainable Develop- changes to the global energy system, achieve SDG 7 – and though many ment Scenario – which proposes an including a peak in coal demand by challenges remain, including some ‘integrated’ way of achieving a range 2020, a near-complete decarboniza- relating to measuring progress (see of energy-related goals – shows that tion of the power sector, and rapid boxout on page 7) – the international delivering on the related SDGs is electrification of many end uses.” community now has a reasonable achievable, and would cost an addi- Dr Fatih Birol, Executive Direc- idea of where we are, where we’re tional US$8 trillion relative to tor of the IEA, says: “It is clear that going and how to get there. N

Renewable energy Source – Tracking SDG 7: The Energy Progress Report

L As of 2015, the world obtained more than 17 percent stood at less than 25 percent in 2015, of which one-third of its total final energy consumption from renewable was from modern uses. sources, of which nearly 10 percent represents modern forms of renewable energy such as geothermal, hydro- L Since 2010, China’s progress in renewable energy alone power, solar and wind. The remainder is traditional uses accounted for nearly 30 percent of absolute growth in re- of biomass (such as fuelwood and charcoal). newable energy consumption globally in 2015. Brazil was the only country among the top 20 largest energy consum- L Based on current policies, the renewable share is ex- ers to substantially exceed the global average renewable pected to reach just 21 percent by 2030, with modern share in all end uses: electricity, transport and heating. renewables growing to 15 percent, falling short of the substantial increase demanded by the SDG 7 target. THE WAY FORWARD

L Rapidly falling costs have allowed solar and wind to Greater efforts will be required in end-uses, such as heat- compete with conventional power generation sources in ing/cooling and transport, where renewable penetration multiple regions, driving the growth in the share of re- remains low and unexploited. Increased adoption of dis- newables in electricity to nearly 23 percent in 2015. But trict energy systems (for heating or cooling) based on electricity accounted for only 20 percent of total final en- biomass, geothermal or solar thermal energy could help. ergy consumption that year, highlighting that accelerated As the electricity sector decarbonizes, other energy uses progress is required in transport and heating. can increasingly switch into electricity, such as electric vehicles. A phase-out of fossil fuel subsidies would help to L The share of renewable energy in transport is rising encourage shifts. Sustaining the growth of renewable quite rapidly, but from a very low base, amounting to only electricity will further require additional attention to grid 2.8 percent in 2015. The use of renewable energy for integration issues, including the incorporation of battery heating purposes has barely increased in recent years and storage and smart grid technology. 12 | OFID QUARTERLY JULY 2018 | SPECIAL FEATURE

Is now the time for nuclear?

Nuclear energy currently contributes about 11 percent to global electricity generation. It also makes up about one-third of the world’s low carbon power. With many nuclear reactors facing the end of their lifespans, countries are in the midst of deciding what to do next. David Earl Shropshire from the International Atomic Energy Agency (IAEA) talks with the OFID Quarterly about how nuclear energy can contribute to SDG 7, its continued ‘image problem’ and why this form of energy is so important in the fight against climate change. As told to Steve Hughes. PHOTO: OFID/STEVE HUGHES

David Earl Shropshire… …on Sustainable Development Goal 7 Ensuring energy access for all is often a matter of sizing the right technology to fit communities’ needs. A nuclear power plant requires a significant amount of up-front investment, but it generates steady electricity for several …on nuclear in the energy mix decades, and the cost per kilowatt hour is among the At present, 30 countries are using nuclear power– and lowest. some of these are phasing it out. 30 countries out of 170 members of the IAEA may seem a small number even …on carbon emissions and waste though nuclear technology is widely used in the medical, From a carbon emission standpoint, nuclear has very industrial and agricultural sectors. However, another low emissions, like hydropower and some of the other 30 countries are interested in using nuclear power now renewable sources of electricity (in terms of lifecycle or at some point in time (see table on page 14). These emissions). One can argue about the waste issue, but countries have a lot of questions about how much it will all electricity sources produce waste. We have to cost and how to do it safely. We work with them all. It’s a remember that 66 percent of the world’s electricity matter of the country’s own view on nuclear power, and comes from burning fossil fuel, which produces an it’s their sovereign right to decide for themselves what invisible but harmful waste in the form of CO2. There type of energy source to use to produce electricity. will always be a downside that has to be dealt with. SPECIAL FEATURE | OFID QUARTERLY JULY 2018 | 13

PHOTO: EZUME IMAGES/SHUTTERSTOCK.COM

Nuclear currently makes up around 11 percent of global “Some In some countries, spent fuel is not considered as waste, electricity generation, which equates to around one- caricatures but as an asset to recover fissionable material such as third of all low-carbon power. Our analysis shows that uranium and plutonium to fabricate new recycled fuel nuclear has avoided about 60 billion tonnes of carbon show waste for light-water reactors (mixed-oxide - MOX - fuel). This since the 1970s. as these huge strategy also produces high level waste that must be barrels that disposed of in deep geological repositories. …on dealing with nuclear waste have radioac- Some caricatures show waste as these huge barrels In some countries, the spent fuel generated by nuclear that have radioactive markings and are leaking green power plants is considered as a highly radioactive waste. tive mark- sludge. This is not what they look like in reality. In fact, The worldwide accepted way to manage this waste is ings and are fuel rods are very refined devices made of different to dispose of it in a deep geological repository. Prior to leaking green kinds of metal alloy. They can be safely contained within its disposal, spent fuel must be stored for several years sludge.” large concrete casts. to allow its heat to decay and this is first done in wet conditions. When cooled down enough, it can be stored …on advanced fuel cycles in dry conditions for several decades. Because there are As mentioned earlier, some countries already use no final disposal facilities yet in operation, storage recycled spent fuel. Advanced fuel cycles aim at fully periods tend to be extended. Currently, available storage recycling the valuable nuclear materials contained in technologies enable safe storage for several decades. the spent fuel in order to optimize natural resources. E 14 | OFID QUARTERLY JULY 2018 | SPECIAL FEATURE

SOURCED FROM IAEA INFORMATION/PRIS

Operational & Long-Term Shutdown Reactors Total Number of Reactors: 451

America - Northern 118

Asia - Far East 112

Europe - Western 112

Europe - Central and Eastern 72

Asia - Middle East and South 28

America - Latin 7

Africa 2

Number of Reactors 020406080 100 120

Under Construction Reactors Total Number of Reactors: 58

Asia - Far East 25

Asia - Middle East 14 and South

Europe - Central 13 and Eastern

America - Latin 2

America - Northern 2

Europe - Western 2

Number of Reactors 0510 15 20 25

Regional Distribution of Nuclear Power Plants Operational Under Construction

America - Northern

Europe - Western

Asia - Far East

Europe - Central and Eastern

Asia - Middle East and South

America - Latin

Africa

Number of Reactors 020406080 100 120 140 SPECIAL FEATURE | OFID QUARTERLY JULY 2018 | 15

F Some countries work on the development of advanced or natural gas. So they wanted energy independence. fuel cycles with some processes already at pilot scale. This is part of the rationale of the 30 countries I men- The deployment of advanced fuel cycles is very much tioned that are currently considering nuclear. Around linked to the transition to next generations of nuclear half of these are making good, consistent progress. reactors; what we call ‘fast reactors’. This transition would take another couple of decades at least. …on challenges for the industry (and climate change) …on uranium Between now and 2030, a number of reactors around We will not run out of nuclear fuel any time soon. the world will begin retiring. But the question is: how There is quite a lot of uranium in the world – typically will they be replaced? Will the countries involved want in Australia, Canada, Namibia, Niger, South Africa, the to replace them with some other form of energy? Even if US and some in Europe. With the current proved uranium they decide to replace them with new nuclear facilities, reserves countries can sustain nuclear power develop- “There is reactors take a long time to build and the plan to do so ment for quite a long period of time. Many current proved quite a lot of has to be set in motion now. We’re at a crucial time with or explored reserves are also not exploited due to eco- uranium in the 450 nuclear reactors around the world. A lot of what nomic reasons. If at some point uranium increases in the world – happens next will depend on the economics of nuclear price, there will be more incentive for further explora- in a country and political will. What happens in the tion and for developing advanced fuel cycle technology. typically in near-term will be vital, particularly for climate change. We have seen this over and again. When we think we’re Australia, The retirement of nuclear power plants could create going to run out, the price of uranium goes up and further Canada, uncertainty towards achieving the Paris Agreement goal exploration finds more. The price then goes back down. Namibia, and SDG 7, as we would need other options to fill this gap. If at some point there doesn’t seem to be enough, recy- Niger, South A lot of the problem is public acceptance and regulatory cling may take over. issues, as well as cost and politics. We also need look at Africa, the innovative technology that can further improve nuclear …on the future of nuclear US and some economic competitiveness, address radioactive waste, In some markets, cost plays a part in determining the in Europe.” and expand nuclear power applications. future for nuclear. In the US, reactors are being shut down early because of economics – there are cheaper …on financing nuclear alternatives. With the development of the fracking Over the past years, there have been new forms of technique, natural gas has reduced the cost of energy financing that have increased the options to respond in the US particularly and made it difficult for various to the significant up-front capital needed to build other energy sources to compete. The countries that are reactors. For instance, carbon pricing has prompted developing nuclear power (primarily in Asia) don’t have nuclear power and renewable energy sources in some low cost natural gas. Most of the growth we’re seeing countries by guaranteeing that electricity prices will in nuclear power comes from Asia, primarily China and give a premium to low-carbon electricity. This is an India. Countries want a diverse energy mix that they can option to be considered, especially in light of the control. This is why some countries developed nuclear commitment that countries made to cut CO2 emissions to begin with; because they lacked supply in terms of coal with the 2016 Paris Agreement. N 16 | OFID QUARTERLY JULY 2018 | SPECIAL FEATURE

A tipping point for solar energy?

By Joaquim Levy Managing Director and World Bank Group Chief Financial Officer

olar energy is poised to trans- as game-changing as mobile phones “…solar grid or electric utilities. Mini-grids form low-income economies, have been in the last decade. may soon and off-grid generation are well many of which are in the Solar’s potential is evident from suited to low-income countries world’s sunniest regions. its quick growth in India, where be as game- where much of the population lives SSolar’s growing share of the energy installed capacity recently topped changing as in rural areas; they can also in- mix is being driven by better stor- 20 gigawatts (GW), putting the coun- mobile crease access in urban areas. This age capacity and attractive genera- try closer to its ambitious target of phones have relieves pressure on traditional tion costs. Large solar parks are 100 GW from clean energy by 2022 energy companies, which are often now competitive with most alterna- (an amount comparable to total in- been in the unable to provide adequate service tives; their average cost is below 5 stalled capacity in the United King- last decade.” because consumer tariffs are not cents per kilowatt-hour in some dom). Solar offers key advantages: enough to cover their costs. They developing countries. Smaller-scale facilities can be built quickly, do not have had to rely on government solar grids are also getting more need fuel to be transported to power transfers, which have become more competitive, opening new paths to plants, and can eliminate transmis- and more precarious. Inadequate financing this clean energy source. sion costs where mini-grids or off- service, in turn, makes customers With rapid improvements in energy grid units are built to serve local less willing to pay for an expensive efficient lighting, refrigeration, communities. and erratic power supply. In a water pumps, and other technologies Solar can reach people in areas vicious cycle, large physical and for households, solar may soon be that are poorly served by the national commercial losses have further SPECIAL FEATURE | OFID QUARTERLY JULY 2018 | 17

and maintain equipment. It may soon apply to rooftop units, espe- Joaquim Levy joined cially if storage costs drop further. the World Bank Group in The flexibility of deploying solar February 2016. Previously,

power can also make the provision PHOTO: WORLD BANK he served as the Minister of electricity subject to price compe- of Finance for the Federal tition that benefits consumers. Republic of Brazil, work- Solar offers a new financing ing with the president and equation in part because it does not government in reforming face the price volatility associated the world’s fifth largest with fuel costs for traditional power economy. plants. Together with the ability to charge more effectively for the ser- vice, lower volatility makes it easier help defray some investment costs for investors to hedge their income and reduce the payback period to streams and helps compensate for investors. This could address some the higher capital intensity of solar. of the obsolescence risks in the solar Less uncertainty also simplifies industry. In specific cases, the over- the design of contracts, the ex-ante all financing equation could benefit determination of the subsidies need- “To make from treating solar energy as a po- ed, and budgeting over the lifetime the most of tential export resource from low- of a project. income countries to mature econo- PHOTO: THANIT PKC/SHUTTERSTOCK.COM solar power’s In this new environment, the mies. One early example is a new regulatory burden to protect rights potential for transmission link between Italy and and align expectations of investors profound Tunisia’s electricity grids, a project and consumers becomes lighter transforma- being prepared by the Global Infra- and easier to standardize. This can tion it will structure Facility (GIF), housed at reduce transaction costs and the be important the World Bank. need for credit enhancement. The To make the most of solar pow- main risk becomes macroeconomic, to introduce er’s potential for profound transfor- from the impact of currency fluctua- low-cost, mation in many countries, it will be tions on the cost of hard currency efficient important to introduce low-cost, financing. This can largely be ad- energy efficient energy storage at scale and dressed by government guarantees understand better what’s possible to top off the debt service when the storage at in the new financial equation. It will weakened the financial capacity currency goes beyond a certain scale.” also be essential to coordinate efforts of these companies and their ability threshold. The liquidity can be re- globally. To help jump-start coopera- to invest. paid by the electricity provider as tion, the International Solar Alliance, Technology trends in solar the impact of depreciation wears off supported by France and India and power are changing the supply and or is absorbed by gradual tariff ad- headquartered in India, is bringing demand equation, making it easier justments that permit the pass- together more than 120 countries to align incentives for producers through of currency fluctuations to accelerate the deployment of solar and consumers, particularly in while keeping the service afford- energy. The alliance is helping realize smaller communities. With costs able. In these conditions, the macro- a global vision in which solar plays falling and effective pay-as-you-go economic risk becomes a liquidity a crucial role in mitigating climate sales plans being introduced, the risk rather than a solvency risk. The change and ensuring a cleaner energy landscape is becoming like mobile guarantees can be efficiently backed future. N communications, where consumers by contingent loans from multilater- are ready to pre-pay if they value a al development banks (MDBs), help- This article first appeared as a blog service and find it affordable. This ing reduce the risk premium on post on the World Bank website in scenario already applies to small commercial financing. April 2018. Many thanks to Joaquim grids, especially in communities In some cases, MDBs can also and the World Bank Group for where users can easily verify each help provide low-cost finance; blend- allowing us to include it in the OFID other’s behavior and help install ing it with commercial finance would Quarterly. OFID in the field

