The 305th session of the Board of Executive Directors (BED) of the Islamic Development Bank held last week in Maputo, Mozambique, in conjunction with the 40th Annual Meeting of the Board of Governors of the IDB Group in the Mozambican capital, under the chairmanship of H.E. Dr. Ahmad Mohamed Ali, Chairman of the IDB Group, approved raising the current limit of the Bank’s medium term Sukuk issuance program from US$10 billion to US$25 billion.

On this occasion the BED commended the success recorded by the Sukuk Issuance Program since it began in 2003. The Board stated that this is a reflection of the high status and confidence that the Bank continues to enjoy in the international financial arena, in which IDB has been rated more than 12 consecutive years with “AAA” , the highest international credit rating available, by the three major international credit rating agencies – Standard & Poor’s, Fitch and Moody’s. This is in addition to
the designation of the IDB as “Zero-Risk Weighted” Multilateral Development Bank by the Basel Committee on Banking Supervision in 2004 and by the European Commission in 2007.

The US$10 billion so far raised as part of the IDB’s Sukuk program have been utilized to finance various development programs in member countries, particularly infrastructure projects. This is at a cost much lower than that of the beneficiary countries if they had raised the funds themselves from the international markets.

During the meeting, the Board approved participation in several development projects in member countries and some Muslim communities in non-member countries for US$450 million. Details of this participation are as follows:

I:- Development Projects:

- Republic of Mozambique: US$200 million for participation in electricity transmission from Shimuwara village in central Mozambique to Nakala in the north to meet the growing demands for electricity. The project entails the expansion of the electricity network infrastructure to ease transmission of electricity from the proposed new production stations in the west-central of Mozambique by 2019.

- Republic of Kazakhstan: Provision of US$70 million for the importation of agricultural equipment as contribution to the development of the country’s agricultural sector.

- Republic of Senegal: US$71.5 million for participation in the following two projects:

- Provision of US$48 million as additional financing for regional electricity connection project. The project entails the installation of 225 KV electricity line between power generation plant in Nouakchott, Mauritania and Tobene power sub-station in Senegal. The IDB had provided €60 million for the same project, bringing its total contribution to this vital project to around US$115 million.

- Provision of US$23.5 million for participation in rural electrification project in Senegal, aimed at improving the standards of living of rural dwellers.

- Republic of Benin: Provision of US$30 million for participation in the support of integrated micro-financing program (second phase). The program is aimed at improving livelihoods for people with limited income by improving opportunities to access small financing facilities and market training. The majority of the beneficiaries of this program are expected to be women (80%).

- Republic of Cameroon: Provision of US$28.5 million for participation in the second phase of the Mont Mbapite rural development project. The project is aimed at improving living conditions of the rural population of the northern region by strengthening of agro-industries units, renovating feeder roads and establishing lasting infrastructure.

- Republic of Togo: Provision of US$20.7 million for participation in the Katchamba – Saduri road construction project. The building of this road would link the northern and western regions of Togo, consisting of Kara and Savanes, thereby connecting the northern region of the country with the national road network, and reducing poverty and isolation of the inhabitants of the north.

- Republic of Bangladesh: US$16.3 million for participation in two projects as follows:

a- Provision of US$8.3 million for participation in the project to upgrade the technical teacher-training institute, with the aim of training qualified manpower as well as strengthening the skills and capacities of teachers. Upon completion, the project would accommodate about 2700 male and female students.

b- Provision of US$8 million for the sustainable housing project for low-income earners. The project is aimed at easing the access of about 5,000 low income citizens to suitable and sustainable accommodation.

- Kyrgyz Republic: Provision of US$12 million for the reconstruction of the alternative 50 km expressway linking the northern part of the country to the south. The sector in which the IDB would contribute in financing is the one linking Balikshi and Jalalabad cities.

II:- IDB Waqf Fund Grants

1. Muslim community in Canada: Provision of US$200,000 grant to Maple Grove School owned by the Canadian Muslims League in Kitchener, Ontario Province.

2. Muslim community in Kenya: Provision of US$200,000 as grant to the Tawfeeq Hospital expansion project in Malindi.

3.Muslim Community in South Africa: Provision of US$120,000 as grant for the establishment of Simuni primary school.

III:- Technical Assistance approved by the IDB President: The Board took note of a technical assistance grant to Cameroon amounting to US$259,000 to prepare a feasibility study for forest value chain projects, approved earlier by the President.