Islamic Development Bank refuses to finance infrastructural projects in Central Asia


June 23, 2010



Events are held within the framework of an annual meeting of the Islamic Development Bank Group (IDB) In Baku.


Speaking in Baku, president of IDB Ahmed Mohammed Ali stated about concern of the bank over political situation in Central Asia.


“In particular, over political tension IDB is compelled to refuse financing building of Rogun hydro-electric power station in Tajikistan,” Mohammed Ali said. Over political disagreements state border of Uzbekistan with Tajikistan is closed already during half year. Uzbekistan does not allow carrying cargo to Tajikistan not only for the hydro-electric power station, but also Uzbek citizens, going from Tajikistan.


“That fact surprises that Muslim states of Central Asia do not appeal to the bank for financing of projects of restoration and humanitarian aid, and prefer to ask for assistance from Russia,” president of IDB said. Against this background Azerbaijan seems advantageously.


 “Over the next three years the bank will allocate to Azerbaijan $450 million for implementation of 11 projects. Since 1992, IDB had already provided to the country $528 million. We are admired over successes of Azerbaijan in struggle against the financial crisis,” president of the bank said.


However, requirements of Azerbaijan are not in the spotlight of operations of the bank, focused on support of public health services, education and social sector.


“In 2009, the bank allocated $7.25 billion to back economy of the countries, which have suffered from the crisis the most. The financial crisis affected negatively a number of the states. About 500 million persons suffer from poverty. It is necessary to use funds of the Islamic Solidarity Fund to resolve problems of these countries,” president of the bank said.


At that, the bank requires such directions of investment, which will bring the largest results. Here it is necessary to develop infrastructure, Islamic financial institutions, which guarantee constant development.


“It is essential to establish investment banks, which could help to overcome aftermath of the crisis with their loans,” Ahmed Mohammed Ali said.