PHOTO: JENNY MATTHEWS/ALAMY STOCK PHOTO OFID IN THE FIELD | OFID QUARTERLY JULY 2018 | 19

Nicaragua powers down poverty Rural communities and settlements get connected

BY STEVE HUGHES

icaragua’s energy infra- OFID structure has in the past obstructed its eco- employees nomic growth, directly with some Nimpacting the country’s competi- ‘newly tiveness, discouraging investments connected’ PHOTO: OFID/MIGUEL LINARES OFID/MIGUEL PHOTO: and hindering socio-economic devel- members of opment, particularly in poor rural areas. the local Since 2007, the government community. of Nicaragua has targeted poverty reduction through its national devel- opment plans. Within this frame- work, the National Program for Sustainable Electrification and Renewable Energy (PNESER) was launched in 2010 with the aim of reducing poverty by promoting access to modern and sustainable upgrade of distribution networks also promote a culture of responsi- electricity services. to be connected to the existing ble electricity use among users and As part of this initiative, a transmission infrastructure in 61 beneficiaries.” US$10.5 million loan provided by rural communities, and to regular- Earlier phases of the PNESER OFID to the Republic of Nicaragua ize the electric power supply in initiative have received both finan- is helping to improve energy access 28 settlements. cial and technical support from through the expansion, repair and “The project aims to make im- a large number of development portant contributions to poverty finance institutions, including OFID. reduction by generating employ- In December 2015, OFID approved ment opportunities in the short- a loan of US$10 million to provide STAND-OUT PERFORMANCE term; lowering the energy costs for electricity access for nearly 4,000 Nicaragua stands out for maintaining growth levels both people and goods; and improv- households located in off-grid rural above average for Latin America and the Caribbean. ing access to education, health and communities and rehabilitate the Disciplined macroeconomic policies, combined other social services,” says OFID’s electricity connections of nearly with a steady expansion of exports and foreign Public Sector Operations Officer 6,000 households. direct investment, helped the country to weather Luis Aguilar. “There are other ex- Since the PNESER initiative the global economic crisis of 2008-09 and rising pected benefits too. The project will began, access to modern energy food and oil prices. contribute to technology transfer through Nicaragua’s National Elec- According to the 2016 Standard of Living Sur- and the building of technical skills; trical Grid has increased rapidly to vey by the National Development Information In- to promoting a sense of community more than 90 percent (2016). This stitute, between 2014 and 2016 general poverty in and ownership among local mayors phase of the project began earlier Nicaragua dropped from 29.6 to 24.9 percent; and residents; and by improving the this year (2018) and is expected to be while in the same period extreme poverty fell from overall quality of life in rural areas, implemented over a period of 4.5 8.3 to 6.9 percent. Source: World Bank benefiting more than 33,000 people. years. The government of Nicaragua Social awareness campaigns will is a co-financer. N 20 | OFID QUARTERLY JULY 2018 | OFID IN THE FIELD

Finance helps family-run pharma flourish

Small and medium-sized enterprises (SMEs) are critical to creating jobs, improving living standards and driving economies, particularly in developing countries. Despite their importance, many SMEs struggle to access finance to grow or start a business. In 2015, OFID signed a US$10 million loan with Banco Hipotecario, a bank in El Salvador, to support on-lending to SMEs’ trade finance activities. Below, Luciana Pacheco de Sugisawa, CEO of El Salvadorian SME, Laboratorios Ferson, explains how important access to finance has been for her company.

BY STEVE HUGHES

othing can be achieved importance becomes even more without financing, espe- apparent. Our company, in addition cially in a country like to providing high quality, safe and ours, with a low average effective medication at affordable Nincome and a small scale economy. prices, is also a growing source of Financial support for business is specialized employment, and, on essential for a start-up as well as for average, we pay salaries that are ongoing operations and growth. two to three times higher than the We especially appreciate banks national average. with a local vision and knowledge In August 2018, Laboratorios about our country, as we recognize Ferson will have been operating it’s challenging to understand the for 70 years in the Salvadorian and specifics of doing business here. Central American markets. During Each country in our region has its these seven decades we have been Old photographs document the particularities, and not even Central company’s history. able to grow and provide for three American countries are fully com- parable, never mind those in Latin America as a whole. With its local Finance in action and specific knowledge about SMEs, Banco Hipotecario excels, and is “In many Latin American countries, SMEs account for more than 50 without a doubt the Bank of Salva- percent of job creation and growth,” says Luiscela Moreno Jimenez, dorian SMEs. OFID’s Private Sector Officer who recently visited Laboratorios Ferson According to the Central Reserve in El Salvador. “It’s gratifying to see how our financing is supporting Bank of El Salvador, around 60 per- SMEs on the ground, and in turn, helping to improve employment cent of El Salvador’s GDP is generat- opportunities and quality of life.” ed by SMEs. SMEs are also the main source of employment, so their OFID IN THE FIELD | OFID QUARTERLY JULY 2018 | 21

PHOTOS: OFID/LUISCELA MORENO JIMENEZ OFID’s Luiscela Moreno Jimenez (left) with generations of people in a continuous “They had faith in my ability to practices based on World Health Luciana Pacheco and sustainable manner. In recent lead the company and prove how Organization standards. This recog- de Sugisawa (CEO) years, we have exceeded by five nizes and celebrates our focus on and other times the annual percentage GDP resilient it could be – even though high quality, safety, effectiveness members of the growth of El Salvador. I had limited experience as a CEO and affordable prices. Laboratorios I have had the honor of leading and I am a woman in an industry We also aim to support profes- Ferson team. this company for five years now, dominated by men.” sional development and basic health following the unexpected death of and food needs – and even some of Luciana Pacheco de Sugisawa my father. Previously, I was CFO for Director President (CEO) of Laboratorios Ferson the entertainment needs – of our six years. I ensure it remains true to employees and their families. In ad- its origins: developing, manufactur- One of these low periods coincid- dition, our social responsibility pro- ing and marketing high quality ed with the death of my father in gram provides free medical services medication to care for our customers. 2012. It was precisely during that and medication to the community on It has been a challenge to weather period that Banco Hipotecario had a daily basis throughout the year. the volatile economy in the past five faith in Laboratorios Ferson and in We are also very active donating years, but I think we have achieved my ability to lead the company and medication to hospitals, health cen- outstanding results. When times prove how resilient it could be – ters, churches and NGOs. are good, obtaining financing is even though I had limited experi- According to our Strategic Plan, relatively easy, but when our busi- ence as a CEO and I am a woman in during the next three years we expect ness was going through a low peri- an industry dominated by men. It to be engaged much more aggressively od, we encountered difficulties. makes us extremely proud to have in the export sector, adding countries It is during these times that one been able to prove to them that it to our current export destinations. learns to recognize and appreciate was the right decision. Staying true to our values, we hope the banks that are able to under- Thanks to the loan, we have to continue offering quality, safe, stand our business and that have a become pioneers in Central America effective and affordable medicine sufficient long-term vision to under- when it comes to obtaining certifi- to an ever-increasing number of stand our challenges. cates for good manufacturing Latin American consumers. 22 | OFID QUARTERLY JULY 2018 | OFID IN THE FIELD

Syrian refugee camp at Bekaa Valley, Lebanon. PHOTO: AHMAD ZIKRI/SHUTTERSTOCK.COM

Under pressure: Infrastructure in Jordan and Lebanon The spillover effects of the Syria crisis affect the entire sub-region. Collaboration between OFID and UNDP has been helping to repair, establish and improve some essential basic infrastructure. Two successful initiatives are considered below.

BY STEVE HUGHES WITH CONTRIBUTION FROM UNDP

Water-saving solutions in Jordan

“ he water crisis in Jordan is not been working together to provide Social been under severe stress (with staff T a recent phenomenon, but it has innovative and sustainable water cohesion in often having to resort to double been aggravated by the impact of the solutions. shifts to cope with inflated numbers Syria crisis,” says Salameh Mahas- Salameh Mahasneh from Jordan and to provide for both Jordanian and neh from Jordan’s Ministry of Water Jordan’s Ministry of Water and other parts of Syrian students) were also included and Irrigation. Irrigation explains how the efforts the Middle in the initiative. Social cohesion in Jordan and of the two organizations – which East is under The Ajloun University College, other parts of the Middle East is have included installing rainwater with around 3,000 students, is just under pressure from new local harvesting and greywater systems pressure. one of the schools that benefited. In dynamics following the massive and in Jordan – have benefited around addition to receiving a water har- well-documented movement of refu- 60,000 people. The project focused vesting system, technology has been gees. In an attempt to strengthen the on 38 public buildings in the state, installed to collect and filter waste- resilience of the host communities recognizing their important role water from washbasins and reuse most affected by the Syria crisis, in bringing and keeping commu- it for cleaning purposes. “Through OFID and the United Nations Devel- nities together – including Syrian these interventions, we can address opment Programme (UNDP) have inhabitants. Schools, which have the short-term needs PHOTOS: UNDP

of local communities while strength- contributed in no small part to the water more efficiently is vital. Many Innovative water ening the long-term sustainability project’s success. have called for similar awareness systems for of water use,” says Mahasneh. Project activities went beyond raising campaigns to be made part harvesting and The strong partnerships the installation of water solutions. of the school curricula, not just a irrigation are established with local communities Awareness raising sessions were component of development projects. supporting local and organizations by UNDP – with organized in schools and with local To help the project’s sustainabil- communities. OFID’s support – have helped local organizations and people learned ity, UNDP developed a ‘water toolkit’ people take full ownership of the how to make more efficient use of that addresses challenges and best initiative. Working with three water in their everyday lives. People practices that emerged through- non-governmental organizations were also familiarized with wa- out the project. The toolkit will be in particular – namely the Royal ter-efficient hygiene practices and distributed to academic institutions, Society for the Conservation of provided with information about civil society organizations, local Nature, the Royal Scientific Society, household water harvesting and communities and individuals to and Future Pioneers for Empower- grey water systems. further promote sustainable water ing Communities – all of which have Given the chronic water scarcity use and the installation of additional robust links to local communities in Jordan, educating children to use water solutions across the country.

Landfill in Lebanon The UNDP intervention – sup- ported by OFID – focused on the s part of its broader regional rehabilitation of the dumpsite by A support since 2011, OFID has ex- constructing a sanitary landfill for tended financial assistance to UNDP existing and future waste. The first in its ongoing response to manage sanitary cell of the landfill has been municipal solid waste in Lebanon, a already filled and closed, while the neighboring country that currently second should meet the waste dis- hosts around 1.5 million Syrians. posal needs of Ghazzeh for the com- Ghazzeh, a village in Lebanon’s ing years. The project also included Bekaa Valley, was home to 6,000 peo- an awareness raising campaign ple prior to the outbreak of the Syria about waste reduction and sorting crisis. Over the past years, it has for recycling and reuse as well as Mohammad Al Majzoub, Head of the Ghazzeh Municipality that hosted more than 30,000 displaced benefited from the UNDP-OFID intervention. the supply and distribution of bins. people fleeing violence and conflict. The construction of the landfill has The pressure on Ghazzeh has Just a year ago, due to the absence also created work opportunities. been significant, putting a strain on of functioning municipal solid “Although the crisis is still services and the labor market. waste management facilities and the unfolding, we need to be forward- “We found ourselves in the eye of the increased waste produced by the looking and start from now to build crisis,” says Mohammad Al Majzoub, growing population, an open un- a better future for the population Head of the Ghazzeh Municipality. sanitary dumpsite posed numerous of Ghazzeh, irrespective of whether “We struggle every day to address environmental and health threats to they are Lebanese citizens or refu- the growing challenges.” Ghazzeh and its inhabitants. gees,” said Al Majzoub. N 24 | OFID QUARTERLY JULY 2018

OFID’s Ministerial Council gathers to set policy OFID QUARTERLY JULY 2018 | 25

MINISTERIAL COUNCIL HOLDS 39TH SESSION

OFID’s highest policy making body, the Ministerial Council, held its 39th Annual Session in Vienna, Austria, to review the organization’s performance and set policy for the coming year. 26 | OFID QUARTERLY JULY 2018 | MINISTERIAL COUNCIL HOLDS 39TH SESSION

OFID’s Ministerial Council met for its 39th session at the OFID headquarters in June.

Meeting at OFID’s headquarters in June, he Council also appointed Saudi Arabian national the organization’s Ministerial Council elected Dr Abdulhamid Alkhalifa Indonesia to the chair, represented by to the position of OFID TDirector-General (see page 36). He Sri Mulyani Indrawati, Minister of Finance. replaces outgoing Director-General Suleiman J Al-Herbish who was She replaces the Republic of Ecuador, appointed in November 2003 and represented by Carlos Alberto de la Torre, has served three five-year terms. The highlight of the Council’s Minister of Economy and Finance. public session was the presentation The Islamic Republic of Iran was elected of the OFID Annual Award for Development to the Bangladesh-based Vice-Chair, represented by Masoud Karbasian, BRAC. The non-governmental orga- nization will receive US$100,000 Minister of Economic Affairs and Finance. from OFID in recognition of its support for Rohingya refugees in Bangladesh (see page 32). MINISTERIAL COUNCIL HOLDS 39TH SESSION | OFID QUARTERLY JULY 2018 | 27

Newly-elected Chair and Indonesia’s Minister of Finance Sri Mulyani Indrawati (center), with Governing Board Chairman Abdul Wahab A Al-Bader (left) and OFID Director-General Suleiman J Al-Herbish (right).

