The Islamic Development Bank (IDB) approved more than US$575 million in new financing. The 259th session of the Board of Executive Directors (BED) which was held on Sunday,May31.2009 in Ashgabat, Turkmenistan.
The new finances cover development projects in Turkmenistan, Iran, Pakistan, Bangladesh, Turkey, Lebanon and Suriname. It also approved grants from the Waqf Fund for Muslim communities in non-member countries as contribution to educational and health projects in Bosnia-Herzegovina, Burundi, Thailand, Tanzania, in addition to the adoption of a ten years program in favor of the Muslim community in Ethiopia. The Board also approved grants to build 8 schools in southern Somalia.
President of the IDB Group, H.E. Dr Ahmad Mohamed Ali, announced that during this session the Board of Executive Directors gave approval for the authorized capital of the Islamic Corporation for the Development of the Private Sector (ICD), a member of the Islamic Development Bank Group, to be increased to US$ 2 billion from US$1 billion and to increase its subscribed capital from US$ 500 million to $750 million, so as to meet the demands of growing the Corporation and strengthening its role in the development of the private sector in member countries.
The IDB Group President also expressed his personal appreciation and gratitude and those of the entire BED of the IDB to the President, Government and people of Turkmenistan for the excellent arrangements and facilities made at all levels to provide all that is required to ensure the success of the 34th Annual Meeting of the Board of Governors and as well as other related meetings and activities that already started two days ago (since Saturday 30.5.09) .
The meeting also discussed some other important topics including the updated report on the current global financial crisis and its impact on the member countries. Also considered were report on the progress recorded in the implementation of the programme to upgrade the IDB Group and progress reports on the implementation of the IDB Vision 1440 (2020), and of the Jeddah Declaration, which was issued last June at the end of the 33rd Annual Meeting of the IDB Board of Governors in Jeddah, when the Bank announced the allocation a financial package totaling US$1.5 billion to assist IDB’s least developing countries affected by the global food crisis.
The Board of Executive Directors will remain convened throughout the duration of the Annual Meeting of the Board of Executive Directors of the Islamic Development Bank.
The details of the approved funding during this session are as follows:
I – Development projects
- US$ 31 million in favor of Turkmenistan for purchase of two oil carriers with capacity of 7000 metric tons for each to facilitate oil shipments from Turkmenistan to neighbor countries.
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- US$ 52.7 million for the Republic of Lebanon towards financing drinking water project and sewage network in Akar region, Lebanon, aimed at improving the health and environmental conditions of the inhabitants of the region through the construction of networks to attract and distribute portable water, building and equipping wells, storages and water pumping stations and the construction of sewage network.
- US$ 137 million to the Islamic Republic of Pakistan towards the Niolum Jilum Hydro-electric power generation station project. Upon completion, the project will save the country the equivalent of US$ 300 million in hard currency annually.
- US$ 220 million to the Republic of Turkey towards the project to develop Turkish railway network through the purchase of 80 new modern electric locomotives.
- US$ 25 million within the framework of the Jeddah Declaration for the People’s Republic of Bangladesh towards supporting the efforts aimed at achieving food security, poverty reduction, and diversification of high-value agricultural products by providing high-yield seeds to farmers. In view of the importance of this project and of the priority attached to it by the Government of the Republic of Bangladesh, the Board of Executive Directors approved concessionary loans amounting to US$10 million from the resources of the Islamic Solidarity Fund for Development (ISFD) for the same project.
- 69.2 million Euros, equivalent to US$91 million for the Islamic Republic of Iran towards financing the Kahir Storage Dam Project. The dam will provide drinking water for the people of Shah Bahr and Kunarak and adjoining villages and provide water needed for irrigation of thousands of hectares of farmland in the south of the country.
- US$5.5 million in additional financing for the Republic of Suriname towards the project to upgrade the New Nickerie Sea Port, aimed at reducing the cost of exporting Suriname’s agricultural products to neighbouring countries and at encouraging regional integration through improvement of infrastructure in the said port and improving the navigability of the Nickerie River. The IDB had earlier allocated US$11 million to the same project, thus bringing the Bank’s total contribution to the project to US$16.5 million.
II – Grants and assistance to Muslim Communities from the IDB’s Waqf Fund
- The BED approved US$ 16 million, ten years program to support the Muslim community in Ethiopia through providing health and education services.
- US$ 220,000 for the establishment of a secondary nursing school in Bujumbura region of Burundi.
- US$ 353,000 for establishing and equipping an information and communication technology complex in the Muslim University of Morogoro in the United Republic of Tanzania.
- US$ 397,000 towards the building of hostel for the College of Islamic Studies in Sarayevo, Republic of Bosnia-Herzegovina.
- US$450,000 for the establishment of 8 schools in southern Somalia.
- US$360,000 towards the establishment of Makini Islamic Academy for girls in Lusaka in the Republic of Zambia.
- US$295,000 for the establishment of a girls’ section in the Pan Asia International Secondary School. Bangkok, Thailand.