Dr. Ahmad Mohamed Ali, President of the Islamic Development Bank (IDB) Group stated that, in line with its strategic planning for infrastructure, IDB’s support for the Energy sector in member countries has exceeded 25% of the total financing by the Bank since inception in 1975. “This is in addition to financing by other IDB Group institutions, especially the International Islamic Trade Financing Corporation (ITFC)”, he added.
According to Dr. Ali, in the context of the Bank’s role in promoting economic and social development in member countries, it has been seeking to strengthen regional partnership to develop the energy sector, particularly power generation infrastructure in the member countries.
In its mid-July meeting, the Board of Executive Directors approved more than US$ 683 million for financing power generation projects in Morocco, Tunisia, Uzbekistan, Iran and Tajikistan as part of US$1,158 million financing approvals, the largest ever accorded to member countries by a single session of the Board.. The Energy approvals included US$ 200 million for Mdez-El Menzel Hydropower Complex Project in Morocco, which comes in line with the country’s plans to meet 42 per cent of its demand
for electricity from renewable resources by the year 2020; and US$ 196 million for the 400 megawatt Combined Cycle Power Plant Project in Sousse, Tunisia, an effort to contribute to the country’s rising demand for environment-friendly sources of electric energy (this project is expected to assist Tunisia in achieving the targeted 5% annual economic growth as per its 5 year development plan).
Other energy sector approvals in the Board meeting were US$ 100 million to modernize and expand hydro-power plants in Uzbekistan and US$ 185 million for the North-West Region Electric Power Transmission Project in Iran, which aims to improve heavy electricity transfer grid in the country’s East Azarbaijan, West Azarbaijan and Ardabil provinces. The grid improvement project is expected to enhance the reliability and quality of the already congested transmission network to meet increasing demand
for electricity in the country.
Recently, the IDB President has authorized US$ 2 million financing for launching small electric power plants in rural areas in Tajikistan. This is in addition to US$ 9.2 million allocated earlier by the Board to the same project.