The acting incumbent Chair, Governing Board, as well as to the “Our efforts Other matters during the Dr Carlos Alberto Patricio Játiva Director-General and all the staff of session included the consideration Naranjo, Ecuador’s head of delega- OFID for their outstanding efforts – along with and approval of OFID’s financial tion and OFID Governor, Ambas- and commitment to the work of those of our statements and Annual Report for sador and Representative to the OFID. He also outlined some of the friends in the 2017 (see page 34) which detailed Vienna-based International Organi- organization’s main operations and international OFID’s cumulative commitments zations, stated that environmental priorities for the coming years. to global development of nearly sustainability and the efforts re- In his statement to ministers, arena – have US$22 billion – and fresh funding quired to help mitigate and adapt Al-Herbish, reflecting on his tenure, culminated for development-related projects to climate change require “critical said: “Our efforts – along with those in something amounting to US$1,508 million. effort”. In line with this, he said: of our friends in the international remarkable.” In keeping with its mandate to “OFID’s advocacy has been instru- arena – have culminated in some- prioritize low-income nations, mental in fostering sustainable thing remarkable; something that Al-Herbish OFID approved US$695.6 million OFID Director-General development, namely with regard will underpin the entire sustainable for projects in Africa, benefiting to SDG 7 and energy poverty era- development agenda to 2030 and 32 countries. In Asia, 26 countries dication. Although the progress beyond: access to energy for all is benefited from approvals of achieved in 2017 for SDG 7 was recognized as Sustainable Develop- US$434.9 million. In Latin America mixed, we should all be very proud ment Goal 7; a stand-alone goal in the and the Caribbean, 11 countries that OFID continues to exert great United Nations Agenda 2030 for Sus- shared US$354.5 million of devel- influence in the SDG arena.” tainable Development. OFID, as you opment finance. Chairman of the OFID Govern- can see, is now far more than a sim- The Ministerial Council comprises ing Board Abdul Wahab A Al-Bader ple lending institution. Our organi- the finance ministers and other high- gave sincere thanks to the Ministerial zation has matured and now helps level representatives of OFID Mem- Council, to his colleagues in the set the global development agenda.” ber Countries. It meets once a year. 28 | OFID QUARTERLY JULY 2018 | MINISTERIAL COUNCIL HOLDS 39TH SESSION

39th Session of the Ministerial Council PHOTO GALLERY

The Council elected to the Chair the Republic of Indonesia, represented by Sri Mulyani Indrawati, Minister of Finance.

“ OFID is far more than a simple lending institution. Our organization has matured and now helps set the global development agenda.”

OFID Director-General Suleiman J Al-Herbish MINISTERIAL COUNCIL HOLDS 39TH SESSION | OFID QUARTERLY JULY 2018 | 29

Abderrahmane Raouia Dr Carlos Alberto Patricio Játiva Naranjo Minister of Finance, Algeria. Governor and Ambassador of Ecuador to Austria.

Jean J Essono Nuguema Masoud Karbasian Advisor to Gabon’s Minister, Ministry of Economy, Minister of Economic Affairs and Finance, IR Iran. Planning and Development Programming. 30 | OFID QUARTERLY JULY 2018 | MINISTERIAL COUNCIL HOLDS 39TH SESSION

Hussein J Abdul Hameed Al Khaqani Dr Nayef Falah Al-Hajraf Governor of Iraq to OFID. Minister of Finance, Kuwait.

Sheikh Ali Bin Jassim Al-Thani Mohammed Al-Jadaan Ambassador of the State of Qatar. Minister of Finance, Saudi Arabia. MINISTERIAL COUNCIL HOLDS 39TH SESSION | OFID QUARTERLY JULY 2018 | 31

Al Taher Al Jheimi Dr Mahmoud Isa-Dutse Minister of Planning, Libya. Deputy State Minister and Governor of Nigeria to OFID.

Obaid H Al-Tayer Jesse Alonso Chacón Escamillo Minister of State for Finance, United Arab Emirates. Ambassador of Venezuela to Austria and Governor of Venezuela to OFID. 32 | OFID QUARTERLY JULY 2018 | MINISTERIAL COUNCIL HOLDS 39TH SESSION

(From left) Abdul Wahab A Al-Bader, Governor of Kuwait to OFID and Chairman of the Governing Board; Dr Mushtaque Chowdhury, Vice Chair of BRAC; acting outgoing Ministerial Council Chairman Dr Carlos Alberto Patricio Játiva Naranjo; and OFID Director-General Suleiman J Al-Herbish. Women are the engines of development, says BRAC Bangladesh-based non-governmental organization wins 2018 OFID Annual Award for Development for providing support to Rohingya refugees in Bangladesh.

f there was one thing we could Rohingya refugees in Bangladesh. change about the world, it would Non-governmental organization OFID Annual Award for Development be to empower women,” said BRAC has launched the largest civil Dr Mushtaque Chowdhury, Vice society response in support of the The OFID Annual Award for Development was IChair of Bangladesh-based BRAC. newly arrived Rohingya refugees. introduced in 2006 to highlight the achievements “It’s based on our own experience. This response is meeting the immedi- of organizations and individuals in poverty reduc- You have to really invest in women ate needs of vulnerable people, while tion and sustainable development. Past winners – they are the engines of develop- building skills, resilience and aware- include: the Foundation for Integral Development ment. We have seen it time and ness that will facilitate their long- in Guatemala; Syrian refugee Doaa Al Zamel; again – when women come forward, term wellbeing as the situation the Children’s Cancer Hospital in Egypt; Kenya’s things change for the better.” evolves. Kakenya Center for Excellence; Malala Yousafzai Dr Chowdhury was speaking “We need to invest in women in of Pakistan; Dr Mazen Al-Hajri, renowned ENT with the OFID Quarterly after receiv- every society – even in developed surgeon and philanthropist; Professor Muhammad ing the 2018 OFID Annual Award societies,” continued Dr Chowdhury, Yunus; and Bartolina Sisa National Confederation for Development in recognition of who joined BRAC as a statistician of Peasant Indigenous Native Women of Bolivia. BRAC’s remarkable support for in 1977. “The safe spaces we are MINISTERIAL COUNCIL HOLDS 39TH SESSION | OFID QUARTERLY JULY 2018 | 33

providing for Rohingya women and The award was presented by children are very important – and Dr Carlos Alberto Patricio Játiva the monetary element of the OFID Naranjo, Ecuador’s head of delegation Annual Award [US$100,000] will be and OFID Governor, Ambassador and used to provide further support in Representative to the Vienna-based this area.” International Organizations. BRAC Accepting the award earlier in was first announced as the winner the day at OFID’s 39th Session of the by OFID Director-General Suleiman J Ministerial Council, Dr Chowdhury Al-Herbish, who remarked: “This said: “We at BRAC are delighted to year’s award aims to help shed light accept the OFID Annual Award for on the Rohingya crisis and recognize 2018. This will inspire us and many one particular organization for others to move forward with added standing strong in the face of injus- zeal and commitment.” tice.” He added that BRAC “empowers

“This is a very prestigious the vulnerable and helps them bring PHOTO: BRAC award,” Dr Chowdhury told the about positive change in their lives OFID Quarterly. “It will help us by creating opportunities.” A bit about BRAC take forward the agenda not just It is estimated that over 700,000 to help the Rohingya in Bangladesh, refugees have fled from Myanmar to L Following the independence of Bangladesh, but also to raise awareness globally.” Bangladesh since August 2017. BRAC BRAC was established in 1972 as a small relief or- The overall goal is that Rohingyas has provided lifesaving services at ganization. Today it employs almost 120,000 people and host communities live with dig- scale in the sectors where it is cur- in 11 countries. Over the last 40 years, the organi- nity, security and opportunity, in rently a leading provider, such as zation has reached a total of 138 million lives. social and economic harmony, until water and sanitation, health and child acceptable repatriation opportuni- protection, and has contributed sub- L BRAC runs 45,000 schools, which have gradu- ties become possible. stantially to others, including educa- ated 10.8 million children to date. It currently has “Relief is not the solution,” Dr tion, shelter and nutrition. 900,000 students enrolled in its schools in Bangla- Chowdhury continued. “A person is Since launching its response desh, Afghanistan, Pakistan, the Philippines, Uganda not simply poor because they lack activities, BRAC has provided over and South Sudan. money or employment. A person is 660,000 people with at least one form poor because he or she doesn’t have of critical support. The NGO is work- L BRAC’s 106,000 community health workers in access to healthcare and education; a ing closely with the government of Bangladesh are all women. They have provided ante- person is poor because they are not Bangladesh, the United Nations, and natal care to 25.6 million women, and post-natal empowered. To address poverty, you local and international organiza- care to 27.4 million women in Bangladesh. In the need to address the causes of pover- tions, and will continue to provide last four years, BRAC ensured the safe delivery of ty, and that is where development a range of services through its inte- two million babies. comes in.” grated, community-based approach. BRAC has so far L BRAC was one of the first organizations to pro- mobilized around vide small loans to women via ‘all women’ groups. US$37 million Today BRAC’s work in microfinance extends across from different seven countries, offering access to credit, savings, partners in its ef- skills training, productive assets and supply chains. forts to strength- en the humani- L BRAC operates the world’s largest water, sani- tarian work in tation and hygiene intervention, reaching 66.4 million Cox’s Bazar, people, and significantly changing behavior towards Bangladesh. N hygiene in communities.

“ This award L BRAC operates 10,500 adolescent clubs for girls will help us to aged 13–25 around the world. These clubs promote raise awareness life skills education, livelihood training, financial liter- globally.” acy, credit support and community participation. BRAC’s Dr Chowdhury 34 | OFID QUARTERLY JULY 2018 | MINISTERIAL COUNCIL HOLDS 39TH SESSION

OFID deepens commitment to sustainable development agenda

New Annual Report shows cumulative commitments to global development approach US$22 billion in 2017 – and fresh funding for the year amounts to US$1,508 million.

BY ANNA ILARIA-MAYRHOFER

FID has launched its “in line with the institution’s well- In 2017, Development projects in 2017 Annual Report founded belief that access to afford- US$464.4 the agriculture sector received which shows the orga- able, modern energy is at the heart US$283 million in new commit- nization’s deepened of sustainable development.” million in ments, of which US$161 million Ocommitment to the United Nations development was committed to help enhance 2030 Agenda for Sustainable Devel- Focus areas finance food security and incomes in opment and the Sustainable Devel- In 2017, US$464.4 million in devel- approvals five African countries for over opment Goals (SDGs). opment finance approvals were 2.4 million people. The report shows that projects in earmarked for energy projects in was ear- Transport-related operations the energy, water and food sectors, 35 countries. Amounting to over marked for benefiting nine countries will enabled by transportation, contin- 23 percent of total approvals in 2017, energy receive US$251 million in 2017 ued to receive significant focus the funding supported a variety projects in (17 percent of the year’s total ap- during 2017. OFID Director-General of solutions, from power plants to 35 countries. provals). This will help facilitate Suleiman J Al-Herbish, writing in rural electrification projects and safer travel and promote economic the Foreword, explained that energy small-scale renewable energy opportunities, including tourism dominated the approved funds schemes. and trade.

Approvals in 2017 by sector* Disbursements in 2017 by mechanism** (US$m) (US$m)

464.4 Energy 566.2 Public Sector 283.0 Agriculture 309.4 Trade Finance 251.0 Transport 223.3 Private Sector 210.0 Financial 14.6 Grant Assistance 105.2 Education 102.0 Water & Sanitation 45.6 Multisectoral 29.3 Health 15.0 Industry 3.0 Emergency *Total **Total ­ approvals: disbursements: US$1,508.4m US$1113.4m

*Although in principle exempt from benefiting from OFID‘s ** As a gesture of solidarity with its host nation, assistance, Member Countries occasionally receive support in OFID approved US$200,000 in emergency aid to Austria the wake of natural disasters or as part of a regional program. in 2002 following severe floods. MINISTERIAL COUNCIL HOLDS 39TH SESSION | OFID QUARTERLY JULY 2018 | 35

Projects in the financial sector sector received Financial mechanisms were also key recipients of funding, US$219.2 million in Public sector operations remained with US$210 million committed to approved funds. the primary channel of OFID’s support a broad range of financial In Asia, 26 coun- development work, with approvals intermediaries, including microfi- tries stand to benefit amounting to US$698.8 million (or nance institutions, leasing compa- from development 46 percent) in 2017. OFID’s private nies, commercial banks and regional finance approvals of sector and trade finance operations development banks. This funding US$434.9 million, with continued to scale up in 2017, with will be used to support international operations in the ener- approvals totaling US$787.5 million, trade, for on-lending to micro, small gy sector leading the up from US$711.5 million in 2016. and medium-sized enterprises, or to way with US$110.8 Under OFID’s Grants and Technical bolster the capital base of financial million; the financial Assistance window, US$22.3 million institutions. sector is set to receive was approved in 2017 to support US$95 million to help 65 operations in some of the most Regional operations boost private sector disadvantaged regions of the In keeping with its mandate to pri- and trade finance activities; and world. oritize low-income nations, OFID US$87.1 million has been approved approved US$695.6 million for for education initiatives. development operations in Africa – In Latin America and the representing by far the largest share Caribbean, 11 countries will share (46 percent) of the organization’s US$354.5 million of OFID funding commitments for 2017 and benefit- for operations in the agriculture, ing 32 countries. Reflecting the con- energy, transport, and water and The 2017 Annual Report is available in tinent’s priorities, US$266.8 million sanitation sectors with a view English, Arabic, French and Spanish helped fund energy operations that of boosting food security, trade, and on USB in all four languages, as included solar, wind and clean cook- transportation, health indicators well as in PDF format for downloading ing initiatives. Africa’s agricultural and living standards. from OFID’s website www.ofid.org. N

OFID Scholars announced

en remarkable young Scholarships They were chosen from a pool developing countries, people under individuals have been of almost 10,000 applicants. the age of 35 make up the majority awarded OFID scholar- recognize The OFID Scholarship Award of the population which means that ships this year. The win- that today’s program sponsors outstanding today’s youth is essential for driving Tners are: Alazar Woldeyohannes young students from developing development. Receiving a quality ed- youth is from Ethiopia, Evelyn Changala essential for countries through graduate studies ucation helps aspiring development from Zambia, Nji Atanga Desmond in a development-related discipline. practitioners to gain the knowledge from Cameroon, Abdishakur Ahmed driving It is currently in its 12th year of needed to further their goals and from Somalia, Thokozani Chapomba development. operation. To date, it has sponsored solidify visions for the development from Malawi, Israa Mohamed from 50 outstanding young people. of their own nations. Sudan, Hayattullah Bayan from The program was conceived Please see the next edition of Afghanistan, Amayaa Wijesinghe with the aim of rewarding the the OFID Quarterly for more infor- from Sri Lanka, Maria Ines Cubides efforts of young people working mation about the scholars and Kovacsics from Colombia and hard to achieve development goals their areas of study. N Mariana Javakhyan from Armenia. in their home countries. For many PHOTO: RUPERT STEINER 36 | OFID QUARTERLY JULY 2018 NEWSROUND

OFID appoints new Director-General

After 15 years at the helm, Al-Herbish hands the reins to Saudi national Dr Abdulhamid Alkhalifa.

