The New Development Bank Signed Headquarters Agreement with the Government of the People’s Republic of China
Mr. Wang Yi, the Minister of Foreign Affairs of the People’s Republic of China and Mr. K.V. Kamath, the President of the Bank signed today the Agreement between the New Development Bank and the Government of the People’s Republic of China regarding the Headquarters of the New Development Bank in Shanghai, China.
Along with this, Mr. Yang Xiong, the Mayor of the Shanghai Municipal People’s Government and Mr. K.V. Kamath signed today the Memorandum of Understanding between the New Development Bank and the Shanghai Municipal People’s Government of the People’s Republic of China concerning the arrangements in relation to Headquarters of the New Development Bank in Shanghai.
The documents were signed on the sidelines of G20 Finance Ministers and Central Bank Governors meeting in Shanghai in the presence of distinguished guests including the Heads of delegations of the BRICS countries, Ambassadors and Central Bank Governors and the Heads of other multilateral development institutions and international organizations.
Remarks by the President
Mr. K.V. Kamath said: “Today’s agreements related to our Headquarters in Shanghai are a landmark step in our nascent journey as a development bank. With this we are now ready for business and we look forward to building an institution of repute in the course of time.”
Aim of the documents
The NDB and the Government of the People’s Republic of China signed the Headquarters Agreement which governs the establishment of the headquarters of the Bank in P.R.C. and makes provision for the requisite immunities, privileges and other facilities to be accorded to the NDB.
The Memorandum of Understanding between the New Development Bank and the Shanghai Municipal People’s Government of the People’s Republic of China was signed to govern the Bank’s existence in Shanghai and to make provision for the premises of the NDB.
The first Board of Governors meeting of the NDB was held in Moscow, Russia on July 7, 2015 where the Bank formally came into existence as a legal entity. Mr. K.V. Kamath was elected the first President of the Bank and the Vice Presidents were appointed by the Governors.
On July 21, 2015 the NDB opened its Technical Secretariat in Shanghai, China.
The second meeting of the Board of Directors of the Bank was held in Shanghai on November 23-24, 2015. At the meeting, the organizational structure of the NDB, HR policies and the division of responsibilities between Vice Presidents was finalized.
According to the Agreement on the New Development Bank, the initial subscribed capital of the NDB is fixed at the level of $50 bln. The total paid-in capital of the Bank will be $10 bln.
The NDB has received project proposals from all BRICS countries, and the appraisal of the first set of projects is scheduled for April 2016. The founding members of the NDB have already brought in capital of $1 bln as initial contribution.