Iran receives a $825 million loan from IDB

Oil&Gas Materials 1 February 2011 14:21 (UTC +04:00)

Azerbaijan, Baku, Feb. 1 /Trend, A.Yusifzade /

Iran received a US $825 million long-term loan from the Islamic Development Bank to implement seven huge development and manufacturing projects of local companies and institutions, Deputy Minister of Economic Affairs and Finance Behrouz Alishiri said.

Alishiri said that from March 2010 to January 2011, US $103 million was allocated for Kahir Dam, US $138 for supplying water from Kouchari Dam to Qom, US $200 million for Qom and Kashan wastewater projects, US $84 million for Khamroud Coal Project, US $31 million for eastern Tehran silo, US $262 million for rural water and wastewater undertakings and US $7 million for completing Tehran's power transmission project within the framework of long-term facilities of the Islamic Development Bank (IDB).

Earlier, Behrouz Alishiri, who is also the director of the Organization for Investment, Economic and Technical Assistance of Iran, said the IDB has agreed to pay Iranian firms US $110 million in financial facilities, according to the Organization for Investment, Economic and Technical Assistance of Iran.

The International Islamic Trade Finance Corporation (ITFC) as an autonomous entity within the IDB has allocated US $50 million to an Iranian company to import raw material. ITFC agreed to allocate additional US $60 million in loan to other two Iranian firms to import raw material.

So far, the IDB has approved roughly US $4.750 billion short-term and long-term credits to implement development and manufacturing projects of Iran, and import of raw materials and spare parts needed by various industries.

ITFC was established by IDB to facilitate international trade among Islamic states by financing and expanding business.

The Islamic Development Bank is an international financial institution established in pursuance of the Declaration of Intent issued by the Conference of Finance Ministers of Muslim Countries held in Jeddah in December 1973. The Inaugural Meeting of the Board of Governors took place in July 1975, and the Bank was formally opened on 20 October 1975.

The present membership of the bank consists of 56 countries. Iran is the bank's second biggest shareholder.