BY STEVE HUGHES

r Abdulhamid Alkhalifa, provided and strengthening co- a Saudi Arabian nation- operation with other development al, has been elected as organizations. the new OFID Director- Central to OFID’s achievements DGeneral. The announcement was under his leadership has been its made at OFID’s 39th Ministerial campaign for the eradication of Council meeting in June. energy poverty, helping to make the Dr Abdulhamid Alkhalifa will world sit up and take notice of the join OFID before the end of 2018 and one billion people still living with- lead the organization as it continues out electricity, and the three billion to support sustainable development people who do not have access to in some of the world’s most vul- clean cooking fuels or technologies. nerable communities. Since 2014, “Our efforts – along with those Dr Alkhalifa has been Deputy Secre- of our friends in the international tary General of the Saudi Arabian arena – have culminated in some- Public Investment Fund. He is an thing remarkable; something that accomplished and experienced pro- will underpin the entire sustainable fessional who has previously held development agenda to 2030 and a number of leadership positions at beyond,” Al-Herbish said. the World Bank Group. “Access to energy for all is re- Outgoing Director-General cognized as Sustainable Develop- Suleiman J Al-Herbish was appointed ment Goal 7 (SDG 7); a stand-alone in November 2003 and has served goal in the United Nations 2030 three five-year terms. Throughout Agenda for Sustainable Develop- his 15 years at the helm of OFID, ment,” he added. “OFID is far more Al-Herbish has made the organiza- than a lending institution. Our orga- tion’s work significantly more rele- nization now helps set the global vant and visible, broadening the development agenda and I am very way that development funding is proud of what we have achieved.” N PHOTO: NESTEROVIV/SHUTTERSTOCK.COM Better prospects for Palestinians Unwavering support of the Palestinian people over four decades continues into 2018 and beyond

BY ANNA ILARIA-MAYRHOFER

FID has signed 10 grant Al-Herbish commended partner agreements totaling implementing agencies on their

nearly US$16.4 million “remarkable effectiveness” and OFID PHOTO: to support a range of “high social impact” in carrying Oprojects and programs aimed at bol- out their mandates to help improve stering the resilience and living Palestinians people’s livelihoods standards of the Palestinian people. and prospects. At the signing ceremonies during The grants signed were as follows: a high-level mission to Jordan, P United Nations Relief and Works OFID Director-General Suleiman J Agency for Palestine Refugees in the Al-Herbish spoke of OFID’s unwaver- Near East (UNRWA). US$1.5 million ing support and solidarity with the to enhance the health and living con- Palestinian people over four de- ditions of around 24,000 residents cades, as illustrated by hundreds of in the Shu’fat camp by upgrading grant operations benefiting vulner- storm-water and sewerage networks. able populations and communities OFID also co-funded Phase I of this in both the West Bank and Gaza, in initiative with a US$1.4 million grant. addition to Palestinian refugee A new administration agreement OFID Director-General Suleiman J Al-Herbish (right) camps in neighboring countries. was also signed for converting the E and UNRWA Commissioner-General Pierre Krähenbühl. 38 | OFID QUARTERLY JULY 2018 | NEWSROUND

F PALFund (OPEC Fund Micro-enterprises for Palestine) scheme from a trust fund into a grant of US$10 million. This will become part of the regular capital of UNRWA’s Microfinance Programme. This move comes in recognition of the success of the PALFund, and is expected to con- solidate the Microfinance Programme’s financial sustainability and growth, and subsequently its social impact. P Islamic Development Bank (IsDB). US$1.5 million. This grant, to be chan- neled through the IsDB and implemented by the Hebron Rehabilitation Committee, aims to improve living conditions of Palestinians in Hebron by rehabilitating OFID Director-General Suleiman J Al-Herbish (right) and Adil Al Sharif, Advisor of the residential units. Funds will also help Islamic Development Bank, President for Palestine Trust Funds. restore the Ibrahimi Mosque – an endan- gered UNESCO heritage site. P United Nations Development Pro- gramme Assistance to the Palestinian People (UNDP/PAPP). US$1.16 million to carry out development projects in Jerusalem and Gaza, including Phase II of expanding the Cancer Department at the Augusta Victoria Hospital in Jerusa- lem (Phase I was also supported by a pre- vious OFID grant). In Gaza, a center for visually impaired children will be estab- lished and desalination units installed at various educational institutions. Roberto Valent (left) Special Representative to UNDP’s Programme of Assistance to the Palestinian People, and Al-Herbish.

Tala Sweis, Director of the Madrasati Initiative (left), and Al-Herbish. Abdul-Kareem Al Zughier, Head of the Patients’ Friends Society, Hebron and Al-Herbish. NEWSROUND | OFID QUARTERLY JULY 2018 | 39 PHOTOS: OFID PHOTOS:

N

Dr Tafeeda Jarbawi, Director of the Welfare Association (Taawon) Suhail Khoury, Director-General, Edward Said National Conservatory and Al-Herbish. of Music (left) and Al-Herbish.

P Jordan River Foundation – P Edward Said National 10 grant Al-Bakheet, Director, Center Madrasati Initiative. US$500,000 Conservatory of Music. US$100,000 for Documents and Manuscripts, to enhance education access for Pal- to support academic and cultural agreements University of Jordan (US$50,000) estinian children in East Jerusalem. activities among Palestinian children. totaling to help fund the restoration, digiti- P Patients’ Friends Society. nearly zation and analysis of documents US$1 million to provide nuclear Al-Herbish also signed grant US$16.4m from the Jerusalem Sharia Courts. imaging equipment for the Al-Ahli agreements with Professor Khaled were signed. The Director-General also inaugu- Hospital in Hebron, benefiting Al-Karaki, President of the Jordani- rated a laboratory at the University around 2,800 patients per year. an Arabic Language Academy of Jordan that carries out manu- P Welfare Association (Taawon). (US$50,000) to support the produc- scripts restoration works, which US$600,000 to address power supply tion of an Arabic-English dictionary received funding from OFID for challenges at seven health facilities of economic terms; as well as with establishing and equipping the in Gaza via solar power systems. Professor Mohammad Adnan new facility. N

Emergency aid for Gaza Strip and Syria

FID approved two emergency aid grants in May A US$500,000 grant to the PRCS will support ongoing totaling US$1 million to help bolster relief efforts relief operations in the Gaza Strip, where hospitals are in a in the Gaza Strip and Syria. The grants will be state of emergency and have been working at full capacity. channeled through the Palestinian Red Crescent UNHCR will also receive US$500,000 to help internally OSociety (PRCS) and the United Nations Refugee Agency displaced Syrians and returnees by improving their access to (UNHCR), respectively. better health, safe water and education services. Commenting on the newly–approved grants, OFID OFID has a long partnership with UNHCR and has sup- Director-General Suleiman J Al-Herbish commended the ported 14 earlier operations through funding of US$7.35 mil- work of both organizations that provide “valuable lifelines” to lion. Since the beginning of the Syrian crisis in 2011, OFID has vulnerable populations: “OFID hopes these latest grants will extended 11 emergency grants totaling over US$2.6 million mark its strong sense of solidarity with the countless number to various implementing agencies – including the International of people facing unimaginable hardship as a result of conflict Federation of the Red Cross, Islamic Relief and Care Austria, and displacement.” among others – to help refugees and the internally displaced. 40 | OFID QUARTERLY JULY 2018 | NEWSROUND

PHOTO: KENTOH/SHUTTERSTOCK.COM US$200m to boost development in seven partner countries

BY ANNA ILARIA-MAYRHOFER

n the sidelines of “All the water and sanitation, healthcare and economic sector for the country by April’s World Bank projects we education,” Al-Herbish continued. constructing a cruise terminal. Spring Meetings in “All the projects we support aim to P Egypt is receiving US$53.2 mil- Washington, DC, OFID support aim inspire, ultimately, self-reliance and lion for the second phase of a project Osigned public sector loan agreements to inspire, hope for the future.” that will rehabilitate irrigation and totaling nearly US$200 million to ultimately, The loans are being co-financed drainage to raise agricultural pro- help boost socio-economic develop- self-reliance with the respective governments duction and help more than 380,000 ment in seven partner countries of the beneficiary countries and people. OFID also co-funded phase I in Africa, Asia and Latin America. and hope for OFID sister institution BADEA (Arab of the project. OFID Director-General Suleiman the future.” Bank for Economic Development in P An ‘Inclusive Agriculture Trans- J Al-Herbish said the agreements Africa), as well as the African Devel- formation Program’ in Madagascar illustrated OFID’s continued commit- opment Bank, the International Fund is being funded with a US$20 million ment to developing countries and for Agricultural Development and loan. The program aims to boost in- the United Nations 2030 Agenda for the Netherlands Enterprise Agency. comes and food security for around Sustainable Development: “We work The majority of the loans will 1.6 million farmers. in cooperation with developing co-fund projects in Africa. P The agriculture sector in country partners and the interna- They are as follows: Zambia will be strengthened with tional donor community to stimulate P In Burkina Faso, US$16.8 million a US$12 million loan for a program economic growth and alleviate pov- will help construct and equip fa- that will support nearly 213,000 erty in all disadvantaged regions of cilities at Koudougou University. smallholder producers. the world. Approximately 18,500 students are P Another loan to Zambia of “Our work is people-centered, expected to benefit. US$12.4 million will fund the con- focusing on projects that meet basic P A US$19.5 million loan to Cabo struction of two new cancer treat- needs – such as food, energy, clean Verde aims to boost tourism, a vital ment centers at provincial hospitals NEWSROUND | OFID QUARTERLY JULY 2018 | 41

in the cities of Livingstone and Ndola. The projects will also expand the Also on the sidelines of the World Bank meetings, existing Cancer Diseases Hospital OFID Director-General Suleiman J Al-Herbish signed in Lusaka (also supported by two a membership and subscription agreement with the earlier OFID loans) and provide new Eastern and Southern African Trade and Develop- medical equipment. It is expected ment Bank (TDB), subscribing to the bank’s Class B the new/expanded facilities will shares in capital stock amounting to US$20 million. PHOTO: OFID/IRENA NIKOLOV OFID/IRENA PHOTO: support around 9,000 additional At the signing ceremony, Al-Herbish said: “TDB patients. has renewed its commitment to regional socioeco- P China will use its US$35 million nomic development in Africa and so represents a loan to build a new Chang’an good fit for OFID. In 2017 alone, OFID approved Campus at the Shaanxi Youth US$695.6 million for development operations in Afri- Vocational College. ca and a total of 32 African countries shared this P A rural roads project in amount. We remain committed to the continent.” Nicaragua will be co-financed This investment enhances a nine year partner- with a US$30 million loan – ship with TDB, during which time OFID has approved Admassu Tadesse (left), President and ultimately benefiting around Chief Executive of TDB, and OFID lines of credit totaling US$130 million to the bank for 100,000 people. N Director-General Suleiman J Al-Herbish. the benefit of countries in East and Southern Africa.

Road out of poverty

US$40 million to improve Belize’s transport industry BY ANNA ILARIA-MAYRHOFER

FID recently signed a US$40 million loan agreement in support of an important road Orehabilitation project in Belize. Alongside government funding, the loan will co-finance the upgrad- ing of a 42.5km stretch of road in the Cayo District of Belize – an area heavily reliant on agriculture and tourism – making travel easier and boosting income-generation through improved access to markets and ser- vices. It is expected that the project will help reduce poverty for around 30,000 people and bring indirect benefits to some 50,000 people. In May, OFID Director-General Suleiman J Al-Herbish led a dele- gation to the Central American nation, meeting with Belizean Prime Minister and Minister of Finance Dean O Barrow to sign the loan agreement. Al-Herbish spoke of E OFID Director-General Suleiman J Al-Herbish signs a loan agreement with Belizean Prime Minister Dean O Barrow. 42 | OFID QUARTERLY JULY 2018 | NEWSROUND

F the longstanding partnership than US$131 million, of which nearly and said the current project – between OFID and Belize, which be- two-thirds have been directed to- an all-weather road – would be a gan three decades ago with a loan to ward enhancing the country’s trans- “monumental achievement” and rehabilitate the Belize International port sector. a “leap forward” in terms of its Airport. Prime Minister Barrow ex- positive impact on the country’s Subsequent public sector com- pressed his appreciation for OFID’s tourism and agriculture sectors. mitments from OFID total more longstanding support since 1988 N

A dream for us all

OFID’s delegation also attended the inauguration ceremony of the Port Loyola Organization for Women (PLOW) Centre, a beneficiary of the Southside Poverty Alleviation project in Belize City. OFID, along with the government of Belize, is co-financing all three phases of the project.

PLOW is one of the organizations implementing the social, educational and training component of the Southside Poverty Alleviation project, which aims to improve the infrastructure, health, education and social welfare needs in impoverished areas of Belize City.

