IsDB approves $1.12bn for development projects in 9 member countries

By Shilpa Annie Joseph, Official Reporter
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The Islamic Development Bank’s (IsDB) Board of Executive Directors has approved a total of $1.12 billion for development projects in various sectors in nine member countries.

The Bank said in a statement that the Board approved a $1.79 million grant for several other projects including market access readiness in the Republic of Yemen and special assistance grants to Muslim communities in three non-member countries, during its 347th session held at the Bank’s Headquarters in Jeddah, Kingdom of Saudi Arabia.

During the session chaired by Dr. Muhammad Al Jasser, President of the IsDB and Chairman of IsDB Group, the Honorable members of the Board of Executive Directors considered and approved projects in the key sectors such as food security, health, transport, energy, urban development, education, water, and sanitation.

According to the statement, “They also deliberated on the existing financing gaps in key energy infrastructure needs in some of the member countries and accordingly approved two projects under the Public Private Partnership (PPP) modality for the Republic of Uzbekistan and the Republic of Uganda.”

The governments in these countries are using PPP financing as a mechanism to attract private sector investment and expertise to deliver improved public services and accelerate economic growth.

In the Republic of Uganda, the financing of $100 million, part of the Islamic tranche, will enable the country to untap its oil reserves and export oil to international markets through a 1443 km cross-border buried-heated crude oil pipeline.

Furthermore, the Board approved other key proposals, namely the debt restructuring of Queen Alia International Airport (QAIA) in the Hashemite Kingdom of Jordan, as well as the modification of the mode financing of the approved installment sale financing to Commodity Murabaha for the 300-bed hospital project in Kaduna State, Nigeria.

The Board approved $1 million in grants for providing market access readiness in key economic trade sectors in the Republic of Yemen. “To support educational infrastructural needs of Muslim communities in some non-member countries, a grant package of $785,000 was approved for projects in Zambia, India, and Bosnia,” as per the statement.

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