NDB Board of Directors Approves Two Projects in South Africa and China both with Loans Aggregating USD 600 million
On 20 July 2018, the Board of Directors (BoD) of the New Development Bank approved two infrastructure and sustainable development projects in South Africa and China, with both loans aggregating USD 600 million.
NDB will provide a loan of USD 300 million without sovereign guarantee to the Development Bank of Southern Africa (DBSA) for Greenhouse Gas Emissions Reduction and Energy Sector Development Project. The Loan proceeds will be on-lent to sustainable development projects within the energy sector in South Africa that contribute to the reduction in carbon dioxide emissions, improvement of energy sector mix and robustness, as well as to the increase of energy efficiency of the economy.
NDB will also provide a USD 300 million sovereign project loan to the People’s Republic of China for Luoyang Metro Project to support the construction of a new metro line in the city of Luoyang, a densely populated city located in central China, aiming to reduce heavy traffic in the highly congested urban area, enhance mobility and accessibility. With improved connectivity, the project will contribute to a balanced city spatial development and more robust socio-economic development of the city.
With the approval of the two projects, the total amount of the Bank’s portfolio has reached over USD 5.7 billion.
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 Bank’s operational strategy for 2017-2021.