The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank (IsDB) Group, signed two de-risking agreements covering infrastructure projects in the member states of Bahrain, UAE and Uganda.

The agreements were signed during the 2023 Islamic Development Bank Group (IsDB) Annual Meetings in Jeddah last week. The details were shared in press statements issued by ICIEC as follows:

Contract Frustration Insurance Policy

Two Contract Frustration Insurance Policies (STP-CF) were signed with Netherlands-headquartered Boskalis Westminster Contracting Limited (BWCL) for dredging projects in Bahrain and the UAE. STP-CF protects contractors building essential infrastructure in ICIEC member states from commercial and non-commercial risks in the country of the project employers.

The $11 million Bahrain STP-CF covers marine works for Bandar Al-Sayah and Danat Al-Sayah development projects, including the stockpile works in East Sitra.

The $25 million UAE STP-CF covers marine and dredging works for the Hudayriyat project in Abu Dhabi. The coverage provided by ICIEC is to insure the non-payment risk of the National Marine Dredging Company (NMDC) arising from political and commercial risks.

Non-Honouring Sovereign Financial Obligation (NHSFO) insurance policy

An additional €36 million uplift to the existing €146 million Non-Honouring Sovereign Financial Obligation (NHSFO) Insurance Policy was signed with Standard Chartered Bank (UK) Ltd, Standard Chartered Bank (Hong Kong) Ltd and Société Générale.

This covers the non-payment risks of Ugandan government for the funding of infrastructure projects under the country’s Development and Infrastructure Budget 2022.

The €36 million is a top-up under the accordion mechanism of the Islamic financing of €146 million advanced to the Ministry of Finance, Planning and Economic Development of Uganda related to several projects covering agriculture, climate action, education, healthcare, power infrastructure, transportation and water infrastructure.

Memorandum of Understanding (MoU) with Egypt’s Arab Contractors (AC).

The MoU aims to provide a general framework to facilitate co-operation between ICIEC and the Arab Contractors (AC) in promoting green, resilient and sustainable infrastructure. It will also focus on multi-modal transport, social infrastructure, urban development and water sanitation; agriculture and rural development as well as ICT and digitalisation in Egypt and other ICIEC member states.

(Writing by Senthil Palanisamy; Editing by Anoop Menon)