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Power to the people, the real drivers of development

OFID/UNESCO exhibition highlights role of education

Private sector ups support to renewable energy

Côte d’Ivoire: New bridge heralds future of opportunity

OFID Quarterly is published four times a year by the OPEC Fund

for International Development(OFID).

OFID is the development financeagency established in January 1976

by the Member States of OPEC (the Organization of the Petroleum

Exporting Countries) to promoteSouth-South cooperation by extend-ing development assistance to other,

non-OPEC developing countries.OFID Quarterly is available

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please send your full mailing details to the address below. Back issues ofthe magazine can be found on our

website in PDF format.OFID Quarterly welcomes articles

and photos on development-relatedtopics, but cannot guarantee

publication. Manuscripts, togetherwith a brief biographical note on

the author, may be submitted to the Editor for consideration.

The contents of this publication do not necessarily reflect the

official views of OFID or its MemberCountries. Any maps are for

illustration purposes only and are not to be taken as accurate

representations of borders. Editorialmaterial may be freely reproduced,

providing the OFID Quarterly is credited as the source. A copy to the

Editor would be appreciated.

COMMENT

Placing people at the heart of sustainable development 2

TRIBUTE TO THE LATE KING ABDULLAH

Energy for the poor: A king’s legacy 4

SPECIAL FEATURE

Power to the people, the real drivers of development 8

Youth unemployment: The lost generation? 14

Education: The bedrock of sustainability Interview with Irina Bokova of UNESCO 17

OFID in the Field 20

More skilled laborers to support local industries 22

Building better opportunities for the Malagasy 24

OFID scholars changing the world 26

NEWSROUND

OFID and UNESCO: A long-lasting partnership for education and development 29

The City of Vienna honors Al-Herbish and OFID 32

Private sector ups support to renewable energy 34

Post-2015 development agenda demands better financing and stronger partnerships 38

Côte d’Ivoire: New bridge heralds future of opportunity 40

Nurturing professionals from within OFID launches Young Professional Development Program 42

PUBLISHERS

THE OPEC FUND FOR INTERNATIONAL DEVELOPMENT (OFID)

Parkring 8, P.O. Box 995, A-1010 Vienna, AustriaTel: (+43-1) 515 64-0; Fax: (+43-1) 513 92-38Email: [email protected] Deyaa Alkhateeb

EDITOR Audrey Haylins

CONTRIBUTORS Reem Aljarbou, Nadia Benamara, Damelys Delgado, Suleiman J Al-Herbish, Steve Hughes, Ranya Nehmeh, Arya Gunawan Usis, Justine Würtz

PHOTOGRAPHS OFID Multimedia Unit (unless otherwise credited)

PRODUCTION Susanne Dillinger

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This publication is printed on paper produced from responsibly managed forests.

COVER PHOTO: GETTY IMAGES/JANEK SKARZYNSKI STAFF

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APRIL 2015

OFID Diary 45

Meetings attended by OFID 47

150th Session of the Governing Board 48

Loan and grant signature photo gallery 50

MEMBER STATES FOCUS

Ecuador urges regional unity infight against poverty 52

Indonesia expands palm oil regulation to smallholders 53

OPEC

OPEC’s El-Badri speaks at Middle East Oil & Gas Conference 55

s the quest continues for effective solutions tothe age-old ills of poverty, hunger and exclusion,

development practitioners speak with one voiceabout the lynchpin that is human capital. All areagreed that when it comes to sustainable develop-ment, people are the game changers.

There is no debate. If developing countries are to takecharge of their own future, make the most of their—often rich—natural resources, and participate asequals in the global economy, human capacity build-ing is key.

How gratifying it is, then, to see “people” exactlywhere they should be: at the heart of the post-2015development agenda. Yes, capacity building—essen-tially in the form of education—was part of the Mil-lennium Development Goals (MDGs), but the resultshave not lived up to expectations.

Take primary education, which the MDGs high-lighted as the catalyst for poverty eradication and sus-tainable development. The statistics are not whollyencouraging. The boast of a 90 percent enrolment fig-ure (in 2012) is undermined by the fact that one infour children entering primary school drops out. Ofthose that do stay the course, far too many come out

2 OFID QUARTERLY APRIL 2015

COMMENT

Placing people at the heart ofsustainable development

A

at the end unable to read or write. But perhaps mosttelling is the 58 million children in the developingworld who remain out of school altogether. That’sequal to almost the entire population of Italy—and asunacceptable as it is shameful.

Equally concerning—but maybe not surprising—arethe poor literacy levels among adults. A staggering 781million adults and 126 million youth lack basic liter-acy skills. Deprived of such important tools, this vastnumber of people are poorly equipped to find decentwork, raise families, protect their rights and engage effectively in society.

Wrapped up in the shortcomings of the educationsystem is its failure to adapt to the demands of the jobmarket. This has resulted in escalating levels of youthunemployment—up to 30 percent of 15 to 24 year-olds in some regions. Many of these young people arehighly qualified, have completed years of study andare proud holders of college degrees. But—and here’sthe rub—their skills are surplus to requirements. Theramifications of this situation, which continues toworsen, are seriously damaging for the young adultsthemselves as well as for societies, cultures andeconomies.

Then there’s the issue of gender. And here, too, theMDGs have fallen short. Despite progress in manyareas, women continue to be widely denied opportu-nities for self-empowerment. Girls are less likely thanboys to attend school, 60 percent of illiterate adultsare women, and when it comes to work, women aregenerally relegated to low-paid, insecure jobs.

As an institution that prides itself on practicing peo-ple-centered development, OFID welcomes with greatsatisfaction the positioning of human capacity build-

ing as a core theme in the new Sustainable Develop-ment Goals (SDGs). We applaud the language of theSDGs, which highlights the quality and relevance ofeducation, rather than focusing exclusively on thenumbers. And we appreciate that learning is recog-nized as a lifelong process in which everyone has aright to participate. We value also the stated aspira-tion to full and productive employment and decentwork for all.

For OFID, development has always been about en-abling people to overcome challenges and grasp op-portunities that will lead to a better quality of life.Hence, we help to build gender-friendly schools sothat both girls and boys get off to the best possiblestart. We support teacher training, curriculum devel-opment and institution strengthening so that govern-ments can deliver quality education. And we investheavily in vocational training to help young peopleonto the job ladder.

We also set high store by knowledge exchange and re-search and regularly sponsor such activities. Mean-while, our highly successful scholarship program hasalready seen 17 exceptional young people from the de-veloping world complete their graduate studies andreturn home to contribute to the development oftheir communities and countries.

When it comes to people and empowerment, OFID’sheart and mind are perfectly aligned with the aspira-tions of the SDGs. More than that, these are the self-same aspirations enshrined in our institutional visionof “a world where Sustainable Development centeredon human capacity building is a reality for all.” It is avision we’ve been striving toward for the past 39years—and our sincere hope that the SDGs can finallyget us over the finish line. �

OFID QUARTERLY APRIL 2015 3

he demise of Saudi Arabia’s Custodian ofthe Two Holy Mosques in the early hours

of January 23 was observed with prayers atRiyadh’s Grand Mosque and followed by his in-terment in a simple unmarked grave at the city’sAl Oud public cemetery the same day.

Tributes flooded in from world leaders,many of them, including UN Secretary-GeneralBan Ki-moon, British Prime Minister DavidCameron, and German Chancellor AngelaMerkel, to highlight his prominent role in pro-moting dialogue among faiths and cultures. USPresident Barack Obama hailed Abdullah as aleader who “was always candid and had thecourage of his convictions,” while French Presi-dent François Hollande described him as “astatesman whose work has profoundly markedthe history of his country.”


SPECIAL FEATURE

When King Abdullah bin Abdulaziz Al Saud passedaway this January, more than a nation grieved for theman whose legacy of “energy for the poor” continuesto light the lives of millions around the globe. Here,OFID Director-General, Suleiman Jasir Al-Herbish,himself a Saudi, pays tribute to the late monarch.

Energy for the poor: A king’s legacy

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King Abdullah bin Abdulaziz Al Saud, Custodian of the Two Holy Mosques.

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Among the many tributes, however, there waslittle mention of what is arguably Abdullah’smost wide-reaching and enduring legacy: his“energy for the poor” initiative, which startedas a proposal in June 2007 and snowballed intoa united global push to end energy poverty by2030.

The issue of energy poverty had first beenraised at the Third OPEC Summit of November2007. Hosted by King Abdullah in Riyadh, thesummit declaration acknowledged the stronglink between energy access and sustainable de-velopment and identified the eradication of en-ergy poverty as a global priority and anobjective of all OPEC aid institutions, includingOFID.

Seven months later, in Jeddah, Abdullahproclaimed the launch of his energy for thepoor initiative. Addressing a meeting of energyproducers and consumers, he urged the globalcommunity to put aside self-interest and worktogether to serve the needs of humanity. Hisconcluding words were:

“In this critical hour, the internationalcommunity must rise to the level of responsibil-ity; cooperation must be the cornerstone of anyeffort; and we all must have a comprehensive,profound and humanitarian vision in our per-spective of the present and the future. Such a vi-sion shall be liberated from selfishness and shalltranscend to horizons of fraternity and solidar-ity, and this is the secret of success.”

King Abdullah’s proclamation provided boththe framework and the impetus for OFID to im-plement the additional mandate handed downby its Member Countries in Riyadh. We quicklyadopted the initiative as our own and placed itat the heart of our development strategy, takingon the dual role of financier and advocate.

We were gratified to see momentum gatherpace at a broader level in 2009, when G8 energyministers and G20 leaders, meeting respectivelyin Rome and Pittsburgh, pledged their supportto the initiative. In March 2010, the Interna-tional Energy Forum, itself an initiative of KingAbdullah, added its voice to the debate. Meetingin Cancun, ministers in their communiqué sup-ported OFID’s call for energy poverty eradica-tion to be added as the “ninth” MillenniumDevelopment Goal.

The goal of universal energy access hassince received international recognition andrisen to the top of the development agenda, ledby the UN’s Sustainable Energy for All initiative.It is an effort joined by governments, develop-ment finance institutions, the private sectorand civil society alike. Having been omittedfrom the MDGs, it is set to be a standalone goalin the new post-2015 agenda—the SustainableDevelopment Goals. King Abdullah has been in-strumental in this achievement. �



Sovereigns and Heads of State at the Third OPEC Summit in Riyadh, Saudi Arabia, November 2007.

[Universal energy access] is set to be

a standalone goal in the new post-2015

agenda—the SustainableDevelopment Goals.

King Abdullah has beeninstrumental in this

achievement.

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revolving commitment of US$1bn by its MemberCountries in a fourth replenishment of the insti-tution’s resources in 2012, the first since 1980.King Abdullah’s vision has given a new focus andimpetus to the execution of OFID’s mandate andrepresents an enduring legacy that will improvethe lives of millions of energy-deprived peoplearound the globe, regardless of race or religion. As an institution, we are deeply honored to im-plement this vision and remain deeply saddenedby the loss of such a courageous and honorableleader.

The OFID family recognizes the key rolesKing Abdullah played in promoting peace andhumanitarian causes, and in fostering global co-operation and sustainable development. His pass-ing is considered a great loss to the organizationand the world. �



A new focus for OFID� I first had the privilege of an audience withKing Abdullah in 2003, when I was nominated bythe Kingdom as Director-General of OFID. TheKing confided that he knew little about the insti-tution and urged for concrete steps to raise aware-ness of OFID and its work.

This direct mandate led to the birth ofOFID’s first information campaign and effectivelyset in motion a decade-long—and highly success-ful—program of activities to position OFID morevisibly among its stakeholders. King Abdullah fol-lowed this evolution closely and was by far itsgreatest champion.

But it is Abdullah’s energy for the poor ini-tiative that has truly come to define OFID. Theidea that began life as a small seed planted byKing Abdullah eight years ago has grown and ma-tured into a flagship program financed through a

King Abdullah (left) receives Mr Al-Herbish (right) accompanied by HE Dr Ibrahim Al-Assaf (center), Minister of Finance, Saudi Arabia, December 2003.

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Born in Riyadh in 1924, King Abdullah devoted his life to public off ice.Before becoming monarch, he served as Commander of the SaudiArabian National Guard and First Deputy Prime Minister. He ascended the throne in August 2005 upon the death of his brotherKing Fahd bin Abdulaziz Al Saud.

King Abdullah was an avid believer in dialogue among civilizationsand religions. In November 2007, he visited Pope Benedict XVI inthe Apostolic Palace, the f irst such visit by a Saudi King. In March2008, he called for a “brotherly and sincere dialogue between be-lievers from all religions.” This call resulted in the hosting with Spainof an interfaith dialogue conference in which religious leaders of dif-ferent faiths participated.

His efforts in such discourse led to the establishment in 2011 in Vienna of the King Abdullah bin Abdulaziz International Centre forInterreligious and Intercultural Dialogue (KAICIID), an intergovern-mental initiative of Austria, Spain and Saudi Arabia.

King Abdullah’s keen interest in international diplomacy led also tohis helping to resolve conflicts in the Arab and Islamic world. He wasespecially concerned about the plight of the Palestinians and played

a key role in brokering an agreement for a Palestinian national unitygovernment.

King Abdullah’s visionary outlook was the driving force behind numerous reforms in his relatively short reign. In 2005, he launcheda government scholarship program to send young Saudi men andwomen to study abroad. He also founded the King Abdullah University of Science and Technology, which is the country’s f irst co-ed institution for advanced scientif ic research and a global flagshipfor research. In 2013, King Abdullah appointed 30 women to theConsultative Assembly “Shura Council.” He also oversaw the partic-ipation of the f irst two female Saudi athletes in the 2012 Olympics.

Abdullah is succeeded by his brother Salman bin Abdulaziz Al Saud,who previously served as the Governor of Riyadh, Second DeputyPrime Minister, and Minister of Defence. He was appointed CrownPrince of Saudi Arabia in 2012, following the death of Crown PrinceNayef bin Abdulaziz. In a speech broadcast on Saudi television fol-lowing his accession, King Salman vowed to maintain the same poli-cies as his predecessors. �

Visionary outlook

King Abdullah is greeted by Pope Benedict XVI on his arrival for their meeting at the Vatican, November 6, 2007.

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We recognize that people are at the center of sustainable development and in this regard, we strive for a world which is just, equitable and inclusive …

Rio+20 outcome document “The Future We Want”

““

PHOTO: DIGITAL STORM/SHUTTERSTOCK.COM

SPECIAL FEATURE

Power to the people, the real drivers of development

In the quest for development that is truly sustainable, equitable and inclusive, nothing carries more weightthan the capacity of humankind to shape and secure itsown destiny. Here, the Quarterly examines the challengesof human capacity building and its elevated role in thepost-2015 development agenda.

by Audrey Haylins and Ranya Nehmeh


evelopment practitioners are in whole-hearted agreement: people are the driving

force behind sustainable development. If eco-nomic prosperity and social wellbeing are thegoals then the key must lie in enhancing humanknowledge, skill and enterprise.