PLOW director Lauren Burgess-Eagan said that the new center, thanks to Jacqueline Dawson, Participant, PLOW support from OFID and the government of Belize, would enable women “Port Loyola Organization for Women was es- “to work; to pay their bills; to feed their children; to send them to school. tablished to help struggling families put food OFID has given us this building, which is a dream for all of us.” on the table. Today, I see it fitting to acknowl- edge that PLOW has contributed positively to my role as a mother and as a professional. You see, I too, like many other Belizeans, have struggled to provide for my family. Thankfully, PLOW has been there for me. Through this organization, I was able to work professionally and I was able to stretch my dollar, like most Belizeans would put it.”

OFID Director-General Suleiman J Al-Herbish with PLOW Director Lauren Burgess-Eagan in front of the new PLOW Center. NEWSROUND | OFID QUARTERLY JULY 2018 | 43

PHOTO: SEFORALL SDG 7: Partnerships, innovation and investment

OFID calls for intensified collaboration to fight energy poverty at Lisbon SEforALL Forum BY ANNA ILARIA-MAYRHOFER

FID Director-General a platform for SEforALL partners to “Advocacy, investment in the quest for modern Suleiman J Al-Herbish showcase their work and forge new operations on and affordable energy for all. Advo- reaffirmed OFID’s com- connections. Al-Herbish highlighted the ground cacy, operations on the ground and mitment to helping OFID’s focus on energy, water and partnerships are the main pillars for Oeradicate energy poverty at the re- food-related projects – while ensur- and partner- scaling up energy access if SDG 7 is cent 4th Sustainable Energy for All ing the organization responds to the ships are the to be met,” he stressed. (SEforALL) Forum in Lisbon, Portu- needs and priorities of its partner main pillars On the sidelines of the Forum, gal. He also called upon the global countries. for scaling Al-Herbish signed a US$70,000 community to intensify and acceler- Al-Herbish noted that while scal- grant agreement with SEforALL ate the momentum of cooperation able solutions and growing commit- up energy CEO Rachel Kyte. The grant enabled to achieve Sustainable Development ments from governments and finan- access.” around 30 delegates from develop- Goal 7 (SDG 7): ‘Ensure access to ciers toward delivering universal Al-Herbish ing countries in Africa to attend affordable, reliable, sustainable and energy access were emerging, there OFID Director-General the Forum, in line with OFID’s spon- modern energy for all.’ was still much more to be done. “At sorship in 2017. N Al-Herbish delivered his remarks OFID, we recognize the need to in- at the opening of the ‘Market Place’, spire new partnerships, ideas and 44 | OFID QUARTERLY JULY 2018 | NEWSROUND

PHOTOS: IEF Energy Access Platform showcased

at major energy meeting BY ANNA ILARIA-MAYRHOFER

FID Director-General the world’s largest gathering of en- Suleiman J Al-Herbish ergy ministers and experts. “Partner- stressed the importance ships allow for an efficient pooling EAP primary focus Other EAP of the most effective of resources and facilitate the shar- areas include: members include: Oframework to deliver affordable ing of knowledge and best practices.” L Total S. A . universal energy access at the One such partnership, he ex- L clean cooking L Shell international recent 16th International Energy plained, was a joint effort between L mini-grids L International Gas Union Forum (IEF) Ministerial meeting OFID and the World Petroleum L zero-gas flaring L Global LPG Partnership in New Delhi, India. That frame- Council: the Oil and Gas Industry L gas-to-power L Schlumberger work, he said, centers on advocacy, Energy Access Platform (EAP), L ecosystems and markets L OMV operations on the ground, and launched in 2016. L off-grid products L Boston Consulting Group partnerships. The EAP directly supports the L Saudi Aramco “Financing alone cannot effec- achievement of Sustainable Deve- tively ensure universal energy lopment Goal (SDG) 7 on energy by access,” said Al-Herbish, addressing providing a space for oil and gas “Financing companies to collaborate with other stakeholders on a range of actions alone cannot focused on energy access. These effectively actions include the identification ensure uni- of corporate social responsibility versal energy opportunities in host countries, and the better integration of energy access.” access in policies and projects at Al-Herbish country level. OFID Director-General Al-Herbish said: “We are cur- rently negotiating with the national oil companies of our Member Coun- tries to join the platform. This stra- tegic partnership is intended to leverage the knowledge, experience and technology of the oil and gas industry to provide a framework for collaboration on energy access Indian Prime Minister Narendra Modi greets OFID Director-General Suleiman J Al-Herbish. solutions.” N NEWSROUND | OFID QUARTERLY JULY 2018 | 45

VEF contributes to energy-development agenda Vienna Energy Forum Special Session to inform sustainable development forum in New York BY ANNA ILARIA-MAYRHOFER

ontinuing its role of ad- The Director-General of the 2018 marks had particularly focused on energy vocating ‘energy for all’ United Nations Industrial Develop- access in the world’s developing and to reduce poverty in de- ment Organization (UNIDO), LI the 10th least developed countries. veloping countries, OFID Yong, delivered opening remarks anniversary OFID Director-General Suleiman Crecently participated in a Special at a joint OFID – UNIDO-hosted J Al-Herbish explained how his orga- of OFID’s Session of the 2018 Vienna Energy luncheon, and said OFID and UNIDO Energy for nization’s partnership with UNIDO Forum (VEF) at the United Nations had consistently proven themselves the Poor was important for all of the United Office at Vienna. “decisive actors in the global effort Nations Sustainable Development Although the VEF is usually a to ensure access to clean, affordable initiative. Goals (SDGs) – not simply SDG 7 on bi-annual event, the Special Session and sustainable energy.” affordable and clean energy – since was held to provide input that will LI Yong also commended OFID’s all 17 goals are interrelated and dy- be presented at a formal review by a nexus approach to energy poverty namic: “You cannot address one and High-Level Political Forum on Sus- and talked of the long and produc- forget about the others.” tainable Development taking place tive relationship between the two Al-Herbish also noted that 2018 July 16-18 in New York. organizations. He said their work marks the 10th anniversary of E

OFID participated in a special session of the Vienna Energy Forum (VEF) 2018, which was themed around ‘SDG 7: Affordable and Clean Energy.’ 46 | OFID QUARTERLY JULY 2018 | NEWSROUND

Faris Hasan, Director of OFID’s Strategic Planning and Economic Services Department, talks about energy-related start-ups and SMEs at a roundtable session.

F OFID’s Energy for the Poor initia- helping build the financial capabili- tive, which is funded through a ties of SMEs by reducing barriers to revolving endowment of US$1 billion; operating globally and boosting the a sum pledged by the institution’s availability of working capital; and Ministerial Council in its June 2012 addressing the need for innovation Declaration on Energy Poverty. hubs and green certification. Also participating in the Special The VEF gathers leaders from Session was OFID’s Director of governments, civil society, interna- Strategic Planning and Economic tional organizations and the private Services Faris Hasan, who was a sector in an aim to drive the energy- panelist for a roundtable discussion development agenda. Participants on energy-related start-ups and debate key issues and opportunities small and medium-sized enterprises surrounding sustainable energy for (SMEs) in developing countries. development, reflect on how to Some of the concluding recom- strengthen and advance SDG 7 and mendations proposed by panelists its nexus with other development included: supporting energy goals, and provide action-oriented objectives across sectors. champions that engage with both OFID Director-General Suleiman J Al-Herbish delivers opening governments and the general public; N remarks at a joint OFID – UNIDO-hosted luncheon.

The High-Level New York forum will be held under Goal 12: Ensure sustainable consumption and the theme ‘Transformation towards sustainable and production patterns. resilient societies’ and will not only carry out in-depth analyses of SDG 7, but also: Goal 15: Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage Goal 6: Ensure availability and sustainable forests, combat desertification, and halt and reverse management of water and sanitation for all. land degradation and halt biodiversity loss.

Goal 17: Strengthen the means of implementation Goal 11: Make cities and human settlements and revitalize the global partnership for sustainable inclusive, safe, resilient and sustainable. development. NEWSROUND | OFID QUARTERLY JULY 2018 | 47

Future Aleppo One boy’s dream to rebuild his city

BY FATMA ELZAHRA ELSHHATI AND SILVIA MATEYKA

uture Aleppo is a project inspired by the remarkable work of sixteen year-old Mohammed Kteish, an aspir- Fing Syrian architect who dreams REDTHREAD PHOTO: of rebuilding his beloved home of Aleppo. This summer, OFID part- nered with the ZOOM Children’s Museum to bring Mohammed’s installation – and its accompanying virtual reality experience – to Vienna. Over several days, children from different backgrounds were encouraged to work together to create their own virtual city based on their personal stories and ideas.

Mohammed’s vision for Aleppo In 2012, as he witnessed his city being destroyed, Mohammed began crafting his vision for the future of Aleppo. Using paper, wood, colored pencils and glue inside his father’s garage, he created a life-like minia- ture model of the city. Mohammed “I hope to and together they rebuilt his model, Alex Pearson, the project’s not only reconstructed the fallen someday be this time with an interactive virtual Director, told the OFID Quarterly: landmarks of Aleppo, like the medi- reality technology to allow other “From the moment I met Mohammed, eval Citadel and his favorite park, able to return children to experience Mohammed’s it was clear that his example could he also created new structures to to my home vision. inspire children across the world. improve the war-torn city, including and take part For Mohammed, the model main- Throughout the project, we have gardens, rooftop pools, bridges, in the efforts tains a connection to the city where faced many challenges, but it has roads, solar panels, helicopter pads he was raised. “I was always interest- been Mohammed’s creativity and and more. to rebuild it.” ed in arts and crafts as a child,” he courage that has brought us to As the war intensified in 2015, told the OFID Quarterly. “I hope to the point where we can not only Mohammed and his family were someday be able to return to my share his vision, but also invite forced to flee to Turkey. This is where home and take part in the efforts to others to participate in realizing he met filmmaker Alex Pearson rebuild it.” his dream.” E 48 | OFID QUARTERLY JULY 2018 | NEWSROUND

Future Aleppo meets Zoom sounds and virtual reality display. very special way and gives the par- F With the support of OFID, the After being introduced to Moham- ticipating children the perspective project and its team came to Vienna med and his story, they then worked to shape their future.” to provide a series of workshops at in groups to create their own build- “Mohammed’s story shows the ZOOM Children’s Museum. The ing and landmarks. The result, after that many refugees want nothing workshops were aimed at children several days, was a city landscape PHOTO: ZOOM / J.J.KUCEK more than to return to their home- between the ages 10-13. Over several built from the imagination of dozens land and rebuild their country,” days, visitors explored the city of of children, encompassing their Dr Elisabeth Dr Menasse-Wiesbauer continued. Aleppo and began to understand its visions for the future. Menasse-Wiesbauer, “The most special thing about history through the lens of virtual Dr Elisabeth Menasse-Wiesbauer, Director of Zoom Mohammed is the tremendous cre- Children’s Museum. reality. Children were invited to in- Director of the ZOOM Children’s ativity and power he puts into his teract with Mohammed’s original Museum, said: “This project com- dream, thereby breaking clichés model with its embedded digital bines empathy and creativity in a and giving us hope.” N

The exhibition allowed visitors to explore the city of Aleppo and understand its history through the lens of virtual reality. PHOTO: REDTHREAD PHOTO: NEWSROUND | OFID QUARTERLY JULY 2018 | 49

Bridging the data gap in the Arab World

BY FATMA ELZAHRA ELSHHATI

he Arab Development another ADP initiative called the Portal (ADP), an initiative Visualise 2030 data camp, which of the Arab Coordination brought together Arab youth to cre- PHOTO: ADP PHOTO: Group, is fast becoming ate innovative, data-driven content. Tthe hub for data concerning develop- ADP has supported the establish- ment in the Arab world. ment of the first Arab Network for As part of its efforts to enhance data journalists, too. national capacities to report on the Sustainable Development Goals Using data to guide (SDGs), the ADP conducted an April decision making workshop on the theme of “building The AFSD is focusing on the im- and strengthening capacities to dis- portance of measuring and report- seminate official statistics and re- ing on SDG indicators. Through vol- port on the SDGs”. Approximately untary national reviews, Arab states 50 people from 13 Arab countries are reporting and collecting data attended this workshop. Representa- about their progress on Agenda tives from national statistics offices, Farah Choucair, ADP Project Manager 2030. To support, the ADP has creat- ministries of planning and invest- ed the first regional SDG tracking ment and international organizations During the workshop, partici- tool that serves as a regional data were present. pants also discussed how to build platform allowing data visualiza- ADP’s workshop was timely on cooperation and ensure that all tion, analysis and forecasting. and relevant. Held as a pre-event data is brought up to international The SDG tracking tool includes to the United Nations Economic and standards, the role of Big Data several features that allow govern- Social Commission for West Asia’s and more. ment planners to be more creative (UNESCWA) Arab Forum for Sus- than before and review policies tainable Development (AFSD), it Opening up information “ADP’s based on empirical evidence. Coun- touched on many similar topics flows in the Arab World data portal tries may monitor their progress including the importance of collabo- Civil society in an Arab world de- is a great tool against the targets they have set out ration and accurate data monitoring mands data and information that that has the in their national development plans, in helping to achieve the SDGs. The is freely and readily available. potential to for example, and users can visualize 2030 Agenda for Sustainable Devel- This ensures that the development eventually data to allow for multi-country com- opment stresses the importance of agenda remains participatory and parisons. become the developing a monitoring framework transparent. Dr Ahmad Kamali, Advisor main data hub to follow up on progress. Yet still, in The ADP has been ambitious to Egypt’s Minister of Planning, the Arab world, data and statistics in its goals. It is the first regional for all Arab Monitoring and Administrative remain incomplete or unreliable. effort of its kind that aims not only countries.” Reform, who participated in ADP’s Khaled Al-Mahdi, General to aggregate data, but also to train Khaled Al-Mahdi April workshop and was a panel Secretary for the Supreme Council the producers and users about how General Secretary for speaker during AFSD, said that the Supreme Council for Planning and Development in to use the data. The latest workshop for Planning and Devel- Egypt’s government is interested Kuwait, who participated in the is part of a regional series that opment in Kuwait in widening cooperation with the April workshop commented: bridges the gap between users and ADP, adding: “We are in desperate “ADP’s data portal is a great tool producers. need of such initiatives in the Arab that has the potential to eventually The ADP is becoming more and region to be able to track the imple- become the main data hub for all more active. In the April edition of mentations of SDGs in a precise Arab countries.” the OFID Quarterly, we reported on and objective manner.” N 50 | OFID QUARTERLY JULY 2018 | NEWSROUND

