The Islamic Development Bank Group

Together We Build a Better Future

Star-up Workshop IDB PNPM Integrated Community Driven Development (ICDD) Project

09-10 February 2011

 IDB

and the Vision 1440H (2020)

Structure Products Modes of Financing Portfolio Activity Highlights Cooperation with Other Institutions

Islamic Development Bank (IDB)

Established in 1975 to foster socio-economic development in member countries and Muslim communities in compliance with Shariah. Authorized capital of ID 30.0 billion (US$ 44 billion)

Subscribed capital of ID 15.0 billion (US$ 22 billion) Paid-up capital of ID 3.1 billion (US$ 5 billion)

Islamic Development Bank (IDB)

AAA rating by Moodys Investors Service, Fitch Ratings, Standard & Poors. Zero-Risk Rating by the European Parliament

Islamic Dinar (ID)

Unit of Account of IDB, which is equivalent to One Special Drawing Rights (SDR) of the International Monetary Fund (IMF)

Vision Mission
By the year 1440 Hijrah 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 The Mission of IDB is to promote comprehensive human development, with a focus on the priority areas of alleviating poverty, improving health, promoting education, improving governance and prospering the people

Strategic Thrusts
Alleviate poverty Promote health Universalize education Empower women

Prosper the people

Islamic financial industry Integration of IDB MCs

Image of the Muslim world

 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
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Vision 1440H (2020) Products and Services Portfolio Activity Highlights Cooperation with Other Institutions

Structure

BOARD OF GOVERNORS
BOARD OF EXECUTIVE DIRECTORS

IDB Group Organization al Structure

IRTI
1981

ICIEC

ICD
1999

IDB Group Presiden t

1994

ITFC
2008

VP (Fin.)

VP (Opr.)

VP (Corp Serv.)

Chief Econ.
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Europe: 2

ME and Africa: 27

Latin America: 1

22 countries in 1975 56 countries in 2009

Asia: 26

A Unique Model of South-South Cooperation 56 members spread over 4 continents 22 countries in 1975 56 countries in 2009

Indonesia, 2.7
Pakistan, 3.05 Algeria, 3.05 Kuwait, 6.54

Others, 10.07

Saudi Arabia, 24.44

Libya, 9.81

UAE, 6.94 Turkey, 7.73 Iran, 8.58

Egypt, 8.48

Qatar, 8.61
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BOG BED
President

IDB Group Organization al Structure OPERATION S COMPLEX

VP (F)

VP (O)

VP (CS)

CE

Country Dept.

Agriculture & Rural Development Dept.

Human Development Dept.

Infrastructure Dept.

Islamic Solidarity Fund for Development

Trust Fund Department

Communities in nonMember Countries Dept.

Operations Policy & Services Dept.

4 Regional Offices

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Interest-Free Loan Leasing Installment Sale Construction Finance (Istisnaa) Equity Line of Financing Technical Assistance (Loan & Grant) Trade Financing (Murabaha)
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Vision 1440H (2020) Structure Products and Services Activity Highlights Cooperation with Other Institutions

Portfolio

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Type of Operation 1- Development Projects

US$ billion 28.14

2- Technical Assistance
3- Trade Operations 4- Special Assistance

0.29
34.78 0.68

TOTAL

63.90

A dedicated facility to fight poverty

Launched - IDB BOG Annual Meeting (Dakar 2007)

Target Endowment of US$ 10 billion Current IDB and MCs contribution of US$ 1.6 billion Two Pilot Programs already approved:
Vocational Literacy (VOLIP) Microfinance Support (MFSP)
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Agriculture & Rural Development Department

Water Resources and Environment

Integrated Rural Development

Agriculture and Food Security

Promote sustainable agriculture and food security in member countries, introduce best practices in community-based development, and maintain a focus on Natural Resource Management

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 Indonesia joined IDB as a founding member in 1975. Cumulative IDB Group Approvals to-date US$ 2.012 billion There have been 100 Development operations 56 completed operations
11% 8.7% 12.3% 13.8% 18.7% 34.9% Education Agriculture

Transportation
Health Energy Other
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Rationale

Continuing the partnership with a successful national flagship poverty alleviation Multi-sector, multi-pronged approach to poverty reduction
Significantly assist in the achievement of the MDG targets.

Aim: Achieve sustainable improvement in the welfare of poor communities

(aim of PNPM-Mandiri)

Objectives: Improve the socio-economic conditions of communities, through:

Phase-II will build on the existing, solid platform created in the ICDD project
Add enhancements to areas requiring enhancement

improving community infrastructure, social activities aimed at the dependent/ vulnerable segments of the communities facilitating economic growth and livelihood development

Provide further development support to Kelurahan which have benefitted from the core PNPM program

Build capacities & skills of communities and their local institutions

What are your expectations from PNPM?

Personal Level & Programme Level Something that you need to work out in your respective teams - Vision, Mission, Values, Targets etc.

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Social
Microfinance Capacity Building

Health Education WATSAN Community Group formation

Financial

Human

Community (Poorer Segments)

Skill/ vocational Training Entrepreneurship Training

Agriculture Environment

Natural

Physical

Infrastructure (e.g. Roads, Irrigation, Schools, PHUs)

Need for Effective Facilitation Need for Improvement of Local Organisations

e.g. KSMs (BKMs) - Moving from Simple to more Developed

Token vs Representative vs Transformative Participation Elite Capture (Inclusion-Exclusion Criteria)

Access to Micro-Finance & Its Distribution & Capacity Building Integrated Value Chain From Community to Markets

Need for Close Monitoring & Supervision Quality Control & Systems Learning Environment, Mentoring & Coaching

24-36 Months 12-24 Months 6-12 Months 0-6 Months

Above 36 Months

Socializ ation Inputs

The Quality of SHG depends upon the Quality of Inputs

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Project Management Units (PMUs) Existing Phase-I Set-up to remain

Consultancy Services Existing Phase-I Set-up to be extended, if satisfactory

Project Management Units (PMUs) 36 months

Disbursement Arrangement Same as Phase - I One Special Account

CONDITIONS FOR DISBURSEMENT

EFFECTIVENESS OF THE FINANCING AGREEMENT

EVIDENCE OF AUTHORITY FOR SIGNING WITHDRAWAL APPLICATIONS

Specimen Signature(s)

SUPPORTING DOCUMENTS:
Original Invoice, Progress Report, Evidence Of Payment, Guarantees, etc.

SPECIAL ACCOUNT
DESIGNED TO FACILITATE PAYMENT FOR NUMEROUS SMALL CONTRACTS STIPULATED IN THE AGREEMENT ORIGINAL WITHDRAWAL APPLICATION, AUTHORIZED SIGNATURE(S)

SUMMARY SHEETS, AUTHORIZED SIGNATURE(S)

SPECIAL ACCOUNT
REPLENISHMENT

RECONCILED BANK STATEMENT STATEMENT OF EXPENDITURE (SOE) EXPECTED EXPENDITURE FOR NEXT THREE (3) MONTHS CLEARANCE FROM THE AUDITORS

Need to pay careful attention to procurement

Especially at the ground-level (KSMs, Faskel, Korkot)

Maintain procurement records (evaluation reports, etc) Contracts should be maintained and followed Follow IDB and GOI procurement guidelines

Report and record any mis-procurements and non-compliance Regular progress reports

Caution: Mis-procurement is a serious issue

Violation of Agreed procedures of FA Terms and Conditions of the contract are not satisfactory to IDB

Action: Cancellation of portion of the funds allocated to the goods and works that have been misprocured

Thank you
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