In recent years, a host of conferences, sum-mits and other global gatherings have pushed theimportance of capacity building to the forefrontof the international agenda. It now sits squarelyat the heart of the new Sustainable DevelopmentGoals that are set to be officially unveiled this Sep-tember.

According to the United Nations Develop-ment Program, capacity building has three inex-tricably linked levels. The institutional levelinvolves the development of effective organiza-tional structures, policies and resource manage-ment. The societal level concerns the creation of amore enabling environment through the provi-sion of essential infrastructure and the delivery ofbasic services, such as health and education. The

individual level is the process of realizing humanpotential by building and enhancing people’sknowledge and skills.

This last level—human capacity building—is where transformational change has its roots. Inits basic principle, it involves identifying the con-straints that people experience in realizing theirbasic rights and empowering them to find the ap-propriate vehicles through which to strengthentheir ability to overcome the causes of their exclu-sion.

Through the acquisition of the necessaryskills, knowledge and education—whetherthrough training, formal schooling, or targetedcapacity building projects—it is people who ulti-mately hold the key to development. An empow-ered person or community is better prepared torespond to whatever opportunity or challengecomes along, which is the real goal of develop-ment. Without human capacity, developingcountries would be unable to identify and solvetheir own problems.


SPECIAL FEATURE

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“It is essential that young people receive relevant skillsand high-quality educationand life-long learning, fromearly childhood development

to post-primary schooling, including life skills and voca-tional education and training,

as well as science sports andculture. Teachers must be given

the means to deliver learningand knowledge in response to a

safe global workplace, drivenby technology.”

Ban Ki-moon

By 2015, 54 countries are not expected to have achieved universal primary enrolment

In sub-Saharan Africa, the poorest girls will not achieve universal primary completion until 2086

In low income countries, only 14% of the poorest complete lower secondary school

In low and lower middle income countries, one-quarter of youth cannot read a sentence

The number of illiterate adults has fallen by just 1% since 2000

If all students left school with basic reading skills, 171 million people could be lifted out of poverty

In a third of countries, less than 75% of primary school teachers are trained

29 countries will not be able to f ill the primary school teacher gap by 2030

An increase in the average educational achievement of a country’s population by one year increases annual per capita GDP growth from 2% to 2.5%

Education receives just 1.4% of humanitarian aid

Source: EFA Global Monitoring Report 2013/14, UNESCO

Education for All: The facts

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Percentage of countries:

very far from target

far from target

close to target

reached target

Pre-primaryeducation

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Primary education

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Lower secondaryeducation

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Adult literacy

Goal 4

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Primary educationgender parity

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parity

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Number of countries:

very far from target (<80%)

with insufficient data

far from target (80–94%)

close to target (95–96%)

reached target (≤97%)

2015 projected20112000

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Education and the MDGsAlthough human capacity building can takemany forms, the Millennium Development Goals(MDGs) specifically highlighted the role of edu-cation as the catalyst for poverty eradication andsustainable development. Goal 2 referred to theachievement of universal primary education,while Goal 3 specified the need to eliminate gen-der disparity at all levels of education, from basicthrough to tertiary.

And, indeed, there has been significant suc-cess. According to the 2014 MDG Report, primaryschool enrolment rates in developing regions hadincreased to 90 percent by 2012. Adult literacyrates also showed a marked improvement, reach-ing 84 percent of the over-15 population in 2012.

The challenges, however, remain consider-able, with the same report putting the number ofout-of-school primary age children at 58 million.Equally disturbing is the fact that more than onein four children in developing regions enteringprimary school is likely to drop out. Yet anotherstatistic to ring alarm bells is the 781 millionadults and 126 million youth who continue tolack basic literacy skills—60 percent of themwomen.

Where the MDGs fell short was in failing torecognize that high enrolment rates do not nec-essarily equal a good education. There is littlepoint in getting children to school, if they leave

without learning to read and write, either becauseof poor instruction or a lack of teaching materi-als, or both. Without essential literacy and nu-meracy skills, young people are unequipped tofind jobs, raise families, protect their rights or in-deed engage effectively in society. �


SPECIAL FEATURE

Percentage of countries projected to achievea benchmark for five EFA goals by 2015

Number of countries by adult literacy rate

Source: EFA Global Monitoring Report 2013/14, UNESCO

Source: EFA Global Monitoring Report2013/14, UNESCO

A collaborative, integrated approach� As desirable as it may be, capacity building isfraught with difficulties. To begin with, it is nota one-off exercise. Rather, it is a continuousprocess of learning and investment in humancapital. Resources are a key issue. Education andtraining is often the least funded item in na-tional budgets and the first casualty wheneverthere are shortfalls in other areas.

But even when the resources are allocated,funding in its own is not enough. To be success-ful, capacity building demands an integrated ap-proach. It makes little sense, for instance, tohave qualified and skilled individuals if they arenot able to commute to work due to waterloggedroads or costly and inefficient public transporta-tion. As the UNDP states: “Capacity is not devel-oped in a vacuum. To be of use, it must be rootedin a broader development objective, in a na-tional development strategy or a plan for eco-nomic or social empowerment.”

Equally important is the necessity of focus-ing on the needs of the beneficiaries. Often-times, development initiatives are criticised forbeing too North-driven and that they lack thefeel for what is the actual situation on theground. It is imperative that the needs of thebeneficiaries as well as their existing capacities

are assessed and understood. Only then, will thebest results take shape.

In order to achieve this, there has to be col-laboration among the different stakeholders,emphasizing an inclusive partnership approach.By engaging donors, governments, NGOs, andthe local communities, this not only gets a dia-logue going among all those who stand to bene-fit from enhanced capacity, but also createscommitment to the process, and individuals aremore invested in its success.

In it for the long haulAnother daunting obstacle is the length of time ittakes to build human capacity. There are no quick-fix solutions, despite there being an urgent short-age of skills in many areas of the developing world.According to UNESCO, the least developed coun-tries in particular face a long, drawn-out struggle.Properly qualified teachers are in very short sup-ply, and the share of secondary school students en-roled in technical and vocational education isaround one-quarter of that of developed countries.Even assuming these deficiencies can be addressedin the short- to medium-term, it will be many yearsbefore the benefits filter through to those areaswhere they can have a beneficial impact on eco-nomic growth and poverty reduction.


SPECIAL FEATURE

Pupil/trained teacher ratio

Pupil/teacher ratio

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In many countries,there is a big gap between the numberof pupils per teacherand per trainedteacher.

Source: EFA Global Monitoring Report2013/14, UNESCO


SPECIAL FEATURE

This leads to yet another challenge: that of youthunemployment, which is extremely damaging foryoung people, societies, cultures and economies.The International Labour Organization (ILO) es-timates that young people are three times morelikely to be unemployed than adults, and almost73 million youth worldwide are looking for work.Part of the reason behind these numbers is a mis-match between qualifications and skills and theactual requirements of the job market. In otherwords, young people are training for jobs thatsimply don’t exist, while certain sectors have jobsgoing begging because there are no skilled peopleto fill them.

Juan Somavia, Director-General of ILO de-scribes this situation as a “global jobs crisis” andcalls for urgent action to move the issue of em-ployment and decent work up the policy agendain order to achieve the internationally agreed de-velopment goals and to address social insecurities.

The gender factorWhether in the workplace, the home or the com-munity, effective human capacity building mustalso be inclusive, especially when it comes to ad-dressing gender inequalities. Here, too, the MDGshave fallen short. Despite progress in many areas,women continue to be widely denied opportuni-ties for self-empowerment. This discrimination

acts as a direct constraint on economic growth andpoverty reduction, as women play a multifacetedrole in society and have the potential to be power-ful agents of change. Investing in their education,equipping them with skills and knowledge, andengaging them in decision-making are essentialcomponents of the capacity building process.

While there can be no denying the chal-lenges confronting developing countries in theirbid to build human capital, if these issues aretackled effectively, the rewards can be great. Thekey is to approach the problem holistically, ad-dressing the three interlinked levels: societal, in-stitutional and individual. When these are aligned,the scope for capacity development is immense.With an enabling environment in place, peoplecan acquire the education, knowledge and skillsthey need to be productive and well-integratedmembers of society. At the same time, with amore effective workforce, institutions can growand become more competitive.

Development lies in the hands of the peo-ple, in their capacity to identify challenges andopportunities, and in their ability to tackle theformer while seizing the latter. It will take time,resources and action from all stakeholders, but noone should underestimate the imperative ofhuman capacity building for a sustainable andprosperous future. �

With 17 goals and 169 targets, the new Sustainable Develop-ment Goals have been criticized for being too broad in scope,and for lacking coherence, priorities and a clear time frame.There is no confusion, however, over the six thematic elementsthat are considered essential for delivering the goals: People,Planet, Partnership, Justice, Prosperity and Dignity.

If there were any doubts about the importance of human ca-pacity building to the agenda, it is perhaps telling that “People:to ensure healthy lives, knowledge and the inclusion of womenand children” is the f irst area to be defined in the UN Secre-tary-General’s Synthesis Report on the SDGs released last De-cember. As well as highlighting healthcare coverage, access andaffordability—for, after all, good health is a basic building blockof human progress—Ban Ki-moon emphasizes the importanceof strengthening the capacities particularly of the younger gen-eration to contribute to change. In contrast to the language ofthe MDGs, which focused on numbers, the Report highlightsthe quality and relevance of education and vocational training.

Among the draft SDGs themselves, there are direct and indirect references to human capacity building:

Goal 3Ensure healthy lives and promote wellbeing for all ages

Goal 4Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

Goal 5Achieve gender equality and empower women and girls

Goal 8.5By 2030, achieve full and productive employment and decent work for all women and men, including for youngpeople and persons with disabilities, and equal pay for work of equal value.

Goal 8.6By 2020, substantially reduce the proportion of youth not in employment, education or training

Human capacity building and the SDGs

How big is the problem?The website of the International Labor Organiza-tion (ILO), a specialized United Nations agency,is home to, among a plethora of other data, acheery-looking infographic on employmenttrends for youth. So what does this vibrant andenergetic sector of society—a sector that’s so vitalto global economic and social development—have to look forward to?

Not too much, it appears. Under the head-line “A Generation at Risk,” a depressing realitymakes itself clear: the global youth of today “isworse off than 20 years ago.” “We have never seenbefore a crisis like the one facing young peopletoday,” the infographic states.

In its recent World Employment and SocialOutlook—Trends 2015 publication, the ILO reportsthat:• More than 61 million jobs have been lost since

the start of the global crisis in 2008.

• Projections show that unemployment will con-tinue to rise until the end of the decade.

• The global youth unemployment rate is ex-pected to increase to 13.1 percent in 2015 andthen remain unchanged through 2018.

• Unemployment rates in the Middle East andNorth Africa (MENA) region continue to be thehighest in the world, with the youth unem-ployment rate at 29.5 percent in 2014 and ex-pected to rise to 29.8 percent in 2015.

Why is there so much youth unemployment?Ekkehard Ernst is chief of the ILO’s job-friendlyMacroeconomic Policies Team, and one of themain authors of the aforementioned World Em-ployment and Social Outlook report. He says thatthe current problem is global, with a number ofcontributing factors, not least the continued anx-ieties surrounding the world economy and thelow levels of growth that make job creation diffi-cult.

However, Ernst acknowledges that the prob-lem is particularly acute in the developing world,where country demographics are “younger.” Ac-cording to the UN World Youth Report 2012,there are 1.2 billion youth in the world aged be-tween 15 and 24, and nearly nine-tenths (87 per-cent) of them live in developing countries.


SPECIAL FEATURE

Youth unemployment: The lost generation?

Youth unemployment is a global problem—but one that is particularly acute in developing countries. The Quarterly examines the issue from different viewpoints in this sectionalized, easy-to-digest briefing. by Steve Hughes

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Ernst says that a number of structural factorscombine to complicate matters in the badly hitMENA region: “The education systems in thesecountries are not properly set up to allow youngpeople to enter the labor market effectively,” saysErnst. “They often prepare young people for jobsthat are not available, and we find that youngpeople themselves choose to study long coursesfor jobs that are not really required by the labormarket.”

The ILO’s report captures the scale of theproblem, particularly in MENA countries: “Mak-ing strides in reducing unemployment, especiallyamong youth, is hampered by the size of thegrowing and comparatively young population. In2014, 26.2 percent of the working-age populationwas aged 15–24 years, compared with 22.4 percentglobally.”

Gangs, drugs and violenceVicki Escarra, head of Opportunity International,a charity specializing solely in microfinancingservices for the developing world, recently toldBritish newspaper The Guardian:

“Youth unemployment should really beseen as a national and international securityissue. There are all kinds of issues that happenwhen the infrastructure to create employmentbreaks down. We can see that around the world,including in the US. Unemployment brings withit delinquency, gangs, drugs and violence. Itneeds to be seen as a security issue, but also be-cause it is about multi-generational poverty, alsoas a human rights issue.”

Alarming stuff, but certainly not alarmist.The ILO’s Ekkehard Ernst agrees:

“We have observed a strong rise in social un-rest, and this is directly linked to high youth un-employment rates. Young people are vocal andready to claim their rights, to go out on the streetsasking for changes in the political and economicsystem. We are seeing this quite clearly in MENAcountries and in some other developing countriestoo.”

Professor Emma Murphy, Head of School inthe School of Government and International Af-fairs at the UK’s University of Durham sees thistrend slightly differently:

“I’m not sure you can reduce the causes ofprotest to this link alone. There are other thingsin the mix. Young people have better perceptionsabout what they want from political leaders nowand what they want from their citizenships. Butyouth unemployment is certainly part of this.The Arab Spring brought this to the foregroundand made it very visible. It made us aware of thereal social and economic pressures affectingyoung people.”

Youth employment and migration:Solution or slippery slope?Increased flows of information and the fallingcost of transportation have made migration in-creasingly attractive to young rural people, ac-cording to the International Fund for AgriculturalDevelopment (IFAD), a specialized agency of theUnited Nations.

Although it can open up opportunities foryoung people, IFAD stresses the importance of mi-gration being “a choice and not a necessity.”Young migrants who lack education, informationand support networks may be vulnerable to riskslike unsafe travelling conditions, exploitation andexposure to unsafe or illegal working conditions.

Similarly, a continued exodus of young peo-ple from rural areas—abandoning agriculture insearch of better jobs in cities or overseas—is likelyto continue to the detriment of rural communi-ties, until viable alternatives exist. With this inmind, some countries are embracing the supportof the international community to adopt ruraldevelopment policies to incentivize young peopleto remain in their communities and to encouragethose who have migrated to return.

