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The Role of the Islamic Development Bank in Financing Transport Infrastructure and Improving Road Safety. Cairo, Egypt. ‘together we build a better future’. Presentation Outline. Snapshot on IDB Volume and distribution of IDB financing Transport Strategy New Commitment to Road Safety
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The Role of the Islamic Development Bank in Financing Transport Infrastructure and Improving Road Safety Cairo, Egypt ‘together we build a better future’
Presentation Outline • Snapshot on IDB • Volume and distribution of IDB financing • Transport Strategy • New Commitment to Road Safety • Available windows for financing road safety
The IDB Group Islamic Development Bank (IDB) Group 2008 1975 1981 1994 1999 Islamic Development Bank (IDB) Foster the economic development and social progress of MCs and Muslim communities. Islamic Corporation for Insurance of Investment & Export Credit (ICIEC) Provide Shariah-compatible export credit insurance, political risk insurance, technical assistance. 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. International Islamic Trade Financing Corporation (ITFC) Promote and enhances intra-trade and trade cooperation through trade finance and promotion programs Shari’ah Compliance
ISLAMIC DEVELOPMENT BANK IDB Scorecard Snapshot • 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 Total Assets : US$ 13.1 bn Authorised Capital : US$ 46.0 bn Paid up capital of US$5.5 bn* Paid-up Capital : US$ 5.5 bn Mission Statement Rated : Aaa/AAA/AAA Member Countries : 56 Sub-Saharan Africa – 22 Middle-East & North-Africa – 19 South & South-East Asia – 8 Central Asia –7 PriorityAreas Total Employees : 1,014
Aggregate IDB Group Financing (1975- 2010) • Cumulative Sectoral Distribution • Net Approved IDB Financing: US$ 63.9 bn* * Excluding operations of ICIEC & ICD
Aggregate Infrastructure Financing (1975-2010): Sectoral Distribution US$ 15,520 m Net Approved Financing* * Total Approvals less Cancellations
Aggregate Infrastructure Financing (1975-2010): Geographic Distribution US$ 15,520 m Net Approved Financing* * Total Approvals less Cancellations
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.
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.
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.
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.
Available Windows for Road Safety Financing • Regular Project Financing • Technical Assistance • Technical Cooperation Program • Non-Government Organizations (NGO)
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
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.
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)
NGOs • Make funds directly available to Road Safety NGOs (Grant) • Capacity Building operations: training, equipment, support to activities (maximum $100,000)
THANK YOU For your attention! شكرا والسلام عليكم