Islamic Development Bank approves $176.05m for for projects in Iraq, Mauritania, Benin and Morocco
The Board of Executive Directors of the Islamic Development Bank (IsDB), approved $176.05 million in favor of the Construction of Metal Silos in Iraq, Construction of Atar-Chinguetti Road Project in Mauritania, Cotonou Storm Water Drainage Project in Benin, and a Front-End Engineering Design (FEED) Study Project for the Nigeria- Morocco Gas Pipeline Project .
It took note of the Bank's efforts to consolidate global value chains and the launch of the report on global value chains for the year 2020, entitled “Rebuilding Inclusive Global Value Chains as a Pathway to the Recovery of the Global Economy."
The Board was also informed that Fitch Ratings affirmed, for the 14th consecutive year, the Bank's AAA rating, with a stable outlook. This affirmation reflects the Bank's distinction in terms of capitalization and liquidity reserves, and its conservative approach to risk management backed by strong financial risk management policies, low solvency risks, and strong shareholder support. The stable outlook indicates that Fitch expects the Bank's financial position to remain very strong over the next 24 months, and the Board expressed its gratitude to the Member Countries for their strong support to the Bank.
The Bank is providing $22 million to the Government of the Republic of Iraq to cover the Construction of Metal Silos for Enhancing the Storage of Wheat in the Governorate of Maysan. The project's development objective is to enhance food security by increasing the strategic wheat reserve in Maysan Governorate. The project will contribute to enhancing food security in Iraq, which is one of the country's top priorities and is expected to lead to reducing malnutrition among vulnerable groups, including children, by strengthening the wheat value chain through developing post-harvest facilities.
In Mauritania, IsDB is providing an amount of $33 million for the Construction of Atar-Chinguetti Road Project. The project aims to improve the efficiency and security of transportation services between Atar-Chinguetti. It helps reduce the operational costs by 50 percent and slashes journey time by 50 percent. This project is a continuation of the Bank’s contribution to the development of the transport sector in Mauritania. It also complements projects financed by the Bank in the region, particularly, the road project between Atar and Tijikja, which was successfully completed in 2020.
In Benin, the Bank is providing an amount of $105.6 million for Cotonou Storm Water Drainage Project. The main objective of the project is to reduce the risk of flooding in selected areas of the capital, Cotonou, by building 13 km of drainage collection channels and paving 16 km of roads in order to support the existing drainage systems. The project will benefit 150,000 people from the residents of the five municipalities, 51 percent of whom are women, and will provide 600,000 job opportunities.
And finally in the Kingdom of Morocco, IsDB is providing an amount of $15.45 million for the Front-End Engineering Design (FEED) Study Project for the Nigeria- Morocco Gas Pipeline Project. The project aims to prepare the necessary studies for the gas pipeline and helps to make the final investment decision for the infrastructure project. It includes an agreement with all countries crossed by the gas pipeline linking Nigeria and Morocco to obtaining the permission to transit the pipeline in order to ensure the smooth implementation of works in the advanced stages, and to ensure that the project complies with all local and international environmental and social regulations and standards.