Islamic Development Bank to fund Iranian project
The Islamic Development Bank (IDB), located in Jeddah, Saudi Arabia, has agreed to provide a loan to finance a water and sewerage project in the western Iranian town of Hamedan, reported Ettela’at. This loan, worth between $32 and $35 million, represents the first international funding received by the Hamedan region.
The announcement was made on last Monday by IDB representative Walid Abdelwahd. This will be the 18th IDB funded project in Iran. The previous 17 projects are all development related, including irrigation and drainage systems, agriculture and transportation. In total, IDB has lent over $180 million this year to Iranian development projects and is scheduled to lend another $90 million next year for similar purposes.
Details of the loan were scarce except that the loan will be repaid with a 5.5 percent interest rate. Coupled with grants from the Iranian federal government, it should cover the entire $81 million required to complete the project. Mohammad Hadi Omidi, managing director of the provincial water and sewerage center in Yazd, said that without the IDB loan reliance on the federal government for allocations would delay the much needed water and sewerage plant by a half-century.
IDB, under guidance from its 44-member governing board, has total assets worth $8 billion and was established 26 years ago. –(Albawaba-MEBG)