Central America TWENTY1STUDIO/SHUTTERSTOCK.COM PHOTO: set to receive development boost New agreement in support of SDGs and investment in both public and private sectors

BY STEVE HUGHES

FID has signed a Col- laboration Agreement with the Central American Bank for OEconomic Integration (CABEI) to pro- mote cooperation and co-financing of public and private sector pro- jects in Central America. Outlining OFID’s support for Sustainable Development Goal (SDG) 17 – which aims at revitalizing the global partnership for sustainable development – OFID Director General Suleiman J Al-Herbish said: “Our aim is to encourage our organiza- tions to make parallel investments in sustainable development projects in Central America.” Expanding on the objectives of the alliance, CABEI President Dr Nick Rischbieth noted that the framework for collaboration is de- signed to support technical financial assistance, private and public sector projects, commercial and private capital transactions, and generally facilitate investment in CABEI CABEI President Dr Nick Rischbieth and OFID Director-General Suleiman J Al-Herbish (right). partner countries. NEWSROUND | OFID QUARTERLY JULY 2018 | 51

OFID’s relationship with CABEI In 2003, the partnership was ex- dates back to 1979 when both institu- panded to the private sector when About CABEI tions participated in the financing of OFID approved its first loan in favor the El Cajon Hydroelectric Project in of CABEI; it was followed by a second The Central American ‘regional economic integration Honduras. Since then, OFID and facility in 2011. These loans support- process’ began on December 13, 1960 with the sign- CABEI have jointly participated as ed CABEI’s development-related ac- ing of the General Treaty on Central America Eco- parallel lenders in a number of pub- tivities in Central America. Since nomic Integration, which included the establishment lic sector projects in Belize, Guate- then, the relationship has evolved of the Central American Bank for Economic Integra- mala, Honduras and Nicaragua, and currently, CABEI and OFID are tion. CABEI has become the financial arm for the in- across different sectors such as en- co-financing a large solar project in tegration and development of Central America. ergy, agriculture and transport. Honduras. N

Dr Nick Rischbieth, CABEI President, spoke with the OFID Quarterly about sustainable devel- opment across Central America, CABEI’s growth and his bank’s relationship with OFID. Interview by Steve Hughes; write-up by OFID intern Manya Tandan.

As of 2003, CABEI had We also help the public sector Developing countries face an only five member coun- in project formulation. We focus array of challenges. Our members tries. But it has grown on energy, social development and are situated in a privileged geo- over recent years to incorporate all sustainability – again, similar to graphical zone in the center of the SICA member countries (Central OFID. continent, but are not able to exploit American Integration System or CABEI is mission-oriented. We this advantage fully for various Sistema de la Integración Centroamer- aim to support economic integration reasons. This agreement with OFID icana, SICA). We promote the eco- and play a financing role for proj- aims to guide future cooperation nomic integration and the balanced ects that connect different geogra- to support our member countries – economic and social development of phies. For example, we have been particularly in the spheres of energy, the Central American region. a large supporter of SIEPAC – the infrastructure and international This growth of our bank has regional electricity market uniting trade – by helping us to work as given us the impetus to take on a all Central American countries. parallel lenders. We have a long his- new form. We now aim at using a Another main area of focus is high- tory with OFID – our organizations wider range of financial instru- ways; especially those that connect trust one another and work well ments – much like OFID – such as different countries. We also support together. We look forward to long-term loans, guarantees and projects that streamline processes supporting more sustain- financial development assistance to and facilitate easier commerce be- able development across both the private and public sectors. tween countries. Central America. 52 | OFID QUARTERLY JULY 2018 | NEWSROUND

– we further enhanced our com- mitment to strengthening the rule Legal leaders of law in partner countries through our partnership with the Interna- tional Development Law Organisa- discuss sustainable tion (IDLO).” IDLO is the only intergovernmen- tal organization exclusively devoted development to promoting the rule of law and OFID was the first multilateral organiza- tion to join. Through this partner- BY STEVE HUGHES ship, OFID has financed projects aimed at capacity building, includ- ood governance, strong mission to protect their respective “The responsi- ing one to strengthen the legal and institutions and predict- institutions and preserve their bility that rests regulatory framework in Kenya’s able legal frameworks stability: “The responsibility that energy sector to attract private upon your are critical for sustain- rests upon your shoulders is not just sector investments. shoulders is Gable development,” said OFID General to be a good lawyer. It is also to help As part of the agenda, the Counsel Violet Onyemenam recent- the organization live up to the moral not just to be a General Counsels examined the role ly, as representatives from 20 Inter- standard on which it was founded,” good lawyer. of their institutions in promoting national Financial Institutions (IFIs) she said. It is also to help SDG 16 and how IFIs can support gathered to discuss the latest legal OFID’s Onyemenam noted that the organiza- developing countries in achieving challenges and best practice in OFID had in the past extended tion live up their development targets. Recent development finance. funding to several projects to to the moral developments in data and privacy The discussions took place at promote the rule of law and build standard on laws were also at the top of the OFID, as the organization hosted the effective institutions in partner which it was agenda. In particular, the European 23rd IFIs General Counsels Annual countries. Similarly, OFID Director founded.” Union General Data Protection Meeting in May. Numerous legal General, Suleiman J Al-Herbish, Anne-Marie Leroy Regulation, which came into effect leaders were in attendance, includ- during a welcoming speech, spoke World Bank in May, was discussed. The General ing former World Bank Senior of OFID’s work on the rule of law: Senior Vice President Counsels spoke about the impor- Vice President and Group General “In line with our commitment to tance of data and privacy rights Counsel, Anne-Marie Leroy. During the Sustainable Development Goals and how their respective internal her keynote speech, Leroy reminded (SDGs) – among them SDG 16 on policies could be strengthened to the General Counsels of their peace, justice and strong institutions protect individual privacy rights. N

Legal leaders at OFID Attendees included…

Christopher Stevens, General Counsel, Asian Development Bank Heikki Cantell, General Counsel and Secretary General, Nordic Investment Bank Ethiopis Tafara, Vice President and General Counsel, International Finance Corporation Anne-Marie Leroy, former World Bank Senior Vice President and Group General Counsel

OFID Director-General Suleiman J Al-Herbish (right) with former World Bank Senior Vice President and Group General Counsel Anne-Marie Leroy and Asian Development Bank General Counsel Christopher Stevens. NEWSROUND | OFID QUARTERLY JULY 2018 | 53 PHOTOS: WOODSIDE MALL LIMITED

Modern mall to boost Zambia’s economy

BY JUSTINE WÜRTZ

n March this year, Woodside Sector and Trade Finance Opera- “The invest- modernized design of the mall itself Mall – an energy-efficient retail tions. “The mall created many jobs help to raise people’s expectations,” mall with a low carbon footprint during the construction phase and ment will do he says. “This benefits local popu- located about 7 km north of continues to provide employment much to boost lations and regional producers and ILusaka’s Central Business District – opportunities, particularly for wom- ultimately increases the country’s the region’s opened its doors to excited shoppers en, who often dominate in retail economic international trading chances.” ahead of schedule and under and services markets.” growth.” OFID approved a long-term loan budget. Additionally, Alnassar points to Woodside Mall in March to part- Where previously only a few out that the project raises market Tareq Alnassar finance the project with the Inter- OFID Assistant small food and ancillary markets standards. “The quality of services Director-General national Finance Corporation. The existed, this expansive shopping and products – such as food – as project sponsor, Novare Africa mall offers the growing low-middle well as safety standards and the Property Fund II, is an important income population of Zambia’s cap- fund in Africa’s real estate land- ital and largest city access to a wide scape. This partnership paves the range of products and services, way for OFID to participate with including banks and restaurants. IFC in other projects being devel- The project has also increased oped by the sponsor in Africa. opportunities for local small and In the short-term, retail proper- medium-sized enterprises (SMEs) ty growth is relatively constrained via its supply chain and contributed by Lusaka’s population and general to the development of Zambia’s retail income levels. However, over the infrastructure, improving supply medium to long-term, retail prop- chain efficiency and enhancing the erty growth will strengthen as the platforms for local SMEs to trade. population expands, consumers “The investment will do much become wealthier and more people to boost the region’s economic transition from informal to more growth,” says Tareq Alnassar, OFID’s formal shopping habits. N Assistant Director-General, Private 54 | OFID QUARTERLY JULY 2018

OFID DIARY APRIL– JUNE 2018

Burundi. US$20 million. people, the program’s scalable MAY 22 JUNE 19 Rumonge-Nyanza Lac Road Reha- business model is expected to bilitation. To promote develop- encourage other regions to adopt Trade Finance Emergency aid grant ment in Burundi’s southwest this cleaner source of energy. agreement signed approved region and strengthen regional Hilfswerk International. integration with Tanzania. International Islamic Trade International Federation of US$600,000. To improve maternal Around 340,000 people living in Finance Corporation (ITFC). Red Cross and Red Crescent and child health in central the vicinity of this 52 km stretch US$40 million. OFID is participat- Societies. US$100,000. To support Mozambique. Activities include of road will benefit. ing in a trade finance facility humanitarian operations being constructing mother-care centers arranged by the ITFC to support carried out by the Guatemalan Cuba. US$25 million. Las Tunas and installing water and renew- the Islamic Republic of Pakistan’s Red Cross for 6,000 of the most Province Water and Sanitation able energy systems, as well as purchase of crude oil and refined vulnerable survivors of a volcanic (Phase II). To expand water infra- building / equipping rural health petroleum products. eruption. structure in the eastern part of the posts in low-income provinces. country for circa 150,000 people. Also planned is capacity-building MAY 25 JUNE 21 Kenya. US$25 million. at institutional and community Modogashe-Wajir Road. To up- levels and implementing outreach Public sector loan Ministerial Council holds grade a 157 km stretch of road activities. agreement signed in the east / northeast – a high 39th Annual Session International Development Law poverty area populated by over Cameroon. US$13 million. See story, page 24. Organization. US$1 million. 1.6 million people. Rural Electrification Project. To build national capacity in To provide energy access to Niger. US$15 million. Bangladesh, Kenya, Sri Lanka, households where agriculture JUNE 22 Niamey Express Highway. To Tanzania and Uganda to help im- and livestock represent key in- rehabilitate a 9.6 km road con- plement law and policy reforms to come-generating activities. Works 163rd Session of the necting the Diori Hamami Inter- address non-communicable dis- national Airport to the city center, to be carried out will include Governing Board eases such as cancer, diabetes and benefiting over 1.2 million people. construction of rural power cardiovascular diseases. Public sector loans approved Uganda. US$11.5 million. Luwero- networks to provide connection King Hussein Cancer Butalangu Road. To upgrade a 30 to over 2,700 households, repre- Albania. US$16 million. Foundation. US$400,000. To help km road in an area highly depen- senting around 60,000 people. To complete works on a landslide- procure equipment for the King dent on agriculture. Around damaged highway. The project Hussein Cancer Center in Jordan 678,000 people will benefit. MAY 29 will reduce travel time signifi- to enable the delivery of less inva- cantly for the 750,000 people sive diagnostic and treatment Trade Finance living in one of the country’s Grants approved procedures. Over 4,000 patients agreement signed largest urban centers. Envirofit International. per year are expected to benefit. International Islamic Trade Benin. US$24 million. US$200,000. To promote the use Mlinda Foundation. US$610,000. Finance Corporation (ITFC). Beroubouay-Malanville Road of Envirofit’s ‘smart gas system’ To enhance access to energy €23 million. OFID is participating Rehabilitation. To rehabilitate a utilizing LPG – liquefied petro- services to some 21,000 people in in a syndicated Murabaha agree- 169 km stretch of road in an area leum gas – as a cooking solution 41 villages by installing minigrids. ment arranged by the ITFC to inhabited by over one million among poor rural households in This will be coupled with capacity support the purchase and sale people. This will help promote India. LPG will be made available building to improve farm produc- of crude oil to the Republic of regional trade between Benin and on a per-use basis, making its use tivity and increase the sale of Cameroon through its national its landlocked neighbors Niger more affordable and sustainable. energy-efficient appliances such refinery company (SONARA). and Burkina Faso. Initially benefiting around 10,000 as irrigation pumps. OFID DIARY | OFID QUARTERLY JULY 2018 | 55

Aruni Wijewardane, Director, International Atomic Energy Agency Al-Herbish receives Fatima Sidikou, Ambassador of Niger to Switzerland, Austria Secretariat of the Policy-Making Organs (right), pays a courtesy visit to and Liechtenstein. OFID Director-General Suleiman J Al-Herbish.

United Nations Human Settlements Program (UN-Habitat). US$1 million. To be implemented under UN Habitat’s Global Water Operators’ Partner- ship Alliance, this project aims to improve the performance of water and sanitation utilities in Bangladesh, Ethiopia, Malawi, Samoa and Vietnam to benefit more than six million people.

Research grants approved

Ahfad University. US$100,000. To reduce the incidence of water- borne diseases in rural communi- ties in Gezira state, central Sudan, by providing water purification units and training on their use.

Trustees of the Arab Al-Herbish briefs Prakash Kumar Suvedi, Ambassador of Nepal in Vienna, on OFID’s operational activities. Coordination Group (ACG). US$100,000. To support the review, updating and production of the ACG’s procurement documents.

Columbia University. US$200,000. To promote the adoption of a battery-less solar power irrigation system across Senegal to demonstrate to both farmers and the Senegalese gov- ernment that the technology can increase food production and farmers’ incomes.

