Rio de Janeiro, Brazil – On July 3, 2025, the New Development Bank (NDB) signed a Memorandum of Understanding with State Grid Brazil Holding (SGBH), with the aim of enhancing electricity transmission capacity in Brazil, to meet the immediate needs of the nation’s power sector.
The signing of this Memorandum took place on the sidelines of NDB’s 10th Annual Meeting, held on July 4 and 5 in Rio de Janeiro.
The project, known as the Graca Aranha Silvania Transmissora de Energia (“GATE”), will be implemented by a subsidiary of SGBH.
The implementation of the GATE Project will address immediate needs of the electricity sector in Brazil – increasing power transmission capacity, decongesting the transmission corridor, reducing curtailment of existing renewable energy projects, and enabling investments in future wind and solar projects in the Northeast region of Brazil, and hence leading to a more diversified electricity mix in the country.
Out of the total project capex of around BRL 18 billion, more than two-thirds will be sourced from Brazil, thereby significantly promoting economic and social development, by creating more than 10,000 employment opportunities during construction, in the Northeast (Maranhão and Tocantins) and the Center-West (Goiás) regions of the country.
NDB is considering financing the Project in Chinese renminbi, with an estimated amount of RMB 2,150 million (approximately USD 300 million). The loan demonstrates NDB’s commitment to expanding non-sovereign operations and increasing cross-border use of its member countries’ currencies, as envisaged in NDB’s General Strategy.
“The GATE project signifies a leap in cooperation among NDB member countries and promotes the use of local currencies. When signed, this will be our second cross-border RMB-denominated loan, which will leverage Brazil’s clean energy potential to address urgent electricity demands and benefit millions or people while generating new jobs,” said H.E. Mrs. Dilma Rousseff, President of NDB. “By expanding investments in green infrastructure, renewable energy, and sustainable development projects, the New Development Bank aims to support Brazil in achieving its climate goals.”
This strategic partnership marks a significant step toward a more sustainable and efficient energy landscape in Brazil, aligning with NDB’s commitment to supporting development initiatives that foster economic growth and environmental sustainability.
Since its inception in 2015, NDB has approved 29 projects in Brazil alone with USD 7 billion in approved financing. These projects are spread across several states and municipalities in Brazil, helping improve clean energy, transport, water and sanitation, and social infrastructure. NDB also has a growing portfolio of private sector loans in the country.
Background Information
NDB was established by Brazil, Russia, India, China and South Africa to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging market economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development.