IDB: Truly trusted partner
Sunday, 8 July 2012
As a concerned citizen, my attention has been drawn to an interesting news item that is a silver lining in the raging storm in the deep waters of the Padma: "The Islamic Development Bank (IDB) will continue its funding support for the Padma bridge project even though the World Bank and ADB had withdrawn from the project alleging corruption in the process of project implementation."
By taking this bold decision, not to follow other donors, the IDB has indeed stood by Bangladesh at this hour of need and proved itself to be a true friend of Bangladesh and its trusted development partner. Actually, IDB was the first to approve financing for the Padma Bridge project and the first to sign the financing agreement among the donors and bilateral agencies.
For years on, the IDB has been providing sizable financing for import of crude oil and refined petroleum products to turn the wheels of the economy without any conditionalities whatsoever. One can imagine if the government were to finance this from traditional sources, conditionalities for the almost US $2.00 billion of funds per year for oil imports could have crippled the state of the economy. The IDB has always acted in the greater interest of Bangladesh. This is what Islamic finance stands for.
Soon after the tsunami, the IDB was the first to extend Saudi Riyals 500 million from a donor as a non-repayable grant for building school-cum-cyclone shelters and for Islamic micro-finance.
Most of us have noticed the IDB Bhavan on Rokeya Saroni which is a unique Waqf project in the Muslim world, jointly owned by the government of Bangladesh and IDB as an educational solidarity Wakf project whose income is used to train poor but meritorious students in information technology (ID). Already, this Waqf has trained over 6,000 IT experts and provided them with placements both at home and abroad. This unique Waqf is a sustainable business with income recycled in the project with the partners foregoing any returns from their investments. From the retained earnings of this Waqf , another real-estate project will be constructed for the same purpose. The social business concept appears to have been adapted from the thousand-year old Waqf model extensively employed in the Muslim world.
Since the government is looking for alternative sources of funds for constructing the Padma Bridge, we would like to see that good offices of the IDB are utilised to call upon Islamic financial institutions like Arab Funds that include Abu Dhabi Fund, Kuwait Fund, Saudi Fund, OPEC Fund for International Development, and its member countries like those of Malaysia, Qatar and Turkey among others to join in a south-south co-operative effort along with international donors to build the 'Padma Friendship Bridge' as a unique example of solidarity of development effort among the south and the west .
I urge the new president of the World Bank and the president of IDB to be innovative in supporting the people of Bangladesh to banish poverty once and for all by co-operating with both the developing and developed countries in bringing to reality the bridge over the mighty Padma as a landmark of sincere intentions to eradicate poverty, help the people prosper and raise the levels of human dignity.
Farook uz Zaman
A former Advisor, Operations, IDB.
fzaman13@yahoo.ca
By taking this bold decision, not to follow other donors, the IDB has indeed stood by Bangladesh at this hour of need and proved itself to be a true friend of Bangladesh and its trusted development partner. Actually, IDB was the first to approve financing for the Padma Bridge project and the first to sign the financing agreement among the donors and bilateral agencies.
For years on, the IDB has been providing sizable financing for import of crude oil and refined petroleum products to turn the wheels of the economy without any conditionalities whatsoever. One can imagine if the government were to finance this from traditional sources, conditionalities for the almost US $2.00 billion of funds per year for oil imports could have crippled the state of the economy. The IDB has always acted in the greater interest of Bangladesh. This is what Islamic finance stands for.
Soon after the tsunami, the IDB was the first to extend Saudi Riyals 500 million from a donor as a non-repayable grant for building school-cum-cyclone shelters and for Islamic micro-finance.
Most of us have noticed the IDB Bhavan on Rokeya Saroni which is a unique Waqf project in the Muslim world, jointly owned by the government of Bangladesh and IDB as an educational solidarity Wakf project whose income is used to train poor but meritorious students in information technology (ID). Already, this Waqf has trained over 6,000 IT experts and provided them with placements both at home and abroad. This unique Waqf is a sustainable business with income recycled in the project with the partners foregoing any returns from their investments. From the retained earnings of this Waqf , another real-estate project will be constructed for the same purpose. The social business concept appears to have been adapted from the thousand-year old Waqf model extensively employed in the Muslim world.
Since the government is looking for alternative sources of funds for constructing the Padma Bridge, we would like to see that good offices of the IDB are utilised to call upon Islamic financial institutions like Arab Funds that include Abu Dhabi Fund, Kuwait Fund, Saudi Fund, OPEC Fund for International Development, and its member countries like those of Malaysia, Qatar and Turkey among others to join in a south-south co-operative effort along with international donors to build the 'Padma Friendship Bridge' as a unique example of solidarity of development effort among the south and the west .
I urge the new president of the World Bank and the president of IDB to be innovative in supporting the people of Bangladesh to banish poverty once and for all by co-operating with both the developing and developed countries in bringing to reality the bridge over the mighty Padma as a landmark of sincere intentions to eradicate poverty, help the people prosper and raise the levels of human dignity.
Farook uz Zaman
A former Advisor, Operations, IDB.
fzaman13@yahoo.ca