NDB Board of Directors convenes its 19th Meeting in Shanghai
On June 25, 2019, the 19th Meeting of the Board of Directors (BoD) of the New Development Bank was held in Shanghai, China. At the Meeting, chaired by Mr. Marcos Troyjo, NDB Director for Brazil, the Board approved loans for two infrastructure and sustainable development projects from China aggregating to RMB 4.6 billion (approx. USD 667 million).
Ningxia Yinchuan Integrated Green Transport Development Project
The NDB will provide a loan of RMB 2.1 billion to the People’s Republic of China for Ningxia Yinchuan Integrated Green Transport Development Project to be implemented in Ningxia Hui Autonomous Region. The Project is aimed at developing a green bus system and will improve public transport services in Yinchuan Municipality through replacing all existing natural gas-fueled buses with electric buses, reducing emissions and saving energy. Components of the Project include: (i) procurement of electric buses and associated equipment; (ii) construction of bus lane and depots; (iii) development of intelligent transport management system; (iv) project management and capacity building.
Lanzhou New Area Regional Hub Multimodal Logistics and Transport Infrastructure Demonstration Project
The BoD approved a loan of RMB 2.5 billion to the People’s Republic of China for Lanzhou New Area (LNA) Regional Hub Multimodal Logistics and Transport Infrastructure Demonstration Project to be implemented in Gansu Province. Rapid industrial development of the LNA has generated a high demand for logistic services and created impediments for further economic development. To address these challenges, the Project is aimed at reducing the logistics gap through building multimodal logistics infrastructure, connecting road, railways, and airport. Components of the Project include: (i) rail stations, rail tracks, and logistics parks; (ii) connecting roads; (iii) multimodal logistics information platform; (iv) capacity building, project management, and supervision.
During the Meeting, the BoD was briefed on the development of a robust and dynamic project pipeline and projects disbursements in all member countries of the Bank.
In line with the Bank’s focus on local currency financing, the Board approved Local Currency Financing Framework.
The Board approved Audited Financial Statements for the New Development Bank for period ended March 31, 2019 as well as Audited Financial Statements for the Project Preparation Fund of the New Development Bank for period ended March 31, 2019.
The BoD reviewed Treasury Business Management Policy, Policy on Loans with Sovereign Guarantee and Policy on Guarantees.
On June 24, 2019, Audit, Risk and Compliance Committee of the NDB BoD, chaired by Mr. Enoch Godongwana, NDB Director for South Africa, considered matters pertaining to independent and internal audit, quarterly risk reports, policy review and update on compliance.
On the same date, Budget, Human Resources and Compensation Committee of the NDB BoD, chaired by Mr. Wencai Zhang, NDB Director for China, considered budget utilization for the period ended March 31, 2019 and discussed various HR-related matters.
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. In August 2018, the Bank received AA+ long-term issuer credit ratings from S&P and Fitch.