As part of its efforts to enhance the role of contractors from Islamic countries in the implementation of projects financed by the Islamic Development Bank in its member countries, the IDB organized a symposium on Monday 3 Ramadan 1430H (24/08/2009) for road contractors from Islamic countries at its headquarters in Jeddah.
The IDB Group President, Dr. Ahmad Mohamed Ali, delivered a speech at the opening session in which he said that the Bank accords a great deal of attention to the development of infrastructure in its member countries, and in particular to the road sector in view of its vital role in stimulating economic and social development in these countries.
The IDB Group President said that during the past 5 years the transport and communications sector accounted for 29% of the projects financed by the Bank. The Bank participated in financing more than 230 projects for a total of over US$ 3 billion. He added that more opportunities will be available during the next 3 years in the infrastructure sector estimated to cost US$ 5 billion. The Bank will work to ensure that a sizeable portion of these opportunities go to the road industry sector in member countries.
It is to be noted that the Bank played a supportive role in establishing the Federation of Contractors from Islamic Countries, and it has been providing support to this federation over the years so that it may play a vital role in the building and construction industry in member countries. As a result of the measures taken, 60% of commodity and work contracts financed by the Bank were awarded to contractors from member countries. This percentage is expected to rise during the coming few years.
The participants in the symposium discussed the ways and means of raising the level of participation of member country contractors in implementing road projects financed by the Bank. They also shed light on the problems which most impede participation by these contractors in bidding for road projects financed by the Bank, and suggested a number of measures to overcome such problems.
During the symposium the contractors were apprised of the opportunities provided by the IDB Group. The Islamic Development Bank provides financing to the tune of US$ 3.3 billion during this year (1430H, 2009). This amount is expected to grow by 30% during the next two years where about a third of the financing will be earmarked for the transport projects, including the road sector.