BAKU, Azerbaijan, November 7. The OPEC Fund for International Development is preparing for a larger pipeline of green projects in Azerbaijan in the coming years, President of the Fund Abdulhamid Alkhalifa told Trend in an exclusive interview.
The president noted that the OPEC Fund is significantly increasing its commitment to the countries and people of Central Asia, which currently stands at over $1 billion in public and private sector loans as well as grants.
"The OPEC Fund is planning to scale up its support and provide up to $1 billion development financing over the next three years, only in Azerbaijan, to support new investments in water and sanitation, transport connectivity, and sustainable urban development," he said.
Abdulhamid Alkhalifa emphasized that the Fund’s overarching objective in the region is to promote sustainable and inclusive growth by aligning its financial and technical resources with the strategic priorities of both the region and the individual partner countries.
"More specifically, our focus is on achieving three interrelated outcomes: first, enhancing infrastructure connectivity, including transport networks, energy grids, and water systems - to stimulate economic opportunity; second, contributing meaningfully to the energy transition and strengthening climate resilience; and third, expanding private-sector financing and MSME access to foster inclusive livelihoods," he stated.
According to the president, the Fund is committed to generating enduring positive impacts for the people and economies of the region.
"We have new Country Partnership Framework agreements in place with Kazakhstan, Turkmenistan (signed in 2024), and most recently, Azerbaijan (signed in 2025). We have a Framework Financing Memorandum with Tajikistan, which commits a US$100 million loan to co-finance the 3,600 MW Rogun hydropower plant, whose 335-metre dam will be the world’s tallest," he said.
Moreover, he noted that Azerbaijan has achieved strong economic growth in recent years, supported by sound fiscal management and major infrastructure investments.
"Building on this progress, our goal is to help the country diversify its economy towards sustainable development, strengthening the private sector through better access to finance and building renewable energy capacity in partnership with local and international developers," Abdulhamid Alkhalifa said.
According to him, the Country Partnership Framework (CPF), signed between the OPEC Fund and the Government of Azerbaijan in June 2025 in Vienna, outlines a medium-term agenda centered on renewable energy, modern and resilient infrastructure, water and sanitation, transport connectivity, private-sector development, and the creation of more livable urban environments.
"We are currently collaborating with our partners to identify and develop a pipeline of investments in these priority areas, ensuring full alignment with Azerbaijan’s national development and climate strategies," he stated.
Abdulhamid Alkhalifa emphasized that the new financing of up to $1 billion will be directed toward initiatives aimed at expanding access to clean water and sanitation, improving transport infrastructure and urban services, enhancing energy efficiency, and fostering sustainable mobility and infrastructure - core components of cities that are inclusive, green, and resilient.
"We will also continue to support the private sector, particularly micro, small and medium-sized enterprises, as drivers of innovation and job creation. Technical assistance and capacity-building activities will complement these investments, helping national institutions plan and implement projects effectively," he said.
Furthermore, Abdulhamid Alkhalifa said that during the Fund's delegation visit to Azerbaijan, they had the opportunity to see the impact of the Fund's investments in one key project that is already operational: the Area-1 (Gobustan) wind farm, developed by Saudi Arabia’s ACWA Power and co-financed with a $50 million OPEC Fund loan
"The facility is part of the 240.5 MW Khizi-Absheron wind power project, Azerbaijan’s first large-scale, independently developed renewable energy investment. This project is enabling the production of 907 GWh of clean electricity annually, powering more than 300,000 households and reducing carbon emissions by approximately 400,000 tons per year," he noted.
Abdulhamid Alkhalifa emphasized that the Fund's support for Azerbaijan’s green energy transition is both intentional and growing. The technical assistance for the Azerbaijan Green Transition Plan is underway, helping the government to develop reforms, screen investment opportunities, and build capacity for green infrastructure. In addition, the Fund's continuing partnership with ACWA Power and ongoing efforts to scale climate-aligned investments reflect a strategic shift.
"The OPEC Fund is committed to mobilizing further financing for clean energy, infrastructure, and sustainable livelihoods. Thus, we are not only supporting Azerbaijan today but preparing for a larger pipeline of green projects in the coming years. We welcome collaboration with the Azerbaijani government, private sector, development partners such as members of the Arab Coordination Group, and other multilateral institutions to ensure that Azerbaijan’s green transition is effective, scaled, and sustainable," he concluded.
The OPEC Fund was established in 1976 with a distinct purpose: to drive development, strengthen communities, and empower people. To date, the Fund has committed more than $30 billion to development projects in over 125 countries with an estimated total project cost of more than $200 billion. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA+, Outlook Stable by S&P.