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.
