The Islamic Development Bank approves US$1.12 billion in development finance for nine member countries

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JEDDAH – The Board of Directors of the Islamic Development Bank (IsDB) approved a total of US$1.12 billion for financing development projects in various sectors in 9 member countries, as well as US$1.79 million for a range of other projects including market access readiness in the republic Yemen and Special Assistance Grants to Muslim communities in three non-member countries during their 347th meeting held today at the Bank’s headquarters in Jeddah, Kingdom of Saudi Arabia.

During the session chaired by Dr. Muhammad Al Jasser, President of IsDB and Chairman of IsDB Group, the honorable members of the Board reviewed and approved projects in key sectors such as food security, health, transport, energy and urban development, education, water and sanitation.

They also discussed the existing funding gaps for key energy infrastructure needs in some of the member countries and accordingly approved two public-private partnership (PPP) projects for the Republic of Uzbekistan and the Republic of Uganda. The governments of these countries use PPP financing as a mechanism to attract private sector investment and expertise to provide improved public services and accelerate economic growth.

The €100 million Surkhandarya Combined Cycle Power Plant project for the Republic of Uzbekistan aims to meet the country’s growing energy consumption and replace the aging and inefficient fleet of gas-fired thermal power plants. In the Republic of Uganda, the US$100 million financing, part of the Islamic tranche, will enable the country to develop its oil reserves and export oil to international markets via a 1443 km cross-border, underground, heated crude oil pipeline.

Recognizing the importance of sustainable and efficient transport systems in promoting socio-economic development, the Bank approved a total of US$601.7 million in government financing for transport projects in Guyana (US$200 million), Uzbekistan (US$106.7 million Dollar). ) and Uganda ($295 million). These projects aim to improve access to state-of-the-art infrastructure, give farmers and traders easier access to markets, and strengthen regional integration and tourism for member countries.

In the healthcare sector, €205 million in government funding has been approved to strengthen the National Referral Hospital on Oncology Center for the Republic of Indonesia. Through the modernization of six national referral hospitals in the country, the project aims to improve the availability, accessibility, quality and delivery of oncology services for children and adults.

In addition, the Board approved other key proposals, namely the debt restructuring of Queen Alia International Airport (QAIA) in the Hashemite Kingdom of Jordan and the change in financing mode of the approved installment sale financing to Commodity Murabaha for the 300-bed hospital project in Kaduna State, Nigeria.

The Board approved US$1 million in grants to provide market access readiness in key economic trade sectors in the Republic of Yemen. This program will improve market access by addressing existing gaps in the selected trade sectors, namely onions, honey and coffee.

To meet the educational infrastructure needs of Muslim communities in some non-member countries, a US$785,000 grant package was approved for projects in Zambia, India and Bosnia. These funds are primarily intended for the expansion of school facilities to meet the high demand from students. The funds will also be used to improve the provision of quality education and improve the skills of the youth of Muslim communities through technical training aimed at improving their economic and social inclusion.

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