The Islamic Development Bank approves more than US $718 million for new development projects

Jeddah, KSA, 10.03.2015 – The 303rd meeting of the Board of Executive Directors of the Islamic Development Bank (IDB) which ended on Tuesday approved more than US $718.6 million of funding for development projects in member countries in such important sectors as roads, power generation, water supply and sanitation, agriculture, and rural development in Turkey, Sultanate of Oman, Uganda, Uzbekistan, Cote d'Ivoire, Benin, and Yemen as well as a technical assistance for Bahrain.

Chaired by the IDB Group Chairman, Dr. Ahmad Mohamed Ali, the meeting reviewed a number of important documents including the follow up report on the progress in implementing phase II of the ten year strategic framework of the IDB Group as well as a draft MoU for cooperation in the field of Islamic finance between IDB and the International Monetary Fund (IMF). The Board also considered some documents of the 40th Annual Meeting of the Board of Governors of the Bank to be held in Maputo, Mozambique
(10-11 June, 2015), at the level of ministers of finance and economy of the 56 member countries.

The approvals included US $300 million to fund a Restricted Mudaraba Financing for the General Directorate of Foundations in Turkey. The roads sector, meanwhile, received a US $225 million financing for the Dualization of Al Kamil-Sur Road Project in Oman. The power generation sector saw the approval of US $70.7 million to the Grid Rural Electrification Project in Uganda while US $57.5 million was approved for contributing to the Syrdarya Region Sewerage Improvement Project in Uzbekistan. The
Board also gave the green light to contribute U$ $27 million of financing to Production and Processing of Certified Rice Seeds Project in Cote d’Ivoire. The project for Rural Irrigated Perimeters Development Project in Benin received an approval for US $20 million. A sum of US $18 million financing contribution was also approved for the Marib Power Dispatch Project in Yemen.

The Board approved US $430,000 in grants for three educational and vocational projects for Muslim communities in Kenya, New Zealand and South Africa in addition to a US $100,000 technical grant for contribution to feasibility studies for Bahraini agricultural investment projects in Sudan.

The Board of Executive Directors agreed on devising a joint financing mechanism between the IDB and the Bill and Melinda Gates Foundation authorizing the IDB President to sign the agreement during the upcoming Annual Meeting of the Board of Governors of the Bank in Maputo, Mozambique, next June. Two teams from the IDB and the Bill and Melinda Gates Foundation are currently working to formulate the operational, financial and legal details of the mechanism for its first financial closure which is
US $100 million in the form of grants prior to the end of the year 2015. It is expected that operations would begin in 2016.

A memorandum was also approved by the Board on the cooperation between the IDB and the IMF to provide technical assistance to the countries willing to develop Islamic financial services.

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