IsDB, World Bank Group sign deals to expand joint development financing

Photo: IsDB

BAKU, Azerbaijan, October 16. The Islamic Development Bank (IsDB) and the World Bank Group have signed two agreements aimed at expanding institutional cooperation and joint financing of development projects.

This was stated in a post published by the Islamic Development Bank on its LinkedIn page.

The documents were signed by IsDB Group Chairman (H.E. Dr. Muhammad Sulaiman Al Jasser and World Bank Group President Ajay Banga on the sidelines of the annual meetings of the World Bank Group and the International Monetary Fund in Bangkok.

“The first agreement provides for the extension of the memorandum of understanding through October 2028. The 2026–2028 Joint Action Plan covers co-financing, private sector development, knowledge sharing, and capacity building.

The second agreement, a Joint Financing Framework Agreement (CFA), aims to strengthen mechanisms for financing development projects, streamline operational procedures, and improve the efficiency of project preparation and implementation.

“Under the previous memorandum, the Islamic Development Bank and the World Bank Group jointly financed projects totaling more than $9.5 billion, exceeding the initial target of $6 billion,” the statement said.

Meanwhile, it is noted that the renewed partnership calls for mobilizing additional resources, accelerating project implementation, and carrying out joint key programs in the countries that are members of both organizations.

In October 2023, the World Bank Group and the Islamic Development Bank announced a partnership to support joint operations with a potential financing volume of up to $6 billion by 2026. The collaboration was aimed at improving the management of water, energy, and food resources; developing skills and advancing the digital transition; and expanding regional and cross-border trade.