NDB BOARD OF DIRECTORS HELD 28TH MEETING, APPROVED INFRASTRUCTURE AND SUSTAINABLE DEVELOPMENT PROJECTS
The Board of Directors (Board) of the New Development Bank (NDB) held its 28th Meeting in a virtual format on September 29, 2020.
Five project proposals were approved by the Board, with a total commitment aggregating to approx USD 1.03 billion.
Mumbai Metro Rail II (Line 6) Project
The NDB Board approved a loan of USD 241 million to the Republic of India for Mumbai Metro Rail II (Line 6) Project. The loan will be used by the Government of India for on-lending to the Government of the State of Maharashtra for the purpose of implementing a metro rail Line 6 with length of about 14.47 km in the city of Mumbai. The Mumbai Metro Rail II Project aims to improve Mumbai’s transport and traffic conditions through providing a modern metro system, featuring high-capacity, safe, and comfortable mode of transport. Line 6 will provide much needed rail-based connectivity between the western and eastern suburbs, and will contribute towards an integrated seamless public transport network in Mumbai. The Project will be implemented by the Mumbai Metropolitan Region Development Authority. The NDB is also supporting the implementation of metro lines in Mumbai with length totaling to about 58 km (Line 2 and Line 7) by financing of the Mumbai Metro Rail Project approved by the NDB BoD in November, 2018.
Delhi-Ghaziabad-Meerut Regional Rapid Transit System Project
The NDB Board approved a loan of USD 500 million to the Republic of India for the Delhi-Ghaziabad-Meerut Regional Rapid Transit System (RRTS) Project. The loan would be used by Government of India for on-lending to the National Capital Region Transport Corporation Limited (NCRTC) for construction of a rapid rail corridor connecting the National Capital Territory of Delhi with the cities of Ghaziabad and Meerut located in the State of Uttar Pradesh. The RRTS will have a total length of 82.15 km (68.03 km elevated and 14.12 km underground) with 25 stations. It will have a design speed of 180 km per hour, maximum operating speed of 160 km per hour and high-frequency operations, which will reduce the journey time from Delhi to Meerut to 60 minutes. The Project will develop an efficient and sustainable regional transport system and reduce congestion in Delhi, by offering people the alternative of settling in surrounding cities and being able to commute to Delhi through a fast, reliable, safe and comfortable public transport system.
Russian Water Transport Sector Project
The NDB Board approved a loan of EUR 100 million to the Black Sea Trade and Development Bank (BSTDB) for the Development of Russian Water Transport Sector. The loan proceeds will be on-lent by BSTDB to sub-projects in the Russian Federation, which contribute to an increase in capacity and efficiency of ports and passenger terminals, as well as to the renewal of cargo and passenger vessel fleet. NDB’s loan will primarily focus on development of Russia’s trade-enabling infrastructure, including sea ports and maritime vessels, but also will have a broader scope by including river transport that, in many instances, serves as a feeder for maritime transport.
Toll Roads Program in Russia
The NDB Board approved a two-step loan of USD 100 million to the Eurasian Development Bank (EDB) for the Toll Roads Program in Russia. The loan will be used for subsequent financing by EDB several sub-projects involving upgrade and construction of new toll roads in the Russian Federation in line with the Transport Strategy of the Russian Federation up to 2030. It is estimated that the Project will add about 500 lane-km of additional length of Category 1 highways together with bridges, intersections and other engineering elements, improving connectivity in the country.
Water Supply and Sanitation Program in Russia
The NDB Board also approved a loan of USD 100 million to the Eurasian Development Bank for the Water Supply and Sanitation Program in Russia. The program aims to support the modernization of water supply and sanitation systems in a number of Russian cities.
“NDB is strongly committed to supporting its member countries in the time of COVID-19, including by providing much needed crisis-related emergency assistance. At the same time, NDB remains fully operational, financing infrastructure and sustainable development projects in line with its mandate and addressing development challenges faced by the Bank’s member countries,” said Mr. Marcos Troyjo, President of the NDB.
The Board was briefed on project implementation and disbursement, and took note of the dynamic and robust project pipeline in its member countries. The Board endorsed the Note on Financing Sub-National Governments by NDB, including the certain risk mitigation measures. An update on country systems was provided to the Board.
The Board approved the proposed revisions to the Bank’s several policies.
The Board considered the Implementation Report of General Strategy: 2017-2021 and approved the updated Results Framework.
The 16th Audit, Risk and Compliance Committee Meeting and the 12th Budget, Human Resources and Compensation Committee Meeting of the Board of Directors took place virtually on September 28, 2020.
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. 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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