NDB Board of Directors held its 27th Meeting, approved two projects in Brazil and Russia
The Board of Directors (BoD) of the New Development Bank (NDB) held its 27th Meeting in a virtual format on June 29, 2020.
At the Meeting, the Board Members reflected on the progress achieved by the Bank and expressed their appreciation to Mr. K.V. Kamath, the first NDB President for his outstanding service and contribution to the Bank’s development. The Board Members also thanked Mr. Sarquis J. B. Sarquis, Vice President and Chief Risk Officer of the Bank, for his excellent contribution.
The Board approved two infrastructure and sustainable development projects in Brazil and Russia.
Teresina Educational Infrastructure Program
The Board of Directors approved a loan of USD 50 million to the Municipality of Teresina with a sovereign guarantee from the Federative Republic of Brazil for Teresina Educational Infrastructure Program.
The Program will contribute to improving the educational system in Teresina through building and upgrading educational infrastructure, with the focus on increasing the number of students attending full-time schools, enhancing the availability of nursery places in the municipality, and improving safety conditions.
The components of the Project include the construction of eight new full-time elementary schools in vulnerable neighborhoods of the municipality; retrofitting of existing small part-time elementary schools into kindergarten units; urban requalification of the surrounding areas of schools and kindergartens, to improve accessibility, safety and access to public transportation; construction of part-time schools; strengthening educational system, monitoring, evaluation and project management.
Small Historic Cities Development Project Phase II
The Board of Directors also approved a loan of EUR 205 million to the Russian Federation for Small Historic Cities Development Project Phase II, which is an extension of the Small Historic Cities Development Project Phase I currently being implemented under the Bank’s financing.
The Small Historic Cities Development Project Phase II focuses on urban development through preservation and development of cultural heritage to drive tourism related revenues and improve the municipal economy of eight small cities located in the European part of Russia. The Project will foster economic growth, job creation and new businesses through urban infrastructure improvements while boosting the importance of cultural heritage sites. The Project’s implementation period is 6 years.
During the Meeting, the Board of Directors was briefed on the Bank’s robust and dynamic project pipeline as well as project implementation and loan disbursement.
The Board also discussed financing sub-national governments by the Bank without recourse to guarantee from the respective sovereign.
At the Meeting, the Board started the review of environmental and social country systems of the Bank’s member countries.
The Board Members approved Treasury Strategy for FY2020 and took note of a Funding Update presented to the BoD.
Budget, Human Resources and Compensation Committee headed by Mr. Zhongjing Wang, NDB Director held its 11th Meeting on June 29, 2020. The Committee discussed matters pertaining to the Bank’s budget utilization, human resources and compensation.
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. 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).