I s l a m i c D e v e l o p m e n t B a n K 1

Cairo, Egypt

The Role of the Islamic Development Bank in Financing Transport

Infrastructure and Improving Road Safety

‘together we build a better future’

24 October 2011

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Presentation Outline

• Snapshot on IDB• Volume and distribution of IDB financing• Transport Strategy• New Commitment to Road Safety• Available windows for financing road safety

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Islamic Development Bank (IDB) Group

Islamic Development Bank (IDB)

Foster the economic development and

social progress of MCs and Muslim

communities.

International Islamic Trade Financing

Corporation (ITFC)Promote and enhances intra-trade and trade cooperation through

trade finance and promotion programs

Islamic Corporation for the Development of the Private Sector

(ICD)Promote development

of private sector development.

Islamic Research & Training Institute

(IRTI)Undertake applied &

basic research in Islamic Economics and

Finance.

Islamic Corporation for Insurance of Investment &

Export Credit (ICIEC)Provide Shariah-

compatible export credit insurance,

political risk insurance, technical assistance.

The IDB Group

Shari’ah Compliance

1975 1981 1994 1999 2008

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• Jeddah, Kingdom of Saudi Arabia

• Regional Offices: Kazakhstan, Malaysia, Morocco and Senegal

• Field Representatives in several Member Countries

• AAA Rating by Moody’s, Fitch, and S&P. Zero-Risk Rating by the European Commission

“We are committed to alleviating poverty; promoting human development, science & technology, Islamic banking & finance; and enhancing cooperation amongst member countries, in collaboration with our development partners”

• Human Development

• Agricultural Development & Food Security

• Infrastructure Development

• Private Sector Development

• Intra-Trade among Member Countries

• R&D in Islamic Banking & Finance

As of 17 December 2009

Authorised Capital : US$ 46.0 bn

Rated : Aaa/AAA/AAA

Paid up capital of US$5.5 bn*

Member Countries : 56

Total Employees : 1,014

Total Assets : US$ 13.1 bn

Sub-Saharan Africa – 22 Middle-East & North-Africa – 19

South & South-East Asia – 8Central Asia –7

Paid-up Capital : US$ 5.5 bn

ISLAMIC DEVELOPMENT BANKSnapshot

Mission Statement

IDB Scorecard

Priority Areas

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* Excluding operations of ICIEC & ICD

Aggregate IDB Group Financing (1975- 2010)

Net Approved IDB Financing: US$ 63.9 bn * Cumulative Sectoral Distribution

Energy, 36%

Transport & Coms; 31%

Indus-try, 12%

Agricul-ture, 11%

Social, 6% Other, 4%

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Trends in OCR Approvals 1396H-1431H

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1396

1397

1398

1399

1400

1401

1402

1403

1404

1405

1406

1407

1408

1409

1410

1411

1412

1413

1414

1415

1416

1417

1418

1419

1420

1421

1422

1423

1424

1425

1426

1427

1428

1429

1430

1431

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

US$

Mill

ion

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Aggregate Infrastructure Financing (1975-2010):Sectoral Distribution

US$ 15,520 m Net Approved Financing*

* Total Approvals less Cancellations

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Aggregate Infrastructure Financing (1975-2010): Geographic Distribution

US$ 15,520 m Net Approved Financing*

* Total Approvals less Cancellations

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IDB and Transport Projects Financing

Airports, 501, 8% Ports,

1020, 16%

Multimod, 171,

3%

Railway, 1215, 19%

Roads & Highway,

3500, 54%

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Transports Projects Operations Country No. Operations Amount ($, mi.) % of total Portfolio

Bahrain 3 144.7 16

Egypt 2 25.6 3

Iraq 0 0 0

Jordan 10 194.4 24

Kuwait 0 0 0

Lebanon 6 110 16

Oman 8 147.4 28

Palestine 1 5 6

Qatar 0 0 0

Saudi Arabia 1 105 16

Sudan 10 203.1 21

Syria 0 0 0

UAE 1 60 42

Yemen 7 69 22 10

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IDB’s Transport Strategy

A comprehensive strategy implementation framework for the period 1431H-1433H has been prepared by IDB with a focus on:

Financing of Regional Infrastructure Projects.

Promotion of Trade among member countries.

Promotion of Cross-Border investment and flow of investment among MCs.

Capacity Building for Economic Integration Infrastructure.

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Road Safety in IDB Financings

• Historically: Minimum consideration as part of Road Project Financing (safe road design).

• November 2009: Commitment along with 6 others MDBs (WB, ADB, AfDB, IaDB, EIB & EBRD) on a Shared Approach to Managing Road Safety:– Improving road safety is a development priority in

developing and emerging countries.– Scale up global, regional and country responses to bring the

growing numbers of road deaths and injuries toll under control.

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MDBs Shared Approach to Managing Road Safety

• The measures to be carried out fall into four broad categories:– Strengthening road safety management capacity;– Implementing safety approaches in the planning,

design, construction, operation, and maintenance of road infrastructure projects;

– Improving safety performance measures (data, indicators, analyses, etc.); and

– Mobilizing more and new resources for road safety.

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IDB’s Action Plan on Road Safety

• Build internal capacity and awareness.• Coordinate interventions and share experience with

the other MDBs.• Propose to include road safety in Policy Dialogue

with Member Countries & in Country Programming.• Include Road Safety audits as part of road

development projects.• Propose TAs to focus on institutional arrangements

and capacity building in MC.

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Available Windows for Road Safety Financing

• Regular Project Financing• Technical Assistance• Technical Cooperation Program• Non-Government Organizations (NGO)

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Project Financing

• As part of the formulation of a road project to be financed, may include road safety components:– Road Safety Audit– Training – Sensitization Campaign

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Technical Assistance

• Institutional Arrangements including diagnosis of country conditions in terms of existing responsible agencies, legislation, road safety strategies and programs, funding, monitoring and evaluation of safety performance, etc.

• Capacity Building in terms of road safety data collection and analysis, research and awareness campaigns.

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Technical Cooperation Program

• Tripartite scheme: Beneficiary Country, Donor Country (Expertise) and IDB as Facilitator/Financier

• Grant financing• Recently, annual budget of $5 million• 3 vehicles:– Provision of an Expert (maximum of 6 months, $25,000)– On the Job Training / Study Visit (max. 4 months, $25,000)– Conference & Seminar (max. 5 days, $60,000)

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NGOs

• Make funds directly available to Road Safety NGOs (Grant)

• Capacity Building operations: training, equipment, support to activities (maximum $100,000)

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THANK YOUFor your attention!

عليكم والسالم شكرا