31.10.2013, Jeddah, KSA - The Board of Executive Directors of the Islamic Development Bank (IDB), has approved US$ 5061 million for the Bank’s operations plan for the year 1435H (Nov. 2013 – Nov. 2014), the largest IDB operations plan ever which is exceeding the year 1434H (Nov. 2012 - Nov. 2013) plan by 10 percent.
This new operations plan coming in the context of IDB’s Medium Term Business Strategy of the Bank for 1434H-1436H is in addition to the funding offered by other IDB Group entities. The Bank is targeting US$ 15.23 billion in three years to foster accelerated socio-economic development of the member countries.
The decision also reflects the increase in ordinary financing triggered by the mobilization of resources from the financial markets through the issuance of Sukuk (Islamic bonds), based on the AAA credit rating the Bank has been receiving during the past 10 years from the three internationally recognized rating institutions namely: Standard and Poor’s (S & P), Moody's, and Fitch .
The Board also approved administrative budgets presented by the Bank’s management for the year 1435H including those for the Waqf Fund, the Islamic Research and Training Institute (IRTI), the 2nd Infrastructure Fund as well as the Islamic Solidarity Fund for Development (ISFD).
As part of the agenda of the 293rd meeting, the Board approved US$ 368.3 million for funding a number of new development projects in IDB member countries as well as Muslim communities in non-member countries.
The highest amount of the approvals was the US$ 220 million project that went to Turkey’s Industrial Development Bank (TSKB) Renewable Energy Program which aims to support the country’s economic development by building a number of advanced power plants. A project for the development of oncology services in Djibouti received US$ 5 million. The meeting also took note of US$ 142.3 million of financing approved by the IDB President for promoting food security in 6 member countries in Central and
West Africa namely; US$ 29 million for Niger; US$ 28 million for Chad; US$ 27.8 million for Burkina Faso; US$ 25.5 million for Senegal; US$ 17 million for Mauritania; and US$ 15 million for the Gambia. A sum of US$ 1 million was approved as grant under IDB’s Waqf fund in favor of educational projects for five Muslim communities in Fiji, Mauritius, Rwanda, Spain and Ukraine.
The Board further reviewed the outline of the Bank’s Annual report for 1434H and approved the new “IDB energy sector policy” consistent with its priorities and main areas of operations as per the Bank’s Vision 2020. The Board further discussed the arrangements for the celebration of IDB’s 40th anniversary concurrent with the next Board of Governors meeting in Jeddah (25-26 June, 2014) as well as a progress report on the activities of the IDB-hosted Secretariat of the Coordination Group between
the international financial institutions in the context of the Deauville Partnership launched by the G8 to support Arab countries in transition. It also reviewed a report on the establishment of the IDB Group offices in a number of member countries to support the Bank’s role and presence there.