The Islamic Development Bank (IsDB) has approved US$295 million for Upgrading Ugandanl Roads under Sovereign Financing Projects and US$100 million for East Africa Crude Oil Pipeline (EACOP) Project under Public Private Partnership (PPP) Projects.
The Sovereign Financing Project aims at boosting the socio-economic development of Uganda by providing better access to social infrastructure, facilitating access to markets for farmers and traders, and reinforcing regional integration and tourism.
“The project (EACOP) will enable Uganda, a landlocked country, to emerge as a regional oil producer with export capacity to international markets. The objective of the project is to enable Uganda to exploit its oil reserves and export oil to international markets through neighboring Tanzania,” said the Board in a statement.
The loan is part of US$ 1.12 billion approved by the bank’s Board of Executive Directors for development projects financing in various sectors in 9 member countries as well as US$ 1.79 million grant for a number of other projects including market access readiness in the Republic of Yemen and special assistance grants to Muslim communities in 3 non-member countries.
During its 347th session held at the Bank’s Headquarters in Jeddah, Kingdom of Saudi Arabia, Dr. Muhammad Al Jasser, President of the IsDB and Chairman of IsDB Group, the members of the Board of Executive Directors considered and approved projects in the key sectors such as food security, health, transport, energy, urban development, education, water and sanitation.
Uganda is using PPP financing as a mechanism to attract private sector investment and expertise to deliver improved public services and accelerate economic growth.
The Board says the financing of US$ 100 million, will enable Uganda to untap its oil reserves and export oil to international markets through a 1443km cross-border buried-heated crude oil pipeline.
Other beneficiary nations under Sovereign Financing Projects include;
The Islamic Republic of Mauritania (EUR 37.87 Million) for Kiffa Water Supply Project.
The Republic of Uzbekistan (US$ 106.7 million) for Reconstruction and Upgrading of M39 Road, 1255-1315km.
The Republic of Djibouti (US$ 15 million) for Slum Upgrading and Integrated Urban Development Project in Djaga Bouldhouq.
The Republic of Guinea (US$ 26.29 million) for the Rehabilitation and Expansion of the Conakry Electricity Distribution Network (Phase II) Project.
The Republic of The Gambia (US$ 5.54 million) – proposed as IsDB’s new contribution for Enhancing Value Addition in the Groundnut Sector Phase II.
The Republic of Cameroon (EUR 32.25 million) for the Presidential Plan for the Reconstruction and Development (ISPPRD) for the North-west and South-West Regions of Cameroon.
The Republic of Indonesia (EUR 205 million) for Strengthening of the National Referral Hospital on Oncology Center.
The Republic of Guyana (US$ 200 million) for Reconstruction of the Soesdyke – Linden Highway Project.
Other beneficiary nations under PPP Projects:
The Republic of Uzbekistan (EUR 100 million) for Surkhandarya Combined Cycle Power Plant Project.
Grants:
The Republic of Yemen (US$ 1 million) for Market Access Readiness in Key Economic Trade Sectors (MARKETS) Program.
The Republic of India (US$ 200,000) for Expansion of Vocational Training Center for Hamidiya Islamiya School Society, Panwari, Mahoba District, Uttar Pradesh State and US$ 200,000 for Expansion of Markaz-E-Adab-O-Science Primary School, Ranchi, Jharkhand State.
The Republic of Bosnia & Herzegovina (US$185,000) for Expansion of Public Second Gymnasium School, Mostar
The Republic of Zambia (US$200,000) for Infrastructure and Equipment Enhancement Grant for Iqra Girls’ Academy, Lusaka.