NDB Board of Directors meets in Shanghai, approves 4 projects with loans aggregating to USD 1560 million

On  November 16, 2018, the 17th Meeting of the Board of Directors (Board) of the New Development Bank was held in Shanghai.

The Board approved 4 projects from India and China with loans aggregating to USD 1560 million.

Mumbai Metro Rail Project

The NDB will provide a loan of USD 260 million to the Government of the Republic of India for on-lending to the Government of Maharashtra for the purpose of implementing 3 metro rail lines in the city of Mumbai with an aggregate length of about 58 km. The Project will supplement the existing suburban rail network capacity and will also provide rail-based mass transit facility to areas that are not connected by the existing network. The Project is expected to improve the overall mobility of urban population and further economic growth through better access to markets, workplaces, education, and health facilities.

Guangdong Yangjiang Shapa Offshore Wind Power Project

The NDB will provide a loan of RMB 2 billion to the People’s Republic of China for on-lending to the People’s Government of Guangdong Province for Guangdong Yudean Yangjiang Shapa Offshore Wind Power Project. The objective of the Project is to finance the construction of an offshore wind farm, to provide clean power supply and improve energy structure of Guangdong Province. The Project will develop 300 MW of offshore wind capacity in Yangjiang’s shallow water. It will support the development of offshore wind power industry in Guangdong to ultimately help the province achieve its goals of cleaner energy structure and sustainable economic development.

Jiangxi Gas Jiangxi Gas Transmission System Development Project

The NDB will provide a loan of USD 400 million to the People’s Republic of China for on-lending to the People’s Government of Jiangxi Province for development of the natural gas transmission system in Jiangxi. The Project will contribute to a significant reduction of harmful emissions, achieving a greener energy mix and promoting sustainable economic development in Jiangxi Province. It is expected to enhance the living quality of local residents and improve overall conditions of the urban environment.

Hohhot New Airport Project

The NDB will provide a loan of RMB 4.2 billion to the People’s Republic of China for on-lending to the People’s Government of Inner Mongolia for the construction of the new airport in Hohhot. The new airport will be constructed at Qiaoshiying Town in the Horinger County, which is about 40 km away from the city center, with a designed capacity of 28 million passengers and freight traffic of 320,000 tonnes each year. The Project will contribute to meeting the growing demand of the city’s air traffic and will ultimately support sustainable economic development of Hohhot and Inner Monglia Autonomous Region.

With the approval of these projects, the Bank’s lending commitment to its member countries in 2018 has reached USD 4.8 billion, a 167% increase from 2017, which brings the NDB’s total lending volume since its establishment in 2015 to approximately USD 8 billion.

The Board also considered a Policy on Sovereign Guaranteed Projects in Non-Member Countries.

Updates on Project Preparation Fund, Funding Plan, Information Technology Projects Roadmap, and construction of the HQ building were provided to the Board.

The Board discussed its work plan and the forthcoming 4th Annual Meeting of the Board of Governors scheduled to take place in Cape Town, South Africa on March 31 – April 2, 2019.

A meeting of the Audit, Risk and Compliance Committee (ARC) of the Board of Directors took place on 15 November 2018. The ARC considered the Quarterly Audited Financial Statements for NDB for the period ended September 30, 2018, Quarterly Audited Financial Statements for NDB Project Preparation Fund for the period ended September 30, 2018 as well as Risk Reports.

On 15 November 2018, a meeting of the Budget, Human Resources and Compensation Committee of (BHRC) the Board of Directors also was held in Shanghai. The BHRC considered Budget Utilisation Report for CY2018, Proposed Budget for CY2019 and 3-year Budget: CY2019-CY2021. The Committee was briefed on matters pertaining Human Resources, Compensation and other items on its agenda.

Background Information

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. To fulfill its purpose, the NDB will support public or private projects through loans, guarantees, equity participation and other financial instruments. According to the NDB’s General Strategy, sustainable infrastructure development is at the core of the Bank’s operational strategy for 2017-2021. In August 2018, the NDB received AA+ long-term issuer credit ratings from S&P and Fitch.