Home » IsDB Board approves financing of projects worth US$ 403 mn for sustainable development and economic transformation

IsDB Board approves financing of projects worth US$ 403 mn for sustainable development and economic transformation

by Dubaiforum

JEDDAH,1st April, 2023 (WAM) — The 350th meeting of the Islamic Development Bank (IsDB) Board of Executive Directors was held on Saturday, 1ist April 2023, in the city of Jeddah, Kingdom of Saudi Arabia.

Chaired by IsDB President and Group Chairman, Dr. Muhammad Al Jasser, the meeting approved three projects worth around US$ 403 million that support socio-economic development and promote sustainability in member countries in key sectors such as energy, education, and transport.

In his remarks, Dr. Al Jasser, emphasised the significance of the approved projects, saying: “The transformative projects approved in this board meeting will have a significant impact on improving transportation, education, and energy, as well as promoting regional economic integration and addressing emergency situations. The IsDB Group remains committed to supporting its member countries in their pursuit of prosperity and resilience, particularly during these challenging times.”

Top among the approvals is IsDB’s EUR 318 million (US$ 344.5 million) financing to be contributed to Phase I of the Electric Express Train Project in the Arab Republic of Egypt. The objective of the project is to provide access to safe, affordable, accessible, and sustainable transport systems for all by developing a 660km sustainable, green, and climate-resilient electric express railway system. This project is expected to benefit 25 million people annually and decrease Green House Gas (GHG) emissions by approximately 250,000 tons of CO2 annually.

The Board also approved an additional financing of US$ 13 million for the Central Asia South Asia Electricity Transmission and Trade Project (CASA-1000) in the Republic of Kyrgyzstan. The Bank had originally approved US$ 50 million towards this project. The project aims to meet the electricity demand in Afghanistan and Pakistan through the establishment of cross-border energy exchange among four IsDB member countries as part of the Bank’s regional economic integration strategy. Once operational, the project will utilize efficient and environmentally friendly indigenous hydropower resources of Kyrgyzstan and Tajikistan, creating conditions for sustainable electricity trade between Central and South Asia.

The third approved project is the IsDB/ISFD/GPE/OFID Project for Support to Implementation of the National Education Development Strategy of Tajikistan (Phase II), with IsDB’s financing contribution of US$ 35 million and ISFD’s contribution of US$ 10 million. The project aims to improve the learning environment and facilitate system strengthening for the country’s sustainable implementation of an inclusive, competency-based education system. The project is a partnership between IsDB, Islamic Solidarity Fund for Development (ISFD), Global Partnership for Education (GPE) and OPEC Fund for International Development (OFID).

Additionally, the Board members deliberated on an emergency grant funding from the IsDB to provide support to Turkiye, and Syria in the aftermath of devastating earthquakes that struck both countries.

Furthermore, the IsDB Board reviewed the progress report of the IsDB Group Food Security Response Program (FSRP), aimed at supporting member countries in better averting the ongoing food crisis and further strengthening their resilience to future food security shocks.

The IsDB Board of Executive Directors continues to support member countries in achieving their sustainable development goals and strengthening their resilience to future development challenges.

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