New Development Bank and China Sign First Project Preparation Fund Contribution Agreement
The New Development Bank and the Finance Ministry of the People’s Republic of China signed today the Bank’s first Project Preparation Fund contribution agreement. The Agreement was signed by Mr. K.V.Kamath, the NDB President and Mr. Shi Yaobin, Vice Minister of the Ministry of Finance of China in the city of Xiamen on the sidelines of the 9th BRICS Summit.
“In order further strengthen the NDB’s operational capability, our founders had envisaged setting up of Project Preparation Fund (PPF), the enabling framework of which was enshrined in our Articles of Agreement. The PPF is now being established as a multi-country contributor fund, open to contributions from all member countries of the Bank,” said Mr. K.V.Kamath.
“The Project Preparation Fund will enhance NDB’s project preparation capability, facilitate the undertaking of feasibility studies, and also support project implementation. As and when we begin our private sector operations and investments in PPP projects, it will assist in making projects more bankable. The fund will also leverage local expertise in our member countries and optimize resource utilization,” added the NDB President.
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: 2017 – 2021, sustainable infrastructure development will be the primary emphasis of the Bank’s operations in the next five years.