Islamic Development Bank approves $1.12bn in development financing for nine member countries

Saudi Arabia-headquartered Islamic Development Bank’s (IsDB) board of executive directors, approved a total of $1.12bn for development projects financing in various sectors across nine of its member countries as well as a $1.79m grant for a number of other projects in key sectors such as food security, health, transport, energy, urban development, education, water and sanitation.

The bank’s board also approved two projects under the public-private partnership (PPP) mechanism for Uzbekistan and Uganda, according to a report published by the UAE’s state news agency, WAM.

This includes the EUR100m Surkhandarya Combined Cycle Power Plant Project for Uzbekistan, which aims to meet the growing demand for the country’s energy consumption and substitute the ageing and inefficient fleet of gas-fired thermal power plants.

In Uganda, the financing of $100m, part of the Islamic tranche, will enable the country to tap into its oil reserves and export oil to international markets through a 1,443-kilometre cross-border buried-heated crude oil pipeline.

The bank approved a total of $601.7m, as sovereign financing, for transport projects in Guyana ($200m), Uzbekistan ($106.7m), and Uganda ($295m). These projects are expected to enhance access infrastructure, facilitate access to markets for farmers and traders, and strengthen regional integration and tourism for the member countries.

In the health sector, sovereign financing of EUR205m was approved for the Strengthening of the National Referral Hospital on Oncology Center for the Republic of Indonesia. By modernising six national referral hospitals in the country, the project aims to improve the availability, accessibility, quality, and delivery of oncology services for children and adults.

Other key proposals accepted included the debt restructuring of Queen Alia International Airport in Jordan, as well as the modification of the mode financing of the approved instalment sale financing to Commodity Murabaha for the 300-bed hospital project in Kaduna State, Nigeria.

The board approved $1m in grants to provide market access readiness in key economic trade sectors in Yemen. This programme will tackle existing gaps in the selected trade sectors.

A grant package of $785,000 was also approved for projects in Zambia, India, and Bosnia. These funds are primarily earmarked for the expansion of school facilities, in response to the high demand from students.