Says Professor Murphy: “We should stopviewing the MENA labor markets, and maybethose in other regions, just in terms of nationalentities which then inevitably compete with oneanother. We need to empower young people tomake decisions about their own lives in a moreflexible and supportive labor environment,which might include moving beyond nationalboundaries—if this is their choice—and whichdoes not pit national labor markets against eachother in ways which push down the value andterms of work.”

How do you solve a problem likeyouth unemployment?Ernst and other commentators argue that theyouth unemployment problem is likely to per-sist—for both developed and developing coun-tries—until we see a marked and prolongedimprovement in the global economy. They urgegovernments to promote policies that stimulategrowth and stronger increases in output and em-ployment.

In line with this, the ILO calls for govern-ments and social partners:

• to foster pro-employment growth and decent job creation through macroeconomic policies,employability, labor market policies, youth en-trepreneurship and rights to tackle the socialconsequences of the crisis, while ensuring fi-nancial and fiscal sustainability. �


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“Countries with the lowestyouth jobless rates have aclose relationship betweeneducation and work…Coun-tries with high youth unem-ployment are short of suchlinks. In France, few high-school leavers have any realexperience of work. In NorthAfrica, universities focus onpreparing their students tofill civil-service jobs, even ascompanies complain aboutthe shortage of technicalskills. The unemploymentrate in Morocco is five timesas high for graduates as it isfor people with only a pri-mary education.”

The Economist, April 27, 2013

• � to promote macroeconomic policies and fis-cal incentives that support employment andstronger aggregate demand, improve access tofinance and increase productive investment—taking account of different economic situationsin countries.

• to adopt fiscally sustainable and targetedmeasures, such as countercyclical policies anddemand-side interventions, public employ-ment programs, employment guaranteeschemes, labor-intensive infrastructure pro-grams, wage and training subsidies and otherspecific youth employment interventions.Such programs should ensure equal treatmentfor young workers.

A different, more human approach?Professor Murphy has a different approach totackling youth unemployment:

“Promoting vocational and entrepreneurialskills training is not a bad thing in itself, but thereis no easy solution to this problem, especially indeveloping countries. To assume big enough eco-nomic growth will suck up enough unemployedyoung people is not realistic. We need to start


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viewing young people as human beings, ratherthan as commodities of the labor markets of thesecountries (which are dysfunctional in any case).”

Murphy argues that youth unemploymentcan sometimes be held up as the problem, whenreally it’s only a symptom. “To focus on youth un-employment is often missing the point,” she says,and explains that it’s often used to disguise amore fundamental issue: deeply flawed economicstructures that are overly bureaucratic, weak froma regulatory standpoint and need total overhaul-ing. But she’s quick to recognize that such large-scale change is unlikely. She also notes that: “Theneo-liberal solution might be the long-term end-game. But to get there we need something thatmay be the antithesis of it.”

Murphy calls for a bolder, more imaginativecross-regional approach that can be supported byexternal agents, but that focuses on empoweringyoung people politically and economically andviewing them as human beings, not statistics. Weshould consider not just national but regional andintra-regional labor markets as part of a globalwhole, she says, and acknowledge the limitationsand frailties of labor markets in regions with his-torically distorted development strategies. �

Youth unemployment rates across the worldYouth unemployment rate as % of youth labor force (2013)

0.7% 60.5% Source: ILO - Trends Econometric Models, April 2014

OQ: Education is a core component of human capacity building. How would you define the rela-tionship between education and sustainable devel-opment?

IB: Education and sustainable development can-not be separated. In September, the internationalcommunity is expected to adopt a set of goals thatexpress the world’s collective determination toend poverty, transform lives and protect theplanet. For people to be at the center of thisagenda, they must first have access to the knowl-edge it takes to lead healthy lives and make in-formed choices—choices that contribute tobuilding inclusive, resilient and green economies.

This starts with education—it is the bedrockof sustainability. Every sustainable developmentgoal requires education: people need knowledgeand skills to break out of poverty, to improvehealth and nutrition, to adopt sustainable agri-cultural practices, to combat climate change, to


SPECIAL FEATURE

protect the ecosystem. If all women had second-ary education, the number of children under fivewho die each year could be reduced by half; childmarriage could be reduced by 64 percent. Educa-tion is the best vaccine we have against HIV andAIDS, an area in which OFID’s support has beeninvaluable, spanning 42 countries and benefit-ting over two million teachers and seventy-sixmillion students. These are just a few examplesamong a large body of solid evidence.

Finally, sustainable development dependson changing mindsets, on gaining attitudes andvalues that foster understanding of our interde-pendence and a sense of responsibility towardsour surroundings and our planet—this can onlyhappen through education.

Education is the motor for the success of theSustainable Development Goals—it connects thedots between the social, economic and environ-mental dimensions of sustainability and is themost powerful catalyst for transformative change.�

Education: The bedrock of sustainability

The post-2015 developmentagenda recognizes the need for a comprehensive and more holistic approach to education.We asked Irina Bokova,Director-General of UNESCO, to share with the Quarterly thenecessity and the challenges of providing “lifelong learningopportunities for all.”

Interview by Audrey Haylins

“Education … connectsthe dots between the social, economic and

environmental dimen-sions of sustainability

and is the most powerfulcatalyst for transforma-

tive change.”

UNESCO Director-General Irina Bokova

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� OQ: The MDGs have been criticized for focusingalmost exclusively on quantitative education targets.Is this a fair assessment? What do you see as the suc-cesses/failures of the MDGs in the area of education?

IB: The MDGs rallied the international commu-nity at the turn of the century around an ambi-tious vision of progress, and despite thetremendous challenges that remain, they still tella positive story.

We have witnessed unprecedented progressin some cases: there are close to fifty million morechildren enroled in primary school than in 1999,with girls benefiting most. Governments haveabolished school fees, established social protec-tion programs for the poorest families andstipend schemes for girls, invested in school in-frastructure and teacher training.

But, the magnitude of achieving educationfor all should not be underestimated. Economiccrisis, conflict, natural disasters, pandemics andother challenges can disrupt education for mil-lions of children. The drive toward universal pri-mary education has revealed that this is not alinear journey. Inequalities have increased be-cause the most marginalized children are stillbeing left out for multiple and connected reasons:poverty, language, ethnicity, geographical isola-tion, disability, and discriminatory customs.

The message here must be that there is noinsurmountable barrier to education but a needfor targeted solutions and multiple pathways. Themost inclusive systems are also the best, withrepercussions on broader social cohesion.

Secondly, rapid expansion has put consider-able pressure on the system, with some two hun-dred million children leaving school withoutacquiring the basics. In strict economic terms thisis an investment that is not paying off. For chil-dren, for countries, it represents a tremendousloss of potential. This is why equity and qualitymust be the measure of educational policies inthe years ahead. Again, our projects with OFID tobuild capacity for primary teachers and headteachers in Africa, makes a direct contribution tothis agenda.

OQ: The SDGs take a more qualitative approach toeducation. Are you satisfied with this focus, and howdo you see progress being measured?

IB: UNESCO has led and facilitated the debate onthe post-2015 education agenda. What we have isa broad consensus from all constituencies on theneed for a comprehensive and a more holistic ap-proach, summed up in the overarching goal “toensure equitable and inclusive quality educationand lifelong learning for all by 2030.”

This has been translated into a set of targets thatnot only cover primary and secondary levels,technical and vocational skills and literacy butalso new dimensions that focus on 21st centurycontents—global citizenship, education for sus-tainable development, human rights and genderequality.

In addition to improving learning assess-ments, especially in developing countries, this re-quires new measurements that UNESCO andpartners are working on.

For example, the Learning Metrics TaskForce, co-led by UNESCO, has made recommen-dations to improve the measurement of learningoutcomes and to develop global indicators thatalso include readiness to learn in early childhoodand skills and values for youth to be successfulglobal citizens. The future targets are ambitiousand forward-looking—they do pose measurementchallenges, on which UNESCO and UNICEF aremandated to lead technical discussions.

OQ: The SDGs talk about “lifelong learning oppor-tunities.” What do you consider to be the main chal-lenges for developing countries in providing suchopportunities? Is it simply a question of resources?

IB: Some may question the wisdom of providinglifelong learning opportunities when millions ofchildren are still missing out on a basic educationcycle. The fact is that young men and women areleaving primary or secondary education withoutthe right skills and too many adults, the majoritywomen, remain illiterate in a world undergoing adigital revolution. This exclusion not only holdsback societies, it creates fertile ground for extrem-ism to take root. To be inclusive, societies mustprovide opportunities through formal and non-formal pathways, harnessing the potential ofICTs [information and communication technolo-gies] for learning. This goes well beyond the edu-cation sector—this is a vision of society thatrecognizes the importance of learning in commu-nities and cities, and of drawing bridges betweeneducation and the job market.

This is why we also need new partnershipsfor innovation with the private sector. Beyond re-sources, lifelong learning is about creating syner-gies so that quality opportunities to learn areavailable and lead to qualification.

Our recently signed partnership with OFIDis about supporting technical and vocationaltraining in nine countries—this is the way to em-power youth and generate inclusive growth. Bytaking a lifelong learning perspective the SDGsrecognize the influential role of knowledge andskills in building more prosperous and sustain-able societies.

“ … there is no insurmountable barrierto education but a need

for targeted solutions andmultiple pathways.”


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OQ: The empowerment of women and girls continuesto be an area of concern and remains a stand-alonegoal under the SDGs. Why are gender equalities stillso entrenched? Are new approaches needed to narrowthe gap?

IB: Development will only be sustainable ifwomen and men have equal rights and opportu-nities. This is not happening: girls still account forthe majority who are either missing out on a pri-mary or secondary education.

This calls for action both in terms of whathappens in the school and in the wider commu-nity. The location of schools close to home, thepresence of female teachers, of safe learning en-vironments have an impact on attendance, andall the more so during the vulnerable period ofadolescence. Adolescent girls face multiple fac-tors ranging from economic and socioculturalto political barriers. Because of this, we need alifecycle approach to getting girls in school,keeping them there, and ultimately changingthe power dynamics in schools and in the widersociety. This is why the engagement of boys and men,particularly the fathers in girls’ education is key—

especially in patriarchal societies, where their val-ues and beliefs can influence the educational andlife choices available to girls.

Working with parents, with religious andcommunity leaders can change the tide and cre-ate a favorable environment for education. Teach-ers must be trained to be gender sensitive;curricula and textbooks revised to remove stereo-types and put across new role models—to bothgirls and boys.

This broad approach inspired the Joint Pro-gram for the Empowerment of Adolescent Girlsand Young Women through Education, launchedat the Commission on the Status of Women thisMarch in New York with the Executive Directorsof United Nations Women, the United NationsPopulation Fund, and the World Bank.

This program takes a life cycle perspective tokeep girls in education, to support them in mak-ing successful transitions into adulthood and intothe labor market, and to fully participate in soci-ety. Together, our aim is reach out to 20 countrieswhere the magnitude of girls’ and women’s edu-cation challenges remains significant—and to-gether to make a real difference in their lifetimeopportunities. �

Getting girls into school and keeping them there is high on UNESCO’s list of priorities.

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OFID in the Field

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As a practitioner of people-centered development, OFID utilizes all means at

its disposal to boost the ability of people and communities to overcome chal-

lenges and maximize opportunities for a better quality of life. From inclusive

basic education to vocational training, knowledge exchange and research,

OFID’s capacity-building activities empower and bring hope for a brighter

future. The following pages highlight examples of successful projects in China

and Madagascar, and introduce four OFID scholars, for whom the chance to

pursue graduate studies has been a life-changing experience.


OFID IN THE FIELD

s the cradle of historic inventions, such aspapermaking, the compass, gunpowder

and printing, China has captured the imagina-tion of civilization for centuries. It is one of theworld’s largest and most populous countries; it isendowed with abundant natural resources; and itboasts a rich and ancient culture that is widelyrecognized and respected. Today, both as a con-sumer and a producer, the country is playing anincreasingly vital role in the global economy.

China’s phenomenal growth notwithstand-ing, both the World Bank and the InternationalMonetary Fund classify it as a developing coun-try. “China, with a per capita income of aboutUS$6,500, is still well below the cutoff that dis-tinguishes developing economies from theirhigh-income counterparts,” states Sudhir Shetty,chief economist for World Bank East Asia Pacific.Almost 250 million Chinese, about one-sixth ofthe population, still live on less than two dollarsa day, he notes.

Due to its size, China has an extensive vari-ety of geographical features and a diverse popula-tion. Yunnan province, one of the largestproducers of agricultural products, minerals andhydroelectricity, is an excellent example of thisdiversity. Ethnic minorities in this province,which is located in the far southwest of the coun-try, account for about 34 percent of the total pop-ulation, or around 46 million people.

The capital of Yunnan province, Kunming, alsoknown as the Spring City, is of high economicsignificance. It is located at the center of Yunnanand serves as the main commercial hub for mostof the resources of the province.

A well-qualified workforce is in high de-mand for the expansion of the province’s econ-omy, which is already incorporated in a solidbusiness network, producing products for bothdomestic consumption and export.

Research conducted by Professor PabloBustelo, from the Complutense University ofMadrid, shows that, as a result of urbanizationand the migration of rural populations, the un-employment rate in Chinese cities ranges from 10to 15 percent. Joblessness has increased amongthose who lack basic education.

A tradition of vocational education China has a long-standing tradition of vocationaleducation, which in its earliest form can be tracedback to the industrial education of the 1860s. Fol-lowing the establishment of the People’s Republicof China in 1949, vocational education under-went a process of adjustment, improvement andsteady development, taking on an even greater vi-tality after the country opened up to the outsideworld in 1978.

More skilled laborers to support local industries

Despite major strides—including an average 10 percent annual growth over the past 30 years—China continues to face serious obstacles in overcoming poverty and inequality. An emphasis on education will help meet these challenges.

by Damelys Delgado

A

Population: 1.4 billion

GNI per capita: US$6,560

Life expectancy: 75

Adult literacy rate: 95%

Primary school enrolment (gross): 128%

Secondary school enrolment (gross): 89% Source: World Bank


OFID IN THE FIELD

education is indicative of how much value itplaces on providing its youth with income-generating opportunities through increased access to quality, demand-driven education as a means of reducing social and economic disparities.”

Once the facilities are fully operational, itis expected that the total number of students inthe four colleges will increase by 13,000 to a totalof 33,500. These students will eventually providethe highly skilled workforce needed for local in-dustries, which as a result will be better able tocope with the changes and challenges of theeconomic environment. �

“The project was very effectivein improving college conditions.During implementation, weand OFID enjoyed a very frankrelationship where mutual re-spect and common understand-ing prevailed, and our projectbecame a cooperation model.”

Ms Wang ZiPresident, Kunming MetallurgyCollege

“The financing received fromthe Saudi Fund and OFID be-came a powerful engine to startour college’s expansion. As wellas greatly improved facilities,the learning environment andteaching quality have also im-proved. The next goal is to be-come one of the first-classcolleges of the West and be well-known all over the country.”

