The New Development Bank (NDB) has approved total funding of 4.6 billion yuan (CNY) – equivalent to US$667 million – for two transport infrastructure projects in China.
Founded five years ago and formerly known as the BRICS Bank to reflect its five founding members of Brazil, Russia, India, China and South Africa, the NDB aims to mobilise 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.
At the most recent meeting of its board members, held in Shanghai, the NDB agreed a loan of CNY2.1 billion to China for the Ningxia Yinchuan Integrated Green Transport Development Project, which will be implemented in Ningxia Hui Autonomous Region.
The project will develop a green bus system and also improve public transport services in Yinchuan Municipality by replacing the fleet of natural gas-fuelled buses with electric buses. Funding will support the procurement of electric buses and associated equipment, the construction of bus lanes and depots, the development of an intelligent transport management system, and project management and capacity building.
Major project pipeline
A further loan to China of CNY2.5 billion was agreed for Lanzhou New Area (LNA) Regional Hub Multimodal Logistics and Transport Infrastructure Demonstration Project to be implemented in Gansu Province. The LNA’s rapid industrial development has generated a high demand for logistic services but impeded further economic development.
The NDB has developed a significant pipeline of projects since its formation, with sustainable infrastructure development at the core of its operational strategy for the period 2017 to 2021. In April, the NDB announced plans to almost double its loan book to US$16 billion this year and increase its impact, as the bank seeks to broaden its global development partnerships and mobilize more institutional and private capital.
Last year, the NDB approved 17 loans totalling around US$4.6 billion, building on its base of 13 loans worth US$3.4 billion as of the end of 2017. That brought the total loan book of the bank to 30 projects worth about US$8 billion by the end of 2018.
In March this year the NDB announced that its board had approved five additional projects with loans aggregating to approximately US$1.2 billion, two in China and three in South Africa, taking its total loan book to US$9.2 billion.
These five new projects include CNY825 million for the Shengzhou Urban and Rural Integrated Water Supply and Sanitation Project (Phase II), US$300 million for the Guangxi Chongzuo Urban Water System Ecological Restoration Project, and US$480 million to Eskom for the Environmental Protection Project at Medupi Thermal Power Plant.
The final two projects involved local currency loans equivalent to US$80 million to the Industrial Development Corporation (IDC) for its Renewable Energy Sector Development Project, and US$220 million to South Africa’s Trans Caledon Tunnel Authority (TCTA) for work on the Lesotho Highlands Water Project (Phase II).
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