Quarter of IDB financing has gone to energy sector
Islamic Development Bank approves $683m of new financing in July
The President of the Islamic Development Bank (IDB), Dr Ahmad Mohamed Ali, has said that the IDB’s support for the energy sector in member states amounts to over 25% of total approved financing since the bank was established in 1975.
“This is in addition to financing by other IDB Group institutions, especially the International Islamic Trade Financing Corporation (ITFC),” he said.
The bank has been seeking to boost regional partnerships to help develop the energy sector, with a particular focus on power generation infrastructure in member countries. During the banks mid-July meeting it approved over US $683 million in financing for power projects in Morocco, Tunisia, Uzbekistan, Iran and Tajikistan. This included a $200 million approval for the Mdez-El Menzel hydropower complex project in Morocco. The country is aiming to meet 42% of its electricity demand from renewable energy sources by 2020.
Other approvals included the $196 million financing for a 400 MW combined cycle power project in Sousse, Tunisia, and a $185 million loan for a power transmission scheme in Iran’s North-West. This scheme is aimed at improving the reliability and quality of the grid as electricity demand across the country increases.