17/06/2026 04:16 AST
A $1 billion refinery expansion in Bangladesh, major rail links in Turkiye and Uganda, and renewable energy projects in Africa are among the initiatives backed by a $2.8 billion financing package approved by the Islamic Development Bank.
The funding was signed off by the bank's Board of Executive Directors at its 367th meeting, chaired by IsDB President Muhammad Al-Jasser and held on the sidelines of the 2026 IsDB Group Annual Meetings in Baku, Azerbaijan.
The approvals reflect the bank's focus on improving connectivity, strengthening energy security, enhancing food systems and building climate resilience across member countries.
"The approvals highlight IsDB's ongoing commitment to supporting transformative projects that enhance connectivity, energy security, food systems, climate resilience, and multiple Sustainable Development Goals across Member Countries," the bank said.
The Jeddah-headquartered lender said the investments align with the theme of this year's annual meetings, "Regional Integration for Sustainable Prosperity," which emphasizes cross-border infrastructure, resilient energy systems and sustainable agriculture.
Bangladesh secured the largest single allocation in the package, with $1 billion approved for the modernization and expansion of the Eastern Refinery, aimed at strengthening energy security and improving domestic refining capacity.
Two of the package's largest infrastructure investments were directed toward rail transport. In Turkiye, ?660.35 million ($765.71 million) was allocated to the Istanbul North Rail Crossing project, which will enhance intercontinental rail connectivity across Istanbul and facilitate more efficient freight movement between Europe and Asia, while improving passenger mobility within the city.
In Uganda, ?650.75 million was approved for the Standard Gauge Railway project, which will establish a modern, low-carbon rail corridor aimed at reducing transport costs, shortening travel times, improving safety standards, and cutting carbon emissions.
Energy projects accounted for a significant share of the financing package. Nigeria secured $150 million for the Niger State Solar Energy Development project, aimed at expanding renewable power generation, improving electricity reliability and supporting decarbonization efforts.
In Cote d'Ivoire, ?86.55 million was approved for Phase II of the Electric Power System Infrastructure Reinforcement and Electricity Access project, aimed at expanding electricity access and upgrading distribution networks.
Palestine will receive $22 million for a photovoltaic solar power plant project designed to enhance energy security and expand access to affordable electricity for vulnerable communities.
The bank also approved $93.8 million for Tajikistan's Rushan-Varshez Road Rehabilitation project, which is expected to strengthen regional trade links, improve transport efficiency and increase resilience to climate-related disruptions.
Food security and agricultural resilience also featured prominently, with $30.01 million approved for the Gambia's Cattle Production and Productivity Improvement Project, designed to boost livestock production, increase household incomes, and strengthen food and nutrition security.
"The board of directors also approved ?19.17 million for Benin for the Sustainable Intensification of Legume-Based Systems for Soil Fertility, Agriculture Resilience, and Food Security Project to increase agricultural productivity, enhance food security, and improve climate resilience among smallholder farmers," the statement added.
Arab News
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