Jeddah : Monday, September 11, 2006

The Board of Executive Directors of The Islamic Development Bank (IDB), which concluded its 240th session at the Bank's Headquarters in Jeddah, Saudi Arabia, approved US$ 705.9 million towards project financing and trade operations.

H.E. Dr. Ahmad Mohamed Ali, President, IDB, who chaired the Session, stated that the board has reviewed many important issues including a Status Report on the implementation of the Board of Governors' resolution on the establishment of a Poverty Alleviation Fund within the IDB. After discussions, the Board decided to submit a proposal to the board of governors to label the Fund as a Waqf Fund with a capital of US$10 billion.

The Board, which welcomed the new Chairman of the International Center for Biosaline Agriculture (ICBA), has reviewed a report concerning the Center for the year 2005, requesting the ICBA to prepare a study on ways of marketing of its products and attracting investors.

Sheikh Saleh Abdullah Kamel, Secretary-General of the Islamic Chamber of Commerce and Industry and Chairman of the General Council of Islamic Banks and Financial Institutions, who addressed the Board, made a brief on the Joint Program for Lebanon Construction sponsored by IDB, the Islamic Chamber of Commerce and Industry (ICCI) and the General Council for Islamic Banks and Islamic Institutions (GCIBF). He explained that the target capital of the Joint Program is US$ 1 Billion, adding that this program will provide an opportunity to commercial institutions and businessmen who wish to participate in construction efforts to do so effectively through the various implementation mechanisms of the program.

Sheikh Kamel has also outlined in his speech the importance of establishing the International Organization for Zakat as an applied contemporary entity with the mission of collecting Zakat from its legitimate Sharia sources to be distributed among receivers to encompass the whole Ummah under the control of and supervision of the State. He also briefed the Board on the steps of establishing Imaar International Bank (IIB) and its objectives.

During the course of its session, the Board approved a sum of US$ 347,000 for the share of IDB in the increase of the capital of the International Islamic Rating Agency in Bahrain. It also approved the establishment of a regional office for the Bank in Dakar, Senegal.

Details of the various project financing and trade operations approved by the Board are as follows:

1- DEVELOPMENT PROJECTS

US$ 32.15 million Istisna'a & Grant finance for development of Belawan and Sibolga Fishing Ports (under the Tsunami Disaster Emergency Assistance), Indonesia.
US$ 65 million leasing finance for Perusahan Neagra Gas (PGN) Pipeline South- Sumatra to West Java (Phase 2), Indonesia.
US$ 10.16 million loan & T.A. (Grant) for Potable and Wastewater Connections to Households Project, Egypt.
US$ 12.8 million Loan & Leasing finance for Nouakchott Power Plant Expansion Project, Mauritania.
US$ 10.4 million Loan finance for Rural Water Supply Project in the regions of Kara and Savanes, Togo.
US$ 500,000 Technical Assistance grant for Marine Resources Management Project (MRMP), Regional (Saudi Arabia, Egypt, Sudan, Jordan, Yemen and Djibouti).

2- ITEMS FROM THE WAQF FUND

US$ 290,000 for Extension of Nasradine Franco-Arab School, Bangui, Central African Republic.
US$ 270,000 for Extension of a Secondary School in Rumonge, Republic of Burundi.
US$ 280,000 for Renovation and Upgrading of the Al-Ihsan Islamic School, New York, USA .
US$ 150,000 for Construction of Girls Hostel at Aravali Public School, Gurgaon District, Haryana State, India.
US$ 150,000 for Construction of Quazi Mojahidul Islam Industrial Training Institute and a Workshop Building, Ranchi, Jaharkhand State, India.

