IEO Project SSS PDF

I.E.
O REPORT
On
“New Development Bank”
Submitted By:
Sahaj Raina (21H43)
Sharafali Canwala(21F44)
Satyapalsinh Sarvaiya (21F45)
Trinkal Variya (21F47)
M.B.A.2021-23
Guided by:
Dr. Yogesh Joshi
(Professor)
POST GRADUATE DEPARTMENT OF

BUSINESS MANAGEMENT
VALLABH VIDYANAGAR
1
Declaration
We humbly declare that this report is based on the work, carried by
Our team and no part of it has been presented previously for any
higher degree. The report was conducted in Post Graduate
Department of business management. It is also declared that this
report has been prepared for academic purpose alone and has not
been/will not be submitted elsewhere for any other purposes.
Date: -
MBA [2021-23]
Acknowledgement
2
It is great pleasure for me to acknowledge the kind of help and
guidance received to our team during our project work. we are
fortunate enough to get support from a large number of people to
whom we will always remain grateful.
We are very thankful to Dr. Joshi, Professor at Post Graduate
Department of Business Management Sardar Patel University for his
inspiration and for initiating diligent efforts and expert guidance in
course of my study and completion of the project.
Table of Contents
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Chapter-1 Introduction-------------------------------------------------------------05
Chapter-2 Organisational structure of NDB-----------------------------------12
Chapter-3 MOU & Agreements --------------------------------------------------14
Chapter-4 NDB Projects -----------------------------------------------------------16
Chapter-5 Funding Strategy ------------------------------------------------------71
Chapter-6 Conclusion --------------------------------------------------------------104
Chapter-7 References---------------------------------------------------------------109
Chapter -1 Introduction
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NDB (new development bank) is established on 2015 by Brazil, Russia, India, China, and
South Africa (collectively BRICS or the BRICS countries). As enshrined in its Articles of
Agreement (AoA), the Bank is mandated to mobilise resources for infrastructure and
Sustainable development projects in BRICS and other EMDCs, contributing to global growth
and development. To expand its reach and impact, NDB took significant strides towards
membership expansion in 2021 by admitting Bangladesh, Egypt, UAE, and Uruguay as its
first New members, bringing over 280 million people that could benefit from the Bank’s
development solutions. By the end of 2021, the Bank had cumulatively approved USD 30.7
billion for 82 projects, in a range of operational areas that reflect the diverse and evolving
priorities of its members. As of December 31, 2021, the Bank’s portfolio stood at USD 29.1
billion for 74 projects. Through these operations, NDB aims to help member countries pursue
their national development priorities, especially those aligned with the 2030 Agenda and the
Paris Agreement. NDB maintained its high credit ratings and actively accessed both
international and domestic capital markets, raising a record amount of over USD 5.5 billion
in various currencies at competitive terms. These fundraising activities made sufficient
resources available to meet the needs of accelerated project disbursements, which reached
USD 7.6 billion in 2021 alone, more than the total of all the previous years combined.
Adopted by the BRICS Leaders at the end of the 13th BRICS Summit on September 9, 2021,
the New Delhi Declaration outlines the outcomes of recent cooperation among the BRICS
countries. On the landmark occasion of the 15th anniversary of BRICS, the Declaration
reinforced the group’s commitment to enhancing cooperation under three pillars – political
and security, economic and financial, and cultural and people-to-people exchanges. In the
Declaration, the BRICS Leaders appreciated NDB’s substantive progress in membership
expansion and reiterated that the process of expansion should be gradual and balanced as well
as supportive of the Bank’s goals to attain the highest possible credit rating and institutional
development. They noted with satisfaction the discussion held at the Annual Meeting of
NDB’s BoG and looked forward to the Bank’s General Strategy for 2022–2026. The Leaders
recognised the vital role played by NDB in addressing the health and economic consequences
of the pandemic and encouraged the Bank to explore the possibility of financing social
infrastructure projects, including those that use digital technologies. The need for the Bank to
enhance its role in mobilising and catalysing private capital as well as undertaking co-
financing ventures with peer MDBs and other DFIs was emphasised by the BRICS Leaders.
They also looked forward to the Bank’s relocation to its permanent headquarters in Shanghai
and the opening of NDB’s regional office in India.
NDB is headquartered in Shanghai China. NDB headquarters is much more than an office
building. It is a powerful symbol of what emerging economies can achieve when they work
together.
Purpose
The NDB will mobilize resources for infrastructure and sustainable development projects in
BRICS and other emerging economies and developing countries, complementing the existing
efforts of multi-lateral and regional financial institutions for global growth and development.
Mission of NDB
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This organisation formed to support infrastructure and sustainable development efforts in
BRICS and other underserved emerging economies for foster development through
innovation and creating the equal opportunity for all country.
NDB key area for Projects
Source: www.ndb.int
Membership Expansion
NDB was created to be a global MDB with membership open to all members of the United
Nations. NDB is engaging with a number of countries that have expressed interest in
becoming a member of the Bank. Under the guidance of its Board of governors (BoG) and
Board of Directors (BoD), the Bank will continue to pursue membership expansion in a
gradual and balanced manner, ensuring geographic diversity and a reasonable mix of
countries of different sizes and at different stages of development.
July 2016: The BoG authorised the Management to initiate informal consultations with
potential new members
April 2017: The BoG approved the Terms, Conditions and Procedures for the Admission of
New Members
September 2019: The BoG approved the Framework for the Negotiation of Shares and
Voting Power with Potential New Members
September 2020: The BoG authorised the Management to commence formal negotiations
with potential new members recommended by the Board of Directors
November 2020:The BoG approved the Rules for the Conduct of Elections of Additional
Directors and Alternate Directors.
May 2021: UAE submitted its Letter of Application to join NDB as a non-borrowing member
June 2021: Uruguay submitted its Letter of Application to join NDB as a borrowing member
July 2021: The BoG approved the admission of UAE as a nonborrowing member Bangladesh
submitted its Letter of Application to join NDB as a borrowing member
August 2021: The BoG approved the admission of Uruguay and Bangladesh as borrowing
members
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September 2021: Bangladesh deposited its Instrument of Accession and its NDB
membership became effective
October 2021: UAE deposited its Instrument of Accession and its NDB membership became
effective
November 2021: Egypt submitted its Letter of Application to join NDB as a borrowing
member
