NDB Board of Directors Approves Two Projects in India and Russia with Loans Aggregating over USD 400 mln during 12th Meeting in Shanghai
On 20 November 2017, the Board of Directors (BoD) of the New Development Bank approved two infrastructure and sustainable development projects in India and Russia with loans aggregating over USD 400 mln during the 12th BoD Meeting in Shanghai.
“The NDB was established to mobilize resources for infrastructure and sustainable development in BRICS and other emerging economies and developing countries, and the two projects approved today are fully in line with the Bank’s mandate and national development plans of our member countries,” said Mr. K.V.Kamath, the NDB President.
Under the framework of Rajasthan Water Sector Restructuring Project for Desert Areas, the Bank will provide a sovereign multi-tranche financing facility of up to USD 345 mln to the Government of the Republic of India. The facility will be used by the Government of India for on-lending to the Government of Rajasthan for rehabilitating the Indira Gandhi canal system.
Under the framework of Ufa Eastern Exit Project, the NDB will provide a sovereign project loan of up to 68.8 mln to the Government of the Russian Federation for the construction of a toll transport corridor connecting the Ufa city center to the M-5 federal highway.
The modalities of the loans are different based on project specific features and borrower preferences.
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.
According to the NDB’s General Strategy: 2017 – 2021, sustainable infrastructure development will be the primary emphasis of the Bank’s operations in the next five years.