Mr Li ShanhuaPresident, Yunnan VocationalCollege of Mechanical andElectrical Technology

“The student population in-creased from 59,677 to 106,954.With the improvements, wewere able to create the provin-cial model of higher vocationaleducation in Yunnan Provinceand received high praise fromboth national and provincialleaders.”

Mr Xu BinPresident,University of TV and Radio

“The population of full-timestudents doubled and the qual-ity of teaching has improved.Our college created open schoolsand offered social services topropagate the ethnic cultures ofYunnan Province; it has be-come a very important carrier tovigorously promote interna-tional cultural exchange.”

Mr Ouyang JunhuPresident, Yunnan VocationalCollege of Culture and Art

Key indicators

From the colleges

In 1996, China passed the first “Vocational Edu-cation Law,” with successive government deci-sions providing the legal framework for all levelsof education. In China today, according to theWorld Bank, over 11 million students enrol intechnical and vocational schools or institutesevery year.

In 2005, the State Council on Developmentof Vocational Education proposed goals to in-crease the capacity of the vocational educationsystem, with the aim of delivering market-oriented education for young job seekers. In response to a government request, OFID, jointlywith the Saudi Fund for Development, agreed tosupport the expansion and equipping of fourcolleges in the provincial capital: Kunming Met-allurgy College, Yunnan Vocational College ofMechanical and Electric Technology, Universityof TV and Radio, and Yunnan Vocational Col-lege of Culture and Art.

The construction works included improve-ments to classrooms, libraries, laboratories, dor-mitories, gymnasiums, administration buildings,cafeterias and related structures. At the YunnanCulture and Art College, the project constructeda performing arts building and theatre, whileKunming Metallurgy College was endowed witha science and technology museum.

Jaafar Al-Mahdi, OFID country officer forChina, said: “The country’s focus on vocational

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evelopment, defined in terms of reductionin poverty and its ultimate eradication, as

well as elimination of social inequality and sys-temic unemployment, has a vital ally in educa-tion. In the words of Nobel Prize-winningeconomist Joseph Stiglitz: “Development is abouttransforming the lives of people, not just trans-forming economies. Economists refer to educa-tion as human capital: investing in people paysdividends just as machinery does.”

Madagascar, the fourth largest island in theworld, is famous for its unrivalled wealth of in-digenous wildlife. A less wholesome fact is its 75percent poverty rate. Among other measuresbeing taken to address this urgent issue is a newnational education plan for the period 2013–2015, which sets out to encourage school atten-dance, improve teaching quality and strengtheninstitutions.

One of the key institutions charged with develop-ing highly qualified personnel for public adminis-tration, as well as for the economic and financialsectors, is the National Institute for Accountingand Management (INSCAE). Established in 1986,following signature of a memorandum of under-standing between the Malagasy Government andthe World Bank, INSCAE aims to “train high-cal-iber managers, promote entrepreneurial initiativesand engage in managerial sciences research.” Sinceits inception, it has trained over 5,000 students.

For many years, INSCAE’s mission has beenjeopardized by infrastructural constraints, withfacilities scattered throughout the capital, Antananarivo. The fact that the premises werenot owned by the institute created additional dif-ficulties in meeting the investment requirements. INSCAE’s motto “We build up for excellence” washampered by the need for better facilities.

To boost its economy, Madagascar needs to equip its public and private sectors with highly qualified human resources. In support of this goal, OFID has contributedsubstantially to the cost of building new premises for INSCAE, a prestigious institutethat has so far trained more than 5,000 students. by Damelys Delgado

OFID IN THE FIELD

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Hery Rajaonarimampianina,President of Madagascar,

speaking at the INSCAE inauguration ceremony.

Building better opportunities for the Malagasy


Improved infrastructure equals better educationResearch sponsored by UNESCO has shown thatthe availability of infrastructure and other educa-tional resources significantly influences the cre-ation of an environment conducive to learning.According to UNESCO’s analysis, infrastructureimprovements represent an average four-point in-crease in student performance, while the incor-poration of additional basic services suggests anincrease of between two and eight points.

In an INSCAE analysis, the promotion ofhuman capital, as conceived by economists, in-volves the development of technical skills requiredfor the professional world, and the empowermentof individuals for life in society in the broadestsense. The current president of Madagascar, HeryRajaonarimampianina, has attempted to promotesuch development ever since 1991, when he was di-rector of studies at the institute.

In view of the crucial role of human capitalin the development of Madagascar, its governmentrequested BADEA and OFID to co-finance the con-struction of a new building to host INSCAE.

This new building would accommodate alarger student body, concentrating all activities ata single site and extending its array of interven-tions nationwide through the incorporation ofstudents from other provinces.

The new INSCAE facilities project thus entailed theconstruction of a seven story building with a totalarea of 6,700 sq m on 67 hectares of land. Thebuilding hosts administrative offices, classrooms,laboratories, teachers’ rooms, reprography rooms,elevators, sanitation facilities, a library, a cafeteria,a 200-seat auditorium, as well as furniture, equip-ment and vehicles necessary for the efficient oper-ation of the institute.

Beyond the physical improvements, the newpremises are expected to improve the overall qual-ity of the training. Enrolment capacity has in-creased by 400, from 1,800 to 2,200, therebyproviding a bigger source of highly qualified em-ployees.

During the 2014 inauguration ceremony,Mahmoud Khene, OFID country officer for Mada-gascar, stated: “Within these new premises, IN-SCAE will indeed be able to fulfill its noble missionunder optimized conditions, for the benefit of itsstudents and teaching personnel, but also andforemost for the benefit of the entire nation”. Headded: “By making the strategic choice to invest inits own future, Madagascar has undoubtedly takenan important step toward the consolidation andsustainability of its development efforts.”

With this brand new headquarters, Mada-gascar is indeed investing in the empowermentof its people, the most important asset for anycountry. �

OFID IN THE FIELD

The new purpose-built INSCAE premises providethe perfect educational environment for studentsand tutors alike.

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OFID IN THE FIELD

Eight years after launching its scholarship program, OFID examines its impact through voices from the ground. The results show empowerment, enhanced capacity, knowledge, and more than anything, change. by Reem Aljarbou

OFID scholars changing the world

PHOTO: RAWPIXEL/SHUTTERSTOCK.COM


OFID IN THE FIELD

Established in 2006, the OFID Scholarship Program set out to sponsor outstand-ing students from developing countries through their graduate studies in a de-velopment-related field. Since its inception, the program has supported 17students from 16 different developing countries. OFID scholars have studied atleading universities and have become OFID ambassadors, not only at their in-stitute of study, but also in their home communities.

Many scholarship alumni have now returned to their countries and assumed various positions and pursuits in the area of development. OFID hascontinued to connect with these individuals, who have become strong advo-cates of OFID’s work and have helped increase visibility in their countries.

Robert Pwazaga2010 Scholar, GhanaMaster’s in International DevelopmentLondon School of Economics

Robert currently works at World Vision Interna-tional as an area development program manager.Since graduation, Robert has undertaken a num-ber of research activities in the fields of gover-nance, political economy and accountability,taxation, and foreign aid. One of these studies,entitled Attitudes towards tax compliance in Ghana:challenges and the way forward, won the Afro-barometer Summer School Award 2013 from theUniversity of Cape Town. Robert was also lead re-searcher with the University of Manchester onthe study Political Economy Analysis of Foreign Aidin Ghana, also published in 2013. During the

same year he managed a project entitled Trans-parency and accountability in local governance withfocus on women, people with disability, youth andother vulnerable groups in Ghana.

For Robert, the most significant changesince his graduation is his ability to contextualizesociety’s problems better and come out with pro-posals to solve them. “The OFID scholarshipaward was the best thing that ever happened tome in my education. It is the key to all careerachievements to date and those yet to come. I stillremember that day when the call came that I hadbeen nominated to receive the scholarship. It’s afeeling I pray every student from a developingcountry should experience. What made my caseso touching is that I was the first in Africa and thefirst male in the whole world to receive theaward.”

Michelle Palacios2012 Scholar, Guatemala Master’s in Environmental Development Complutense de Madrid

Following her Master’s degree, Michelle beganher PhD research, which focuses on using econo-metric measurements to determine the impact ofwomen in rural areas of Guatemala. She had theopportunity to assess two major projects withlocal NGOs: the value chain of organic coffeeproduction, and the evaluation of agriculturalstart-ups.

Michelle believes that the value of womenwithin the rural workforce, especially in the agri-culture sector, is fundamental for development.

She told us that her graduate studies had madeher feel stronger and capable of doing more. “Myactions have inspired my community, and my sis-ter now wants to get a Master’s degree abroad be-cause she saw the impact it had on me.”

Michelle is now embarking on a project thattransforms garbage into electricity, implementingtechniques already in Europe. “I want to thankOFID for not just the scholarship, but for all theattention, time and help provided. It is importantto feel that what you believe matters to others. Itwas absolutely extraordinary to exchange experi-ences with people from different countries, to dis-cuss common problems and possible solutionsthat you can adapt to your own. It was a life-changing experience.” �


OFID IN THE FIELD

Didier Kadjo2011 Scholar, Côte d’IvoireMaster’s in Agricultural Economics Purdue University

�After completing his graduate studies, Kadjowon the Borlaug LEAP fellowship from USAID topursue PhD research. He is currently pursuing aDoctorate in Agricultural Economics and is a grad-uate research assistant at Purdue University. His re-search focuses on storage issues using data frommaize production in Benin. He addresses storagetechnologies affecting smallholder farmers, qualityissues and the effect on their market participation.

Kadjo told us that Côte d’Ivoire faces thechallenge to restore food production in the most

Sameen Shahid2009 Scholar, PakistanMaster’s in Public Administration in International DevelopmentHarvard University

Since completing her Master’s, Sameen was project manager for a two-year national mediacampaign for education reforms in Pakistan. Fol-lowing this experience, she has been teaching ata school to get a better understanding of the is-sues within the education sector. She is currentlyworking on a start-up idea for an after-schoolprogram for young leaders. Sharing her insightswith OFID she said: “I think the most significantchallenges are related to leadership. There are

many downward trends in society, but we do notsee a systemic cultivation of leaders to confrontthe issues being faced by society.”

Sameen spoke about the role of Pakistan’ssocioeconomic elite in building a sustainable future and the lack of training provided to themto play such a role effectively. She is working onoffering leadership models that cultivate char-acter strengths in youth and then, through personal engagement within the community,build their capacity to become positive agentsof change. “The OFID Scholarship was an out-of-this-world opportunity. OFID was incrediblygenerous—there is no organization supportingin such a manner. I will always be grateful,” shesaid. �

Fields of studyInternational DevelopmentAgricultural EconomicsBiomedical SciencesEnvironmental DevelopmentPublic HealthRenewable Energy SystemsEnvironmental EngineeringSustainable DevelopmentSustainable Energy TechnologiesHuman Rights, Conflict and JusticeFood Safety, Hygiene and ManagementPolicy, Planning and DevelopmentPublic AdministrationInternational Development

17 students from 16 countries4 world regions 15 universities

8 women 9 men

OFID scholars

affected areas. Rice and maize continue to be im-ported, and he believes that the discrepancy inwealth between commodities makes food farm-ers poorer. He stressed: “Food markets can be apowerful engine of growth and development,and there are opportunities to improve farmers’well-being by reducing post-harvest losses andmarket inefficiencies. Africa needs improvedpolicies and efficient implementation. The fail-ure to consider agriculture as a business activityimpedes agricultural innovations. Thanks to myexperience as an OFID scholar, I strongly believethat agriculture can contribute to eradicatingpoverty and hunger if it is considered as a busi-ness activity.”

he exhibition, featuring a selectionof OFID/UNESCO co-funded proj-

ects, was inaugurated by OFID Director-General Suleiman J Al-Herbish, whodedicated the occasion to the Custodian ofthe Two Holy Mosques, King Abdullah binAbdul Aziz Al Saud, who had passed away aweek earlier.

In his opening remarks, Al-Herbishemphasized the central role of education inattaining the goals of sustainable develop-ment—particularly in poor countries. “Ed-ucation is one of the most powerful driversof development,” he stated, before going onto outline examples of OFID’s work in thesector and pledging that these efforts wouldcontinue.

Al-Herbish welcomed the sustainedfocus on education in the proposed Sus-tainable Development Goals, which comeinto force in 2016. �


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OFID and UNESCO: A long-lasting partnershipfor education and development

Every year, on January 28, OFID celebrates the anniversary of its establishment in 1976.This year, the anniversary was dedicated to the role of education in development with an exhibition co-organized with UNESCO (the United Nations Education,

Scientific and Cultural Organization).by Reem Aljarbou

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From left: UNESCO Deputy Director-General Mr Getachew Engida; HE Mohammad bin Abdulrahman Al-Salloum, Ambassador of Saudi Arabia to Austria; OFID Director-General Mr Suleiman J Al-Herbish.

An innovative approach reapsdividends for Palestinian childrenThis project was introduced to address bar-riers that inhibit Palestinian children fromaccessing quality education. The maincomponents entailed promoting inclusiveand child-friendly education in 58 govern-ment and 12 UNRWA schools. It focused onimproving the quality of teacher trainingand education programs, through child-ledactivities and project-based learning.

Khitam Schehadeh, supervisor at BeitLahm Primary school said: “The teachershave more clarity about what makes a co-hesive education and how we couldachieve it. The idea of educating throughactivities that are led by the studentsthemselves is one of the best strategies to implement this form of education. Thepupils changed and started to think aboutthings they hadn’t thought about before.The change is continuous.”

“Our cooperation has gone from strengthto strength. It has become more diversifiedand it has deepened. Together our focus hasfallen on education, as the most powerfulforce for human rights and dignity, as adriver for the sustainability of all develop-ment. Today we look back on 30 years, butthis is just the beginning,” Engida stated.

During the reception, OFID signedthree new grant agreements with UNESCO,totalling US$2.3m. These will support: amultiregional technical and vocational ed-ucation and training program covering

parts of Africa, Latin America and Asia; thesolar electrification of 60 rural schools insub-Saharan Africa and South East Asia; anda scheme that will help strengthen teach-ers’ education for quality tuition and learn-ing in various African countries.

The reception also featured a perform-ance by the renowned Russian pianist andUNESCO Artist for Peace, Sergei Markarov.He played Beethoven’s Funeral March,Sonata No.12 op.26, and Rachmaninoff’sPreludes, do dièse mineur, in tribute to thelate King Abdullah. �

� The Director-General also spoke aboutthe importance of culture as the fourth pil-lar of sustainable development. “The threeconventional pillars—economic prosperity,social justice and environmental protec-tion—are important drivers of our work,but they do not limit our contribution toeducation and other intellectual pursuits.”

