New Development Bank and China Development Bank Sign Memorandum on Strategic Cooperation

On 1 September 2017, the New Development Bank (NDB) and China Development Bank (CDB) signed in Beijing a Memorandum of Understanding on Strategic Cooperation. The Memorandum was signed by Mr. Paulo Nogueira Batista Jr., NDB Vice President for Economic Research, Strategy, Partnership and  Chief Risk Officer and Mr. Hu Huaibang, Chairman of CDB during the BRICS Interbank Cooperation Mechanism Annual Meeting.

According to the Memorandum, both sides will harness their respective resource advantages and professional expertise, aiming to build mutually beneficial strategic cooperation. By partnering with CDB, the NDB can increase the capillarity of its operations and take advantage of the CDB’s expertise to strengthen its capacity to mobilize local currency funds in China.

The Memorandum provides framework for the cooperation between the NDB and CDB in the following areas:

• Develop sector and thematic level collaboration in areas of mutual interest, including infrastructure development and sustainable development projects in the areas of renewable energy, energy efficiency, clean transportation, sustainable water management and sewage treatment;
• Promote co-financing and other forms of joint participation in financial assistance for development projects in countries of mutual interest; explore and pursue opportunities in treasury management cooperation;
• Promote the mutual training and development of staff through temporary assignments, secondments and staff exchange programmes;
• Engage in capacity building initiatives and research, as well as the convening of forums, seminars and workshops to promote knowledge sharing and institutional capabilities.

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. In line with its mandate, the NDB is engaging in partnerships with national development banks and commercial banks from member countries as well as other international development organizations to complement the efforts to support infrastructure and sustainable development projects.