Transcript Slide 1

The Islamic Development Bank Group
Together We Build a Better Future
Seminar on Business Opportunities offered by IDB
organized by TUSIAD
Istanbul, Turkey
(30th April 2010)
1
IDB Group
Present and Future
2
 Vision
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1440H (2020)
Structure
Products and Services
Portfolio and Activity Highlights
IDB Group Reform
Cooperation with other Institutions
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“ By the Year 1440H (2020) IDB shall have
become a world-class development
bank, inspired by Islamic principles, that
has helped significantly transform the
landscape of comprehensive human
development in the Muslim world and
helped restore its dignity.”
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“We are committed to alleviating
poverty, promoting human
development, science & technology,
and Islamic banking & finance, and
enhancing cooperation among
member countries, in collaboration
with development partners”
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The Strategic Challenges Confronting
the Muslim World :

Achieving healthy human development

Securing strong and sustainable
economic growth
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Promoting good governance
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Strengthening peace and stability
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Fostering a powerful sense of common
identity, consciousness, and empathy
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Restoring the Image of Islam and the
Muslim world
Source: AHDR
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IDB: Six Priority Areas
 Human Development
 Agriculture Development and Food Security
 Infrastructure Development
 Intra-trade Among Member Countries
 Private Sector Development
 Research and Development in Islamic Economics,
Banking and Finance
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Reforming IDB
Facilitating integration of IDB MCs Economies
Improving the Image of the Muslim World
Key Strategic Thrusts
Universalizing Education
Alleviating Poverty
Expanding Islamic Financial Industry
Empowering Women
Promoting Health
Prospering the People
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Islamic
Development
Bank (IDB)
Islamic Corporation
for Insurance of
Investment &
Export Credit
(ICIEC)
Islamic
Corporation
for the
Development
of the Private
Sector (ICD)
IDB
Group
Islamic Research &
Training Institute
(IRTI)
International
Islamic Trade
Financing
Corporation
(ITFC)
9
Islamic Development Bank
(IDB)
•
Established in 1975 to foster socio-economic
development in member countries and Muslim
communities in compliance with Shari’ah.
• Authorized capital of US$ 45 billion
•
•
Subscribed capital of US$ 22 billion
• Paid-up capital of US$ 5.3 billion
AAA rating by Moody’s Investors Service, Fitch
Ratings, Standard & Poors.
• Zero-Risk Rating by the European Parliament
10
Group
Shari’ah
Board
BOARD OF
GOVERNORS
BOARD OF EXECUTIVE
DIRECTORS
General Council
Group
Ombudsman
IDB
President
Group Integrity
Officer
Group
Operations
Evaluation
Group Internal
Audit
Group Risk
Management
Group Strategic
Planning
World Waqf
Foundation
VP
(Fin.)
IDB
Organizational
Structure
VP
(Opr.)
VP
(Corp
Serv.)
Chief
Econ.
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IDB Regional Offices
Almaty
Kazakhstan
Dakar,
Senegal
Regional
Offices
Kuala
Lumpur,
Malaysia
Rabat,
Morocco
In addition, there are currently 12 Field
Representatives in some countries
12
Europe: 2
Asia: 26
Africa: 27
Latin America: 1
• A Unique Model of South-South Cooperation
• 56 members spreading over 4 continents
• 22 countries in 1975 → 56 countries in 2009
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Indonesia, 2.7
Saudi Arabia,
24.44
Others, 10.07
Pakistan, 3.05
Algeria, 3.05
Kuwait, 6.54
Libya, 9.81
UAE, 6.94
Iran, 8.58
Turkey, 7.73
Egypt, 8.48
Qatar, 8.61
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Financing of Projects (Public and Private)
Promoting the Islamic Financial Industry
Trade Finance and Promotion
Capacity Building and Technical Cooperation
Risk Insurance
Research and Training
Fund/ Assets Management
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NGOs and Women-In-Development (WID)
Scholarship Programs
Science & Technology Program
Investment Promotion Technical Assistance Program
(ITAP)
Trade Cooperation & Promotion Program (TCPP)
Special Assistance
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
Technical Cooperation Program (TCP)
 Capacity Development (exchange of experts, training, etc.)
 Supporting civil societies through NGOs
 Supporting women-in-development initiatives