December 2021: The BoG approved the admission of Egypt as a borrowing member
Members Overview
The NDB member states represent
• 42% of world population
• >20% of global GDP
• 27% of surface area
Global Economic Context
The world economy recovered steadily in 2021. The global GDP growth rate rebounded to
6.1%, from -3.1% in 2020 and surpassing the pre-pandemic level of 2.9% in 2019. Both
advanced economies (AEs) and EMDCs achieved high growth rates in 2021 (5.2% and 6.8%,
respectively), with the two-year average growth rate from 2020 to 2021 in EMDCs
significantly outperforming that of AEs (2.3% and 0.2%, respectively). International trade
and investment also saw a strong recovery in 2021. The annual growth of world trade
volume, goods and services combined, reached 10.1%, from -7.9% in 2020, while world
foreign direct investment in 2021 reached USD 1.6 trillion, 64% higher than in 2020, of
which USD 837 billion was received by developing economies, 30% higher than in 2020.21
The BRICS economies remained an engine for global growth. In 2021, the weighted average
of their real GDP growth reached 7.6% (-0.8% in 2020), 0.8 percentage points (ppts) higher
than that of EMDCs as a whole.23 In PPP terms, the BRICS economies made up 31.6% of
the world GDP in 2021, 0.8 ppts higher than that of the G7 economies.24 Together with
Bangladesh and UAE, NDB’s member countries represented 57% of total output of EMDCs,
setting solid foundations and offering rich opportunities for the Bank to mobilise and deploy
resources for development purposes.
NDB Current Scenario
• NDB And Egypt Strengthen Cooperation at COP27
NDB was established by the BRICS countries to mobilize resources for infrastructure and
sustainable development projects in emerging market economies and developing countries,
complementing the existing efforts of multilateral and regional financial institutions for
global growth and development. NDB has authorized capital of USD 100 billion, which is
open for subscription by members of the United Nations
• NDB AND DBSA HOST EVENT AT COP27 ON JUST TRANSITION IN SOUTH
AFRICA
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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 market
economies and developing countries, complementing the existing efforts of multilateral and
regional financial institutions for global growth and development. In 2021, NDB initiated
membership expansion and admitted Bangladesh, Egypt, United Arab Emirates and Uruguay
as its new member countries. The DBSA is a leading Development Finance Institution
(DFT), wholly owned by the government of South Africa. Established in 1983, the DBSA is
mandated to promote economic growth and regional integration by mobilising financial and
other resources from national and international private and public sectors for sustainable
development projects and programmes in South Africa, SADC, and the wider African
continent. The DBSA is also committed to playing an active role in a Just Transition that will
achieve net zero emissions 2050
• NEW DEVELOPMENT BANK AND CAIXA ECONÔMICA FEDERAL SIGN
MEMORANDUM OF UNDERSTANDING AT COP27
NDB was established by the BRICS countries to mobilize resources for infrastructure and
sustainable development projects in ERICS and other emerging market economies and
developing countries, complementing the existing efforts of multilateral and regional
financial institutions for global growth and development. In 2021, NDB initiated membership
expansion and admitted Bangladesh, Egypt, United Arab Emirates and Uruguay as its new
member countries.
CAIXA is a financial institution in the form of a public company, endowed with a legal
personality governed by private law, with its own assets and administrative autonomy, linked
to the Ministry of Economy, headquartered in Brasilia, Federal District, Brazil CAIXA, as a
partner of the Brazilian State, has been providing social and environmental solutions to the
Brazilian population, being one of the main instruments of social policies and investment in
the country, supporting programs, projects, works and services that seek to promote the
socioeconomic development of Brazil.
• NDE PRESIDENT MARCOS TROYJO MOURNED OVER THE PASSING OF MR.
JIANG ZEMIN, FORMER PRESIDENT OF THE PEOPLE'S REPUBLIC OF CHINA
President of the New Development Bank (NDB) Mr. Marcos Jaia mourned over the passing
of Mr. Jiang Zemin, former President of the People's Republic of China In his Letter of
Condolences, President Trosic expressed condolences to the Chinese leadership and the
Chinese people. He said President Jiang Zemin would always be remembered for China's
numerous achievements in economic and social development under his leadership. "At this
time of mourning let us join hands and strengthen our commitment to building a brighter and
more sustainable fire for all, he said Mr. Qi Zhou, NDB Vice President and Chief
Administrative Officer, joined the representatives of diplomatic missions and international
organisations to express condolences in person in Beijing.
• NDR BOARD OF DIRECTORS HELD ITS 38TH MEETING
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New Development Bank was established with the purpose of mobilizing resources for
infrastructure and sustainable development projects in BRICS and other emerging market
economies and developing countries, complementing the efforts of multilateral and regional
financial institutions for global growth and development.
Review of literature
New Development Bank in Global Finance and Economic Architecture: January
2015_International Organisations Research Journal 10(2):89- 105_DOI:10.17323/1996-
7845-2015-02-89_Authors: Aleksandra Morozkina_Financial Research Institute.
 The article addresses the question whether the New Development Bank (NDB) will
promote the role of the BRICS countries in the global financial architecture and foster
their development. It begins by comparing the key multilateral development banks
(World Bank, Asian Development Bank, African Development Bank and Inter-
American Development Bank, European Bank for Reconstruction and Development)
and national development banks of the BRICS countries with the newly established
institution. The purpose, as author concludes on the base of the analysis, partly
duplicates the work of the existing institutions. However, the NDB could add to the
functions of the existing institutions and become a significant development bank for
its members.
Borrowing Country-Oriented or Donor Country Oriented? Comparing the BRICS New
Development Bank and the Asian Infrastructure Investment Bank1 J. Zhu, Associate
Professor, School of International Relations and Public Affairs, Fudan University, 220
Handan Road, Shanghai, 200433, China;
 This analysis has explored the difference between the NDB and AIIB in their
operational modalities focusing on the political interactions among the key players
during the establishment processes. In the case of the NDB, India was the initiator
while China was the veto player. The competition between India and China for the
leadership of the bank resulted in equal shareholding and the use of the country
system as two prominent institutional features, resulting in a borrowing country-
oriented or South-South cooperation style bank. In the case of the AIIB, China was
the initiator while European countries were the veto players. After the joining of
European powers, China was more concerned with the international legitimacy of the
bank than the needs of borrowing countries, leading the AIIB to be a donor country-
oriented bank similar to existing MDBs
EXPLORING THE NEW DEVELOPMENT BANK'S (NDB) APPROACH TO

