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Islamic Dev’t Bank Gives Uganda US$ 395 Million to upgrade roads, support oil pipeline project

The Islamic Development Bank’s (IsDB) Board of Executive Directors, has approved a total of US$ 1.12 billion for development projects financing in various sectors in 9 member countries as well as US$ 1.79 million grant for a number of other projects including market access readiness in the Republic of Yemen and special assistance grants to Muslim communities in 3 non-member countries, during its 347th session held, today, at the Bank’s Headquarters in Jeddah, Kingdom of Saudi Arabia.

During the session chaired by H.E. 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.

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.

The EUR 100 million Surkhandarya Combined Cycle Power Plant Project for the Republic of Uzbekistan is expected to meet the growing demand for the country’s energy consumption and substitute the aging and inefficient fleet of gas-fired thermal power plants. In the Republic of Uganda, the financing of US$ 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.

Cognizant of the importance of sustainable and efficient transport systems in enhancing socio-economic development, the Bank approved a total of US$ 601.7 million, as sovereign financing, in transport projects in Guyana (US$ 200 million), Uzbekistan (US$ 106.7 million), and Uganda (US$ 295 million). These projects are expected to enhance access to state-of-the-art infrastructure, facilitate access to markets for farmers and traders, and reinforce regional integration and tourism for the member countries.

In the Health sector, sovereign financing of EUR 205 million was approved for the Strengthening of the National Referral Hospital on Oncology Center for the Republic of Indonesia. By modernizing 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.

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.

For providing market access readiness in key economic trade sectors in the Republic of Yemen, the Board approved US$ 1 million in grants. This program will improve market access by tackling existing gaps in the selected trade sectors namely Onion, Honey, and Coffee.

To support educational infrastructural needs of Muslim communities in some non-member countries, a grant package of US$785,000 was 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. The funds will also be used to enhance the provision of quality education, as well as to enhance the skills of the youth of Muslim communities through technical training aimed at improving their economic and social inclusion.

The comprehensive list of all projects and proposals approved by the IsDB Board is provided below:

Sovereign Financing Projects:

  • The Islamic Republic of Mauritania
    • IsDB’s contribution is EUR 37.87 million for Kiffa Water Supply Project.
    • The Project objective is to increase access to improved water services in selected rural areas and small towns. In addition to generating nearly 3,000 new jobs and improving the standard of living in the project area, the major objective of the project is to increase access to improved water services in some rural regions and small towns in the wilayas of Guidimakha and Assaba until 2035.
  • The Republic of Uzbekistan
    • IsDB’s contribution is US$ 106.7 million  for Reconstruction and Upgrading of M39 Road, 1255-1315km
    • The Project objective is to improve the efficiency of the road transport infrastructure and ensure the safe movement of goods and people along the project road section. To reach this objective, the project will reconstruct and upgrade 63 km of road, install Weigh in Motion (WIM) systems for dynamic weight and dimension control as well as carry out various capacity development activities to enhance road transport planning.
  • The Republic of Djibouti
    • IsDB’s contribution is US$ 15 million for Slum Upgrading and Integrated Urban Development Project in Djaga Bouldhouq
    • The Project objective is to contribute to the National Zero Slum Program and Housing Strategies aimed at improving human development and economic empowerment through enhanced access to urban services for poor households in the target slum neighborhoods of Djaga-Boudhouq, Djibouti.
  • The Republic of Guinea
    • IsDB’sproposal is for additional financing of US$ 26.29 million for the Rehabilitation and Expansion of the Conakry Electricity Distribution Network (Phase II) Project.
    • The proposed project aims to improve the reliability of the network and the financial and technical performance of the electricity company EDG by increasing the grid efficiency, the collection rate, and expanding access to electricity in Conakry.
  • The Republic of Uganda
    • IsDB’s contribution is US$  295 million for Upgrading National Roads
    • The Project aims to boost the socio-economic development of Uganda by providing better access to social infrastructure, facilitating access to markets for farmers and traders, and reinforcing regional integration and tourism.
  • The Republic of The Gambia
    • US$ 5.54 million is proposed as IsDB’s new contribution for Enhancing Value Addition in the Groundnut Sector Phase II,
    • The Project aims to enable reaching the general goal fixed in the initial project (Phase I) which is to contribute toward the growth of Gambia’s groundnut sector, by providing groundnut processing and waste management infrastructures.
  • The Republic of Cameroon
    • IsDB’s contribution is EUR 32.25 million for the Presidential Plan for the Reconstruction and Development (ISPPRD) for the North-west and South-West Regions of Cameroon.
    • The Project aims to support the Government of Cameroon in reconstructing and rehabilitating essential infrastructure, strengthening social cohesion, and revitalizing the local economy in the North-West and South-West regions.
  • The Republic of Indonesia
    • IsDB’s contribution is EUR 205 million for Strengthening of the National Referral Hospital on Oncology Center.
    • The Project aims to contribute to the reduction of the high rates of morbidity and mortality from cancer through the strengthening of the Oncology services of six national referral hospitals. The Project Development Objective (PDO) is to enhance the availability, accessibility, quality, and delivery of oncology services for children and adults through the modernization of six national referral hospitals.
  • The Republic of Guyana
    • IsDB’s contribution is US$ 200 million for Reconstruction of the Soesdyke – Linden Highway Project.
    • The Project aims to improve the road capacity and serviceability to (a) meet the current and future transport demands, (b) increase regional and sub-regional access and connectivity, (c) reduce travel time, vehicle operating cost, and increase comfort, safety, and reliability, (d) facilitate the growth of transit transportation, (e) stimulate regional trade and transportation with the neighboring regions and (f) help accelerate the socioeconomic activities through improved access of people to social amenities, businesses, activity centers, employment opportunities, trade, transit potential, tourism resulting from enhanced internal and regional interconnectivity and increased overall efficiency of the road transport system by reconstructing 73km Soesdyke-Linden Highway Project.

PPP Projects:

  • The Republic of Uzbekistan
    • IsDB’s contribution is EUR 100 million for Surkhandarya Combined Cycle Power Plant Project.
    • This project’s objective is to improve the efficiency of the power sector while utilizing indigenous gas resources. It will reduce the operations and maintenance cost of the base load generation capacity required to maintain the power grid stability and allow for the integration of renewable energy resources into the power grid.
  • The Republic of Uganda
    • IsDB’s contribution is US$100 million for East Africa Crude Oil Pipeline (EACOP) Project,
    • The project will enable Uganda, a landlocked country, to emerge as a regional oil producer with export capacity to international markets. The objective of the project is to enable Uganda to exploit its oil reserves and export oil to international markets through neighboring Tanzania.

Grants:

  • The Republic of Yemen
    • IsDB’s contribution is about US$ 1 million (Grant) for Market Access Readiness in Key Economic Trade Sectors (MARKETS) Program
    • This program will improve market access by tackling existing gaps in the selected trade sectors namely Onion, Honey, and Coffee.
  • The Republic of India
    • IsDB’s contribution is about US$ 200,000 (Grant) for Expansion of Vocational Training Center for Hamidiya Islamiya School Society, Panwari, Mahoba District, Uttar Pradesh State,
    • This grant proposal aims at enhancing job opportunities through the provision of technical Education for the youth of the Muslim Communities in Mahoba District in order to improve their economic and social situation.
  • The Republic of India
    • IsDB’s contribution is about US$ 200,000 (Grant) for Expansion of Markaz-E-Adab-O-Science Primary School, Ranchi, Jharkhand State.
    • This grant project aims at providing access to quality education facilities and accommodating the increasing number of primary students from 120 to 575. The grant will enable the school to be affiliated with the Central Board of Secondary Education (CBSE) as currently there is no Muslim school representing the Muslim minority in Ranchi.
  • The Republic of Bosnia & Herzegovina
    • IsDB’s contribution is about US$185,000 (Grant) for Expansion of Public Second Gymnasium School, Mostar
    • This grant proposal aims at improving access to quality education facilities and increasing school capacity enrollment for 40 students annually. The sports hall will also be rented by citizens of Mostar for various cultural and religious events that could be invested in further upgrading of school facilities and equipment.
  • The Republic of Zambia
    • IsDB’s contribution is about US$200,000 (Grant) for Infrastructure and Equipment Enhancement Grant for Iqra Girls’ Academy, Lusaka
    • This grant proposal aims at improving access to quality science and technology education through the provision of Information, Communication, and Technology (ICT) and science laboratory equipment in the Infrastructure and Equipment Enhancement project for Iqra Girls’ Academy, to meet the Country’s education targets for “Educating for the future” in Zambia.

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