New Development Bank Signs 3 Loan Agreements for Projects in China
The New Development Bank signed today three loan agreements for projects in Fujian, Hunan and Jiangxi provinces of China. The signing ceremonies for the three projects were held in the city of Xiamen, China on the sidelines of the 9th BRICS Summit and were witnessed by Mr. Shi Yaobin, Vice Minister of the Ministry of Finance of the People’s Republic of China.
“The New Development Bank was established by the five BRICS countries to finance infrastructure and sustainable development activities in its member countries. We were also established to pursue the green commitment of our founders. Since inception, our activities have been aligned towards this commitment. To date, the Board of Directors of NDB has approved 11 projects with loans aggregating over USD 3.0 billion,” said the NDB President Mr. K.V.Kamath. “We hope that the projects supported by the Bank will act as catalysts for development and benefit the lives of people in our member states,” he added.
“According to the Bank’s Strategy, sustainable infrastructure development will be the primary emphasis of the NDB’s operations in the next five years,” highlighted Mr. K.V.Kamath.
Fujian Putian Pinghai Bay Offshore Wind Power Project
Under the framework of Fujian Putian Pinghai Bay Offshore Wind Power Project, a sovereign project loan of RMB 2 billion will be provided to the People’s Republic of China for an offshore wind power project proposed to be implemented in the Fujian Province.
The project is situated in Pinghai Bay, city of Putian, Fujian Province; it is about 12 km from Pinghai Town.
The project, with 3,490 effective generation hours per year, would on average generate 873,000 kWh of electricity every year which would be sold to the provincial grid. The total installed capacity of the project will reach 250 MW.
By generating electricity using a renewable energy source, the project would avoid 869,900 tons of carbon dioxide emissions annually.
The project also expected to enhance confidence in China’s large-scale adoption of offshore wind power generation under various technical challenges.
Ecological Development Project in the Green Heart Center of the Hunan Chang-Zhu-Tan City Cluster
Under the framework of Ecological Development Project in the Green Heart Center of the Hunan Chang-Zhu-Tan City Cluster, the NDB will provide a CNY (RMB) 2 billion loan to the People’s Republic of China to enhance flood control, and improve water quality in Hunan province’s Xiang River watershed.
Three municipalities (Changsha, Zhuzhou and Xiangtan) are coordinating to implement the project.
The Project addresses problems along multiple tributaries of the Xiang River to provide a comprehensive improvement in flood control and water quality, benefiting almost 50 million residents.
The Project will increase the flood control capacity of four large Xiang River tributaries to minimize flood damage. At the same time, improvements in wastewater disposal and drainage, non-point source pollution control and ecological restoration will also bring health benefits and reduced water-related infections and diseases.
In June 2017, Hunan was severely affected by heavy rainstorms and floods. By taking advantage of the Bank’s rapid project preparation, important infrastructure will be strengthened to resolve immediate issues.
Jiangxi Industrial Low-Carbon Restructuring and Green Development Pilot Project
Under the framework of Jiangxi Industrial Low-Carbon Restructuring and Green Development Pilot Project, the NDB will provide a USD 200 million Loan to the People’s Republic of China.
The objectives of the project are to promote energy conservation, resources recycling and pollutants reduction through technology upgrade.
The project will contribute to achieving a set of targets set through a number of sub-projects focusing on investments in energy conservation and environmental protection. Notably, the cumulative energy consumption per industry value added from medium and large enterprises needs to decrease by 18% and the comprehensive utilization ratio of industrial solid waste needs to increase to over 65% from 57% in 2016.
The project had been regarded as a model for sustainable industrial development and energy conservation in China. It will strongly support the PRC strategy to improve the energy efficiency of the energy-intensive industry.
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.