The New Development Bank (NDB) announced today that its Board of Directors (BoD) has approved two loans for projects in China and India - Putian Pinghai Bay Offshore Wind Power Project (RMB 2 bln) and Madhya Pradesh Major District Roads Project (USD 350 mln). The appraised projects were presented at the seventh BoD Meeting held in Shanghai.
Mr. K. V. Kamath, the President of the Bank, said: "The two projects approved today, together with the first set of projects approved by the Board earlier this year, are aimed at meeting infrastructure needs of our members. All these projects are in line with the New Development Bank's mission of mobilising resources for infrastructure and sustainable development projects in our member countries."
"With the approval of the two new projects, the total approvals for the first full year of Bank's operations now stands at seven projects involving financial assistance of over USD 1.5 bln. Currently, the NDB is working on further development of a robust and dynamic project pipeline in all member countries," added Mr. Kamath.
Under the framework of Putian Pinghai Bay Offshore Wind Power Project, the NDB will provide the Government of the People's Republic of China with a sovereign project loan of RMB 2 bln for Phase 2 (250 MW) of an offshore wind power project proposed to be set up in the Pinghai Bay in Putian, Fujian Province. The Project in Putian has one of the largest installed capacities among projects with similar design in China. It is estimated to generate 873 mln kWh of electricity every year and to avoid 869,900 tons of carbon dioxide emission annually.
Under the framework of Madhya Pradesh Major District Roads Project, the NDB will provide the Government of India with a sovereign project finance facility of USD 350 mln for upgrading approximately 1,500 km of major district roads in the state of Madhya Pradesh with a focus on all-weather road availability, improved road maintenance and asset management.
The modalities of the two loans are different based on project specific features and borrower preferences.
Alongside with this, the NDB Board of Directors discussed and approved the Bank's plans for the next year, including the Funding Plan for 2017 to support lending of USD 2.5 bln and the NDB Budget for 2017.
The New Development Bank was created with a vision to support and foster infrastructure and sustainable development initiatives in emerging economies. The Bank will complement the efforts of other existing financial institutions to realize the common goal of global growth. The founding members of the NDB - Brazil, Russia, India, China and South Africa (BRICS) - have paid in capital of USD 1.5 billion thus far as capital contributions. With the signing of the Headquarters Agreement with the Government of the People's Republic of China and Memorandum of Understanding with Shanghai Municipal People's Government in February 2016, the Bank became fully operational.