3- APPROVALS BY THE PRESIDENT
The following are approvals of Trade Operations and Technical Assistance made by the President of the IDB between the previous and present sessions of the Board:

Import Trade Financing Operations (ITFO):

Import Trade Co-financing Operation for Bangladesh in favour of the Ministry of Power, Energy and Mineral Resources for an amount of US$ 50 million to purchase Crude Oil and Petroleum Products.
Import Trade Co-financing Operation for Bangladesh in favour of the Ministry of Power, Energy and Mineral Resources for an amount of US$ 25 million to purchase Crude Oil and Petroleum Products.
Import Trade Co-financing Operation for Egypt in favour of the Egyptian General Petroleum Corporation for an amount of US$25 million to purchase Petroleum Products.
ITFO for Iran in favour of Navar Aluminium Company for an amount of US$ 7 million to purchase Raw materials for the production of Aluminium and Aluminium related products.
ITFO for Iran in favour of Mahr Cam Pars Co. for an amount of US$ 20 million to purchase Raw Materials, Intermediary Goods and Spare Parts.
ITFO for Iran in favour of Iran Tractor Manufacturing Co. for an amount of US$ 20 million to purchase Tractor Spare Parts.
ITFO for Iran in favour of Pars Tousheh Investment Co. for an amount of US$ 10 million to purchase Raw Materials, Intermediary Goods and CKD Parts.
Line of ITFO for Jordan in favour of Housing Bank for Trade and Finance for an amount of US$ 20 million.
Line of ITFO for Jordan in favour of Union Bank for an amount of US$ 4.5 million.
Line of ITFO for Jordan in favour of Capital Bank of Jordan for an amount of US$ 3.5 million.
ITFO for Kuwait in favour of Kuwait Cement Co. (KCC)for an amount of US$ 25 million.
ITFO Syndicated Murabaha Operation for Mali in favour of Compagnie Maienne Pour Le Developpement Des Textiles (CMDT) for an amount of US$ 64 million.
Import Trade Co-financing Operation for the Kingdom of Morocco in Favour of Societe Anonyme Marocaine De L'Industrie Du Raffinage (SAMIR) for an amount of US$ 70 million.
Import Trade Co-financing Operation for the Pakistan in Favour of the Ministry of Petroleum and National Resources for an amount of US$ 50 million.
Import Trade Co-financing Operation for the Kingdom of Saudi Arabia in Favour of Al Salam Medical and Trading Establishment for an amount of US$ 3 million.
Import Trade Co-financing Operation for the Kingdom of Saudi Arabia in Favour of Saudi Arabian Ductile Iron Pipes Company LTD for an amount of US$ 5 million.
Import Trade Co-financing Murabaha Operation for the Kingdom of Saudi Arabia in Favour of Afia International Co. for an amount of US$ 50 million.
Import Trade Co-financing Operation for Turkey in Favour of As Cimento San. Ve Tic. A.S. for an amount of US$ 10 million.
Import Trade Co-financing Operation for Turkey in Favour of Ekoten Tekstil San. Ve Tic. for an amount of US$ 6 million.

Trade Financing Operations (Using EFS Resources) :

Trade Financing Operation of Industrial Inputs & Components for Home Appliances from Egypt to Middle East Complex for Eng. Electronics and Heavy Industries PLC, Jordan for US$ 25 million.
Trade Financing Operation of Raw Edible Oil from Indonesia to Afia International Co. & its Subsidaries for US$ 25 million.
Trade Financing Operation of Rock Phosphate from Office Cherifien des Phosphates, Morocco to PT. Petrokimia Gresik, Indonesia for US$ 10 million.
Trade Financing Operation of Crude Oil and Refined Petroleum Products From Saudi Arabia to Ministry of Petroleum and National Resources, Pakistan for US$ 25 million.
Trade Financing Operation of Crude Oil and Refined Petroleum Products From Saudi Arabia to Ministry of Petroleum and National Resources, Pakistan for US$ 25 million.
Trade Financing Operation of Crude Oil and Refined Petroleum Products From Saudi Arabia to Ministry of Petroleum and National Resources, Pakistan for US$ 25 million.
Trade Financing Operation of Crude Oil and Refined Petroleum Products From Saudi Arabia to Ministry of Petroleum and National Resources, Pakistan for US$ 25 million.

Technical Assistance Operations and Other Projects:

US$ 210,000 T.A. (Grant) Operation for participation in Marine Environment Geographic Information System Project, Bahrain.
US$ 278,000 T.A. (Grant) Operation for Institutional Capacity Building of National Office for Sanitation, Tunisia.
US$ 299,000 T.A. (Grant) Operation for Institutional Strengthening of the Bank Al-Maghrib, Morocco.