US$ 140 million Wind Energy Project for Pakistan by IDB Board

The Islamic Development Bank (IDB) has extended US$ 140 million funding for a pioneer project to produce wind power electricity in the Sindh Province in Pakistan. This financing is part of the overall US$ 321.8 million the Board of Executive Directors of the IDB approved at its 280th session for various development projects in member countries and for Muslim communities in non-member countries. The meeting that started on Sunday 8 January was chaired by IDB Group President, Dr. Ahmad Mohamed Ali.

The package of new approvals also includes US$ 50 million investment (which be raised to US$ 150 million at a later stage) in the Arab Financing Facility for Infrastructure (a joint initiative between IDB and the World Bank’s IFC), as well as financings for other projects in Uganda (US$ 30.7 million for the Mulago Referral Hospital Project), Egypt (US$ 32.3 million for the National agriculture Subsurface Draining Project) and Tajikistan (US$ 17.5 million financing for Secondary Schools Development Project). Grants of up to US$ 1.295 million for educational and health projects for Muslim communities in China, Northern Cyprus, Ethiopia, India, Venezuela and the Philippines were approved by the Board.

The Board also reviewed a progress report on its “initiative for Creating job opportunities for the youth in Arab countries” which included US$ 50 million SMEs financing for the Social Development Fund in Egypt, similar to the amount earlier approved to support creating job opportunities for the youth in Tunisia.

The meeting reviewed the IDB’s proposed operations growth and resource requirements for the ten-year period (2012-2021) including plans and strategies for resource mobilization during the year 2012, approving a proposal for US$ 3 billion hike in the volume of the mid-term Sukuk Program (from US$ 3.5 billion to US$ 6.5 billion). This is justified by the success met by the IDB Sukuk issuance, thanks in particular to the AAA rating that IDB is enjoying from the major rating agencies.

Finally, the upcoming 37th Annual Meeting of the Board of Governors of the IDB slated for April 3-4, 2012 in Khartoum, Sudan was also discussed during the session.