IDB allocates $250m for construction in Lebanon

JEDDAH — The Islamic Development Bank (IDB) has allocated $250 million for construction in Lebanon under a Joint Programme of Construction sponsored by the IDB, the Islamic Chamber of Commerce and Industry (ICCI), and the General Council of Islamic Banks (GCIB).

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Published: Sun 10 Sep 2006, 9:12 AM

Last updated: Sat 4 Apr 2015, 4:19 PM

In a statement made available to Khaleej Times here, the bank said that responding to the grave circumstances faced by the Lebanese people stemming from the Zionist aggression on Lebanon, a joint delegation headed by Ahmad Mohammad Ali, President of the IDB Group, and Shakh Saleh Abdullah Kamel, Secretary-General of the Islamic Chamber of Commerce and Industry and Chairman of the General Council of Islamic Banks and Financial Institutions, visited Lebanon in a gesture of solidarity with the Lebanese people and Government.

The bank president said that the IDB board of executive directors has decided to allocate $250 million to support the efforts of rehabilitating facilities and projects destroyed during the Israeli brutal aggression on Lebanon. He added that this amount includes $5 million as an emergency grant to provide medicines and other essential emergency materials for the affected population, especially children, as well as conduct studies to determine the extent of the damage wrought by the war and the needs of the population. It also includes $30 million in the form of Qard Hassan (interest-free loan) , in addition to $215 million to finance ordinary operations (Istisna, Ijara and installment sale)

Shaikh Saleh said that the programme will be implemented in cooperation and coordination with the Lebanese Government authorities and the IDB Group, ICCI and GCIBFI. Ali will be the chairman of the programme, while he (i.e. Shaikh Kamel) will act as deputy chairman. He added that this programme will provide an opportunity to commercial institutions and businessmen who wish to participate in construction efforts to do so effectively through the various implementation mechanisms of the programme. He added that a number of businessmen have already contributed to the programme, such as Shaikh Nasser Al Khurrafi ($10 million), Dallah Al Baraka Group ($12 million) and Naquib Suweires ($5 million).

The Bank's contribution will be geared towards construction and rehabilitation of destroyed infrastructure facilities, including schools, hospitals, power networks and roads in addition to new public sector projects in coordination with the Lebanese Government.

The IDB President said that the programme will seek to spur institutions and individuals in both the Arab and Muslim worlds to participate in construction efforts through three vehicles — multiple reward (donations and grants, interest-free loans, and building for both worlds, the here and the here after (investment for little return), in addition to the IDB's contribution for financing public sector projects.

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