35th 1430H - Islamic Development Bank

LEVERAGING DEVELOPMENT PARTNERSHIPSlearning from operational experience, results-focusedhuman resource management, harmonization and theuse of country systems among development agencies,and private sector operations 3 IDB, for its part, joinedCOMPAS in 2008 and is featured in the COMPAS2007, 2008 and 2009 editions.Similarly, IDB is actively pursuing the developmentand implementation of strategic partnerships withUN and non-UN specialized agencies with significantdiagnostic and implementation capability, in order toassist in the design and delivery of well-targeted IDBassistance, especially in the framework of multiyearspecial programs such as the Special Program forthe Development of Africa (SPDA) and the JeddahDeclaration Initiative on agriculture and food security.Strengthening Cooperation with MultilateralDevelopment BanksIDB and the World Bank: Cooperation between IDBand the World Bank began in earnest immediately afterIDB started its operations in 1976. This cooperationwas given a new impetus, in 2002, with the signing ofa new Memorandum of Understanding, which set outthe overall framework for cooperation between the twoinstitutions. It was further strengthened following thevisit to IDB Headquarters of the World Bank Presidentand several Executive Directors in May 2008 andsubsequent visits of World Bank Senior Managementthat took place in late 2009. Similar cooperationagreements have also been concluded between MIGAand its IDB counterpart, namely, ICIEC, and betweenIFC and ICD. Cumulatively, co-financing targeted over60 operations worth around $15 billion in 24 commonmember countries in Africa, MENA and Asia, in whichthe two institutions collectively provided over $3.3billion of assistance, just over a fifth of which wasprovided by IDB.Recent joint transactions include rural electrification(Box 18) and social protection in Yemen; educationin Iraq; health and urban development in Djibouti;Kazakhstan’s Western Europe-Western ChinaInternational Transit Corridor ($2.1 billion fromthe World Bank and $414 million of combined IDBfinancing); Albania’s Durres-Morina Road Project($30 million of IDB financing). Similarly, IDB recentlyworked with IFC on four transactions, namely: (i)Jordan’s $681 million Queen Alia Airport ExpansionProject ($100 million from IDB, $120 million fromIFC and $160 million from IFC syndication); (ii)Saudi Arabia’s $321 million Hajj Terminal Expansion3Adapted from MfDR webpage at http://www.mfdr.org/Compas/index.htmlBox 18IDB, World Bank, France and Germany SupportRural Electrification in YemenIt is estimated that only 40 percent of the population ofYemen has access to electricity. The situation is even worsein rural areas, where only 20 percent of the population hasaccess to power services. This is despite the fact that theGovernment of Yemen invested between 2003 and 2008about $97 million to provide access to an additional 1.3million people. To address this massive coverage deficit,the Government of Yemen launched in 2009 a newthree-phase national rural electrification program to beimplemented over the 10-year period 2009-2019. Theaims are to increase rural coverage from 20 percent to46 percent by providing access to additional 3.5 millionrural dwellers. Estimated to cost around $259 million,this program also focuses on off-grid solutions usingrenewable energy sources such as solar and wind power.As support to the first phase of this program, which costs$117 million, IDB and the World Bank are providing $23million and $25 million of loan financing, respectively.Other co-financiers supporting this program are the FrenchAgency for Development, which is providing a loan of$50 million and Germany’s BMZ with a $3 million grantfinancing. IDB financing will be used to provide accessto 72,300 inhabitants in 606 villages in the Governoratesof Al-Hodaida-3, Al-Dahle-1 and Al-Baida-2. Onceimplemented, the first phase of this program, which isexpected to last four years, will enable an additional 1.3million rural dwellers living in 12 Governorates to haveaccess to electricity.Project ($105 million from IDB and advisory servicesfrom IFC); (iii) Egypt’s Saudi-German Hospital ($15million from IDB and $17 million from IFC); and(iv) a $2 million IDB contribution towards PEP-MENA-II, an IFC administered multi-donor trustfund dedicated to supporting private entrepreneurshipand private sector development in MENA countriesthrough, inter alia, capacity development and advisoryservices. Furthermore, MIGA is providing political riskcover, part of which is being reinsured by ICIEC, forIDB-financed ($65 million leasing facility) DoralehContainer Seaport Terminal in Djibouti, a $396 millionBOT project sponsored by Dubai Ports World.Thematic cooperation includes, for example, the watersector, as both IDB and the World Bank recentlysupported the establishment of the Arab WaterAcademy, a regional capacity development programofficially hosted by the International Centre forBiosaline Agriculture (ICBA), in partnership with theAbu Dhabi Environment Agency, under the umbrellaof the Arab Water Council. Another thematic area ofcooperation is Islamic finance, as a joint IDB-World70IDB ANNUAL REPORT 1430H