The IsDB Group has approved and signed major agreements to finance projects that focus on sustainable and inclusive growth and infrastructure development in its member countries amounting to a total of US$1.66 billion, on the first day of the group’s 48th Annual Meetings held in Jeddah, Saudi Arabia under the theme of ‘Partnerships to Fend off Crises’.
As per the decision of the board of directors, the IsDB will contribute EUR270.57 million (US$296.86 million) to Phase 2 of the Rural and Peri-Urban Housing Finance Project in Bangladesh, which aims to construct 1,989 sustainable multi-storied housings with improved quality and necessary basic facilities.
Besides that, the key approvals include a financing contribution of US$100 million inclusive of a US$35 million grant from the Bill and Melinda Gates Foundation to the Polio Eradication Phase IV Project in Pakistan, with an objective to permanently contain the spread of all polioviruses and circulate vaccine-derived poliovirus Type 2 by the end of 2026, and maintain the country’s ‘polio-free’ status for the subsequent three years.
The board also approved a US$100 million facility to Sarana Multi Infrastruktur, a special mission vehicle under Indonesia’s finance ministry, to cover the financing of several infrastructure projects located across various regions in the country.
Furthermore, the IsDB will provide a financing contribution of EUR40 million (US$43.88 million) to the Electrification and Development of Electrical Connection Project in Burkina Faso to provide reliable and affordable electricity through the extension and reinforcement of the electricity distribution and connection networks. The project is projected to increase national access to electricity by 25%.
On top of that, the board of directors of the IsDB also approved an additional financing of EUR2.32 million (US$2.54 million) for the construction of the Guiba—Garango Road Project in Burkina Faso, which aims to improve connectivity between the major transport corridors while also facilitating local commercial activities within the project area to sustain economic growth.
In addition, the board also approved a financing facility of US$15.31 million toward the widening of the Bertil–Harding Highway Phase II Project in The Gambia.
Included in the total financing amount of US$1.66 billion are agreements signed by IsDB entity International Islamic Trade Finance Corporation (ITFC) with member countries Mali, The Gambia and Djibouti.
The first is a five-year US$500 million framework agreement between the ITFC and Mali to ensure closer cooperation and coordination of efforts between the government of Mali and the ITFC as part of a strategic partnership to new collaboration areas in energy, agriculture, private sector and health.
Besides that, the ITFC also signed two direct Murabahah financing agreements with The Gambia consisting of US$35 million for the National Water & Electricity Company and US$20 million for The Gambia’s National Petroleum Company.
Lastly, the ITFC also signed a three-year framework agreement with Djibouti for a total of US$600 million over the next three years for the ITFC to mobilize financial resources from international and regional banks and financial institutions to finance the energy, agriculture, health and private sectors, in addition to providing technical assistance to the country.
The annual meetings of the IsDB Group gather officials from 57 member countries and representatives of Islamic banks and financial institutions to serve as a platform where global leaders, policymakers, development bodies and other stakeholders come together and discuss critical development issues.
This year’s gathering also includes a Private Sector Forum, hosted by IsDB Group entities, namely the Islamic Corporation for the Insurance of Investment and Export Credit, the ITFC and the Islamic Corporation for the Development of the Private Sector.