SUSTAINABLE FINANCE: October 2022_Project: INTERNATIONAL
RELATIONS_Authors: Bipul Biplav Mukherjee_Jawaharlal Nehru University.
 NDB, the BRICS-led development bank, is tasked with implementing 'sustainable
finance' tools to pursue sustainable development among its member countries. With
Covid-19 ravaging the global and regional economies, it is imperative that NDB and
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its member states find long term solutions through sustainable financing. NDB's
General Strategy: 2017-2021 laid the foundation for operations to mitigate some of
the development challenges, as stated in its annual report of 2020. Moreover,
sustainable financing will continue to be used in the new sstrategy 2022-26. Based on
the conceptual framework of sustainable finance, the work tries to locate NDB"s role
in generating amenable solutions to the development problems in the BRICS nactions.
The paper appraises the previous results on development finance by NDB and puts
forward the issues and challenges for its next strategic cycle (2022-26).
Engagement between the New Development Bank and Other Development Banks:
A Formal Basis for Future Cooperation1 I. Andronova, A. Shelepov, Inna
Andronova – PhD, Associate Professor, Department of International Economic
Relations. Andrey Shelepov – Researcher, Centre for International Institutions
Research, Russian Presidential Academy.
• The NDB, understanding the need to develop cooperation with multilateral and
national development banks, signed a number of documents that determine
parameters and areas of engagement. In particular, it signed memoranda on
cooperation with the ADB, World Bank, Development Bank of Latin America,
International Investment Bank, Eurasian Development Bank, European Investment
Bank, EBRD, FONPLATA and AIIB. The NDB also formalized cooperation with the
BRICS Interbank Cooperation Mechanism.22 Given its narrow membership and
diverse geographical representation, the NDB places obvious emphasis on
cooperation with sub-regional MDBs with a small number of participants where the
BRICS countries play leading roles. Although Sub-regional banks currently operate in
volumes that are often comparable to those of Major traditional multilateral banks,
further scale-up of their operations is impossible Without joint investments in large
projects involving both types of institutions. Probably, in this connection the NDB
intended to cooperate with large MDBs. This intention was manifested in the
memoranda with the World Bank and ADB.
Objectives
 To study organisational structure of NDB.
 To study NDB's role in promoting projects for increasing environmental sustainability
in BRICS nations.
 To study Agreement and MOU done by NDB.
 To study the funding strategy of NDB.
Research Methodology
For our study we have considered secondary resources i.e., Journals, Research Papers,
Articles, Annual Reports of New Development Bank for five years including financial
ratios with the help of charts and graphs.
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Data Analysis
The data collected will be classified. Thereafter the data will be presented in the form of
tables, charts, graphs and diagrams as the case may be. The collected financial data will
be analysed with the help of appropriate statistical tools, techniques and ratio analysis.
Scope of Study
 The purpose of the study is to evaluate the role of NDB in respect of Infrastructure
and sustainable development projects
 The study is restricted to the founding members of NDB
 The study is covering last five-year data.
Importance of Study
 The BRICS nation is covering < 20% of global GDP so that it is necessary to
evaluate organisation with reference to financial condition and socio-cultural
impact on its member countries.
Limitations of the Study
 The study is limited to the extent of the availability of data.
 Study is based on the secondary data only so that the relevance of data is
questionable.
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Chapter-2 Organisational structure of NDB
In above chart the organisational structure of NDB is explained by Diagram
12
Voting power
Voting power is based on the number of one’s subscribed share in the capital stock of the
Bank, and the share of the BRICS countries can never be below 55% of the total votes.
Currently, each of the five NDB members has equal voting rights of 20% (NDB website,
n.d.). In cases when the Agreement on the New Development Bank (2014) does not foresee a
qualified majority (two thirds of the total voting power) or a special majority (affirmative
vote of four of the founding members concurrent with a qualified majority), to a certain
matter, the decision is made based on a simple majority of the votes cast (Agreement on the
New Development Bank, 2014).
Grievance Redressal Mechanisms
NDB requires that the client establish and maintain a fair and effective grievance redress
mechanism to receive and facilitate timely resolution of affected peoples’ concerns and
grievances about the client's environmental and social performance at project level. Existing
national mechanisms for grievance redressal may be used for the purpose of this Framework,
if such national mechanisms are deemed appropriate and in compliance with the objectives of
this Framework.
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Chapter-3 Agreement and MOU
NDB Approach
As envisioned by NDB’s Articles of Agreement, the Bank seeks to complement the efforts of
multilateral and regional financial institutions to support global growth and development.
NDB places a strong emphasis on building and implementing effective partnerships, as
promoted by SDG 17 on Partnerships for the Goals, to accelerate member countries’
endeavors dedicated to sustainable development.
Partnerships support the achievement of NDB’s mandate by enhancing the Bank’s capacity to
mobilize resources for infrastructure and sustainable development projects, while also
fostering the exchange of knowledge, human resources and information. NDB collaborates
with a range of stakeholders in the global development community, including development
agencies in member countries, international organizations, development finance institutions,
commercial banks, enterprises, non-governmental organizations, universities and think tanks.
List of Current MoUs
1. National Development Banks
 Agricultural Development Bank of China (September 14, 2021)
 Export-Import Bank of China (May 28, 2021)
 Brazilian Development Bank – BNDES (November 13, 2019)
 Development Bank of Southern Africa (May 28, 2018)
 China Development Bank (September 1, 2017)
2. Multilateral Development Banks
 Asian Development Bank (June 23, 2022)
 International Bank for Economic Co-operation (June 28, 2021)
 African Development Bank (October 18, 2019)
 Inter-American Development Bank & IDB Invest (April 19, 2018)
 Financial Fund for the Development of the River Plate Basin – FONPLATA (April
26, 2017)
 European Bank for Reconstruction and Development (April 1, 2017)
 European Investment Bank (April 1, 2017)
 Asian Infrastructure Investment Bank (April 1, 2017)
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 Eurasian Development Bank (April 1, 2017)
 International Investment Bank (April 1, 2017)
 Development Bank of Latin America – CAF (September 9, 2016)
 World Bank Group (September 9, 2016)
3. Commercial Banks
 Caixa Econômica Federal (November 16, 2022)
 Axis Bank (October 19, 2021)
 Banco do Brasil S.A. (June 28, 2021)
 State Bank of India (May 28, 2018)
 Industrial and Commercial Bank of China (September 2, 2017)
 Agricultural Bank of China (September 2, 2017)
 Bank of Communications, China (November 10, 2016)
 Standard Bank of South Africa (August 31, 2016)
 China Construction Bank (June 8, 2016)
 Bank of China (January 14, 2016)
4. Multilateral Institutions and Initiatives
 BRICS Interbank Cooperation Mechanism (June 22, 2022)
 BRICS Partnership on New Industrial Revolution Innovation Center (June 14, 2022)
 Collaboration on Matters to Establish the Multilateral Cooperation Center for

