On June 25, 2024, Turkmenistan entered into “A Country Partnership Framework” with the OPEC Fund. This agreement establishes a five-year plan for 2024-2029, concentrating on sectors such as transport, industry, telecommunications, healthcare, banking, and infrastructure development in the city of Arkadag. The framework prioritizes climate financing, inclusive development for women and youth, and the support for small and medium-sized enterprises.
Although the new partnership agreement for 2024-2029 has been signed, its details have not been made public. As a result, the number of planned operations and the amount of funding allocated to new projects remain unknown. While the exact amount of investment for Arkadag city has not been specified, the focus includes infrastructure projects like technology parks, research centers, and medical facilities. The OPEC Fund projects usually include the project data when the project is signed and approved, the name of the project, OPEC Fund contribution amount, total project cost, executing agency, the status of the project, among others.
Progres.online has reviewed both Turkmen and international media sources, but none of the sources offered specific data or analytical insights regarding the forthcoming partnership framework between Turkmenistan and the OPEC Fund. The OPEC Fund’s website also lacks details on the planned investment amounts for future operations in Turkmenistan. Furthermore, no information has been provided by the OPEC Fund concerning the outcomes of its previous seven projects in the country.
Projects in Turkmenistan
Since 1999, the OPEC Fund has carried out seven operations in Turkmenistan, with a total investment of 70.2 million USD. While six of these projects have been completed, one is still in progress. This ongoing operation, the Marine Merchant Fleet Project, has received 45 million USD from the OPEC Fund and it was approved in 2021.
The list of all OPEC Fund projects in Turkmenistan between 1999-2021:
Source: The OPEC Fund
In terms of financing, the OPEC Fund provided support to the health sector on four occasions, but it did not allocate funds to any education sector projects. The transportation sector received the most significant portion of the OPEC Fund’s investments in Turkmenistan.
Chart 1: OPEC Fund loans/grants to Turkmenistan by focus area (1999-2021)
Source: The OPEC Fund
In its 2023 “Development Effectiveness Report”, the OPEC Fund has not mentioned Turkmenistan. Additionally, the impact of their projects in Turkmenistan was not assessed in the previous year’s report either.
The OPEC Fund does not have a policy on public access to information and the decision-making process behind approving projects does not seem to be transparent. OPEC Fund’s focus is on assessing the social, economic, and environmental viability of a development project or program and its alignment with the sustainable development goals of the partner country. However, it appears that other stakeholders, such as NGOs and activists from the relevant country, are not typically included in discussions prior to the OPEC Fund’s approval of a specific project.
The OPEC Fund for International Development (OPEC Fund) is a multilateral development finance institution founded in 1976. Its 12 Member Countries include Algeria, Ecuador, Gabon, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the United Arab Emirates, and Venezuela. Turkmenistan, while not a member, is a partner country to the OPEC Fund. The OPEC Fund receives contributions from its 12 member countries and primarily provides public sector loans to partner countries, along with some grants. The OPEC Fund was born out of the Organization of the Petroleum Exporting Countries (OPEC).