Investment Promotion Technical Assistance Program (ITAP)
 Promote Intra-Investment among OIC MCs
 Capacity Building of Investment Promotion Agencies
 Dissemination of Investment opportunities
 Investment Information Network
 Intra-Investment Statistics on MCs
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Trade Cooperation & Promotion Program (TCPP)
 Exhibitions, Trade Fairs and Buyers-sellers Meetings
 Capacity Building of Export Promotion Agencies
 Consultative Meeting on Aid-for-Trade
 Promote regional Cooperation
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- Special Assistance and Scholarships
•Provide
Relief & Alleviation of suffering in case of natural disasters
•Support development of Muslim minorities in non-MCs
•Scholarships for Muslim communities in non-MCs.
•M.Sc Program for the Least Developed Member Countries
•Merit Scholarship Programs for High Technology
- Science and Technology Program
•Capacity
development in areas of Science and Technology
•Inter-Islamic S&T Network
•IDB Prize for Science & Technology to Promote Excellence in
Research & Development
•Self Reliance in Vaccine Production
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Interest-Free Loan
Leasing
Installment Sale
Construction Finance (Istisna’a)
Equity
Line of Financing
Technical Assistance (Loan & Grant)
Murabaha (Trade Financing)
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Type of Operation
US$ billion
1- Development Projects
28.14
2- Technical Assistance
0.29
3- Trade Operations
34.78
4- Special Assistance
0.68
TOTAL
63.90
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Special Assistance,
$ 0.7 bn, (1%)
Projects, $ 28.14
bn, (44%)
Trade, $ 34.78 bn,
(54%)
Net Cum. End 2009 = US$ 63.90 billion
Technical
Assistance, $ 0.29
bn, (1%)
Agriculture Other Sectors
(9%)
(7%)
Energy/ Public
Utilities (32%)
Industry (11%)
Social
Sectors (17%)
Transport &
Communic.
(24%)
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IDB Cooperation
Turkey/ Albania and
Central Asia Countries
Projects IDB/Central Asia Countries and Albania
Countries
Number of Projects
Amount
Albania
23
181.08
Azerbaijan
26
423.90
Kazakhstan
24
446.71
Kyrgyz
23
111.38
Tajikistan
34
174.66
Turkey
76
990.46
Turkmenistan
12
459.99
Uzbekistan
18
278.05
236
3,066.24
Total
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IDB projects in Turkey
25
IDB projects in Turkey
26
Projects under implementation
Turkey
Project
Sector
Total
cost
IDB financing
YALOVA AND BOLU SEWERAGE
SEWERAGE INCL.STORM WTR
DRAINAIGE,WASTE TRMT
73.45
45.07
YALOVA AND BOLU SEWERAGE
SEWERAGE INCL.STORM WTR
DRAINAIGE,WASTE TRMT
73.45
6.53
RAILWAY TRACKS
LAND TRANSPORT:
ROADS,HIGHWAYS,RAILWAYS
366.18
153.64
THE ELECTRIC LOCOMOTIVES
LAND TRANSPORT:
ROADS,HIGHWAYS,RAILWAYS
389.00
220.00
THE ENHANCING ORGANIC
FARMING
AGRICULTURAL AND
LIVESTOCK PRODUCTION
0.36
0.29
SYRIA-TURKEY INTERREGIONAL CO OPERATION
PROGRAM (STICP)
General finance
21.00
0.50
DEVELOPMENT BANK OF
TURKEY (DBT)
NDFIs/IFS / NDFI
40.00
40.00
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 Business
Opportunities
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•
Business Opportunities Bulletin on IDB Approved Projects:
published after each BED meeting
•
Procurement Notices: published on IDB website
(www.isdb.org), international newspapers, national
gazettes and distributed to Embassies & Consulates of
MCs
•
In some cases : Procurement notices published on DG
Market website (www.dgmarket.com/)
Active IDB Operations
Offering
Business Opportunities
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Country
Project
Total cost
IDB financing
(in US$)
(in US$
16.78
13.51
AZERBAIJAN
KHACHMAZ ELECTRIC SUBSTATION AND
TRANSMISSION LINE
AZERBAIJAN
MINGECHAUR HYDRO POWER PROJECT
(PHASE-II)
105.00
80.00
AZERBAIJAN
JANUB POWER PLANT
956.03
201.53
KYRGYZ
110 KV AIGUL TASH TO SAMAT
TRANSMISSION LINE SUBSTATION
13.72
11.99
TAJIKISTAN
POWER REHABILITATION PROJECT
62.44
9.29
TAJIKISTAN
MINI HYDROPOWER PLANTS IN THE RURAL
AREAS
11.59
9.18
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TAJIKISTAN
REGIONAL POWER TRANSMISSION
INTERCONNECTION PROJECT
50.00
10.00
UZBEKISTAN
500 KV SYRDARYA - SOGDIANA
TRANSMISSION LINE
42.56
15.85
UZBEKISTAN
500 KV SYRDARYA - SOGDIANA
TRANSMISSION LINE
42.56
9.24
UZBEKISTAN
500 KV GUZAR-SURKHAN TRANSMIS SION
LINE SUBSTATIONS
128.40
42.00
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Country
Project
Total cost
(in US$) IDB financing
(in US$
9.55
8.57
ALBANIA
CONSTRUCTION OF BUNA BRIDGE
ALBANIA
DURRES-MORINE ROAD
47.19
10.00
ALBANIA
DURRES-MORINE ROAD (KALIMASHREXHEPAJ SECTION)
47.19
30.00
ALBANIA
RECONSTRUCTION OF SECONDARY LOCAL
ROADS
44.00
30.00
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ALBANIA
RECONSTRUCTION OF SECONDARY LOCAL
ROADS
44.00
10.00
AZERBAIJAN
RECONSTRUCTION OF UJAR-YEVLAKH ROAD.
31.05
22.00
AZERBAIJAN
RECONSTRUCTION OF YEVLAKH TO GANJA
ROAD
28.00
10.40
KAZAKHSTAN
RECONST. OF 58 KM ROAD SECTION OF SOUTHOBLAST-TARAZ
195.40
170.00
KAZAKHSTAN
REHABILITATION MODERNIZATION OF
BARTOGAY WATER RESERVOIR
0.44
0.31
KYRGYZ
RECONSTRUCTION OF TARAZ-TALAS
SUUSAMYR ROAD
10.95
9.15
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KYRGYZ
RECONSTRUC. OF OSH-IRKESHTAM ROAD
19.80
17.30
TAJIKISTAN
KULYAB-KALAIKHUM ROAD
92.90
20.00
KYRGYZ
TARAZ-TALAS-SUSAMYR ROAD (PHASE II)
12.77
11.20
KYRGYZ
RECONSTRUCTION OF BISHKEK-TORU GART ROAD
69.25
16.95
TAJIKISTAN
CONSTRUCTION OF SHAGON-ZIGAR ROAD, PHASE
(II)
15.90
13.77
TURKMENISTAN BEREKET-ETREK-TURKMENISTAN-IRA N BORDER
RAILWAY (1431H)
1,414.61
189.90
TURKMENISTAN BEREKET-ETREK-TURKMENISTAN-IRA N BORDER
RAILWAY_(1432H)
1,414.61
181.30
14.99
12.56
UZBEKISTAN
ROAD CONSTRUCTION AND MAINTENANCE
EQUIPMENT
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Country
Project
Total cost
(in US$)
IDB
financing
(in US$
ALBANIA
DURRES GENERAL HOSPITAL PHASE-II
PROJECT
8.22
7.05
ALBANIA
KAVAJA GENERAL HOSPITAL
8.76
5.69
TAJIKISTAN
CONSTRUCTION AND EQUIPPING OF
DANGARA GENERAL HOSPITAL
17.23
10.51
TURKMENISTAN
ARCHMAN MEDICAL HYDROTHERAPY
CENTER
18.81
10.38
UZBEKISTAN
STATE MEDICAL EMERGENCY
HOSPITALS (SMEH) EQUIPMENT
29.30
23.80
36
Country
Project
Total cost
(in US$)
10.05
IDB
financing
(in US$
8.77
ALBANIA
CONSTRUCTION OF
DURRES FISHING PORT
AZERBAIJAN
SAMUR ABSHERON
IRRIGATION
VELVELICHAYTAKHTAKORPU CANAL
MICROFINANCE PROJECT
FOR RURAL AREAS
42.60
10.10
10.05
5.00
KAZAKHSTAN
KAZAGROFINANCE LINE
OF FINANCING
30.00
30.00
KAZAKHSTAN
NURBAK LINE OF
FINANCING
10.00
10.00
KYRGYZ
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KYRGYZ
0.70
0.70
KYRGYZ
REPLENISHMENT OF FOOD SECURITY STOCKSPHASE I JED DECLARATION
MICROFINANCE PROJECT FOR RURAL AREAS
10.05
0.30
TAJIKISTAN
MICROFINANCE PROJECT FOR RURAL AREAS
20.08
0.33
KYRGYZ
PRODUCTION OF IMPROVED SEEDS OF WHEAT (JED.
DECARATION)
0.40
0.40
TAJIKISTAN
DANGARA VALLEY IRRIGATION NETWORK (PHASE
II)
30.48
13.17
TAJIKISTAN
PRODUCTION OF IMPROVED SEEDS O F WHEAT (JED.
DECLARATION)
0.40
0.40
TAJIKISTAN
MICROFINANCE PROJECT FOR RURAL AREAS
20.08
10.00
TAJIKISTAN
REPLENISHMENT OF FOOD SECURITY STOCKSPHASE I JED DECLARATION
1.00
1.00
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UZBEKISTAN
IRRIGATION DRAINAGE NETWORK IN DJIZZAKH
SYRDARIA REGIONS
93.21
52.65
UZBEKISTAN
GLOBAL LINE OF FINANCING TO THREE BANKS
FOR SMES
15.00
15.00
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Country
KAZAKHSTAN
Project
ESTABLISHMENT OF A LAB. FOR HALAL
CERTIFICATION OF FOOD
TURKMENISTAN PROCUREMENT OF TWO NEW OIL TANKERS
TURKMENISTAN F.S. OF SILICON PRODUCTION FROM
KARAKUM SAND
UZBEKISTAN
THE NATIONAL BANK OF UZBEKISTAN
Total cost
(in US$)
0.48
IDB
financing
(in US$
0.32
32.00
31.00
0.33
0.30
15.00
15.00
40
Country
KYRGYZ
Project
DEVELOPMENT OF ISLAMIC FINANCI
AL SERVICES INDUSTRY
Total cost
(in US$)
0.21
IDB financing
(in US$
0.19
41
Country
Project
Total cost
(in US$)
IDB financing
(in US$)
TAJIKISTAN
RECONSTRUCTION OF
SECONDARY SCHOOLS PHASE II
13.02
10.55
UZBEKISTAN
CONSTRUCTION AND EQUIPPING
OF VOCATIONAL COLLEGES
12.75
10.50
42
Country
Project
Total cost IDB financing
(in US$)
(in US$
16.44
13.35
ALBANIA
THE WATER SUPPLY SANITATION IN ORIKUM
AZERBAIJAN
STRENGTHENING THE CAPACITY OF THE
MINISTRY OF ECONOMIC DEV.
0.39
0.26
AZERBAIJAN
STRENGTHENING THE CAPACITY OF THE
CABINET OF MINISTERS
0.38
0.32
TAJIKISTAN
DUSHANBE WATER SUPPLY
10.70
9.30
UZBEKISTAN
TASHKENT SEWERAGE PROJECT
38.84
35.37
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 IDB
Procedures

