During the inter-sessional period in December 2024, the Board of Directors (Board) of the New Development Bank (NDB) approved four project proposals with loans totalling the equivalent of approx. USD 776 million.
Madhya Pradesh State Highways Improvement Project
On December 19, 2024, the Board approved a loan of up to USD 490 million to the Republic of India for the Madhya Pradesh State Highways Improvement Project.
The project aims at strengthening transport infrastructure in the state of Madhya Pradesh through widening and reconstruction of state highways. It will enhance road connectivity between district headquarters, major commercial cities, agricultural and industrial areas, through two-lane or four-lane roads.
The project is primarily aligned with UN SDG 9 – Industry, Innovation and Infrastructure, in particular, Target 9.1 – Developing quality, reliable, sustainable, and resilient infrastructure.
Brasilia Capital of Solar Lighting Project
On December 26, 2024, the Board approved a loan of up to EUR 94 million guaranteed by the Federative Republic of Brazil to Brasilia Energy Company (Companhia Energética de Brasília) for the implementation of Brasilia Capital of Solar Lighting Project in the Federal District of Brazil.
The project comprises upgrade of public lighting system in the Federal District Brasilia by replacing existing lamps with light-emitting diode (LED) technology and construction of a large scale solar photovoltaic plant.
The project will support the Government of Brazil’s plan to reduce total net greenhouse gas emissions in line with its long-term goals under the Paris Agreement, by increasing solar power’s share in the energy mix and promoting energy efficiency.
The development results of the project are aligned primarily with SDG 7 – Affordable and Clean Energy. The project will also contribute to other SDGs including SDG 11 on Sustainable Cities and Communities and SDG 13 on Climate Action.
SAEL 300 MW Renewable Energy Project
On December 27, 2024, the Board approved a loan of up to USD 63 million to SAEL Solar MHP1 Private Limited for the construction and operation of the 300 MW solar photovoltaic power plant in Kurnool, Andhra Pradesh, India. The Sponsor of the project is SAEL Industries Limited, an emerging renewable energy developer in India. The project is co-financed by NDB, the Asian Infrastructure Investment Bank (AIIB) and Societe Generale (SocGen).
The new solar power plant is expected to generate more than 80 MW of electricity annually and reduce annual CO2 emissions by more than 0.63 million tonnes. The project is aligned with India’s renewable energy targets and supports their commitment to the United Nations Framework Convention on Climate Change.
Shriram Finance Sustainable Transport Project
On December 29, 2024, the Board approved a loan of USD 125 million to Shriram Finance Limited (SFL) for the Shriram Finance Sustainable Transport Project.
The project aims to increase the penetration of low carbon vehicles in India and support pollution reduction by financing sustainable commercial vehicles. NDB’s loan will provide longer-term funding to SFL to support and expand SFL’s financing for acquisition of energy efficient commercial vehicles for individual driver turned owners, first time borrowers, micro, small and medium-sized enterprises (MSMEs) including small road fleet operators having 4-5 vehicles engaged in transport and logistics in India.
The project is expected to primarily align with the United Nation’s SDG 7 – Affordable and Clean Energy, SDG 9 – Industry, Innovation and Infrastructure and SDG 13 – Climate Action. The project contributes to NDB’s climate mitigation finance.