The Islamic Development Bank (IDB), the Muslim world's premier multilateral financial institution, estimates that its 56 member countries are set to invest up to $1.2 trillion in infrastructure over the next 10 years to meet the rapidly growing demand for telecom, transport, power, water and other infrastructure services. “Around $675 billion will be used to finance new telecom and power projects, some half of which will be in GCC states, while an additional $290 billion is to be invested in expanding and upgrading air, sea and land transport infrastructure, with half of that investment taking place in Asia” said Dr. Amadou Boudacar Cisse, IDB vice president. Another major investment area targeted by IDB member countries will be water, where as much as $115 billion will be invested to expand and improve the provision of water and sanitation services over the next decade. Nearly 60 percent of this investment will be in Arab and African IDB member countries, he added. Cisse said IDB sees a greater role for the private sector in meeting demand for infrastructure projects such as the new Hajj and Umra terminals, Petro Rabigh and SABIC's Yansab petrochemical project. Mohammed Binladin, vice president of the Saudi Binladin Group, presented the new Hajj and Umra terminals construction and development project, which is expected to significantly improve both the handling capacity and quality of service provided at the Kingdom's main gateway. Othman Fassi-Fahri, general manager of Morocco's highway authority, highlighted his country's impressive highway development program, while Waleed Al-Saif, a senior executive at Saudi Arabia's Petro Rabigh (a major joint-venture between Saudi Aramco and Japan's Sumitomo Chemical, a leading petrochemical firm), provided an excellent overview of this pioneering Saudi-led enterprise that aims to firmly establish the Kingdom as a major player in the global petrochemical industry. “We highlighted the need to pay due attention to the environmental dimension of new projects, especially their carbon footprint, in order to minimize the impact of harmful greenhouse gas emissions”, said Dr. Nahed Taher , CEO of Gulf One Investment Bank. She urged project developers to seek carbon finance opportunities currently being offered by the Kyoto Protocol's clean development mechanism, which basically allows developed countries to invest in projects that reduce emissions in developing countries as an alternative to more expensive emission reductions in their own countries. Cisse indicated that the IDB Group expected to invest up to $20-25 billion in the infrastructure sector over the next 10 years. This investment is expected to target mainly power, transport and water projects. Climate change adaptation and mitigation is likely to stimulate further demand for investment in cleaner energy, energy efficiency as well as water storage infrastructure and flood protection, he added. Cisse moreover said the global food security is expected to trigger a new wave of major hydraulics infrastructure schemes in IDB member countries, in order to achieve greater food security through sustainable agricultural development underpinned by sound water resources management. __
