The Islamic Development Bank Group Together We Build a Better Future

1. The Islamic Development Bank Group Together We Build a Better Future Seminar on Business Opportunities offered by IDB organized by TUSIAD Istanbul, Turkey (30th April 2010)

2. Islamic Development Bank Group IDB Group Present and Future

3. Contents • Vision 1440H (2020) • Structure • Products and Services • Portfolio and Activity Highlights • IDB Group Reform • Cooperation with other Institutions

4. Vision 1440H (2020) “ By the Year 1440H (2020) IDB shall have become a world-class development bank, inspired by Islamic principles, that has helped significantly transform the landscape of comprehensive human development in the Muslim world and helped restore its dignity.” 4

5. Mission Statement • “We are committed to alleviating poverty, promoting human development, science & technology, and Islamic banking & finance, and enhancing cooperation among member countries, in collaboration with development partners” Source: AHDR

6. Achieving healthy human development Securing strong and sustainable economic growth Promoting good governance Strengthening peace and stability Fostering a powerful sense of common identity, consciousness, and empathy Restoring the Image of Islam and the Muslim world Agenda for the Future: Responding to the Development Challenge of the Ummah (The IDB Vision 1440H & OIC 10 Year Plan of Action) Source: AHDR The Strategic Challenges Confronting the Muslim World : 6

7. IDB: Six Priority Areas • Human Development • Agriculture Development and Food Security • Infrastructure Development • Intra-trade Among Member Countries • Private Sector Development • Research and Development in Islamic Economics, Banking and Finance

8. Key Elements of IDB Group 2020 Vision A Vision for Comprehensive Human Development Reforming IDB Facilitating integrationof IDB MCs Economies Improving the Image of the Muslim World Key Strategic Thrusts Empowering Women Universalizing Education Promoting Health AlleviatingPoverty Expanding Islamic Financial Industry Prospering the People 8

9. IDB Group Organizational Structure 9

10. Islamic Development Bank (IDB) • Established in 1975 to foster socio-economic development in member countries and Muslim communities in compliance with Shari’ah. • Authorized capital of US$ 45 billion • Subscribed capital of US$ 22 billion • Paid-up capital of US$ 5.3 billion • AAA rating by Moody’s Investors Service, Fitch Ratings, Standard & Poors. • Zero-Risk Rating by the European Parliament 10

11. IDB Organizational Structure BOARD OF GOVERNORS Group Shari’ah Board Group Operations Evaluation BOARD OF EXECUTIVE DIRECTORS General Council Group Internal Audit Group Ombudsman IDB President Group Risk Management Group Integrity Officer Group Strategic Planning World Waqf Foundation VP (Fin.) VP (Opr.) VP (CorpServ.) Chief Econ.

12. IDB Regional Offices Almaty Kazakhstan Dakar, Senegal Regional Offices Rabat, Morocco Kuala Lumpur, Malaysia In addition, there are currently 12 Field Representatives in some countries

13. Growth in IDB Membership Europe: 2 Asia: 26 Africa: 27 Latin America: 1 • A Unique Model of South-South Cooperation • 56 members spreading over 4 continents • 22 countries in 1975→ 56 countries in 2009

14. Shareholders in IDB (As % of Subscribed Capital)

15. IDB Group Products and Services • Financing of Projects (Public and Private) • Promoting the Islamic Financial Industry • Trade Finance and Promotion • Capacity Building and Technical Cooperation • Risk Insurance • Research and Training • Fund/ Assets Management

16. IDB Group Special Activities • NGOs and Women-In-Development (WID) • Scholarship Programs • Science & Technology Program • Investment Promotion Technical Assistance Program (ITAP) • Trade Cooperation & Promotion Program (TCPP) • Special Assistance 16

17. IDB Group Special Programs (1) • Technical Cooperation Program (TCP) • Capacity Development (exchange of experts, training, etc.) • Supporting civil societies through NGOs • Supporting women-in-development initiatives • Investment Promotion Technical Assistance Program (ITAP) • Promote Intra-Investment among OIC MCs • Capacity Building of Investment Promotion Agencies • Dissemination of Investment opportunities • Investment Information Network • Intra-Investment Statistics on MCs • Trade Cooperation & Promotion Program (TCPP) • Exhibitions, Trade Fairs and Buyers-sellers Meetings • Capacity Building of Export Promotion Agencies • Consultative Meeting on Aid-for-Trade • Promote regional Cooperation 17

18. IDB Group Special Programs (2) • - Special Assistance and Scholarships • Provide Relief & Alleviation of suffering in case of natural disasters • Support development of Muslim minorities in non-MCs • Scholarships for Muslim communities in non-MCs. • M.Sc Program for the Least Developed Member Countries • Merit Scholarship Programs for High Technology • - Science and Technology Program • Capacity development in areas of Science and Technology • Inter-Islamic S&T Network • IDB Prize for Science & Technology to Promote Excellence in Research & Development • Self Reliance in Vaccine Production

19. Modes of Financing • Interest-Free Loan • Leasing • Installment Sale • Construction Finance (Istisna’a) • Equity • Line of Financing • Technical Assistance (Loan & Grant) • Murabaha (Trade Financing)

20. Net Approved Financing IDB Group(Since Inception to End 2009)

21. Approved IDB Group Financing (Since Inception to End 2009) US$ billion Net Cum. End 2009 = US$ 63.90 billion

22. Cumulative Sectoral Distribution (Projects & TAs from OCR)

24. Projects IDB/Central Asia Countries and Albania

25. IDB projects in Turkey

26. IDB projects in Turkey

27. Projects under implementation Turkey

28. Business Opportunities

29. How to Learn AboutBusiness Opportunities? Business Opportunities Bulletin on IDB Approved Projects: published after each BED meeting Procurement Notices: published on IDB website (www.isdb.org), international newspapers, national gazettes and distributed to Embassies & Consulates of MCs In some cases : Procurement notices published on DG Market website (www.dgmarket.com/) 29

30. Active IDB Operations Offering Business Opportunities

31. Energy

32. Energy

33. Transportation

34. Transportation

35. Transportation

36. HEALTH

37. Agriculture and Rural Development

38. Agriculture & Rural Development

39. Agriculture and Rural Development

40. INDUSTRY AND MINING

41. FINANCE

42. EDUCATION

43. WATER, SANITATION & WASTE MGMT

44. IDB Procedures 44

45. Selection of Contractors Predominantly, three methods: ICB/MC: ICB limited to Member Countries for several projects. e.g.: Paved roads, Rural and gravel roads, Bridges, Sewerage lines, etc 45

46. Selection of Contractors 2) ICB:“Open” ICB, not enough qualified companies in member countries, Category B projects e.g.: Viaducts, Railways, Tunnels, Oil refineries, Major power plants, etc. 3) NCB:Projects not likely to attract foreign competition. 46

47. Selection of Contractors Other methods International or National Shopping. Direct Contracting. Force Account. Community Participation. 47

48. Selection of Consultants Predominantly Short-list of Member Country firms. . Exceptional cases Short-list of non-member country firms. 48

49. Procurement Trends • “IDB considers that as a matter of priority, goods and works it is financing, should be procured to the extent possible from its member countries”. And even if the case of open ICB, there is still a provision for a margin of preference of up to 15 percent for contractors from member countries. • 60 % of the Bank financed contracts for goods/works in recent years, awarded to contractors from member countries. • 95 % for consultancy services.

50. IDB does Encourage Contractors from Member Countries… ICB/MC: ICB limited to Member Countries projects. ICB:margin of preference up to15% for MC, goods and works. However: - Prior consent of beneficiary/IDB. - Stated in bidding documents. 50