The Asian Development Bank (ADB) and the Islamic Development Bank (IDB) plan to establish the Islamic Asia Infrastructure Fund. This Shari'ah-compliant private equity fund aims to invest in infrastructure projects (power, transportation, water and sanitation, and telecommunication) in member countries common to the two institutions, namely: Afghanistan, Azerbaijan, Bangladesh, Indonesia, Kazakhstan, Kyrgyz Republic, Malaysia, Maldives, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan.

The ADB plans to invest up to US$ 100 million (EUR 680 million) in the fund. Approval by the ADB Board is scheduled for 15 September 2008.

Related news: Concessional loans: on-lending practices of ADB loans can harm the poor says WaterAid, Source Weekly, 21 Sep 2007

Web sites: ADB project 42911 - Reg: Islamic Asia Infrastructure Fund ; ADB - Water Funding Facilities

Contact: InfoUnit, ADB, Thailand, disclosure@adb.org

Tags: east asia & pacific, europe & central asia, financing, sanitation, south asia, water supply