Development Finance (June 29, 2020)
 Food and Agriculture Organization of the United Nations (June 17, 2019)
 BRICS Business Council (September 4, 2017)
 BRICS Export Credit Agencies (June 13, 2017)
5. Enterprises
 Russian Railways (September 6, 2017)
6. Academia
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 Shanghai University of Finance and Economics (May 31, 2017)
Chapter-4 NDB projects

Project related to Clean Energy:
India:
1)
Project Name REC Renewable Energy Sector Development Project
Country The Republic of India
Sector Clean Energy
16
Board Approval
14 October 2019
Date
Total Project Cost USD 426.83 million
Initial Limit of
USD 300 million
NDB Financing
Current Limit of
USD 300 million
NDB Financing
Borrower The Republic of India
Implementing
REC Limited
Agency
India today still relies heavily on thermal power, which accounts

for 63% of the total installed generation capacity as of May 2019.
The high concentration of thermal power generation has led to air
pollution, carbon emissions, depletion of natural resources, and
health problems of the affected population. To improve the
energy mix, Government of India has announced an ambitious
plan to achieve 175 GW of renewable energy capacity by
FY2022, taking advantage of its large potential for power
generation from renewable energy. India’s potential for power
Introduction
generation from renewable energy is significant and is estimated
at 900 GW, including 750 GW of solar energy. Cost of power
generation from renewable energy is currently on par with that
from thermal power in India. In this context, REC Limited, as a
primary financing provider to India’s power sector, is increasing
its portfolio in renewable sector. The REC Renewable Energy
Sector Development Project, with NDB’s financing to REC
Limited, is designed to support Government of India’s initiative
in renewable energy and sustainable development.
The NDB loan proceeds to REC will be used to finance

construction of renewable energy power plants and associated
Project Description
evacuation transmission lines (sub-projects). Eligible
expenditures will include goods, works and services.
17
The positive impacts of the Project include: (i) reduced coal
consumption of about 488,292 tons annually; (ii) reduced carbon
emission of about 986,667 tons annually and a considerable
amount of other hazardous emissions including SO2, NOx, etc;
(iii) increased transmission capacity for evacuation of renewable
energy; (iv) increased power generation capacity from renewable
energy sources with electricity generation of about 1,600 GWh
annually; (v) enhanced energy mix and greener footprint of
Environmental and India’s power sector.
Social Aspect
The Project is Category “FI-B” in line with NDB’s Environment
and Social Framework (ESF) as funding will be to a FI, and
proposed renewable energy projects including power evacuation
infrastructure will have moderate adverse E&S impacts that
would be site-specific and mostly reversible. All sub-projects will
have project appraisal, screening, and supervision in line with
policies of REC and will be required to comply with the Indian
E&S regulations.
The total cost of the Project is estimated to be USD 426.83

million. NDB will finance USD 300 million. The remaining
balance will be financed by counterpart funds.
Financier Amount (USD million)

Financing Aspect
New Development Bank 300
Counterpart Funds 126.83
The Project is to be implemented over two years. REC will be the

Project Implementation Agency. Procurement will be conducted
Implementation
in compliance with the national law and regulations, and meet the
core principles of NDB’s policy.
BRAZIL:
1)
18
Financing of Renewable Energy Projects and Associated
Project Name
Transmission
Country The Federative Republic of Brazil
Sector Clean Energy
Board Approval
26 April 2016
Date
Total Project Cost USD 600 million
Initial Limit of
USD 300 million
NDB Financing
Current Limit of
USD 300 million
NDB Financing
Borrower The Brazilian Development Bank (BNDES)
Implementing
BNDES
Agency
Introduction Brazil is the largest economy in South America. Brazil’s share of

GDP in South America accounts for more than 55%. In recent
years, Brazil’s economic development has been volatile.
Domestic demand has been contracting and investments are
falling. Brazil is also experiencing a significant drop of
investment in infrastructure. This negatively impacts the energy
sector, which is a critical part of the country’s overall
infrastructure. Current energy structure heavily depends on hydel
power, with 61% of the country’s total energy power generated
by hydel capacity. Volatility in hydel generation has an
amplifying effect on the country’s entire energy capacity, due to
the excessive reliance on hydel. Alternative renewable energy
resources haven’t been fully explored, constrained by financing.
In this context, the project is designed with financing facility
provided by New Development Bank (NDB), to enhance the
19
capacity of Brazil’s alternative renewable energy. The project is
in alignment with NDB’s objective to accelerate green financing
and promote renewable energy development.
The NDB will support the Banco Nacional de Desenvolvimento

Econômico e Social (BNDES) with a two-step loan to on-lend to
renewable energy projects and associated transmission projects.
The objective of NDB’s financing is to provide an alternative
financing source for BNDES to facilitate development of
infrastructure. BNDES is a 100% state owned national bank for
economic and social development. BNDES is the main financier
for infrastructure projects.
Project
Description BNDES will finance at least 5 sub-projects under the proposed
loan. The proposal for sub-loans will be subject to eligibility
criteria and NDB’s appraisal, where the sub-loan financing is in
excess of USD 70 million or assessed as an Environmental or
Social Category A. The aggregate exposure for projects in any
one of alternative renewable energy areas will not exceed 60%
of the total loan amount, to diversify the development. Sub-loan
for any single sub-project will be limited to maximum 25% of
the total loan.
The Project contributes to a diversified renewable energy

portfolio for Brazil’s energy sector, to reduce reliance on hydel
and increase the country’s resilience in energy supply. It aligns
Environmental
with NDB’s focus to support projects that aim at developing
and Social Aspect
renewable energy sources. BNDES will ensure compliance with
the country’s legislative requirements and NDB’s environmental
and social framework.
Financing Aspect The total amount of the loan is USD 300 million. For each sub-
project, BNDES will finance from its other sources an amount
equal to or higher than the sub-loan disbursed by NDB. Up to 20%
of the loan amount can be used by BNDES for financing
debentures or bonds for the renewable energy projects.
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BNDES 300 (Minimum)
The BNDES will be responsible for assessment of the sub-loans

for each renewable energy project. Where the NDB’s approval is
required, BNDES will submit due diligence documents,
Implementation
procurement terms, environmental and social assessment,
economic and financial analysis and other relevant project
reports.
RUSSIA:
1)
Project Name Development of Renewable Energy Sector in Russia Project
Country The Russian Federation
Sector Clean Energy
Concept Approval
06 June 2019
Date
Board Approval
12 September 2019
Date
Initial Limit of NDB

USD 300 million
Financing
Current Limit of
USD 300 million
NDB Financing
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Borrower Eurasian Development Bank (EDB)
Implementing
EDB
Agency
In order to diversify the Russian Federation’s energy mix,

improve energy security and reduce energy supply costs in
regions with electricity grid constraints, the country introduced
the Energy Sector Strategy in 2009. This Strategy envisages the
goal of increasing the share of renewable energy based
generation to 4.5% of total power generation in the country by
2024. Development of renewable energy sector is also driven
by the need to promote domestic manufacturing of components
Project Context for renewable energy which will lead to economic growth, job
creation and technological development in this area. It will also
help Russia to catch up with other countries that have achieved
remarkable success in production of renewable energy
equipment. Further, as part of its contribution to mitigate
climate change, Russia targets to reduce its greenhouse gas
(GHG) emissions to 75% of the 1990 level by 2030. To achieve
this target, renewable energy is expected to play a significant
role.
The objective of the Project is to facilitate investments in

renewable energy generation plants that will contribute to
Russia’s power generation mix in line with the country’s
Project Objective
Energy Strategy 2030, and to avoidance of the nation’s carbon
dioxide emissions, through the Eurasian Development Bank, a
key player in financing of the energy sector in Russia.
The proposed NDB loan through the modality of a two-step

loan will be used by EDB for on-lending to its identified sub-
Project Description
projects including wind, solar, and small hydropower (<25
MW) energy technologies.
The positive impacts of the Project include increase in

generation capacity from renewable energy sources leading to
avoidance of CO2 emissions. After successful implementation
Expected Benefits
of the Project, electricity of no less than 320 GWh will be
generated annually from renewable sources leading to savings
in CO2 emissions of around 200,000 tons annually.
22
The Project is Category “FI-B”, in line with NDB’s
Environment and Social Framework (ESF), as funding will be
through a financial intermediary. The individual sub-projects
are likely to be Category “B”, in accordance with NDB ESF.
Environmental and NDB will have the right to review the environmental and social
Social Aspect categorization of sub-projects by EDB, and if a sub-project is
categorized as Category “A” in accordance with the NDB ESF,
it will require NDB’s approval. The sub-projects to be
supported are required to comply with the requirements of the
environmental and social framework in Russia.
NDB will provide a loan without sovereign guarantee to the

international organization EDB, with an amount up to USD 300
million. NDB’s financing may not exceed 80% of sub-project
costs, unless otherwise agreed by NDB.
Source of Fund Amount (USD million)

Financing Aspect
Other Sources (Loans,

115
Equity)
The Project is to be implemented between 2019 and 2023. The

Eurasian Development Bank will be the Project Implementation
Implementation Agency. Procurement will be conducted in compliance with the
national law and regulations of Russia, and will meet the core
principles of NDB’s policy.
Borrower and Implementing

NDB
Agency
Contacts
Olga Gaponova
Eurasia Regional Centre:
Sergei Potapov
capital@eabr.org
2)
23
Country Russian Federation
Sector Renewable Energy; Sustainable Development
Approval Date 16 July 2016
Closing Date 15 August 2021
Total Project Cost USD 161.9 million
Loan Amount USD 100.0 million
Eurasian Development Bank (EDB); International Investment

Borrower
Bank (IIB)
Implementation
Nord Hydro Bely Porog
Agency
Project Summary
Introduction
Russia has vast untapped renewable energy resources, with non-fossil fuel based energy
currently only accounting for 3% of total primary energy consumption of the country. In
Karelia, a federal subject of Russia, energy generation capacity is low, with power imported
from other regions of Russia. Power supply in Karelia is still not sufficient. Developing
power generation projects in Karelia using renewable sources will help tackle this challenge
and contribute to the region’s sustainable development. In this context, the project, with
Nord-Hydro as a model project, is designed to enhance power generation capacity in the
region and facilitate renewable energy development. The project is in alignment with the
24
New Development Bank’s (NDB) objective to accelerate green financing and promote
renewable energy development.
Project Description
The NDB will provide two loans to support Eurasian Development Bank (EDB) and
International Investment Bank (IIB) to on-lend to renewable energy projects. The two loans
will finance the Nord-Hydro project to increase energy supply in Karelia region through
renewable energy resource. The project is supported by the Russian government with a
preferential tariff. With this project, a small dam and two hydroelectric generation plants will
be constructed, providing a total installed capacity of 49.8 MW. A 220 kV power
transmission line of 10-km will be constructed.
Environmental and Social Aspects
The proposed hydro power generation will avoid 48,800 tons of carbon dioxide emissions per
year. To avoid the common issues with constructing hydro-electric power plants, the dam
parameters for this project were designed to avoid resettlement and minimize impact on
ecology. The Implementing Agency shall closely monitor implementation of proposed
mitigation measures and the NDB shall conduct annual supervision.
Financials
The total cost of the project is USD 161.9 million. The two NDB loans add up to USD 100
million. A loan of USD 50 million is provided to Eurasian Development Bank (EDB). The
other loan of USD 50 million is provided to International Investment Bank (IIB).
FINANCIER AMOUNT ($ MILLION)
New Development Bank 100.0
Other Bank Loans 6.1
Subordinate Loans 29.0
Equity 26.8
Implementation
The project is estimated to be implemented over 3 years. Suppliers for the project will be
selected through a competitive and transparent bidding process. Selection criteria include
technical expertise, experience in execution of similar projects and costs of construction.
25
CHINA:
1)
Project Name Beijing Gas Tianjin Nangang LNG Emergency Reserve Project
Country The People’s Republic of China
Sector Clean Energy
Concept
19 August 2020
Approval Date
Board
09 March 2021
Approval Date
Total Project
RMB 13.8 billion
Cost
Initial Limit of
NDB EUR 436 million (equivalent to RMB 3.4 billion)
Financing
Current Limit
of NDB EUR 436 million (equivalent to RMB 3.4 billion)
Financing
Borrower The People’s Republic of China
Implementatio
Beijing Gas Group Co. Ltd.
n Agency
Project Improving air quality and combatting climate change have been on the
Context top of China’s agenda. To achieve this, the Government of China has
taken strategic actions to create a favorable policy environment for
promoting the use of clean energy and reducing energy reliance on
26
coal. In this context, natural gas has been identified as an important
substitute for coal. Coal-to-gas replacement has therefore been
encouraged by the Government of China to be implemented
nationwide. Natural gas subsector in China has been developing
rapidly in recent years. In Beijing, for example, natural gas
consumption accounted for about one-third of the total energy mix in
2019, representing a significant increase from less than 15% in 2010.
The rapid implementation of coal-to-gas replacement policy has led to
significant growth in consumption of natural gas, resulting in
considerable gaps between demand and supply, especially during the
peak seasons. This challenge is particularly pronounced in Beijing-
Tianjin-Hebei region, where natural gas supply for the peak
consumption seasons such as the winter period cannot be ensured.
Further, due to insufficient emergency gas reserve capacity, the local
natural gas suppliers cannot respond in time to accommodate the
demand fluctuations.
The objective of the Project is to increase natural gas emergency

Project
supply capacity, reduce reliance on coal and ultimately support low-
Objective
carbon and sustainable development of the local economy.
The Project consists of the following parts:

(1) Part 1: construction of LNG receiving, storage and regasification
facilities
Constructing an LNG terminal consisting of: (i) an LNG receiving
facility with annual handling capacity of five million tonnes of LNG;
Project
(ii) ten LNG storage tanks with a volume of no less than 200,000 cubic
Description
meters each; and (iii) a regasification facility with a maximum daily
operating capacity of 60 million cubic meters of natural gas.
(2) Part 2: construction of unloading wharf
Constructing an unloading wharf consisting of: (i) a working platform;
(ii) four mooring dolphins; and (iii) six mooring cleats.
The Project’s positive impacts include reducing reliance on coal and

Expected ultimately supporting low-carbon and sustainable development of the
Benefits local economy. Moreover, the positive health impact generated by the
Project is expected to be considerable.
Environmental The Project is Category “A” in line with NDB’s Environmental and
and Social Social Framework (ESF). Major E&S risks include biodiversity
Aspect impacts to Bohai Bay and Laizhou Bay marine protected resources and
benthonic habitat by dredging and constructing the wharf, impacts to
Beidagang protected wetland by constructing the gas pipeline,
deterioration of marine water quality by dredging and pollutant
27
discharge, as well as land acquisition and temporary land use. These
risks and impacts will be mitigated by adherence to country systems
E&S requirements and fulfillment of the Project’s environmental and
social management plans. In addition, the Project will implement an
Environmental and Social Impact Management Plan agreed between
NDB and the Implementing Agency to ensure full compliance with
country system and NDB’s ESF.
The total cost of the Project is estimated at RMB 13.8 billion. NDB
will finance EUR 436 million (equivalent to RMB 3.4 billion) or
24.68% of the total cost. Asian Infrastructure Investment Bank will
finance USD 500 million (equivalent to RMB 3.3 billion) or 23.78%
of the total cost. The remaining balance will be financed by
counterpart funds from the People’s Government of Beijing
Municipality and Beijing Gas Group Co. Ltd.
Source of
Amount
Fund
New
Development EUR 436 million
Financing
Bank
Aspect
Asian
Infrastructur
USD 500 million
e Investment
Bank
People’s
Government
of Beijing
Municipality RMB 7.12 billion
and Beijing
Gas Group
Co. Ltd.
The Project will be implemented over five years. Beijing Gas Group
Implementatio Co. Ltd. will be the Implementing Agency. Procurement will be
n conducted in compliance with the national law and regulations, and
will meet the core principles of NDB’s Procurement Policy.
28
Implementation
NDB Borrower
Agency
Beijing Gas Group

Project Ministry of Finance
Contacts Co. Ltd.
Portfolio
Management Biao Guo
Haitao Xing
Department
mof_operation1@mof.gov.c
xinghaitao@bjgas.co
Diyun Wang n
m
2)
Jiangxi Natural Gas Transmission System Development

Project Name
Project
Sector Clean Energy
Board Approval
16 November 2018
Date
Total Project Cost USD 1,328 million
Initial Limit of
USD 400 million
NDB Financing
29
Current Limit of
USD 400 million
NDB Financing
Implementing
Jiangxi Provincial Natural Gas Holding Co., Ltd (JPNGHCO)
Agency
After decades of rapid economic growth, China is endeavoring

to transform its growth model from high-speed to high-quality
growth. Environmental sustainability has been a growing focus
on this path of economic transformation. While coal has been a
cheap source for power generation for a long time in the past,
heavy use of coal takes a toll on the economy’s sustainability
with negative impacts on the environment, including harmful
pollutants such as CO2, NOx and SO2. To improve the
environmental footprints and promote sustainable economic
development, Chinese Government has set goals to reduce
carbon emissions with a series of policies established in energy
Introduction sector. In Jiangxi Province, the energy supply has long been a
serious bottleneck for the province’s economy with acute
shortage of energy supply and unsustainable energy structure.
Currently coal accounts for roughly 70% of the total
generation capacity in the province, while the share of
renewable energy is considerably lower than the national
average. In this context, the Project is designed to help address
the province’s constraint to its economic growth and to
rebalance the province’s energy structure through the
development of the natural gas transmission system. The
Project is in close alignment with NDB’s mandate of
supporting sustainable development.
Project The objective of the Project is, through the provision of natural
Description gas as a clean, efficient and convenient energy source, to
promote sustainable economic development of Jiangxi
Province with improved environmental footprints and to
improve the local residents’ quality of living with improved
conditions of urban environment. In addition to achieving
significant reduction of harmful emissions (CO2, NOx, SO2,
solid particulates), the Project will help build the Province’s
capacity for developing and managing the natural gas supply
system.
30
The proposed NDB loan through the modality of Project Loan
will be used by the Government of the People’s Republic of
China for on-lending to the People’s Government of Jiangxi
Province for development of the natural gas transmission
system in Jiangxi.
The Project contributes to (i) significant reduction of harmful

emissions (CO2, NOx, SO2, solid particulates) in Jiangxi
Province; (ii) enhanced living quality of the local residents
from improved conditions of urban environment; (iii) greener
energy mix of Jiangxi Province; (iv) filling the gap for the
energy supply shortage; (v) promoting sustainable economic
development of Jiangxi Province.
The Project is classified as Category “A” in accordance with

the NDB Environmental and Social Framework and China’s
Environmental
environmental impact assessment regulations for its
and Social Aspect
environmental and social impacts on resettlement of local
residents from the Project site, local ecology and the vibration
and dust impacts on local communities. During operation,
there is a potential community safety risk of facilities failure,
gas leaks and potential explosions. Mitigation measures are in
place to address the negative impacts and the risks. These
impacts will also be mitigated by adherence to requirements of
E&S country system. NDB will monitor the Project closely
and engage with the Project Implementation Agency during
implementation.
Financing Aspect The total cost of the Project is estimated to be USD 1,328 million.
The NDB will finance USD 400 million, accounting for 30% of
the total cost. The remaining balance will be financed by loans of
USD 299 million from commercial banks and funds of USD 629
million from the Jiangxi Provincial Natural Gas Holding Co., Ltd
(JPNGHCO).
Jiangxi Provincial Natural 629

Gas Holding Co., Ltd
31
Commercial Banks 299
The Project is estimated to be implemented over 5 years.

