NDB Board of Directors Approves North Region Transportation Infrastructure Improvement Project from Brazil
On November 12, 2019, the Board of Directors of the New Development Bank (NDB) approved North Region Transportation Infrastructure Improvement Project, bringing the Bank’s portfolio to 46 projects with loans aggregating to USD 12.8 billion.
The Bank will provide a loan of USD 300 million to Vale S.A., one of Brazil’s largest firms and the leader in mining and logistics operations in the country.
The North Region Transportation Infrastructure Improvement Project is expected to help improve Vale’s capacity and ability to transport iron ore from its mines to its ports and to global markets. The Project will help Vale strengthen its operational efficiency through improving logistics infrastructure. The contents of the Project include an upgrade of the transportation infrastructure capacity of Vale’s Northern System in the states of Pará and Maranhão, encompassing the Carajás Railway and the Ponta da Madeira Port Terminal.
The positive impacts of the Project include: (i) increased freight throughput by 10 million tonnes per year after 2023; (ii) improved transportation infrastructure including port and railway in Vale’s Northern System; (iii) improved labor safety standards; (iv) enhanced economic development within Vale’s relevant sectors resulting from improved logistics and increased trading capacity; (v) contribution to Brazil’s efforts to achieve sustained and inclusive growth.
The 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 economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development. To fulfill its purpose, the NDB will support public or private projects through loans, guarantees, equity participation and other financial instruments. According to the NDB’s General Strategy, sustainable infrastructure development is at the core of the Bank’s operational strategy for 2017-2021. The NDB received AA+ long-term issuer credit ratings from S&P and Fitch and AAA foreign currency long-term issuer rating from Japan Credit Rating Agency (JCR).