Speaking on behalf of UNESCO Direc-tor-General Irina Bokova, UNESCO DeputyDirector-General Getachew Engida reaf-firmed UNESCO’s commitment to intensi-fying its 30-year partnership with OFID.

Energy for education in sub-Saharan AfricaFor thousands of children in rural areas ofBenin, Madagascar, Mauritania and Togo,the OFID/UNESCO project has added awhole new dimension to their educationexperience. Thanks to the installation of

solar photovoltaic systems, a total of 75schools are being equipped with electric-ity.

Romeo Toboe, Director of Dona Pri-mary School in Benin said that the electri-fication benefits had spilled over onto thecommunity, an aspect they had not antici-pated. “The adults come here in the

evening to study, enabling women to comehere to study as well,” she said.

With the advantage of proper light-ing, teaching and study is now a pleasure.What’s more, both teachers and studentsare enjoying for the first time the learningpossibilities presented by access to multi-media teaching aids and the Internet.

The project will ultimately benefit al-most 16,000 children. It will also serve as amodel for duplication at national, regionaland international levels. Padis Numelodou,a teacher at Dona Primary School shared:“It has changed the life of our communitybecause you can’t do anything in the dark,so when the light came it helped boost thedevelopment of the community.”

The exhibition uses the medium of photography to highlight a selec-tion of OFID/UNESCO joint projects. Each project varies in its focus,but all are testament to the central role of education in attaining thegoals of development, particularly in poor countries, where illiteracy,inadequate capacity building and the lack of social awareness consti-tute major stumbling blocks to progress.

Education the enabler


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Students at Dona Primary School in Benin show off their new solar lights.

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These wide-ranging enhancements arebeing implemented through a partnershipwith the Palestinian Ministry of Educationand Higher Education and UNRWA in sup-port of the implementation of the broaderEducation for All package for Palestine, in-volving nine UN agencies and coordinatedby UNESCO.

Education as a tool for public health School-based HIV/AIDS education pro-grams have proved effective in equippingyoung people with the knowledge andskills they need to protect themselves fromHIV infection. With this in mind, OFIDjoined with UNESCO in 2009 to help dis-tribute special EDUCAIDS resource packs to17 countries in East and Southern Africa, aregion severely affected by the pandemic.

These packs include curriculumguidelines and learning materials, together

with educator training and support, andrepresent a comprehensive education sec-tor response to HIV/AIDS.

Robert Munganda, Chief EducationOfficer, Broad Curriculum and CurriculumManagement at Namibia’s National Insti-tute for Educational Development ex-plained: “More than 128 teachers are beingtrained. These teachers need to be empow-ered to provide education, preventativemeasures and support to all our students”.

The project involved some 10,000teachers and one million learners. Alsoamong those to benefit were the manythousands of teachers and children whohad already been infected or affected byHIV/AIDS. Mamohau Thetsane, a highschool student at the Maseru Region inLesotho who participated in the positivespeaking workshops shared: “I think it isimportant that silence is broken, becausemore information means fewer people liv-ing with HIV.” �


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As an organization committed, among other aims, to building a world of peace, toler-ance, acceptance and mutual respect, UNESCO has been pushing hard for culture tobe acknowledged as an important driver and enabler of sustainable development.

We asked Deputy Director-General Getachew Engida to elaborate on this crucial role.

“Broadly defined, culture is the glue that holds societies and countries together. It’s whatgrants people identity,” he explained.

“Sustainable development doesn’t happen in a vacuum. You cannot simply impose adevelopment model from one part of the world on another. You need to adjust forboth tangible and intangible cultural context, if you want to succeed on the ground.”

He continued: “Cultural industries also play a signif icant economic role by promotingtourism.”

Engida is openly critical of the fact that culture—like energy—was omitted from the Millennium Development Goalsdespite their signif icant success in other areas. “Going forward, the new Sustainable Development Goals need to beunderpinned by the importance of culture,” he argued.

He went on to point out that, although this message is part of the SDG draft, it is not referred to as explicitly as UNESCO would like. “We keep pushing and gaining momentum, but we need all the help we can get from the de-velopment community. We hope that culture will be incorporated in the f inal goals because, without it, sustainabledevelopment will be simply theory.”

UNESCO: Culture is a must for SDG success

by Nadia Benamara

Getachew Engida

This Palestinian schoolgirl’s smile says it all.

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FID Director-General Suleiman J Al-Herbishhas been honored with the Grand Decora-

tion in Gold for the Meritorious Service to theProvince of Vienna. The award, which is one ofAustria’s most prestigious national decorations,was conferred on Al-Herbish in recognition ofhis—and OFID’s—contribution to the Austriancapital. Renate Brauner, Vice-Mayor of Vienna, presentedthe award on behalf of Mayor Dr Michael Häuplin a ceremony on January 30, 2015, at ViennaCity Hall. Conferring the award, Ms Braunerpraised Al-Herbish for his professional accom-plishments and his contribution to Vienna.

“The award is an expression of friendshipand respect for Mr Al-Herbish’s formidable en-gagement in social and cultural issues, which is

highly praised by the City of Vienna in particular.It also signifies how much the City values its roleas a site of, and for, international exchange, dia-logue and cooperation,” said Brauner.

The appreciation of Al-Herbish and OFIDwas further elaborated by Dr Oliver Rathkolb,professor of contemporary history at the Univer-sity of Vienna. In a citation, he spoke of OFID’snoble mandate and its contribution toward sus-tainable development. He also highlighted themore than 50 grants extended by OFID to sup-port the activities of various Austrian organiza-tions that were working both at home and in thedeveloping world. All of these activities had fur-ther intensified a long relationship between Al-Herbish and OFID on the one hand, and theCity and the people of Vienna on the other.


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The City of Vienna honors Al-Herbish and OFID

A prestigious award from host city Vienna has cementedOFID’s position as a highly respected and valued friendof the Austrian capital. by Arya Gunawan Usis

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“Director-General Al-Herbish is a very distin-guished friend of the City and Province of Viennaand Austria and an outstanding chief executiveofficer of OFID,” said Rathkolb, adding that Vi-enna would continue to provide an inspiring,welcoming and friendly base for OFID’s impor-tant global operations.

“Ich bin ein Wiener”Accepting the award on behalf of his OFID col-leagues, his family and OFID Member and PartnerCountries, Al-Herbish expressed his heartfeltthanks to his hosts and spoke of the special rela-tionship that existed between OFID and Vienna,home to the institution since its establishment in1976.

Placing the decoration in the context of themany others he had received during his tenure atthe head of OFID—including one from the Re-public of Austria—Al-Herbish confessed that thisaward held a very special place in his heart be-cause it came from the city that he loved. “Ich binein Wiener,” he said. “I am a Viennese.”

During the ceremony, Al-Herbish paid trib-ute to two great figures: the late Bruno Kreisky,Austrian Chancellor from 1970 to 1983, and KingAbdullah bin Abdul Aziz Al Saud of Saudi Arabiawho passed away earlier that month.

Of Kreisky, Al-Herbish praised the formerstatesman’s wisdom and foresight in invitingOPEC (the Organization of the Petroleum Export-ing Countries) to have its secretariat in Vienna, a

move that had resulted in OFID also making theAustrian capital its home.

In a tribute to King Abdullah, Al-Herbish extoled the late monarch’s pivotal role in drawingthe world’s attention to the urgent issue of energypoverty. It was one of King Abdullah’s greatestlegacies that the goal of universal energy accesshad become a major item in the internationalagenda as well as a flagship program of OFID.

Al-Herbish went on to point out the centralrole played by the City of Vienna as a global hubfor international energy matters. As well as OPECand OFID, the city was host to the recently estab-lished secretariat of the Sustainable Energy for All(SE4ALL) initiative and a number of other energy-related organizations.

Al-Herbish disclosed that the late King Abdullah had always spoken highly about OPECand OFID, and about Vienna being the seat ofboth institutions. It was for this reason, he stated,that the King had been delighted to have hiseponymous International Centre for Interreli-gious and Intercultural Dialogue also hosted bythe City when it was established in 2011. “OPEC,OFID, and the Center will remain in Vienna. TheCity is the right place for these organizations,”said Al-Herbish.

The award ceremony was observed by Al-Herbish’s close family members, OFID man-agement, ambassadors and the heads of variousinternational organizations based in Vienna, as well as high-ranking officials of the City of Vienna. �


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Dr Oliver Rathkolb, Professor of ContemporaryHistory, University of Vienna, delivering the citation.

Mr Al-Herbish with Renate Brauner, ViceMayor of Vienna, who presented the decorationon behalf of Mayor Dr Michael Häupl.


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Private sector ups support to renewable energyOFID-backed solar program wins prestigious awards

he awards recognize innovation, excel-lence and achievement in energy and in-

frastructure finance in the Middle East. Theselection of the OFID-backed program as doublewinner is strong affirmation that OFID’s in-creased private sector investment in renewableenergy is producing effective, sustainable re-sults.

Tareq Alnassar, head of OFID’s private sec-tor and trade finance operations said: “We arevery proud of our cooperation in these projectsand happy they won the awards. It encourages

us that OFID’s intensified efforts to support re-newable projects are being directed in the rightway.”

OFID has long supported renewable energyinitiatives through its public sector fundingmechanisms, but increased activity in this arenausing private sector capital is new.

“We recognize how important private sec-tor funding is to cover areas that conventionalproject financing cannot, for example SME en-ergy ventures,” explained Alnassar. “Providingthe right financing models for smaller busi-

An innovative program to finance seven renewable energy projects in Jordan,has been awarded Best Middle Eastern Renewables Project and Best MiddleEastern Overall Project by the prestigious Euromoney publication IJGlobal.Led by the International Finance Corporation, the program was supported by a large syndicate of financiers including OFID. by Justine Würtz

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The “Seven Sisters” syndicate, including

OFID’s Tareq Alnassar(front 1st right), with the

IJGlobal awards.

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On February 20, 2015, OFID signed a €5m transaction agreement for equityparticipation in the Energy Access Fund (EAF). The EAF has been establishedto help provide important and stable funding to small enterprises focused onproviding energy access to off-grid communities.

The Fund will invest in electricity access projects for rural and suburban popu-lations in sub-Saharan Africa, with a particular focus on SME renewable energyenterprises, such as solar home systems, hydro, wind and biomass micro-generation infrastructure.

These off-grid and small-grid projects represent the “missing middle” of energyenterprises, and typically cannot access traditional financing sources. Some €55mof capital from the Fund will boost the growing number of energy SMEs thateffectively provide electricity to remote communities. Around 20 SMEs are expected to benefit.

The Fund brings together a partnership of institutions, like OFID, SchneiderElectric, the Commonwealth Development Corporation, the French develop-ment bank Proparco and the European Investment Bank, committed to expand-ing energy access around the world.

“The Energy Access Fund will provide a pool of resources to enable the emer-gence of innovative companies and help close the signif icant energy access gapin sub-Saharan Africa” said OFID’s Adebayo Babalola, who is in charge of theEAF project.

OFID joins the Energy Access Fundto finance the “missing middle”


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nesses diversifies the energy mix and raises en-ergy security in low income countries.”

Small- and medium-sized (SME) energy en-terprises fall into the “missing middle” of manydeveloping countries’ economies. In general,such businesses have little access to traditionalfinance: they fail to meet conditions set by for-mal financial institutions, but at the same timeare too large to qualify for microfinancing. Inmany countries, this hinders the emergence andpotential growth of an effective renewable en-ergy sector.

Bridging the funding gapThe year 2014 saw a focused bid by OFID totackle the gap in renewable energy financing,with a total of six projects receiving private sec-tor funding. This represents a significant in-crease over the previous year, during which onlytwo such initiatives were approved.

Dubbed the ‘Seven Sisters’ by IJGlobal, Jor-dan’s solar photovoltaic (PV) plants representthe largest collection of privately-owned solarPV ventures ever to be realized in the Middle Eastand North Africa region. With individual, rela-tively small capacities of 10–21MW, they formpart of the Government’s Round 1 Solar PV Re-newable Energy Program, which will eventuallyencompass a total of 12 plants.

A unique aspect of the Seven Sisters pro-gram was the syndicated financing facility thatallowed the seven projects to be treated as a unit.Explained Alnasser: “With the projects underthe umbrella of one program, a single form ofpower purchase agreement was available, easinglegal and other costs for individual plants. Theprojects also featured identical financing termsand could draw on the same pool of lenders.”

According to Alnassar, the Seven Sisters pro-gram won its awards on merit of its innovative fi-nancing. “The funding structure allows multipleprojects, in multiple locations, to proceed in par-allel. At the same time it gives individual com-mercial developers the freedom to assemble theirsites as they judge best,” he stated.

Learning curveOFID’s accelerated involvement in the renew-ables sector has brought with it many challengesand has meant a steep learning curve for the in-stitution’s small private sector team.

Said Taufik Ridha, who is in charge ofOFID’s two Seven Sisters projects—Falcon Ma’anSolar Power and Jordan Solar One—revealed thatthe greatest challenge for the syndicate had beenthe completion of the approval process and har-monization of documentation for all seven �

Solar power is an efficient way to bring energy to off-grid communities.

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� projects. This, he said, had required constantdiscussion and regular meetings and, in OFID’scase, a turnaround of just one week betweenGoverning Board approval and signature of thetwo loan agreements.

“But only in this way could the programachieve the greatly reduced transaction costswhich made each of the seven small-scale proj-ects affordable and bankable,” Ridha explained.

Similar time challenges were experiencedby Luiscela Moreno, officer in charge of a 2014-approved private sector project in Honduras, in-volving the construction of three of thecountry’s first solar plants. The project is spon-sored by Sun Edison, a leading solar powerprovider. “Even after OFID’s Governing Boardapproved the project, we were pushed to get alldocumentation in place before the end of theyear in order to meet government deadlines fortariff incentives,” Moreno said.

The tariff incentives for renewables are sup-ported by sovereign guarantee and applicableonly to the first 300MW from plants operationalbefore August 2015. “In order to benefit fromthese incentives, lending teams had to fast trackcompletion processes. Being based in Europe,OFID had to accommodate a lot of late night ne-gotiations to finalize the agreement,” Morenoelaborated.

As well as the Sun Edison project, OFID ap-proved a second solar initiative in Honduras in2014. This comprised two term loans in favor ofthe Terra Group, one of Central America’s mostexperienced players in energy and infrastruc-ture, and an existing private sector partner ofOFID. Previous collaboration with the Grouphas included a project for the development ofthe San Marcos wind farm, also in Honduras,which was recently inaugurated by PresidentHernandez.

All of the OFID-financed projects supportan ambitious plan launched by the Governmentof Honduras to expand renewable electricitygeneration and reduce reliance on fossil fuels by25 percent.

