SHANGHAI, Dec. 17, 2020 /PRNewswire/ — The Board of Directors (Board) of the New Development Bank (NDB) held its 29th Meeting in a virtual format on December 15, 2020.
At the Meeting, the Board approved five investment projects with a total commitment aggregating to approx. USD 2.7 billion.
BNDES-NDB Sustainable Infrastructure Project
The NDB Board approved a loan of USD 1.2 billion to the Brazilian Development Bank (BNDES) for the BNDES-NDB Sustainable Infrastructure Project. The NDB loan will support BNDES in financing sustainable infrastructure sub-projects in the public and private sectors with the scope of works focused on developing sustainable infrastructure aiming at the achievement of selected Sustainable Development Goals (SDGs). As a critical enabler of faster and inclusive economic growth, the infrastructure development of the sub-projects is expected to deliver a wide range of socio-economic benefits to Brazil. The Project will contribute to the efforts of the Government of Brazil to support socio-economic growth and development through sustainable infrastructure investments in key sectors.
Urban, Rural and Social Infrastructure Program to Achieve the SDGs
The NDB Board approved a loan of EUR 134.64 million to the Far South Regional Development Bank (Banco Regional de Desenvolvimento do Extremo Sul, BRDE) for the Urban, Rural and Social Infrastructure Program to Achieve the SDGs. The loan will be used by BRDE for on-lending to sustainable infrastructure sub-borrowers in the public and private sectors in the southern region of Brazil, comprising the states of Rio Grande do Sul, Paraná and Santa Catarina. The Project is expected to contribute to addressing scarcity and bottlenecks of infrastructure in key sectors in the southern region of Brazil by helping to address infrastructure financing needs of sub-national governments with limited access to infrastructure financing.
Curitiba’s Bus Rapid Transit Rideability Improvement Project
The NDB Board approved a loan of USD 75 million to the Municipality of Curitiba for Curitiba’s Bus Rideability Improvement Project. The objective of the Project is to prioritize public transportation and discourage the use of individual transportation, thus improving socio-economic conditions through increased mobility, optimization, expansion and requalification of the public transportation infrastructure in Curitiba, the capital of the southern Brazilian state of Paraná. The loan will be used for financing the development of the East-West Corridor and the South Corridor of the Curitiba’s Bus Rapid Transit (BRT) system that incorporates the Transportation Integrated Network (RIT) in Curitiba Metropolitan Region (RMC).
South Africa National Non-toll Roads Management Program
The NDB Board approved a loan of up to USD 1 billion to the Republic of South Africa for the improvement of transport infrastructure.
MTS Cellular Network and Cloud Services Expansion Project
The NDB Board also approved a loan of USD 300 million to Mobile TeleSystems (MTS) Public Joint Stock Company for the Cellular Network and Cloud Services Expansion Project in Russia. The loan will be used to finance a part of the company’s capital expenditure program aimed at the expansion of its cellular network and deployment of cloud services infrastructure in Russia. The Project will support equitable access to faster internet for the Russian population in addition to providing enterprises access to a wide range of cloud services.
In the Intersession Period, the Board of Directors also approved two COVID-19 Emergency Program Loans of USD 1 billion respectively to the Federative Republic of Brazil and the Republic of India.
COVID-19 Emergency Program Loan to Brazil for Supporting Economic Recovery
On December 7, 2020, the NDB Board approved COVID-19 Emergency Program Loan of USD 1 billion to the Federative Republic of Brazil for supporting Brazil’s economic recovery from COVID-19. The Program will support the Brazilian Federal Government in its efforts to maintain jobs and income and to support economic recovery through an enhanced credit access for small and medium-sized companies (SMEs). The Bank’s loan will contribute to financing the Investment Guarantee Fund for the Credit Access Emergency Program (FGI-PEAC). The NDB loan, through FGI-PEAC, will improve SME’s access to credit by providing guarantees to help them overcome temporary liquidity problems, ensure the continuity of operations, and strengthen financial sustainability, contributing to sustain employment rates and income to the workers.
COVID-19 Emergency Program Loan to India for Supporting Economic Recovery
On December 11, 2020, the NDB Board approved COVID-19 Emergency Program Loan of USD 1 billion to the Republic of India for supporting India’s economic recovery from COVID-19. The Program will support the Government of India in its efforts to contain the economic fallout of the COVID-19 pandemic and start economic recovery. The Program will support mitigating the adverse economic impact of the COVID-19 pandemic and enable economic recovery in the rural areas through natural resource management works (NRM) and generation of employment opportunities for the rural poor, especially migrant workers who have returned from urban areas and have lost their livelihoods due to the COVID-19 pandemic. Agricultural productivity will be improved through the creation of NRM assets that promote water conservation, water harvesting and watershed management.
An update on the NDB’s robust and dynamic project pipeline in all member countries of the Bank, project implementation and disbursement was provided to the Board of Directors.
The Board of Directors discussed matters pertaining to planning towards LIBOR transition, funding strategy, country systems and expansion of the Bank’s membership.
The 17th Audit, Risk and Compliance Committee Meeting and the 13th Budget, Human Resources and Compensation Committee Meeting of the Board of Directors took place virtually on December, 14, 2020.
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. According to the NDB’s General Strategy, sustainable infrastructure development is at the core of the Bank’s operational strategy for 2017-2021. The NDB received AA+ long-term issuer credit ratings from S&P and Fitch and AAA foreign currency long-term issuer rating from Japan Credit Rating Agency (JCR) and Analytical Credit Rating Agency (ACRA).
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