NDB is providing a loan to BDMG for on-lending to private and public sector sub-borrowers for the financing of infrastructure and sustainable development projects in the State of Minas Gerais focusing on (a) clean energy; (b) urban development for inclusive and sustainable cities; (c) sustainable agriculture and its associated infrastructure; and (d) social infrastructure (“Sub-Projects”)

The Project aims to contribute to socio-economic growth and development of Minas Gerais in alignment with the State’s plans. The Project has the overarching goals of (1) bringing sustainable infrastructure to small municipalities with economic development indicators below average for the country, (2) supporting reduction of greenhouse gas emissions and (3) contributing to the achievement of the goals set by the State of Minas Gerais in clean energy, urban development, and social infrastructure sectors.

The Project will be implemented by BDMG over a period of four years. BDMG will be responsible for identifying and selecting Sub-Projects for NDB financing based on pre-agreed eligibility criteria. BDMG will also be responsible for appraising, financing, and monitoring Sub-Projects.

The Project has been categorized as Category FI-B in line with NDB’s Environmental and Social Framework (“ESF”). Environmental and social (“E&S”) impacts and risks of the Project will vary depending on the Sub-Projects. The negative impacts will be mitigated by compliance with BDMG’s E&S Management System and country system requirements, as well as the implementation of an Environmental and Social Impact Management Plan agreed with NDB. In the event any of the Sub-Projects are classified as high risk under the BDMG E&S Management System, or as Category A according to NDB’s ESF, prior approval from NDB will be required.