“The Government set a time-frame for solarprojects to access privileges on quotas, andeveryone was working to get things together tomeet the deadline. The benefits made availableby the government have done much to raise rev-enue potential and increase foreign funding inthe sector” said Saud Al Rajhi, officer in chargeof the Terra Group project.

He continued: “These new renewable en-ergy projects will help to reduce the cost to theGovernment of electricity and thus free up re-sources for other equally important spending,such as education and healthcare.”

A collection of “firsts”As well as solar, the private sector also providedsupport to hydropower in 2014, breaking newground in the process. A term loan to Essel-CleanSolu Hydropower will help fund the developmentof a run-of-river hydropower plant in easternNepal. This is not only OFID’s maiden private sec-tor project in the country, but also its first privatesector investment in a hydropower project.

“This is a landmark transaction,” statedOFID’s Malcolm Bricknell, who is responsible forthe project. “In addition to so many firsts, thepower purchase agreement includes partial USdollar-indexation in exchange for free electricityto the Nepali government.”

He continued: “The US dollar revenue guar-antee was an important draw for internationallenders, and it took a long time for everything to fall into place, but this really is a pioneeringproject.”

Close on the heels of the Nepal project, financing was approved in December to Arme-nia’s Ardshinbank for on-lending to small- andmedium-sized enterprises (SMEs) involved in the construction and operation of small-scale hydropower plants (see page 37)

OFID to continue enabling role For Alnassar, the strategic intent behind OFID’sincreased focus on renewables is clear: “Jordan,Honduras, Nepal and Armenia, like many ofOFID’s partner countries are heavily dependenton imported fossil fuels. Reducing this depend-ence will free-up valuable funds for them to fi-nance other important development areas.”

He stressed that OFID’s role in these projectswas primarily responsive: “Private sector contri-butions to renewables have been led by our part-ner countries’ initiatives in the sector. OFID’s roleis that of facilitator rather than enforcer, to sup-port each country in its development agenda.”

Referring to the growing success that gov-ernments are enjoying in diversifying both theireconomies and energy sources, Alnassar pointedout that this was largely due to modern financingoptions, which provide flexible terms for broad-ranging energy poverty alleviation efforts andsustainable solutions. “The success of the SevenSisters financing model bodes well for future proj-ects in Jordan and other countries,” he said.

Alnassar assured that OFID’s private sectorwould maintain these efforts in 2015 and beyond:“As we see the new Sustainable DevelopmentGoals come into effect, OFID will unite effortswith fellow development partners to facilitate in-novative ways of financing poverty alleviation ef-forts and sustainable climate change.” �

“OFID’s role is that of facilitator rather than enforcer,

to support each countryin its development

agenda.” Tareq Alnassar


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A term loan from OFID to Armenia’s Ardshinbank is to be usedfor on-lending to SMEs involved in the construction and oper-ation of small-scale hydropower plants (SHPPs).

Arranged through OFID’s private sector f inancing arm, the loanwill assist Armenia in developing its alternative energy sourcesand ease its reliance on foreign imports of oil and natural gas,

Ardshinbank CEO, Mher Grigoryan, explained that the bank waspurposely pursuing commercially viable projects in SHPPs tosupport Armenia’s development. “By pursuing this sector, we fol-low our strategic objective as a leading bank, namely to increasethe shareholder value, while contributing to development andeconomic growth of our country,” he stated.

He continued: “SHPPs contribute to broadening access to en-ergy throughout the country and serve as catalysts in stimulatingjob creation and income generation for socially vulnerablegroups of the population.”

The development of domestic renewable energy sources willplay an important role in Armenia’s socioeconomic develop-ment, while increasing energy security and independence. Uti-lizing the country’s high potential for hydropower energyprovision will be crucial to this.

A recent study of renewable energy potential by the ArmeniaRenewable Resources and Energy Eff iciency Fund has rankedSHPP as the most progressive renewable energy technologyand the most economical for Armenia in the short- to medium-term.

The Armenian government wants to have 30 percent of elec-tricity demand covered by renewables by 2025, and has a strate-gic plan in place to achieve this goal. Hydropower—andspecif ically SHPP—is a critical component of this program,which is supported by international f inance mechanisms and fa-vorable energy legislation.

“The f inancial viability of these projects is ensured through ad-equate feed-in tariffs and a predictable time-horizon of 15 years

guaranteed purchase” explained Grigoryan. “This is an importantcomfort factor for private investors to initiate and launch suchutilities.”

Currently, all SHPPs in Armenia are privately owned and manyof these businesses have taken advantage of the private equityavailable through institutions like Ardshinbank. “A typical bor-rower in such a project is able to make a minimum contributionof 30 percent of the estimated project budget” said Grigoryan.This share could be either in cash or in kind.”

The Armenian government has made remarkable progresswithin the past 15 years to improve energy sector performanceand increase supply from renewables. Currently there arearound 170 SHPPs operating through the country and about60 new plants are under construction. These plants are gener-ating approximately f ive percent of the electricity used in Ar-menia and according to Grigoryan this could rise to ten percentover the next f ive years.

“In the longer term perspective, we believe that the share ofgeneration by SHPPs may constitute 15–20 percent of the over-all electrical energy output of the country,” said Grigoryan. “Thisis realistic to achieve, not only by adding new plants into oper-ation, but also by the simultaneous implementation of moderntechnologies, streamlining the regulatory framework, and im-proving the overall investment climate for the renewable energysector,” he added.

With around one-third of market share, Ardshinbank is a leadingplayer in the SHPP sector in Armenia, a position recognized withthe title “Armenian Bank of the Year” awarded in 2014 by theFinancial Times magazine The Banker.

Ardshinbank’s experience and market-knowledge make them avaluable ally for OFID and other development partners to sup-port the country’s energy access plans. “We truly value our part-nership with OFID” said Grigoryan, “and I am confident that wehave a long way to go together—united in our goals of eco-nomic development and poverty reduction.”

Small hydro plants power Armenia

PHOTOS: ARDSHINBANK PHOTO ARCHIVE

dequate financing together withclose coordination and partnership

among all relevant parties is what will de-fine the success of the post-2015 develop-ment agenda. Such was the conclusion ofa high-level conference on the new Sus-tainable Development Goals (SDGs)hosted by OFID at its Vienna headquarterson February 20.

The event was moderated by OFID Director-General, Suleiman J Al-Herbish, and fea-tured keynote speaker Dr MahmoudMohieldin, Corporate Secretary and SpecialEnvoy of the President of the World Bank.

The event was attended by around 80 participants, comprising representativesfrom the Austrian government and interna-tional organizations based in Vienna, various

development partners, and representativesfrom the private sector, as well as ambassa-dors of OFID Member and Partner Countries.

In his opening remarks, Al-Herbish re-minded delegates of the extensive scope ofthe proposed SDGs: 17 goals, 169 targetsand hundreds of indicators; a highly ambi-tious agenda compared to the eight goals ofthe MDGs.

Al-Herbish, nonetheless, expressed hisoptimism that the SDGs were attainable, oncondition that all parties could reach agree-ment on overcoming the four imminentchallenges:

• securing full support from all relevantparties, backed by strong partnership andthe right of countries to formulate theirown development strategies

• ensuring a flow of development financecompatible with the transformative ob-jective

• strengthening South-South cooperation

• developing a monitoring system whichmeasures progress based on principles ofaccountability and respect for commit-ments

Finishing unfinished businessIn his presentation, keynote speaker Dr Mo-hieldin cited the progress achieved underthe MDGs, which close at the end of thisyear. Global poverty, for instance, had beenhalved five years before the deadline. Hepointed out, however, that the reductionhad occurred at a global level; at countrylevel, cases of extreme poverty were stillomnipresent.


Post-2015 development agenda demandsbetter financing and stronger partnerships

As momentum builds towards finalization of the successor to the Millennium Development Goals (MDGs),OFID hosted in February a high-level conference to discuss

the new agenda and its effective implementation.by Arya Gunawan Usis

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Keynote speaker, Dr Mahmoud Mohieldin, Corporate Secretary and President’s Special Envoy, World Bank (left)with OFID Director-General, Suleiman J Al-Herbish, who moderated the event.

Mohieldin reported that 71 countries hadmanaged to meet the poverty reduction tar-gets, while several others were moving inthe right direction but were unlikely to suc-ceed by the end of this year. A few countrieshad completely missed the targets.

“We have achieved something at theglobal level. However, there is still a lot tobe addressed at country level,” said Mo-hieldin, adding that within this context theSDGs would set out to “finish the unfin-ished business of the MDGs.”

Mohieldin admitted that the SDGshad greater loads compared to the MDGs,but said that this wasn’t surprising consid-ering that the SDGs had been developedwith an approach that promoted democ-racy and inclusivity. Each country had anopportunity to determine goals and targetsthat fitted their own interests to maintaineconomic growth and investment.

Financing is criticalAccording to Mohieldin, financing is onefactor that will define implementation ofthe SDGs. Pointing out that official devel-opment assistance (ODA) on its own was farfrom adequate, he cited the example of theinfrastructure sector, which alone wouldneed investment of US$1tr per year, anamount seven times higher than that cur-rently available in ODA.

This enormous financing challengewould demand strong partnerships amonggovernments, the private sector and devel-opment organizations, together with themaximization of all available opportuni-ties. Mohieldin identified these as: im-

proved domestic resource mobilization;smarter fundraising and management ofaid funding; the unlocking of private in-vestment; increased foreign direct invest-ment; strategic use of remittances; andphilanthropic finance for development ob-jectives.

Mohieldin emphasized the impor-tance of involving the private sector in fi-nancing the SDGs. He said that in thecurrent development agenda the privatesector had not been invited to address prob-lems related to poverty eradication. He ar-gued that this paradigm should be changedand private sector engagement activelysought. The private sector, he pointed out,could create opportunities for efficient andeffective funding.

Learning from the MDGsStill on the subject of financing, Mohieldinwent on to say that valuable lessons hadbeen learned from the MDG experienceand the shortfall in results. Whereas theMDGs had been launched without any dis-cussion about financing, the same issuehad been the subject of much debate wellahead and in anticipation of the SDGs. Inthis context, Mohieldin reiterated the sig-nificance of the Third International Con-ference on Financing for Development,which will take place mid-July, in AddisAbaba, Ethiopia.

Apart from financing, Mohieldinpointed to the importance of effective insti-tutions, effective policies and good domes-tic coordination in each country as thefactors that will determine the success or

otherwise of the SDGs. Each country mustget rid of the “silo and isolation approach”at the relevant ministerial level and replaceit with maximum coordination. “Domesticcoordination must be secured first, beforebuilding partnerships at the global level,”he stressed.

Lively discussionThe lively discussion that followed thekeynote speech included interventionsfrom many delegates.

Yukiya Amano, Director-General ofthe International Atomic Energy Agency,emphasized the role of sciences, such asthe nuclear sector, which he said must beutilized to help implementation of theSDGs.

Ambassador Sylvia Meier-Kajbic, headof multilateral development cooperationfrom Austria’s Federal Ministry for Europe,Integration and Foreign Affairs, remindedthat there was plenty of homework to bedone by each country, notably in the fieldof energy efficiency and in transparency inthe use of public resources.

Li Yong, Director-General of theUnited Nations Industrial DevelopmentOrganization underlined the importance ofinclusive industrialization to stimulate eco-nomic growth that, in turn, would con-tribute to the success of the SDGs.

Other contributions came from repre-sentatives of the UN Office on Drugs andCrime), the Sustainable Energy for All Sec-retariat, the International Institute for Ap-plied Systems Analysis, the EuropeanUnion, and various ambassadors. �


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he delight of the Jacqueville populationwas summed up by Ivorian President Alas-

sane Ouattara: “We cannot imagine the joy of thepeople, as we have not shared their years of dailysuffering,” he said at the inauguration ceremony.

Addressing a vast crowd that included dig-nitaries and traditional community leaders aswell as thousands of jubilant locals, Ouattara de-scribed the 608m-long bridge that links the cityof Jacqueville with the capital Abidjan as “a sym-bol of perseverance and reconciliation.”

The bridge, named “Phillipe Grégoire Yacé”after Ivorian politician and former mayor ofJacqueville, is the realization of a dream 15 longyears in the making. Originally conceived in1999, the project encountered many setbacks onthe way to implementation.

For the people of Jacqueville, the new bridge rep-resents nothing less than a lifeline. Co-financedby OFID, BADEA (the Arab Bank for EconomicDevelopment in Africa) and the West AfricanDevelopment Bank, the modern structure re-places the old motorized—and unreliable—ferryservice and the unsafe “pinasses” or flat-bot-tomed boats that have been used to cross theEbrié lagoon since the peninsula was separatedfrom Abidjan in 1950 by the construction of theVridi canal.

Speaking at the ceremony, current mayor,Joachim Beugré, said: “After 65 years of waiting,this is a huge boost for the people in terms of mo-bility, especially when it comes to urgent medicalevacuations.”


Saturday, March 21, 2015, is a date few residents of Jacqueville, Côte d’Ivoire will forget. It was the day their lives became a whole lot easier thanks to the commissioning of a bridge connecting their isolated peninsula with the mainland. by Audrey Haylins

Côte d’Ivoire: Newbridge heralds futureof opportunity

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Unrealized potentialLocated in southern Côte d’Ivoire, around 60kmwest of Abidjan, the Jacqueville area sits on athin strip of land facing the Atlantic Ocean andseparated from the continental mainland by theEbrié lagoon.

The tropical climate provides an ideal envi-ronment for agriculture, notably the cultivationof cash crops such as coffee, cocoa, rubber and palm oil, as well as a range of food staples. Domestic livestock rearing is another popularactivity.

Thanks to favorable sea streams, the area isalso home to a rich marine environment withplentiful fish stocks. A large portion of the pop-ulation is engaged in the fishing sector, which isthe backbone of the Ivorian economy.

There is also considerable industrial activ-ity, most significantly in the field of oil and gasproduction. In addition to offshore drilling anda refinery run by the Société Ivoirienne de Raffi-nage, the peninsula boasts a thermal power plantoperated by the national electricity company.

Despite having so much to offer, the area’sconsiderable potential has been inhibited overthe years due to its inaccessibility and the extracost of doing business.

“The whole peninsula is about to undergoa huge transformation,” said OFID country offi-cer, Mona Alessa, on her return to Vienna afterwitnessing the opening ceremony. “There is agreat sense of excitement and anticipationamong the people, because the bridge really


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OFID’s Mona Alesssa (center)flanked by representatives of AGEROUTE, the national roadagency, during the construction phase of the project.

Ivorian President Alassane Ouattara(3rd from right) cuts the ribbon nextto (from left) Ivorian Prime MinisterDaniel Kablan Duncan; Great Chancellor of Ivorian NationalOrder Henriette Diabate; Egyptian Prime Minister IbrahimMahlab; former Ivorian PresidentHenri Konan Bedie; and Ivorian first lady Dominique Ouattara, during the inauguration of thePhilippe Grégoire Yacé bridge.

does represent a metaphorical highway to a fu-ture of endless possibilities.”

