NDB Board of Directors convenes its 21st Meeting in Shanghai, approves projects with loans aggregating to USD 1.4 bln
On September 12, 2019, the 21st Meeting of the Board of Directors (BoD) of the New Development Bank (NDB) was held in Shanghai, China. At the Meeting, the Board approved four infrastructure and sustainable development projects with loans aggregating to approx. USD 1.4 billion, bringing the Bank’s portfolio to 42 projects with loans aggregating to USD 11.6 billion.
South African National Toll Roads Strengthening and Improvement Programme
The Board of Directors approved a loan of ZAR 7 billion guaranteed by the Government of the Republic of South Africa to South African National Roads Agency SOC Limited for National Toll Roads Strengthening and Improvement Programme.
The Project is designed to improve key national roads in South Africa with the objective of reducing transportation costs in the country. The scope of the Project includes rehabilitation of the pavement for the existing toll sections of national roads, construction of additional lanes to widen such roads, and rehabilitation of related infrastructure, such as bridges and intersections.
Renewable Energy Sector Development in Russia Project
The Board of Directors approved a loan of USD 300 million to Eurasian Development Bank for Renewable Energy Sector Development in Russia.
The objective of the Project is to facilitate investment in renewable energy generation plants that will contribute to Russia’s power generation mix in line with the country’s Energy Strategy 2030, and to avoidance of carbon dioxide emissions. The proposed NDB loan will be used by EDB for on-lending to sub-projects using wind, solar, and small hydropower (less than 25 MW) energy generation technologies.
Andhra Pradesh Roads and Bridges Reconstruction Project and Andhra Pradesh Mandal Connectivity and Rural Connectivity Improvement Project
The NDB will provide two loans of USD 323 million each (aggregating to USD 646 million) to the Republic of India for on-lending to Government of Andhra Pradesh for the Andhra Pradesh Roads and Bridges Reconstruction Project (APRBRP) and the Andhra Pradesh Mandal Connectivity and Rural Connectivity Improvement Project (APMCRCIP) respectively.
The two projects will address the road network issues in the state of Andhra Pradesh by widening roads and widening and reconstructing weak and narrow bridges to provide all-weather road network connectivity. APRBRP comprises widening of about 1,600 km of state highways from single/intermediate lanes to double lanes and reconstructing 269 bridges on the state highway network. APMCRCIP comprises widening of about 1,400 km of district roads from single/intermediate lanes to double lanes and reconstructing 206 bridges on the district road network.
During the BoD Meeting, the Board also received an update on the Bank’s robust pipeline of infrastructure and sustainable development projects in all member countries of the NDB and project implementation and disbursement. The Board approved a Policy on Loans to International Organisations and also approved revisions to the Revised Policy on Loans with Sovereign Guarantee and the Revised Staff Compensation and Benefits Policy. The Board considered the tentative workplan for the upcoming year.
The Management also provided updates on the NDB Funding Programme, the credit rating process, local currency non-sovereign loan financing and other matters pertaining to NDB’s work.
On September 11, 2019, Audit, Risk and Compliance Committee of the NDB BoD, considered Audited Financial Statements for the New Development Bank for the period ended June 30, 2019, and Audited Financial Statements for the Project Preparation Fund of the New Development Bank for the period ended June 30, 2019. The Management also provided the Committee on updates concerning internal audit and compliance related matters. The Committee also discussed matters pertaining to the risk management of the Bank.
The Budget, Human Resources and Compensation Committee also met on September 11, 2019. The Committee was updated on the Bank’s budget utilisation for the period ended June 30, 2019. Furthermore, the BHRC Committee discussed several matters pertaining to human resources and compensation, including a report on recruitment and diversity in the Bank. An update on Ethics was also provided to the Committee.
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).