IDB Board of Executive Directors concluded the 239th session and approves more than US$ 355 million

Jeddah : Sunday, July 2, 2006

The Board of Executive Directors of The Islamic Development Bank, which concluded its 239th session at the Bank's Headquarters in Jeddah, Saudi Arabia, approved US$ 355.3 million towards project financing and trade operations.
H.E. Dr. Ahmad Mohamed Ali, President, IDB, who chaired the Session, stated that the Board has approved, during the session, a pre-operational loan in favor of the International Islamic Trade Financing Corporation (ITFC), the new member of IDB Group whose establishment agreement was signed by Governors of 43 member countries of the Bank during the Annual Meeting of the Bank in Kuwait in May 2006.

He added that the Board held during the session a discussion meeting on the plan of the Bank's Vision to the year 2020 which was prepared by a special commission composed of many dignitaries from Muslim world under the chairmanship of Former Malaysian Prime Minister HE Tun Dr Mahathir Mohamed. To that effect the Board has reviewed an action program prepared by the Bank Management combining the following: Priority of Improving the Bank's performance, Islamic Banking, International Corporation for Zakat, Eradication of Malaria and Other Infectious Diseases and Education Distinction. Dr. Ali explained that detailed working programs on the mentioned issues would be submitted to the Board at its coming sessions for approval, also the Bank Management will decide the priorities of the other programs of the Vision later. The Board has underlined, during discussions, the role of IDB as not only a development financier but also as a facilitator and development catalytic institution within member countries.

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

Development Projects

US$ 5.14 million supplementary loan finance for Akro Misserete ? Bonou ?Kpedekpo Road Reconstruction Project, Benin.

US$ 10.4 million loan for the Basic Education Quality Improvement Pilot Project, Cameroon.

US$ 10.2 million loan for the Construction and Equipping of Dalal Jamm Hospital Project in Dakar, Senegal.

US$ 10.4 million loan finance for the Construction of Four Access Roads to the National Road Network, Mali.

US$ 5.6 million installment Sale for the Rural electrification Project, Mali.

US$ 43 million leasing finance for the Power Transmission and Distribution System Project, Iran.

US$ 34.7 million istisna'a + installment sale finance for the Development and Upgrading of Islamic University of Alauddin Makassar Project, Indonesia.

US$ 15.3 million loan for the Establishing of Sidi Bouzid Higher Institute for Technological Studies, Tunisia.

US$ 10.8 million loan + installment Sale for the Boulaos Thermal Power Plant Upgrade Project, Djibouti.

US$ 125 million leasing finance in favor of SABIC-YANSAB Petrochemical Project involving establishment of international modern compound for producing 1700 tons of Ethylene and propylene, and 1300 tons of Polymers and Chemicals per annum, K.S.A.
Import Trade Financing Operations (ITFO):

ITFO for the Government of the Republic of Indonesia to purchase Raw Materials totalling US$ 15 million.

ITFO for Iran in favour of Kerman Tire& Rubber Co. to purchase Raw Materials and Intermediate Goods for production of tires totalling US$ 28 million.

ITFO for Turkey in favour of CALISKAN VE DIS TIC. SAN. Ltd to purchase Coal totalling US$ 7 million.

Export Financing Scheme (EFS):

Export Financing Operation of Copper Cathode from National Iranian Copper Industries (NICICO) Iran, to Jeddah Cable Co., Saudi Arabia, for US$ 21 million.

Export Co-Financing of Steel Coils from Nobel Knight Trading, Saudi Arabia, to SADID PIPE & EQUIPMENT Co, Iran, totalling US$ 30 million (US$ 25 million from Saudi Fund for Development and US$ 5 million from EFS).

BADEA Export Program Managed By IDB

Export Finance Operation for Petroleum Products from Arab Countries to the Republic of Tanzania totalling US$ 4.4 million.

Technical Assistance, Equity, UIF, and other Projects

US$ 214,000 Technical Assistance grant for Institutional Capacity Building of the Environment and Urbanism Sector, Djibouti.

US$ 4.2 million Technical Assistance loan for institutional Capacity Building Project, Mauritania.