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Thursday, November 23, 2017

BRICS New Development Bank Approves Financing of Prospective Project in Russia

BRICS New Development Bank has approved financing for a project in Russia, the bank’s representative office in Shanghai said in a press release issued the Board of Directors meeting.

The project implies construction of an eastern exit from the city of Ufa to the M-5 Ural federal highway. The total length of the four-lane route will be 14 km, including a 1.2 km tunnel, a 10.2 km roadway, and a bridge with a 2.6 km overpass. The volume of financing from the bank will amount to $68.8 mln.

The construction will be financed under the principles of public-private partnership.

The bank’s Board of Directors also approved the financing of another project in India. It implies allocation of $345 million for restructuring the water sector in the desert areas of the state of Rajasthan.

"The new development bank was created to attract resources to the infrastructure and sustainable development of the BRICS countries, as well as other new markets and developing countries. The projects approved today fully comply with the bank's mandate and national development plans in our member countries," head of the bank Kundapur Vaman Kamath said as quoted by the statement.

The main task of the bank is to finance infrastructure projects and sustainable development projects in the BRICS countries and in developing countries. For two years of the bank's operations (2016-2017 - TASS), the bank approved 13 projects for a total amount of over $3.3 bln. This includes four projects in China, four in India, three in Russia and one in Brazil and South Africa.

The agreement on establishing BRICS New Development Bank was reached on July 15, 2014 in Brazil’s Fortaleza. The authorized capital of the bank amounts to $100 billion. The Shanghai-headquartered bank has been set up to finance infrastructure projects and projects for sustainable development of BRICS and other developing countries.

BRICS is an informal association of five major emerging national economies: Brazil, Russia, India, China and South Africa. The group was founded in June 2006 at the St. Petersburg International Economic Forum and was known as BRIC prior to inclusion of South Africa in 2009.

Source: TASS