New Development Bank and Eurasian Development Bank Sign Memorandum of Understanding to Establish Framework for Cooperation
New Delhi – New Development Bank and Eurasian Development Bank signed today Memorandum of Understanding to establish а framework for enhanced strategic, technical and operational cooperation. The MoU was signed by Mr. Paulo Nogueira Batista Jr., NDB Vice President and Chief Risk Officer and Mr. Konstantin Limitovskiy, EDB Deputy Chairman of the Management Board on the sidelines of the NDB Second Annual Meeting in New Delhi, India.
The Memorandum provides a framework for cooperation between the two banks with a view to enhance NDB-EDB collaboration in common areas of interest and to support the sustainable development and infrastructure projects.
“This partnership agreement between our development banks is an important step towards working together on delivering sustainable infrastructure in the regions where we both operate. We look forward to strengthening cooperation between our institutions in addressing the world’s huge infrastructure needs,” said Mr. Paulo Nogueira Batista Jr.
“It is great pleasure to witness the signing of the Memorandum of Understanding between NDB and EDB. The two banks will work closely together and benefit from each other’s experience, resources and expertise,” said Mr. K.V.Kamath, the President of NDB. “We believe that partnerships with key national and global institutions are essential for us in order to provide the best possible products and services to our members,” added Mr. K.V.Kamath.
“The today signing of the memorandum is an important milestone in development of cooperation between EDB and NDB. In particular, the document defines the main areas and forms of EDB-NDB interaction for achieving common goals and promoting economic development. I am convinced that the conclusion of the MoU will bring collaboration between our institutions to a higher level”, said Mr. Konstantin Limitovskiy.
The New Development Bank was created with an objective of financing infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries. The Bank will complement the efforts of other financial institutions and establish a network of global, regional and local partnerships with multilateral and national development banks as well as other institutions and market players.
The NDB Second Annual Meeting is held in New Delhi, India. At the meeting, the management of the Bank provided an update on its work. In 2016, the Board of Directors of the Bank approved loans involving financial assistance of over USD 1.5 bln for projects in the areas of green and renewable energy, and transportation. All projects are coherent with the Bank’s mandate of supporting infrastructure and sustainable development projects. The approved projects will support the creation of about 1500 MW of renewable energy capacity and are estimated to result in the reduction of greenhouse gas emissions by over 4 million tons per year.
On 22 July 2016, the NDB Board of Directors approved the project involving the provision of financial assistance of USD 100 million for the construction of two hydropower generation plants with a total installed capacity of 49.8 MW in the Republic of Karelia in the Russian Federation. The Bank will provide the financing through two international financial institutions – Eurasian Development Bank (EDB) and International Investment Bank (IIB) for on-lending to the project.
Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. EDB’s charter capital totals US $7 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan.