BRICS New Development Bank Splashes Out On Projects For India, Russia & South Africa
The New Development Bank (NDB), equally owned by the five BRICS nations of Brazil, Russia, India, China and South Africa, has approved four new infrastructure and development projects with loans totaling US$1.4 billion. New investments bring the bank’s portfolio to 42 projects worth US$11.6 billion. The bank was established and funded by the members to allow them to borrow money at lower rates than the usual credit lines provide. The decision to finance the projects in India, Russia, and South Africa was made at the 21st meeting of the board of directors in Shanghai earlier this month, according to an NDB statement released on Monday.
India Receives US$626 Million For Roads In Andhra Pradesh
India will receive two equal loans totaling US$626 million for road development projects in the southeastern state of Andhra Pradesh. Around 3,000km (1,864 miles) of state and regional highways will be widened and more than 470 bridges will be reconstructed. The state is one of the largest recipients of foreign direct investment in India.
Russia Receives US$300 Million For Energy Projects In The Russian Fast East
Russia will receive US$300 million from the NDB to finance initiatives related to wind, solar, and small hydropower energy generation technologies. “The objective of the project is to facilitate investment in renewable energy generation plants that will contribute to Russia’s power generation mix in line with the country’s Energy Strategy 2030, and to avoid carbon dioxide emissions,” the NDB said. Much of Russia’s Energy Strategy 2030 is concentrated on Russia’s Far East – again a major recipient of foreign direct investment into the country.
South Africa Receives US$480 million For National Road Improvements
South Africa will receive around US$480 million for improving arterial transport routes. The funds will cover works at the existing toll sections of national roads, construction of additional lanes, and development of related infrastructure, such as bridges and intersections.
The NDB was established in 2014 by the BRICS states with an initial capital of US$100 billion. The banks goal is to mobilize resources for infrastructure and sustainable development projects in their respective emerging economies.
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