Jeddah 06/03/2006

The Board of Executive Directors of the Islamic Development Bank, concluded, its 236th session at the Bank's Headquarters in Jeddah, Saudi Arabia, on Monday 6/3/2006 after two days of deliberations, under the chairmanship of H.E. Dr. Ahmed Mohammed Ali, President, IDB.

H.E. Dr. Ahmad Mohamed Ali, stated that the Board has accepted to submit a recommendation to the upcoming meeting of IDB's Board of Governors in Kuwait for creating a Poverty Alleviation Fund (PAF) within the IDB. Establishing such a fund was emphasized by the 3rd Extraordinary Session of the OIC Summit in Makkah which underlined the importance of setting up a special fund within the IDB for poverty alleviation, capacity building, elimination of illiteracy and eradication of diseases and epidemics in the OIC member states.

"The Board has endorsed the Annual Audited Financial Statements of the Bank for the Financial Year 1426H (February 2005- February 2006), and submitted them for the approval of the Board of Governors in its upcoming meeting in Kuwait on 30-31/May/2006. It also indorsed the Audited Financial Statements of IDB Unit Investment Fund and Islamic Bank's Portfolio and the Declaration and Distribution of Final Semi- Annual Cash Dividends for both for the Financial Year ended 31/12/2005 which will be submitted for the approval of the Board of Governors" he stated.

Dr. Mohammed Ali explained that the Board has approved US$361.2 million underlying the Bank's participation in different project financing and trade operations. "The approvals included new development projects in Jordan and Lebanon, and participation by almost 9% in the Paid Capital of Al Sham Bank- Syria, in addition to providing grants to 6 Islamic Communities in nonmember countries for educational projects namely in the US, South Africa, Tanzania, Kenya, India, Serbia and Montenegro, and US$2.6 Additional Grant to support the Budget of the International Center for Biosaline Agriculture " he added. Moreover the Board approved a Trade Financing Operation (ITFO) for Pakistan at the sum of US$ 200 million for importing Crude Oil and Refined Petroleum Products, and was informed about a Technical Assistance provided to Jeddah Charity Blood Bank Project within the operations approved by the IDB president.

DEVELOPMENT PROJECTS

US$ 39,2 million a combination of Ordinary Loan and Installment Sale Financing for construction of the new Al- Zarqa Hospital Project, Jordan.

US$ 8,9 million Loan Financing for participation in the construction of eight schools in Bekka, Lebanon.

US$ 8,7 million for participation in the Paid Capital of Al Sham Bank, Syria.

GRANTS AND SPECIAL ASSISTANCE PROJECTS FROM WAQF FUND

US$ 130,000 for participation in the construction of Noori Girls High Secondary School and Hostel at Dhrol, District Jamnagar, Gujarat State, India.

US$ 295,000 for participation in Purchasing a Building for the Islamic School of Rhode Island, USA.

US$ 220,000 for participation in Completing the Secondary School Building and Hostel in Podgorica in Montenegro, Republic of Serbia and Montenegro.

US$ 500,000 for participation in the Construction of Draul Falaah Waqf Building for Islamic Dawah Movement in Durban, South Africa.

US$ 270,000 for participation in the construction of Academic Building for Zanzibar University, Zanzibar, Republic of Tanzania.

US$ 265,000 for participation in the construction of School Complex for Thadhib Muslim Academy.

US$ 2,6 million Additional Grant for increasing the total budget of the International Center for Biosaline Agriculture to US$4,6 million for the year 1427H.
Trade Financing Operations

(ITFO) in favour of Ministry of Petroleum and Natural Recourses, Pakistan, at the sum of US$ 200 million for purchasing Crude Oil and Refined Petroleum Products.

APPROVALS BY THE PRESIDENT

The following are approvals of Trade Operations and Technical Assistance made by the President of the Bank between the previous and present sessions of the Board:

Import Trade Financing Operations (ITFO):

ITFO in favour of the Ministry of Power, Energy and Mineral Resources, Bangladesh, for an amount of US$ 25 million to purchase Crude Oil from member countries.

ITFO Co-Financing Murabaha Operation in favour of Egyptian General Petroleum Corporation, Egypt, for an amount of US$ 50 million to purchase Petroleum Products from member countries.

ITFO Co-Financing Murabaha Operation in favour of Kuwait Cement Company (KCC), Kuwait, for an amount of US$ 40 million to Purchase Raw Materials and Spare Parts.

ITFO Syndication Murabaha Financing Operation in favour of Societe Anonyme Marocaine De L'Indsutrie Du Raffinage, Morocco, for an amount of US$ 100 million to purchase Crude Oil from member countries.
Technical Assistance

US$ 144,000 Technical Assistance in a form of grant for Jeddah Charity Blood Bank Project, KSA.