Alessa went on to reveal that President Ouat-tara had used the opportunity of the inaugura-tion to announce that the government would bebuilding new schools and health centers in theJacqueville area in the near future.

“This is fantastic news for the people ofJacqueville,” said Alessa, who pointed out thatthis kind of investment would be especiallymeaningful for ordinary families who had strug-gled for so long with limited basic services.

With travel time cut from one-and-a-halfhours to just a matter of minutes, the bridge is ex-pected to be a substantial boon to the area’s fish-ing, agriculture and industry sectors, as well as toits nascent tourism sector. With a 100km stretchof beach, the peninsula is ripe for tourism devel-opment, and several hotel construction projectsare already in the pipeline.

For the large fisher and farming communities,it means the timely delivery of perishable goods tomarket and an end to financial losses caused byspoiled produce. Likewise for the peninsula’s co-conut and palm oil plantations and its offshore oilindustry—with cheaper and faster transportationto hand, opportunities for expansion and increasedcompetitiveness will be much greater.

“The strategic importance of the PhillipeGrégoire Yacé bridge cannot be underestimated,”emphasized Alessa. “The day of its inaugurationby the President will be remembered for manyyears to come.” �

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ike most international organizations,OFID’s founding charter stresses the im-

portance of “giving priority in the recruitmentof Professional Staff to nationals of MemberCountries.” The YPDP is a manifestation of thismandate.

Developed by OFID management, super-vised by a management committee, and admin-istered by the Human Resources unit, theProgram is designed to attract highly qualifiedand motivated graduates from Member Coun-tries, who lack work experience at the profes-sional level. Each annual intake is planned toconsist of three to five participants with a maxi-mum age of 28 and a Master’s degree.


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In April, OFID welcomed on board the first intake of its newlylaunched Young Professional Development Program (YPDP),which seeks to prepare promising individuals from MemberCountries for a rewarding career with the institution.

by Arya Gunawan Usis

L Successful applicants will be employed by OFIDfor two years, during which their competence forprofessional positions will be developed in astructured on-the-job training program. On com-pletion, their performance will be comprehen-sively assessed. For those passing this phase, therewill be an opportunity to continue as full-fledgedstaff of OFID.

The YPDP concept was approved by theGoverning Board in June 2014. After some prepa-ration, the program was announced on the OFIDwebsite and on its social media platforms. Fromthe 40 applicants, eleven candidates were short-listed, with a final four selected to begin their pro-gram in April 2015. �

Nurturing professionals from withinOFID launches Young Professional Development Program

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The four successful candidates admitted they were excited to make their mark as the f irst batch ofYPDP recruits. They also confessed to having immense expectations and to be looking forward to

learning a lot and adding as much value as they can towards OFID’s mandate.

Meet OFID’s young professionals

Sasaenia PaulOluwabunmi is a 25-year-old Nigerian,who graduated fromCranf ield University inthe United Kingdom,where he studied en-ergy systems engineer-ing as an ExxonMobilinternational postgradu-ate scholar. He acknowl-

edged how tough the YPDP selection process hadbeen: “The interview was intensive and involved all-encompassing questions,” he said. Paul, who will be at-tached to the Public Sector Operations department,has previously worked as a UK Youth Ambassador forthe ONE Campaign, an NGO sponsored by the Billand Melinda Gates Foundation.

Twenty-six-year-old Natalia PatriciaSalazar from Ecuadorhas been selected towork in the CorporatePlanning and EconomicServices unit. “I found thepanel interview demand-ing, although concise. Thestress was undeniable, butworth the cause,” said theYPDP recruit who speaks f ive languages fluently: Spanish, Russian, English, German and French. Nataliahas an MA in International Business and Economics,which she studied for in Germany and Norway.

Fatma Elshhati, 25,from Libya, admitted thatshe had spent weekspreparing for the selec-tion interview. “I did notknow if I would be testedon my knowledge, my experience or both,” shesaid. “This led me to over-prepare, which I’m glad Idid, as I did not expect tobe interviewed by a panel comprised of six depart-ment heads.” Fatma earned her Master’s in Interna-tional Studies and Diplomacy from the School ofOriental and African Studies, London, and will also beattached to the Department of Information.

Venezuelan AlesandraSolano holds a Mas-ter’s in Public Relationsfrom London’s Univer-sity of Greenwich. Shesaid that the selectionprocess had put herskills to the test and al-lowed her to demon-strate them. “Joining the program, I expect

to have my skills challenged and developed,” said the 25-year-old, who has worked in the public relations division of several companies. She is placed in the Department of Information.


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More relevant workforce� OFID’s Fuad Albassam, Assistant Director-General, Public Sector Operations, is chairman ofthe YPDP committee. He described the programas “an important milestone” for OFID as an inter-national development organization.

“OFID’s Director-General, in his quest to upgrade the institu-tion’s activities andfunctions, is alwaysopen and willing to takeon challenges and newinitiatives,” said Albas-sam. “And the YPDP isone of them,” he added.

Albassam ex-plained that the pro-gram represented an

important step forward by OFID toengage young people more fully indevelopment work. “By providingtraining and helping to reinforceOFID’s staff base with young people,the institution will have a strongerdrive to implement its mandate.These young professionals, if theyare guided well, will certainly have apositive impact on OFID’s missionin the future,” he said.

Albassam conceded that imple-mentation of the YPDP was chal-lenging: “It started from the processof getting the right candidates, which was noteasy, although the committee worked diligentlyin this respect. We also had to select the right staffto serve as mentors to help these young profes-sionals master the job. Then, there will be quar-terly evaluations, which will be detailed andtarget achievements,” he explained.

Nurturing from withinAbdulwahab Al Abbas, Head of OFID’s HumanResources unit, considers the YPDP the best wayto recruit cadres to fill strategic positions in OFID.“Through the YPDP, OFID is growing and nurtur-ing its future leaders from within,” he said.

Al Abbas went on to elaborate that, duringthe two-year period, the candidates would prima-rily be assigned to a department according totheir educational background or experience. Inaddition, they would undergo a rotation amongother departments, which would allow them toget a comprehensive understanding of OFID’smandate.

Each young professional will be mentoredby a senior staff member. Every quarter, an eval-uation will be conducted by a team chaired by Al-bassam and five other members of seniormanagement, including Al Abbas. At the end of

the two years, there will be finalevaluation to determine the suit-ability of the participants for perma-nent employment.

Stressed Al Abbas: “They haveto prove that they are really up tothe challenges presented. There isno guarantee that they will get tocontinue their service. Their per-formance is their only ticket to apermanent job.”

Unsuccessful candidates wouldbe expected to return to their coun-tries and continue their dedication

there. “The experience they obtain while workingwith OFID will be a valuable asset to their con-tributing to the advancement of their home coun-tries. This would also be a contribution by OFID toits Member Countries,” Al Abbas said. �

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Fuad Albassam

Abdulwahab Al Abbas


FEBRUARY 5

Public sector loan agreements signed

Cuba. US$30.5m. Bayamo Water Supply SystemModernization. To improve ac-cess to safe drinking water inBayamo city through the reha-bilitation and expansion ofwater supply and treatment in-frastructure and distributionnetworks, benefiting more than70,000 people.

Nepal. US$30m. Community Managed IrrigatedAgriculture Sector (Phase II). Torehabilitate and expand about160 irrigation systems in thecentral and eastern regions,thereby improving incomes andfood security for some 218,000inhabitants.

Swaziland. US$15m. Manzini-Mbadlane Highway.Towards the construction of a17km highway that will directlybenefit around 250,000 Swazisthrough increased economicopportunities and reduced travelcost and time.

Uganda. US$15m. Rehabilitation & Expansion ofYumbe and Kayunga GeneralHospitals. To help meet thegrowing medical needs and im-prove the quality and delivery ofhealthcare services for the950,000 inhabitants of theYumbe and Kayunga provinces.

FEBRUARY 6

Emergency grant agreement signed

Cuba. US$400,000. To support Cuban medicalbrigades deployed in SierraLeone, Liberia and Guinea onEbola treatment/containmentmissions.

Public sector loan agreement signed

Burkina Faso. US$10m. Ouagadougou Water SupplyProject. To increase water pro-duction, storage and distribu-tion capacities in urban andperi-urban areas, ultimately benefiting around 2.3 millionpeople.

FEBRUARY 10


Côte d’Ivoire. US$8.5m. Water Supply Project for EasternRegion of Côte d’Ivoire. Towardthe construction of a water supply and distribution systemthat will provide over 114,000inhabitants in and around thecity of Aboisso access to safe and reliable drinking water.

FEBRUARY 23

Public sector loan agreements signed

Argentina. US$50m. Reconquista Water Supply Project (Phase II). To support socioeconomic development inthe Reconquista area of Santa FéProvince by providing sustain-able access to a higher qualityand quantity of potable waterfor some 175,000 people.

January–March 2015

The Gambia. US$15m.Laminkoto-Passimus Road Proj-ect. To upgrade 121km of earthroad leading to villages in theeast of the country. This will in-crease the agricultural potentialof the region and provide localpopulations with easier andsafer access to schools andhealthcare facilities.

FEBRUARY 25

OPEC MDTC participantsvisit OFID

43 participants of the OPEC Sec-retariat’s 15th Multi-DisciplinaryTraining Course (MDTC) visitedOFID to learn about the organi-zation’s aims and activities.

MARCH 3

Research Grant approved

Fourth International StudentEnergy Summit. US$30,000. To support the attendance of 20students from developing coun-tries at this global forum on sus-tainable resource management.

Ermek Ibraimov, Ambassador of Kyrgystan, made a courtesy call on the Director-General to discuss ongoing operations and future cooperation.

Patrick Achi, Minister of Economic Infrastructure,Côte d’Ivoire, met with the Director-General.

MARCH 10

150th Session of the Governing Board

Public sector loans approved

Bangladesh. US$25m. Teesta River Bridge and AccessRoads. To improve connectivitybetween the districts ofGaibandha and Kurigram,where poverty levels are high,thus enabling communities toreach social amenities and havean improved link to the capitalDhaka.

Bolivia. US$70m. Villa Granado-La Palizada Road.To rehabilitate a key stretch be-tween the cities of Cochabambaand Santa Cruz de la Sierra, anarea inhabited by around twomillion people. This will helpthe region’s small farmers re-ceive inputs and transport pro-duce, and in turn raise incomesand boost food security.

Cameroon. US$14m. Olama-Kribi Road (Bingambo-Grandzambi Section). To pave a204km earth road that joins thecapital Yaounde to Kribi, areasrich in agricultural land. Around2.5 million people will have abetter means of reaching healthfacilities, schools, market centersand other important services.

Djibouti. US$19m. Tadjoura Port Expansion. To en-able Djibouti to accommodate ahigher volume of exports, in par-ticular Ethiopian potash. Thiswill contribute to the develop-ment of the northern region, oneof the poorest parts of the coun-try. In all, around 200,000 peoplestand to benefit from the project.

Ethiopia. US$25m. Shambu-Bako Road. To pave a deteriorated gravel road andthereby improve the delivery ofinputs and transport of crops tomarketplaces for nearly 300,000people, who will also enjoy betteraccess to social services and jobs.

Gambia, The. US$13m. Rural Infrastructure Develop-ment. To provide basic infra-structure in five impoverishedrural regions across the country.This will include building roads,health centers, schools andsmall water supply and sanita-tion systems, among others.

Nepal. US$20m. Small Towns Water Supply andSanitation Sector (Phase III). Tocarry out sub-projects that willprovide infrastructure and carryout training and capacity build-ing schemes. Around 400,000inhabitants will receive piped-in water supplies, and over20,000 households improvedsanitation facilities.

Uganda. US$15m. Rural Electrification Project inKayunga and Kamuli Service Territories. To provide electricalconnections to nearly 13,000households as well as to schools,health centers, agricultural enterprises and other vital infrastructure.

Grants approvedAbdus Salam InternationalCenter for Theoretical Physics(ICTP). US$350,000. To fund an OFID/ICTP Postgraduate Fellowship Program that willprovide fellowship opportuni-ties in science-related fields to 15 PhD students from develop-ing countries.

Franco-Afghan Friendship.US$400,000. To co-finance a program targeting 32 Afghanschools in five provinces. Acti-vities will include constructingand equipping schools alongwith the provision of voca-tional and teacher training, directly benefiting around 600 teachers and 65,000 pupils.

ICRC Special Fund for theDisabled. US$800,000. To enhance physical rehabilita-tion services used by some 9,000people in Madagascar, Somalia,Tanzania, Togo and Zambia. Dis-advantaged groups will be able

to receive subsidized treatmentand services, including trans-port and accommodation.

Jordan River Foundation—Madrasati Initiative.US$700,000. To build and reha-bilitate infrastructure and pro-vide equipment and furniture in eight public schools in fivegovernorates of Jordan. About3,200 pupils, many of whom areSyrian refugees, will benefitfrom the project, as well as over250 teachers from training andcapacity building activities.

Organization for InternationalEconomic Relations/UNIDO.US$800,000. To help finance aSolar Light for All initiative foroff-grid, rural communities inCôte d’Ivoire and Ghana. Theproject is expected to improvethe quality of life and livingconditions for at least 30,000 individuals.

UNAIDS. US$1.2m. To acceler-ate access to HIV prevention andtreatment services in Djibouti,Morocco, Somalia, Sudan,Tunisia and Yemen.

UNDP/PAPP. US$1.2m. To ensure adequate and safehousing for over 140 families in the Gaza Strip through the rehabilitation of severely or partially damaged houses.


OFID DIARY

Mr Al-Herbish with Ambassador Peter Launsky-Tieffenthal, Director-General, Department for Development Cooperation, Austrian Federal Ministry for European Integration and Foreign Affairs.

Gillmore Hoefdraad, Governor of the CentralBank of Suriname, made a courtesy call on the Director-General.

Varkey Gems Foundation.US$300,000. To support a capacity-building scheme thatwill benefit nearly 6,000 schoolleaders and teachers, as well asaround 300,000 pupils enroledin 30 districts in central andnorthern Uganda.

MARCH 14


Egypt. US$27m. Expansion and Rehabilitation of Ain Shams University Special-ized Hospital. To equip andcarry out renovations on oncol-ogy, gynecology and neuro-surgery centers, thus providinghigh-quality care at affordableprices for over 10,000 patientsannually.