Predominantly, three methods:
1)
ICB/MC: ICB limited to Member Countries for
several projects.
e.g.: Paved roads, Rural and gravel roads, Bridges,
Sewerage lines, etc
2) ICB:“Open” ICB, not enough qualified companies
in member countries, Category B projects
e.g.:Viaducts, Railways, Tunnels, Oil refineries,
Major power plants, etc.
3) NCB: Projects not likely to attract foreign
competition.
Other methods
International or National Shopping.
- Direct Contracting.
- Force Account.
- Community Participation.
-
•
.
Predominantly
Short-list of Member Country firms.
Exceptional cases
Short-list of non-member country firms.

“IDB considers that as a matter of priority, goods and works it is
financing, should be procured to the extent possible from its
member countries”. And even if the case of open ICB, there is
still a provision for a margin of preference of up to 15 percent
for contractors from member countries.

60 % of the Bank financed contracts for goods/works in
recent years, awarded to contractors from member countries.

95 % for consultancy services.
•
ICB/MC: ICB limited to Member Countries projects.
•
ICB: margin of preference up to15% for MC, goods
and works.
However:
- Prior consent of beneficiary/IDB.
- Stated in bidding documents.
•
Short-list of non-member countries only on exceptional
cases.
•
IDB promotes the transfer of technology by encouraging
the participation of domestic firms.
•
Registration of member countries firms or organizations
in the Data base of consultants so that the IDB can
consider them for short listing for IDB financed projects.
•
Legal Framework
- Financial Agreement
- Guidelines for procurement of goods
and works
- Guidelines for the use of Consultants
- standard documents

Precautionary Measures
Preliminary approval for all the process of
procurement (bidding documents, bid
evaluation report, draft contracts..)
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Measures in case of misprocurement
- Violation of Agreed procedures of the Financial
Agreement;
- Terms and conditions of the contract are not
satisfactory to IDB.
 Cancellation of portion of financing allocated
to the concerned operation.

54
•
•
Measures in case of Corruption or Fraud,
IDB :
- will reject a proposal of award;
- ask the beneficiary country to take appropriate
action to rescind the contract, failing which;
- cancel the portion of financing allocated to the
concerned operation;
- will declare the firm ineligible.
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
Vision 1440H (2020)
Structure
Products and Services
Portfolio and Activity Highlights

IDB Group Reform



56
FROM
Finance Focused
TO
Development Focused
Infrastructure Centric
People Centric
Traditional Economic
Development Programs
Innovation & Knowledge
Intensive Economic Dev
Internal Driven
Follow
Output Oriented
Partnership
Lead (Facilitate)
Impact Oriented
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Results
Oriented
Leveraging
Partnerships
Scaled up
A New IDB
Group
Responsive to
Clients
Focused
KnowledgeOriented
58
A Strategic Partner
for
Development
59
Thank you