The Islamic Development Bank has approved $1.12 billion in development financing for projects in nine member countries as it seeks to bridge fund gap in critical sectors.
The bank's board at a meeting in Jeddah gave the green light to funding for projects in sectors including food security, health, transport, energy, urban development, education, water and sanitation, the multilateral lender said, report agencies.
The lender approved two energy sector public private partnership (PPP) projects in Uzbekistan and Uganda, where governments are using the PPP model to attract private sector investment to accelerate economic growth.
The €100 million ($100.04m) Surkhandarya combined cycle power plant funding in Uzbekistan will help to meet the growing energy demand. It will allow the country to phase out its ageing and inefficient fleet of gas-fired thermal power plants, the bank said.
In Uganda, the financing of $100m, which is part of the Islamic tranche, will enable the country to export more of its oil through cross-border pipelines instead of using it to generate power.
In the sustainable transport sector, the bank approved $601.7m as sovereign financing, of which $200m was allocated to transport projects in Guyana, with Uzbekistan receiving $106.7m and Uganda $295m.
The projects are expected to enhance transport infrastructure, enable access to markets and boost tourism.
The bank's board at its 347th session also approved the debt restructuring of Queen Alia International Airport in Jordan, as well as changes to the financing mode for a 300-bed hospital project in Nigeria.