MARCH 31

Private sector loan agreement signed

Armenia. US$10m. The term-loan to Ardshinbankwill be used to support SMEs involved in the constructionand operation of small-scale hydropower plants in Armenia.See story, page 37


OFID DIARY

Meetings attended by OFID

www.ofid.org

JANUARY 10

MANAMA, BAHRAIN Arab Energy Club meeting

JANUARY 13–14

RIYADH, SAUDI ARABIASaudi Industrial Development Forum

JANUARY 19–20

THE HAGUE, NETHERLANDS 7th Steering Committee meeting of the of the Global Partnership for Effective Development Cooperation

JANUARY 26–27

PARIS, FRANCE2015 Arab-DAC Dialogue on Development

FEBRUARY 16–17

ROME, ITALY38th Governing Council of IFAD

MARCH 5–6

ISTANBUL, TURKEY5th Arab-Turkish Economic Dialogue

MARCH 13–15

SHARM EL-SHEIKH, EGYPTEgypt Economic Development Conference

MARCH 15

CAIRO, EGYPT5th International Conference of the ArabFederation for Sustainable Developmentand the Environment

MARCH 22–24

RIYADH, SAUDI ARABIA2nd Petroleum Media Forum for GCC countries

The Ambassador of the Republic of Korea HE Young-wan Song paid a courtesy visit to the Director-General.

Mr Al-Herbish with Mr Aldo Flores-Quiroga, Secretary General, International Energy Forum. The twomet to explore cooperation between the IEF and OFID in relation to the water-food-energy nexus.

150th Session of the Governing Board

Anastasi Mabi Daniel-NwaobiaGovernor, Nigeria

Mr AskolaniGovernor, Indonesia

Governing Board ChairmanAbdulwahab A Al-Bader


OFID DIARY

Over 30 partner countries stand to benefit from aroundUS$300m in fresh funding approved at the 150th Sessionof the Governing Board in Vienna on March 10. Publicsector projects attracted US$201m, the bulk of it for roadconstruction in line with the priorities of the recipientcountries. New private sector investments amounted toUS$35m and comprised support to SMEs in Armeniaand infrastructure development in sub-Saharan Africa.In the area of trade financing, US$40m was shared bet-ween Honduras to bolster international trade financeactivities and Mongolia to help meet the trade financingneeds of corporates and SMEs. In addition, a €25m loanwill support trade finance-related activities for compa-nies in Turkey. Grant funding made up the remainingUS$5.8m and will be used to support a wide range of ini-tiatives in the education, health and energy sectors aswell as a housing rehabilitation project in Palestine.Further details of public sector and grant approvals canbe found in the Diary.

Dr Eudomar TovarAlternate Governor, Venezuela

Majed A OmranGovernor, United Arab Emirates

Dr Mohammad KhazaeeGovernor, IR Iran

Dr Ahmed Abdulkarim AlkholifeyGovernor, Saudi Arabia


OFID DIARY

LOAN & GRANT SIGNATURE

Uganda secures US$15mfor hospitals projectMarcel Robert Tibaleka, Ambassador of Uganda to Germany, finalized theagreement for a project to upgrade and expand the Yumbe and Kayunga general hospitals and improve healthcare delivery for almost one million people.

US$10m for water supply project in Burkina FasoMr Al-Herbish and Jean Gustave Sanon, Minister of Economy and Finance, initial the agreement for phase two of a project that is expanding water production, storage and distribution in the capital Ouagadougou.

US$30.5m to improve drinkingwater access in CubaIleana Núñez Mordoche, DeputyMinister of Foreign Trade and Invest-ment, signed the agreement for theproject, which will benefit more than 70,000 people in the city ofBayamo. The Minister also signed aUS$400,000 grant agreement in support of Cuban efforts to containthe Ebola outbreak in Africa.


OFID DIARY

The full list of loan and grant signatures can be found on pages 45-47.

US$50m first public sector loanfor Argentina Mr Al-Herbish and Dr Antonio Bonifatti, Governor of the Provinceof Santa Fe, shake hands on the financing agreement for a project to provide sustainable access topotable water in the Reconquistaarea of Santa Fé Province.

The Gambia gets US$15m for road projectKebba Touray, Minister of Finance, signed the agreement for a rural road project that will lead to greater social and economic integration for villages in the east of the country

US$15m for highway construction in SwazilandMartin Gobizandla Dlamini; Minister of Finance, secured funding for the 17km-long Manzini–Mbadlanehighway, which will open up access to economic opportunities for 250,000 Swazis.


OFID DIARY

stronger sway in the international arena.“Whenever possible, we should act

with a common voice,” he said. “Sepa-rated, we will not be heard, but united wewill be heard across the planet.”

Launched in 2011, CELAC was createdas an alternative to the Organization ofAmerican States (OAS) and the Summit ofthe Americas.

One of the most important outcomesof the bloc’s most recent meeting was a re-gional commitment to eliminate hunger by2025.

The jointly adopted plan of action wasdeveloped in cooperation with the Foodand Agriculture Organization of the UnitedNations (FAO).

Titled “Food Security, Nutrition andHunger Eradication,” the plan is based onfour broad pillars: strategic coordination atnational and regional levels (with a special

Ecuador’s President Rafael Correa has as-sumed pro tempore leadership of the Com-munity of Latin American and CaribbeanStates (CELAC) for 2015.

Addressing the 33-member nationcoalition at its third summit in San Jose,Costa Rica on January 29, President Correacharacterized poverty as the worst form ofviolence, whose eradication was “a moralimperative for our region and our planet.”

He elaborated: “We still have 78 mil-lion Latin American and Caribbean peopleliving in extreme poverty. For the first timein history, this poverty is no longer due toa lack of resources, but rather … inequality.”

In addition to reducing poverty andinequality, Correa emphasized four keyCELAC objectives: innovation in educa-tion, science and technology; improved en-vironmental stewardship; reorganization ofthe region’s financial structure; and


MEMBER STATES FOCUS

Ecuador urges regional unity in fight against poverty

by Nadia Benamara

focus on gender issues); sustainable accessto safe and nutritious food; wideningschool food programs while addressingmalnutrition; and tackling food securitychallenges posed by climate change.

According to FAO, the Latin Americanand Caribbean region is the only one tohave collectively achieved the first Millen-nium Development Goal of halving theproportion of people who suffer fromhunger by 2015.

FAO’s regional representative, RaulBenitez ascribes this success to the bloc’spolitical commitment to food security:“[It’s] what makes the difference betweenLatin America and the Caribbean and otherregions.”

Venezuela will host a high-level meet-ing to follow up on the FAO/CELAChunger eradication plan in the second halfof 2015. �

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Indonesia’s lucrative palm oil industry hashelped lift millions out of poverty; often,however, at the expense of the environ-ment. Now, a government-led initiative ishelping smallholder palm oil farmers—who produce some 40 percent of the coun-try’s output—meet new sustainabilitystandards.

The Ministry of Agriculture began pi-loting palm oil smallholder certificationguidelines on Sumatra Island with supportfrom the United Nations Development Pro-gram (UNDP) in late-February.

This is the first time Indonesia has startedcertifying smallholders as part of Indone-sian Sustainable Palm Oil (ISPO)—a manda-tory national scheme introduced in 2011.Until now ISPO certification has focused onprivate companies.

The ongoing initiative targets six palmoil cooperatives comprised of 2,200 farmersin Riau province, a major palm oil produc-ing area.

It aims to help smallholders increasetheir productivity in a sustainable and en-vironmentally responsible manner by pro-

viding greater access to training and exten-sion services.

“It is a big and unprecedented step,”said ISPO Executive Chairman, Dr Rose-diana Suharto. “The results of this pilotphase will be key to moving forward andcertifying all smallholders in Indonesia.This demonstrates the government’s com-mitment to boosting palm oil productiv-ity while respecting our unique bio-diversity.”

Palm oil smallholders often farm inisolated areas, with little regulatory over-sight or agricultural know-how. Less pro-ductive than larger competitors, they tendto rely on harmful chemicals, clear-cutting,and other unsustainable methods to growtheir crops.

Smallholders are also less likely to beintegrated into the global supply chain �


MEMBER STATES FOCUS

Indonesia expands palm oilregulation to smallholders

Smallholder farmers produce 40 percent of Indonesia’s palm oil output.

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� or possess concrete offtake agreementsthat could provide much needed technicaland financial support.

Indonesia’s smallholder certificationprocess, which is expected to take severalmonths, should go a long way toward im-proving livelihoods without causing fur-ther deforestation, according to TomoyukiUno, Asia Manager for UNDP’s Green Com-modities Program.

“ISPO is rather like a driving licensefor palm oil farmers in Indonesia,” saidUno. “By requiring all farmers to meet min-imum sustainability requirements, the gov-ernment is actually committing toformalize palm oil smallholders and pro-vide vital assistance such as land titles andcapacity building.”

He continued: “This is long overdue andwill allow Indonesia not only to improvefarming practices and the economic out-look from palm oil, but also protect thecountry’s environment and forests.”

The ISPO smallholder certificationpilot is part of the Sustainable Palm Oil Ini-tiative, officially established by the Indone-sian Ministry of Agriculture and UNDP in2014. It operates at the national level and inthree initial provinces: Riau, South Sumatraand West Kalimantan. �


Indonesia is the world’s largest producer and consumer of palm

oil. Its total plantation area was estimated to be more than twice

the size of Switzerland (approximately 10m ha), generating

27 million tons of palm oil in 2013. Indonesia aims to increase

production to 40 million tons by 2020.

Palm oil is the world’s most widely used vegetable oil: in products

as diverse as biodiesel, soap, margarine, ice cream and cosmetics.

Worldwide consumption has quintupled since 1990.

Palm oil is also the world’s highest yielding crop, with an output

5–10 times greater per ha than other leading vegetable oils,

according to the Roundtable on Sustainable Palm Oil (RSPO).

RSPO data also indicates that palm oil requires a global average

of f ive workers per hectare, as opposed to one worker per every

200 hectares for competing oil crops.

An estimated 3.7 million people are engaged in the palm oil

industry in Indonesia.

Palm oil fast facts

MEMBER STATES FOCUS

An oil palm plantation worker unloads a boat ladenwith the fruit.

PHOTO: KYTAN/SHUTTERSTOCK.COM

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he global crude oil supply and de-mand balance in the first half of 2015

points to an oversupply of around two mil-lion barrels/day (m b/d), although the mar-ket should return to balance during thesecond half of the year.

That was the view put forward by Ab-dalla Salem El-Badri, OPEC Secretary-Gen-eral, at the 19th Middle East Oil & GasConference, held in Manama, Bahrain inearly March.

Addressing a ministerial panel session, hepointed out to delegates that there hadbeen rising supplies from non-OPEC oilproducers.

“In fact, since 2008 non-OPEC supplyhas risen by almost 6m b/d. In contrast,OPEC’s production has been fairly steady ataround 30m b/d,” he affirmed.

El-Badri noted that oil demand in2014 was weaker than originally projectedat the beginning of that year, “although we

do expect higher growth this year.” Lastyear, oil demand growth was just below 1mb/d, while this year it was expected to riseto around 1.2m b/d.

The global economy, he observed,continued to offer up both optimistic andpessimistic indicators. OPEC saw globaleconomic growth next year at 3.4 percent,compared to 3.2 percent in 2014.

The OPEC Secretary-General said that,over the years, the global oil and gas �


OPEC

OPEC’s El-Badri speaks at Middle East Oil & Gas ConferenceOil market should return to balance in second half of 2015

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OPEC Secretary-General Abdalla Salem El-Badri.

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PEC

� industry had gone through a number ofcycles and changes that had required theindustry to adapt and evolve.

“There is no doubt that the last ninemonths have been one of those intermit-tent periods of volatility, after several yearsof stability.”

But El-Badri stressed that the Organi-zation did not believe that actual marketfundamentals warranted the almost 60 per-cent drop in prices that the market saw be-tween June 2014 and January 2015. “It isclear that speculators also played a role inthis fall,” he added.

He conceded that the current lowerprice environment was a test for all produc-ers and investors. Lower oil prices meantless revenue. And less revenue meanttighter budgets. While prices would nodoubt rebound, as they had done of late, itwas clear that the global oil industry was atthe heart of a shifting landscape.

For example, said El-Badri, a numberof projects were being canceled or put onhold, rig counts had fallen dramatically, in-vestment plans were being revised, costswere being cut and squeezed, and redun-dancies had been made.

“These are the current realities. It is achallenging time for the industry. However,there are clearly many things that the in-dustry can do with one eye on the currentsituation, and one eye on the future.

Citing examples, El-Badri said it wasimportant to look at new ways to reducecosts and achieve more efficient workingpractices.

It was also vital as an industry to en-hance collaboration between national oilcompanies, international oil companies,service providers, as well as other industrystakeholders, to help further streamline the

industry and discuss views on the indus-try’s future.

In addition, he continued, it was es-sential to maintain research and develop-ment initiatives and to continually developtechnologies that could help in discovering,extracting and producing more hydrocar-bon reserves in an ever more cost-effectiveand sustainable manner.

“And for producers, it may be useful touse the situation of lower oil prices to createincentives to use energy more efficientlyand implement sustainable policies thatcould lay the groundwork for more diversi-fied and less energy-dependent economies,”he said.

El-Badri said the reason the industry’sstakeholders needed to keep their eyes onthe longer term was because energy de-mand was expected to increase by 60 percent by 2040, with fossils fuels remainingcentral to the energy mix.

“The world will need more oil invest-ments and the Middle East and NorthAfrica (MENA) region will be central tothis,” he asserted.

Referring to data contained in inOPEC’s World Oil Outlook 2014, El-Badri saidthat oil-related investment requirementswere estimated to be around US$10tr be-tween now and 2040.

Oil demand was seen increasing by around21m b/d to 111m b/d by 2040, with Asia ac-counting for almost three-quarters of thegrowth. The MENA region, he said, wasclearly perfectly-positioned to supplyAsia’s ever-expanding demand for oil andgas.

“However, as we all know, no-one canmake precise predictions about the future.History tells us that things rarely stay thesame. The past nine months have demon-strated this,” he contended.

“There is no doubt that the marketand its stakeholders will have to evolve toever-changing circumstances and chal-lenges in the years ahead.”

Alongside the current market situa-tion, said El-Badri, these challenges in-cluded ‘known’ uncertainties, such as: thepotential impact of UN climate change ne-gotiations; the role of financial markets andoil market speculation; energy policies insome consuming countries; manpower bot-tlenecks; advances in technology; and ris-ing costs.

“And there are also ‘unknown’ uncer-tainties. These are most often related togeopolitics and severe weather events,” hestated.

The OPEC Secretary General said itwas important to stress that the oil businesshad been dealing with change and uncer-tainty since its very early days. “We cannotavoid cyclical events, when prices rise andfall, and we cannot avoid challenges. It isthe nature of the market.

“But there are clearly tremendous op-portunities too. Despite the recent volatil-ity and current uncertainties, there is nodoubt that the industry has a healthy long-term future,” he concluded. �


OPEC

“We cannot avoid cyclical events,

when prices rise and fall,and we cannot avoidchallenges. It is the

nature of the market.”

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