On November 28, 2023, the Board of Directors (Board) of the New Development Bank held its 42nd meeting in Dubai, United Arab Emirates. This was the first time the Board convened in a non-founding member country of the Bank, demonstrating NDB’s role as a platform for wider collaboration among emerging markets and developing countries.
During the meeting, the Board addressed several key agenda items, including project approvals, funding plan and strategy for 2024, independent evaluation of projects and membership expansion.
Three project proposals were considered and approved by the Board.
Loan to the Republic of India for the Gujarat Rural Road Program
The Board approved a loan of up to 500 USD million to the Republic of India for the Gujarat Rural Road Program. This Program aims to enhance rural connectivity and improve access to markets, health, and education centres in the state of Gujarat, one of India’s growth engines, thereby contributing to overall economic growth. By providing and improving road connectivity for approx. 4,900 villages, the Program is expected to directly benefit 12.65 million rural population in Gujarat. In addition to financing the construction of road infrastructure, the Program will also support digital transformation, capacity building, technical design and research, ensuring long-term positive impact. The Program is aligned with NDB’s General Strategy as well as with the Sustainable Development Goal (SDG) 9 on building resilient infrastructure, promoting sustainable industrialisation and fostering innovation.
Loan to the Republic of India for the Bihar Rural Roads Project (Phase 2)
The Board approved a loan of up to USD 638.12 million to the Republic of India for the Bihar Rural Roads Project (Phase 2) focused on improving rural transport connectivity in the state of Bihar by constructing roads under the state-sponsored rural connectivity programme – Mukhya Mantri Gram Sampark Yojana (MMGSY)-Awsesh (residual) scheme. The approved Project is a continuation of the Bihar Rural Roads Project, for which NDB has committed up to USD 350 million in 2018. The Bihar Rural Roads Project (Phase 2) is expected to provide first-time road connectivity to around 2.25 million people in 7,000 rural habitations, facilitating access to social, economic and educational centres and bringing population of remote areas under the umbrella of mainstream benefits of infrastructure connectivity and enhanced livelihoods. The Project is aligned with the Bank’s General Strategy as well as with the SDG 9 on building resilient infrastructure. Additionally, it contributes to SDG 10 on reducing inequality within and among countries.
Loan to the Bank of Huzhou for the Sustainable Infrastructure Project
The Board approved a loan of USD 50 million equivalent in RMB to the Bank of Huzhou (BOH) for the Sustainable Infrastructure Project. This is NDB’s first non-sovereign loan in China. The loan will be used by BOH to finance sustainable infrastructure projects in Zhejiang Province, China, focusing on clean energy and energy efficiency, transportation and logistics as well as water and sanitation. BOH, a commercial bank in Huzhou City, is expanding its lending to sustainable infrastructure projects in line with the Government’s strategic plan to implement the agenda for sustainable development and the objective to reach carbon neutrality by 2060. The NDB loan will enable BOH to provide financing to local companies for such projects as rooftop solar power, smart parking, reservoir renovation, etc. The Project is aligned with four Sustainable Development Goals (SDG 9 – Building resilient infrastructure, promote sustainable industrialization and foster innovation, SDG 13 – Take urgent action to combat climate change and its impacts, SDG 11 – Make cities inclusive, safe, resilient and sustainable and SDG 6 – Ensure access to water and sanitation for all) and it will contribute to increasing available financing for sustainable infrastructure and mitigating climate change in China.
The Board received a comprehensive update on the implementation of ongoing projects in terms of disbursements and procurements and also took note of the update on project pipeline.
The Board took note of independent evaluations of four projects financed by NDB, including the COVID-19 Emergency Programme Loans, Brazil Renewable Energy Projects and Associated Transmission, South Africa Greenhouse Gas Emissions Reduction and Energy Sector Development Project, and China Luoyang Metro Project. Additionally, the Board also provided recommendations to the revised Evaluation Policy, the proposed Evaluation Strategy and the proposed Independent Evaluation Office Work Programme and Budget for 2024.
The Board was updated of the Bank’s funding activities in Q3 2023 and approved the Annual Funding Plan and Funding Strategy for 2024, setting a clear roadmap for the Bank’s borrowing activities in the coming year.
The Board took note of the progress of membership expansion, highlighting the Bank’s dedication to broadening its membership base in a gradual way, under the guidance of the Board of Governors, with a focus on bringing greater diversity amongst member countries – both in terms of geography and stage of development.
A comprehensive update on the progress made in implementing the NDB’s General Strategy for 2022-2026 was also provided to the Board.
The Board also agreed to the proposed amendments to business travel arrangements by the Boad Officials as well as the associated amendments to the Rules of Procedure of Board, and recommended approval by the Board of Governors. The Board Workplan for 2024 was also discussed.
The 29th meeting of the Audit, Risk and Compliance Committee and the 25th meeting of the Budget, Human Resources and Compensation Committee were held on November 27, 2023.
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. In 2021, NDB initiated membership expansion and admitted Bangladesh, Egypt, United Arab Emirates and Uruguay as its new member countries.