(MENAFN- Caribbean News Global) RIYADH - The Inter-American Development Bank Group (IDB Group) and the OPEC Fund for International Development (OPEC Fund) have launched a new $3 million facility to build a pipeline of high-quality, co-financing-ready infrastructure projects across Latin America and the Caribbean.

This agreement, signed in Riyadh on the sidelines of the 9th Future Investment Initiative by IDB Group president Ilan Goldfajn and OPEC Fund president Abdulhamid Alkhalifa, marks a strategic milestone in the institutions' partnership to mobilise resources for sustainable development and regional integration.

The agreement builds on a memorandum of understanding (MoU) signed in Washington in April 2025 between the IDB and the OPEC Fund.

The IDB-OPEC Fund Project Preparation Facility, administered by the IDB, will finance technical cooperation in 24 eligible Latin American and Caribbean countries. It aims to prepare projects for future co-financing by strengthening design, implementation, and institutional capacity. Priority sectors include transport, renewable energy, water and sanitation, digital infrastructure, and social services.

By focusing on pre-investment activities – including feasibility studies, safeguards, and procurement planning – the facility is expected to help unlock more than $400 million in projects over the next five years.

“This facility is a bridge between vision and co-financing-ready projects,” said president Goldfajn.“This partnership combines the IDB's deep regional expertise with the OPEC Fund's global reach to prepare a strong pipeline of projects,” he added.

OPEC Fund president Abdulhamid Alkhalifa said:

“Together with the IDB Group, we are strengthening the foundation for future investment and sustainable growth across Latin America and the Caribbean. By supporting well-prepared, high-impact projects, this new facility will help channel more resources where they can make a lasting difference.”

The facility includes two components:

• Project Design and Implementation: Funding for technical studies, legal reviews, monitoring systems, and evaluation tools to ensure projects meet high standards and are ready for financing.
• Institutional Strengthening: Support for capacity-building, regulatory frameworks, and digital tools to enhance project management and transparency.

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