NDB Board of Directors held 31st Meeting, approved three projects
On June 29, 2021, the Board of Directors (Board) of the New Development Bank (NDB) held its 31st Meeting in a virtual format.
At the Meeting, three project proposals were presented to the Board for approval.
Anhui Province Roads Development Project
The NDB Board of Directors approved a loan of EUR 340 million to Anhui Province to improve road network and services along critical corridors in the participating municipalities. A total mileage of about 196 km will be constructed or upgraded under the Project. At the same time, the Project will pilot advanced technologies for sustainable road development on the six road sections, aiming to ensure construction quality, enhance the efficiency of resource utilization, as well as improve services and management. The Project will also promote socio-economic development through improving connectivity and mobility in Anhui Province. In addition, suitable innovative technologies to be piloted throughout road construction, upgrading and operations & management periods will demonstrate the benefits of sustainable roads development, including improvement of construction quality, road safety and management efficiency in an energy-saving and environmentally friendly manner.
BNDES Clima – Sustainable Financing to Support Global Climate Change Mitigation and Adaption in Brazil
The NDB Board of Directors approved the restructuring of the Fundo Clima USD 500 million loan, originally approved by the NDB’s Board in October 2019. The main feature of the restructuring of the Project is the change of the borrower to the Brazilian Development Bank (BNDES) and the change of the Federative Republic of Brazil’s role from the former Borrower to Guarantor of the loan. The Project, renamed after its new Borrower to “BNDES Clima,” maintains the original Project’s objectives and development goals: it shall contribute to climate change mitigation and adaptation investments in various sectors, such as urban mobility, waste treatment, renewable energy and energy efficiency, among others, through BNDES on-lending to public and private sectors. BNDES will be responsible for overall Project monitoring and evaluation, as well as sub-projects selection, taking advantage of its experience in the infrastructure sector. BNDES Clima long-term debt operations are expected to have a significant crowd-in effect in terms of additional investment in sustainable infrastructure.
Develop Sorocaba – Sorocaba Mobility and Urban Development Project
The NDB Board of Directors approved a loan of USD 40 million to the Municipality of Sorocaba for Sorocaba Mobility and Urban Development Project. The objective of the Project is to improve the existing road infrastructure, promotion of alternate means of transportation, increase in productivity of workforce, improvement in the environment and quality of lives of its residents. The loan will be used for the creation of underpasses, rehabilitation of roads, construction of access road to a recreational park, and implementation of macro-drainage infrastructure to improve urban mobility and accessibility within the municipality of Sorocaba, which has witnessed rapid economic growth and attracted an industrial park used by various multinational corporations, due to its strategic and advantageous geographic location.
With the approval of the three projects by the Board of Directors, NDB’s entire portfolio of commitment reaches USD 29 billion, while the cumulative disbursement reaches USD 10.69 billion.
The Board of Directors was briefed on the NDB’s robust and dynamic project pipeline, project implementation, disbursement and project procurement in all member countries of the Bank.
Updates on the expansion of the NDB’s membership and LIBOR transition were provided to the Board.
The 19th Meeting of the Audit, Risk and Compliance Committee and the 15th Meeting of the Budget, Human Resources and Compensation Committee took place virtually on June 28, 2020.
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, 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) and Analytical Credit Rating Agency (ACRA).