United Nations Commission on International Trade Law (UNCITRAL). US$150,000. To cover the administration and maintenance, as well as day-to-day legal and operational functions, Al-Herbish presents Dieudonné Kere, Ambassador Michael A O Oyugi, Ambassador of Kenya to Austria of UNCITRAL’s Transparency Reg- of Burkina Faso to Austria, with a copy of OFID’s 2017 (right), pays a courtesy call to Al-Herbish. istry for Investor-State Disputes. Annual Report. 56 | OFID QUARTERLY JULY 2018 | OFID DIARY

May 30. OFID hosted the 4th Executive Committee Meeting of the Oil and Gas Industry Energy Access Platform (EAP). Industry leaders from Total, Shell, OMV, Schlumberger, the IGU, the Global LPG Partnership, the WPC, the Boston Consulting Group and the Shell Foundation attended. The meeting included election of the EAP Executive Committee, discussion of the platform’s objectives, an update about the EAP’s website, and progress reviews of the platform’s task forces, as well as a discussion of potential outreach and collaborative opportunities.

May 30-June 1. OFID hosted the 23rd Annual Meeting of General Counsels of International Financial Institutions, which was attended by representatives from the World Bank Group and the International Fund for Agricultural Development, as well as several regional development banks and European financial institutions.

OFID DIARY | OFID QUARTERLY JULY 2018 | 57

Dr Ali Al Hakim, Executive Director of the United Nations Economic and Social Ambassador and Permanent Representative of Pakistan Ayesha Riyaz thanks Commission for West Asia learns about OFID and its operational activities. OFID Director-General Suleiman J Al-Herbish for OFID’s longstanding engagement with her country. Meetings attended by OFID

APRIL 1 – 5 APRIL 29 – MAY 3 MAY 15 JUNE 18 – 20 TUNIS, TUNISIA LISBON, PORTUGAL VIENNA, AUSTRIA TUNIS, TUNISIA 43rd Annual Meeting of the 4th Sustainable Energy for All R20 Austrian World Summit Deauville Partnership and Forum Islamic Development Bank IFI Coordination Platform Group MAY 21 – 25 meetings MAY 2 – 4 BUSAN, SOUTH KOREA APRIL 4 – 13 LONDON, UK 53rd Annual Meetings of the JUNE 19 – 22 NEW DELHI, INDIA 6th Africa Financial Services African Development Bank LE MORNE, MAURITIUS International Energy Forum Conference Africa Energy Forum and the 16th IEF Ministerial MAY 28 – JUNE 1 meetings MAY 4 – 5 KU WAIT ST GEORGE’S, GRENADA JUNE 20 – 21 APRIL 10 – 11 Arab Energy Club Meeting 48th Annual Meeting of the VIENNA, AUSTRIA Board of Governors of the 7th OPEC International Seminar DEAD SEA REGION, JORDAN MAY 6 – 9 Arab Financial Institutions’ Caribbean Development Bank MADRID, SPAIN joint annual meeting JUNE 24 – 26 Spanish Energy Club MAY 30 WASHINGTON DC, US APRIL 19 – 23 MAY 7 VIENNA, AUSTRIA Africa Trade and Investment WASHINGTON DC, US MANILA, PHILIPPINES 4th Executive Committee Meet- Global Summit World Bank and 51st Asian Development Bank’s ing of the Oil and Gas Industry International Monetary Fund Annual Meeting Energy Access Platform JUNE 28 – 29 Spring Meetings FRANKFURT, GERMANY MAY 8 – 10 MAY 30 – JUNE 1 APRIL 23 – 24 International Financial Report- SWEIMEH, JORDAN VIENNA, AUSTRIA WASHINGTON DC, US ing Standards Foundation 27th Annual Meeting of the 23rd Annual Meeting of World Bank’s 16th Executive Annual Conference Board of Governors of the General Counsels of Interna- Forum for Policy Makers and European Bank for Recon- tional Financial Institutions Senior Officials struction and Development JUNE 5 APRIL 24 – 26 MAY 14 BEIRUT, LEBANON VIENNA, AUSTRIA VIENNA, AUSTRIA Arab Forum for Sustainable Special session of the Vienna 48th Annual International Development Energy Forum Peace Institute Seminar www.ofid.org 58 | OFID QUARTERLY JULY 2018 | OFID DIARY

163rd Session of the Governing Board

OFID’s Governing Board approved more than US$210 million of new funding to benefit developing countries across the globe at its 163rd Session in Vienna on June 22. The loans underscored OFID’s commitment to the energy-water-food nexus, as well as the transportation sector. The public sector loans, which amounted to US$136.5 million, will support projects in Albania, Benin, Burundi, Cuba, Kenya, Niger and Uganda. Other approvals include six grants totaling US$3.81 million to Envirofit Interna- tional; Hilfswerk International; the International Development Law Organization; the King Hussein Cancer Foundation; the Mlinda Foundation and UN Habitat. Also approved was a facility of US$25 million to support the expansion of construction materials facilities in Kenya and Uganda. Under OFID’s trade finance operations, the Board approved US$45 mil- Dr Ahmed Menesi Governor, Libya lion to support international trade finance activities in El Salvador and Turkey. OFID DIARY | OFID QUARTERLY JULY 2018 | 59

Dr Mohammad Khazaee Governor, Iran IR

Farid Tiaiba Governor, Algeria

Askolani Governor, Indonesia

Majed Ali Omran Governor, United Arab Emirates

See the press releases section of www.ofid.org for more information. 60 | OFID QUARTERLY JULY 2018 | SPOTLIGHT

Eliminating neglected tropical diseases: the story so far

BY ANNA ILARIA-MAYRHOFER HO has long been involved in NTD eradication efforts, starting withW the aforementioned OCP and later the African Program for Onchocerciasis Control (APOC) – all phases of which receive OFID support (see box on page 62). The latest grant is helping fund ESPEN – WHO’s Expanded Special Project for Elimination of Neglected Tropical Diseases.

Dr Matshidiso Moeti, WHO Regional Director for Africa, and OFID Director-General Suleiman J Al-Herbish (right). Why neglected? While rarely fatal, NTDs have dev- astating consequences on millions In May, OFID signed a US$1 million grant agreement with the of lives – physically, mentally and World Health Organization (WHO) for an initiative aimed at socially. They can cause permanent disfigurement, disability and unre- eliminating neglected tropical diseases (NTDs) in seven African lenting discomfort; they decrease countries. This latest agreement underlines a partnership that mobility and render victims unable to work, go to school or harvest began nearly four decades ago when OFID extended a US$2 million crops. And they can impede prog- grant to WHO in support of its Onchocerciasis Control Program ress and development and impover- (OCP) – one of the earliest containment initiatives targeting ish households. NTDs are, however, preventable river blindness. and treatable. But there are many challenges involved, particularly in The most recent agreement was signed by WHO Regional Director tackling diseases deemed ‘neglect- for Africa Dr Matshidiso Moeti and OFID Director-General ed.’ Dr Moeti explains why many members of the global community Suleiman J Al-Herbish. The OFID Quarterly’s Deputy Editor Anna are unaware of their existence. Ilaria-Mayrhofer spoke to Dr Moeti about WHO’s Expanded Special “These are diseases primarily Project for Elimination of Neglected Tropical Diseases (ESPEN), the found in rural, low-income popula- tions – people hidden away from the challenges of NTD eradication and WHO’s relationship with OFID. day-to-day view of the media – and are largely out from the reach of health services. And there is a lot of stigmatization. We’ve seen this E SPOTLIGHT

The London Declaration In January 2012, a coalition of philanthropic organizations, donor countries, governments of NTD endemic countries and pharmaceutical companies signed the London Declaration, committing to control, eliminate or eradicate 10 NTDs by January 2020. Pharmaceutical companies have pledged more than US$17.8 billion in drug donations, providing an unparalleled opportunity to achieve the 2020 NTD goals and fulfill related commitments to progress on NTDs and Universal Health Coverage (UHC) under the UN Sustainable Development Goals (SDGs) and the 2015 G7 Leaders’ Declaration. Source: WHO brochure ESPEN: for an Africa free of NTDs. PHOTO: JAKE LYELL/ALAMY STOCK PHOTO STOCK LYELL/ALAMY JAKE PHOTO: 62 | OFID QUARTERLY JULY 2018 | SPOTLIGHT

“The world has also seen the dra- matic picture of HIV/AIDS in Africa – millions of people, especially ESPEN accomplishments to date young people – have been struck down with this very painful, and in L WHO certified Togo as the first sub-Saharan its later stages, highly visible illness. Africa country to eliminate lymphatic filariasis For example, in my home country as a public health problem. Botswana, cemeteries were filled L 30 million people reached through direct op- with people in their late teens and eration support to Mass Drug Administration twenties who perished from AIDS – in 15 countries. it looked more like the result of war. L 19 countries have been trained to stop treat- ment in selected areas after elimination of Dr Matshidiso Moeti, ESPEN – spurring progress lymphatic filariasis has been reached. WHO Regional Director for Africa in the most under-privileged L 41 countries are sharing data and maps. F with leprosy – the person is hidden countries Source: WHO by their families and communities – Launched in 2016, ESPEN is a public- there is a lot of shame and neglect. private partnership between the “This is in contrast with diseases WHO Regional Office for Africa, “ESPEN is a great development that have garnered much more in- Member States and NTD partners. The program because strategies are being devised ternational attention like HIV and It focuses on the disease onchocerci- is flexible to spur progress in the most under- malaria. During malaria outbreaks asis, in addition to schistosomiasis and adapts to privileged, underserved and neglect- one sees dramatic coverage of peo- (bilharzia), trachoma, lymphatic ed countries,” says Dr Moeti. “This ple ill and dying – and malaria can filariasis and soil-transmitted hel- the changing focus has been heightened in this kill someone in a very short space of minths. The countries targeted are needs and era of the United Nations Sustain- time. Although HIV/AIDS takes lon- Cameroon, Central African Repub- priorities able Development Goals (SDGs). This ger to develop, it also affects devel- lic, Comoros, Democratic Republic of beneficiary brings not only health benefits to oped countries and attracts more of Congo, Eritrea, Republic of Congo countries. the targeted countries but also helps international attention. and Somalia. promote justice and fairness.”

OCP and APOC

Launched in 1974, OCP was a collaboration between WHO, the World Bank, the United Nations Development Programme and the Food and Agriculture Organi- zation. With operations in 11 African countries covering over 1.2 million km2, OCP protected an estimated 30 million people from blindness over its nearly 30-year lifespan. Initially focusing on vector control through insecticide-spraying over black- fly breeding sites, the program expanded in 1987 to include mass distribution of PHOTO: JOERG BOETHLING/ALAMY STOCK PHOTO donated anti-parasitic drugs. OCP countries: Benin, Burkina Faso, Côte d’Ivoire, Ghana, Guinea Bissau, Guinea, Mali, Niger, Senegal, Sierra Leone and Togo. Ten out of these 11 countries were successful in eliminating onchocerciasis as a public health problem.

APOC – the African Program for Onchocerciasis Control – followed in 1995 and implemented community-directed treatment. APOC targeted other endemic countries and achieved remarkable results: by the end of 2012 more than 100.8 million people were receiving regular treatment. APOC countries: Angola, Burundi, Cameroon, Central African Republic, Chad, Congo, Democratic Republic of Congo, Ethiopia, Equatorial Guinea, Gabon, Kenya, Liberia, Malawi, Mozambique, Nigeria, Rwanda, Sudan, Tanzania and Uganda. Source: WHO SPOTLIGHT | OFID QUARTERLY JULY 2018 | 63 PHOTO: SPEAK UP AFRICA. SCHOOL MDAS IN THE MERU DISTRICT, TANZANIA. 2017 MAY

MDA successes ESPEN has four overarching objectives for controlling and elimi- According to the WHO report Crossing the Billion, 44 countries in Africa are nating NTDs that are treatable by endemic for one or more NTDs, and 17 are endemic for all five. Thanks to donated preventative therapy (see below). medicines and strong political commitment in the targeted countries, 11 reached The program is flexible and adapts their goal of 75 percent coverage in 2015 against soil-transmitted helminths and to the changing needs and priorities schistosomiasis in school-age children. Last year, Togo eliminated lymphatic filaria- of beneficiary countries. sis as a public health problem – the first sub-Saharan African country to do so.

The journey to elimination Reducing or eliminating NTDs is a massive, multi-faceted undertaking. used for treating river blindness, Reducing or where efforts need to be focused. One highly effective, prevention- can also treat lymphatic filariasis This data enables us to more strate- driven component is Mass Drug Ad- and soil-transmitted helminths. eliminating gically focus our efforts and drive a ministration (MDA). This involves So the same campaign can address NTDs is a country faster and more efficiently the consistent and broad-reaching several diseases, which is very cost massive, towards their elimination goals. distribution of drugs, donated by effective.” multi-faceted “We are also linking up with wa- various pharmaceutical companies, She explains how data mapping undertaking. ter and sanitation sectors of endemic and has prevented illness among and tracking are also instrumental countries – not only to improve hy- millions living in endemic countries. to monitor the endemic countries’ giene conditions but also for vector Dr Moeti talks about MDA: “Pre- progress. “ESPEN has established a control to reduce breeding sites for ventative chemotherapy has been a data portal where countries can some of the causative organisms that very successful intervention. What’s send their data at the sub-national, are spreading diseases. even more promising is that some of district and local level. This pro- “Before a country can be official- the same medicines can prevent oth- vides a very precise mapping of the ly declared ‘free’ of a particular dis- er NTDs. For example, ivermectin, disease pattern that can guide us ease, it is required to undergo a E 64 | OFID QUARTERLY JULY 2018 | SPOTLIGHT

F documentation process that culminates in a formal declaration – Five neglected a large milestone. At this point the country can halt MDA and direct tropical diseases (NTDs) the funds to other sectors. So while there’s a long road ahead, there is now a high level of ambition and Schistosomiasis is caused by a blood fluke that de- strong dynamics on an international velops in certain species of freshwater snails. The imma- level to achieve this – especially af- ture parasite is (eventually) free-swimming and enters ter the London Declaration (see page its host by penetrating the skin; this commonly occurs 61) was made in 2013. while people are swimming or bathing in lakes, irrigation canals and other water sources. After penetrating the host’s skin, the The strength of partnerships parasite develops further in the urinary tract or intestinal region (depend- “Partnerships are absolutely vital ing on the species). In the long term, schistosomiasis can lead to liver and and enable WHO to carry out its kidney damage, as well as bladder cancer. work. We’ve always had a strong co- alition of partners – this includes, of Onchocerciasis (river blindness) is transmitted by course, OFID. Our relationship with a species of blackfly that lives near swift-moving rivers OFID is not just valuable in terms of and streams. After maturing in its host, the parasite financial contribution; when other produces microfilariae that migrate to the subcutane- development finance institutions ous region of the skin (forming nodules that cause a (DFIs), policy-makers, governments severe allergic reaction). The microfilariae also settle in parts of the eye, – even national leaders – see such a causing scarring and irreversible blindness if left untreated. Adult worms well-established organization as OFID can live up to 15 years in an infected individual. engaging in programs like ESPEN, it imparts trust and encourages oth- Lymphatic filariasis (elephantiasis) is spread by a ers to join the global effort.” certain species of mosquito. The transmitted microfilar- iae damage various regions of the lymphatic system. The path to SDG 3 This results in painful thickening of the skin and severe United Nations Sustainable Develop- swelling of the lower regions of the body and some- ment Goal 3 (SDG 3) focuses on ‘Good times the arms. While the microfilariae can be killed, some of the effects health and wellbeing.’ One of its tar- of the disease are permanent. gets – SDG 3.3 – calls on the interna- tional community to: “By 2030, end Trachoma, a leading cause of blindness in the devel- the epidemics of AIDS, tuberculosis, oping world, is an easily-spread bacterial infection pre- malaria and neglected tropical dis- dominantly found in regions with poor water and sani- eases and combat hepatitis, water- tation. The bacteria (Chlamydia trachomatis) targets the borne disease and other communi- underside of the eyelid, causing thickening that often cable diseases.” While NTD-related turns the eyelashes inward. This leads to scarring and blindness unless mortality and morbidity rates are corrected surgically. on the decline in some areas – is this target realistic? Soil-transmitted helminths, a collective term for Dr Moeti thinks so. “It’s an ambi- various parasitic worms, is commonly found in areas tious goal. I strongly believe in being with poor sanitation. Transmitted via faeces, the micro- driven by ambition. If you aren’t filariae infect the host by penetrating the skin (such as reaching for really high targets and when the host is walking barefoot) or via ingestion goals you won’t succeed. This drives from consuming fruit or vegetables grown in contaminated soil. Hand to us to be creative, learn lessons, find mouth transmission is particularly common among children when playing ways of doing things better. I am op- in the dirt. Those affected experience diarrhea or dysentery, impaired timistic that with this type of deter- absorption of nutrients and malnutrition, leading to impaired growth and mination within the international development. community, along with solid part- ICONS-SOURCE: SPEAK UP AFRICA nerships and resources – this elimi- nation target can be met.” N PERSPECTIVES | OFID QUARTERLY JULY 2018 | 65

Q: What does a global agrifood business do when it wants to focus more on sustainable development? A: It works with OFID.

Phoenix is a leading international agri-food, farming, distri- bution and resources group generating revenues in excess of US$2.05 billion. Gaurav Dhawan, Phoenix Executive Chairman

PHOTO: OFID/STEVE HUGHES HUGHES OFID/STEVE PHOTO: and Nitin Navandher, Phoenix Group Finance Controller, recently visited OFID in Vienna following OFID’s successful participation in Phoenix’s US$205 million syndicated borrow- ing base. The borrowing base is a key facility for Phoenix, enabling the group to increase its activities in Africa and Asia. During his trip, Dhawan took time out to speak with the OFID Quarterly about human centered development, empowerment, motivation and more. As told to Editor Steve Hughes…

On the new borrowing facility… “What On the Phoenix philosophy… The borrowing base facility is key for Phoenix, support- better DFI The shareholders of Phoenix are the management and ing our activities in Africa and Asia. The driver for to start we have grown and developed the company from Phoenix wanting OFID to enter the syndicated facility scratch. We follow a commercial agenda, but at Phoenix, was not liquidity, but rather our preference of having a with than we recognise the importance of doing right by people DFI as part of the group given our strategic initiatives. OFID?” and the planet through the correct thinking and the The facility brings together several banks, which correct action in every aspect of our global operations. helps both Phoenix and our banks. For example, it brings To channel our philosophy, we launched an initiative together liquidity under one facility as well as providing last year called ‘the 1% change’. It stems from the belief us with ‘operations ease’ when drawing down. From a that small steps taken to make the world a better place bank perspective, it helps with their country limit man- can have a huge impact as an aggregate. agement. The facility is important for our growth plans For example, our distribution company in Dubai re- of increasing market share and volume. cently changed the type of plastic used for the garbage bags it distributes. As the Middle East has plenty of sunshine On working with a development and high temperatures, oxy-biodegradable plastics decom- finance institution (DFI)… pose well. Accordingly, we converted all of our production – more than 800 tons a month – to oxy-biodegradable plas- Fortunately for us, we have longstanding relationships tics. The cost impact was compensated by increased turn- with some of the largest trade finance banks globally. over. Overall, this may be a mere speck in terms of the mil- However, in line with our strategy and focus on sustain- lions of tons of plastic on the planet, but we are playing ability, responsibility in terms of agriculture, traceabili- our part. This is what our 1% philosophy is all about. ty and making a developmental impact, we wanted to We cannot have a short-term focus on shareholder work with a DFI that has clear focus on these fronts and returns, or else our business will soon have negative can also provide us with best practice insight as well. returns. We must consider the triple bottom line. This is the first time we’ve worked with a DFI, and OFID Accordingly, we have decided to choose projects with a was the perfect match to support us and our efforts on developmental agenda, and we strongly feel such proj- sustainable agricultural growth, especially in Africa ects generate better returns and economical value to and South East Asia. shareholders. E 66 | OFID QUARTERLY JULY 2018 | PERSPECTIVES

On Kashmir and human development…

I have spent time in Kashmir and unfortunately the people there are in a geopolitical storm. A way to pro- vide normality and a way out of such conditions for these people is through education and economic pros- perity. If parents can send their children to good schools, have better food to eat, have cars to drive, nice homes to live in, things will change. So, we made a plan. Leveraging our expertise in PHOTO: BRANISLAVPUDAR/SHUTTERSTOCK.COM PHOTO: horticulture, we will lease land to set up apple orchards. Apple orchards are in the DNA and history of Kashmir; hence our model would provide traditional employment OFID and Phoenix opportunities. Phoenix will lease orchards – which Commenting on OFID’s participation in the US$205 million borrowing are generally family farms of about one acre – and facility for Phoenix Global, Head of Private Sector and Trade Finance improve them using best horticulture and management Department Operations Tareq Alnassar said the transaction rep- practices. We will then employ at least one member of resents an important step in the relationship between OFID, the Phoe- the family and provide an income that is higher than nix Group and one of OFID’s important existing strategic partners, their present one. In addition, we are also working to Standard Chartered Bank. The transaction supports two of OFID’s key create self-employment opportunities. objectives: improving food security and strengthening South-South The importance of our plan is that it is a commercially trade, with the main beneficiary countries being in Africa. viable operation. We are not a charity. Nevertheless, through careful planning and implementation we can provide assistance to those less fortunate to help them stand on their own feet. We can empower people and On inspiration… give them a chance to create a better life for themselves F My team and colleagues are my inspiration. I am driv- “I believe in and their communities. en by the belief that Phoenix is on a good trajectory. I believe in empowerment and value creation. A team of 35 in 2006 is today a team of more than 2,500 empowerment This is the ideology that drives us. colleagues. Someday soon we will cross the 5,000 thresh- and value old. Each and every colleague is working toward better- creation. On education and joining Phoenix... ing Phoenix and the communities it works in. This is the We believe that great changes can be effected I was born and brought up in Delhi, India. On the through a series of small, well-planned, and well-executed ideology that successful completion of my studies – a Bachelor of steps, which contribute to the greater good. This led drives us.” Business Studies in Delhi and a Masters in International to the coining of the term and initiative “the 1% change”, Business from the Indian Institute of Foreign Trade – which was actually an initiative inspired by my spouse. I moved to Thailand where I started my career in 1997 Everyone is empowered to do some change and with a large commodities trading company. I was also every change has an impact. It may take a bit longer, privileged enough to spend time in China, Myanmar, but it’s possible to fill a huge container with tiny drops Bangladesh and Kenya. of water. This was the start of the 1% change. We will In 2001, I was invited to join Phoenix, which had not simply wait for ‘the big one’ but instead we have just been founded by my former boss and mentor. made a collection of small changes, like switching the I was 28 at the time, and being invited to be part of lighting in our head office to LEDs, for example, or the founding team of a new start-up was an exciting providing equipment for schools to clear snow in the opportunity as well as a huge privilege. winters to enable continuity in our farming communities Through the hard work of the Phoenix team, both of Baimyrza and Pushkinskoye, Kazakhstan. past and present, and with good fortune, we are now Furthermore, we are setting up the Phoenix Foun- in a great position today. I’m so happy that I made the dation where we will invite all our stakeholders to decision to join Phoenix. N participate: suppliers, buyers and colleagues will have the opportunity to make a contribution. We are still finalising the details, but the foundation will focus on For more information, please see community work where we currently have a presence: phoenixcommodities.com Africa, East Europe, India and Vietnam. OPEC | OFID QUARTERLY JULY 2018 | 67

OPEC Secretary General receives Abdullah Bin Hamad Al Attiyah Energy Award for Lifetime Achievement for the Advancement of OPEC

OPEC Secretary General, Mohammad Sanusi Barkindo, was presented with the Abdullah Bin Hamad Al Attiyah Energy Award for Lifetime Achievement for the Advancement of OPEC at a ceremony in Doha, Qatar, on May 7. The Award was given in recognition of the pivotal role the Secretary General has played in the adoption of the ‘Declaration of Cooperation’, which has had a transformative impact on the global oil industry. COURTESY OF THE OPEC BULLETIN

he Abdullah Bin Hamad Al Attiyah International Energy Awards celebrate PHOTO: OPEC PHOTO: the legacy of Al Attiyah Tby recognizing the work of individ- uals who have, over the course of a professional lifetime, made an indel- ibly positive contribution to the betterment of the global oil indus- try. The Awards are homage to Al Attiyah’s rich legacy of stewardship and leadership in the advancement of partnership, sustainability, devel- opment, transparency, and coopera- tion in the global energy industry.

Previous recipients The Awards are now in their sev- enth year. Previous recipients of the Lifetime Achievement Award for the Advancement of OPEC include Abdalla Salem El-Badri, former OPEC Secretary General; Dr Adnan Shihab-Eldin, Director General of the Kuwait Foundation for the Ad- vancement of Sciences, Advisor to and Member of the Kuwait National Nuclear Energy Committee (KNNEC) and former Acting Secretary Gener- Mohammad Sanusi Barkindo (c), OPEC Secretary General, was presented with the Abdullah Bin al and Director of the Research De- Hamad Al Attiyah Energy Award for Lifetime Achievement for the Advancement of OPEC, by Dr Mohammed Bin Saleh Al-Sada (r), Minister of Energy and Industry, Qatar, and Dr Ibrahim Ibrahim partment at OPEC; Dr Ramzi Salman, (l), Economic Adviser at Amiri Diwan and Vice-Chairman, The Abdullah Bin Hamad Al-Attiyah Former Deputy Secretary General E International Foundation for Energy & Sustainable Development. 68 | OFID QUARTERLY APRIL 2018 | OPEC PHOTO: OPEC PHOTO:

Recipients of the Abdullah Bin Hamad Al Attiyah Energy Award 2018 with Dr Ibrahim Ibrahim (front third right), Economic Adviser at Amiri Diwan and Vice-Chairman, The Abdullah Bin Hamad Al-Attiyah International Foundation for Energy & Sustainable Development.

F of OPEC; Dr Majid Al-Moneef, fueling modern civilization and lift- saying: “I would like to conclude Advisor to the Royal Court of the ing millions out of energy poverty.” by thanking all members of the Kingdom of Saudi Arabia; and OPEC family who make our Organi- Suleiman Jasir Al-Herbish, Director- Declaration of Cooperation zation such a unique environment General at the OPEC Fund for Inter- Al-Sada worked particularly closely in which to work. I have known national Development (OFID). with Barkindo during Qatar’s Presi- many of them over the years and Barkindo was introduced by dency of the OPEC Conference in am always inspired by their deter- Dr Mohammed Bin Saleh Al-Sada, 2016, which involved the arduous mination to collaborate for the bet- Minister of Energy and Industry, negotiations that culminated in the terment of our industry.” Qatar, who paid tribute to the Secre- historic ‘Declaration of Cooperation’. After the ceremony, the Secre- tary General’s inspiring leadership, Barkindo paid tribute to the tary General reflected on the signif- statesmanship and unwavering ded- remarkable legacy of Al Attiyah. icance of receiving the Award at ication to furthering the objectives “Over the decades I have known His this time. “I am receiving this presti- of OPEC. Al-Sada stated: “OPEC is Excellency, my respect and admira- gious award on behalf of OPEC, in Mohammad Barkindo’s blood. He tion have continuously grown,” he which together with our non-OPEC doesn’t just view the Organization said. He described Al Attiyah as “an partners has joined hands to assist merely as an employer or the Secre- icon, a living legend, an industry the oil industry in restoring stability tariat as a building. Rather Barkindo veteran, with sharp wit, a wonderful to the markets through the historic is a true believer in OPEC’s and, sense of humor and deep humility.” ‘Declaration of Cooperation’, after indeed, the oil industry’s capacity to The Secretary General also the longest and most destructive oil be a force for good in our world; thanked the wider OPEC family, cycle in history,” he said. N

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