Jiangxi Provincial Natural Gas Holding Co., Ltd (JPNGHCO)
Implementation will be the Project Implementation Agency. Contractors for the
Project will be selected through a competitive and transparent
bidding process.
3)
Guangdong Yudean Yangjiang Shapa Offshore Wind Power

Project Name
Project
Sector Clean Energy
Board Approval
16 November 2018
Date
Total Project Cost RMB 6 billion
Initial Limit of
RMB 2 billion
NDB Financing
Current Limit of
RMB 2 billion
NDB Financing
Implementing
Guangdong Yudean Group Co., Ltd.
Agency
32
After decades of rapid economic growth, China is endeavoring
to transform its growth model from high-speed to high-quality
growth. Environmental sustainability has been a growing focus
on this path of economic transformation. While coal has been a
cheap source for power generation for a long time in the past,
heavy use of coal takes a toll on the economy’s sustainability
with negative impacts on the environment, including harmful
pollutants such as CO2, NOx and SO2. To improve the
environmental footprints and promote sustainable economic
development, Chinese Government has set goals to reduce
carbon emissions with a series of policies established in energy
sector. In Guangdong Province, one of the most populous
provinces with the highest GDP in China, the energy structure
still heavily relies on coal. In 2017, coal accounted for roughly
Introduction
58% of the total generation capacity in the province. To achieve
its sustainable development goal, Guangdong Province has
decided to place high emphasis on emission control and
environment protection. The province planned to shut down
coal-fired power plants with a total capacity of 3 GW by 2020
and to reduce the share of coal fired generation capacity to
47.8% by 2020. Taking advantage of Guangdong’s long
coastline and rich offshore wind resources, the Project is
designed with the above context to support the development of
offshore wind power industry in Guangdong to ultimately help
Guangdong achieve its goals of cleaner energy structure and
sustainable economic development. The Project is in close
alignment with NDB’s mandate of supporting sustainable
development.
The objective of the Project is, through financing the

construction of an offshore wind farm, to provide clean power
supply and improve energy structure of Guangdong Province.
The Project will develop 300 MW of offshore wind capacity in
Yangjiang’s shallow water area. The Project aligns with the
priority of the People’s Government of Guangdong Province to
achieve the objective of accelerating offshore wind power
Project Description development and increasing power supply through clean energy.
As the replacement of coal-fired power plants, wind power can
save coal consumption of 247,200 tons annually.
The proposed NDB loan through the modality of Project Loan

will be used by the
Government of the People’s Republic of China for on-lending to
the People’s Government of Guangdong Province.
Environmental and The Project contributes to: (i) avoidance of consumption of
33
fossil resources and reduction of pollution emissions of 499,500
tons of CO2 emissions annually; (ii) enhanced living quality of
the local residences from improved conditions of urban
environment; (iii) greener energy mix of Guangdong Province;
(iv) developing offshore wind power capacity in the province;
(v) promoting sustainable economic development of Guangdong
Province.
Social Aspect
The Project is classified as Category “A” in accordance with the
NDB Environmental and Social Framework and China’s
environmental impact assessment regulations. The Project’s
environmental and social impacts include biodiversity impacts
on marine ecosystems, habitats, protected areas and species as
well as social impacts arising from onshore land acquisition and
restriction of access to offshore marine water. Mitigation
measures are in place to address the negative impacts.
The total cost of the Project is estimated to be RMB 6 billion. The

NDB will finance RMB 2 billion, accounting for 33% of the total
cost. The remaining balance will be financed by counterpart fund
of RMB 4 billion.
Financing Aspect Financier Amount (RMB billion)
Counterpart Fund 4
The Project is estimated to be implemented over 3 years.

Guangdong Yudean Group Co., Ltd. Will be the Project
Implementation
Implementation Agency. Contractors for the Project will be
selected through a competitive and transparent bidding process.
4)
Project Name Putian Pinghai Bay Offshore Wind Power Project
34
Sector Clean Energy
Board Approval
22 November 2016
Date
Total Project Cost RMB 4.96 Billion
Initial Limit of
RMB 2.00 Billion
NDB Financing
Current Limit of
RMB 2.00 Billion
NDB Financing
Implementing
Fujian Investment and Development Group Co., Ltd
Agency
Introduction In China, the policy environment is very favorable for

renewable energy development. The country aims to be the
global leader to tackle climate change and explore green
technologies. In 2016, China had the largest capacity in the
world for installed wind energy, with around 145 GW, a figure
higher than the aggregate capacity of the EU. Offshore wind
sites are explored for their capacity to provide vast wind
source at sea, without the constraint of lands onshore. Due to
the large scale and intensity in cost and technical aspects,
offshore wind projects are most likely to succeed with the
government’s engagement. Fujian, a province on the southeast
coast of China, is one of the more developed provinces that has
the geographic advantage and the fiscal capacity to support
offshore wind energy projects. Fujian’s energy capacity in
2016 was falling short of the province’s demand, with an
estimated power deficit in the coming years. In this context,
Putian Pinghai Bay Offshore Wind Power Project is designed
to help Fujian province cope with the power challenge and to
support the development of wind power energy in China. The
35
project is in alignment with New Development Bank’s (NDB)
General Strategy focusing on promoting renewable energy
development.
The objective of the project is to increase offshore wind power

capacity in Putian Pinghai Bay to provide adequate electricity
supply to Fujian province and to catalyze offshore wind energy
development with technological advances. The NDB supports
the project through providing financing to the cost of
equipment and civil works. The project is estimated to have a
capacity of 3,490 hours of effective electricity generation per
year. This capacity will provide electricity of 873 million kWh
Project
per year, to meet the demand of rising power consumption in
Description
Fujian province. The NDB financed project is the second
phase of a three-phase project. All three projects combined
have a total targeted capacity of 700 MW offshore wind
power. In phase one, 10 turbines were constructed with a total
power capacity of 50 MW. In phase 2, a capacity of 246 MW
was added over a period of 4 years, building on the existing
turbines. In phase 3, turbines with a capacity of 308 MW are
under construction.
The project contributes to a lower carbon environment. It

aligns with NDB’s focus to support projects that aim at
developing renewable energy sources. Increased share of
offshore wind power in China’s energy mix will help build a
greener environment, with reduced carbon emissions. The
project will have a positive impact of avoiding 869,900 tons of
carbon emissions per year. It is further estimated that the
project will avoid emissions of 13,090 tons of NOX, 26,175
tons of SO2 and 237,300 tons of flue gas. It will avoid
Environmental consumption of coal by 314,100 tons. For the socio-economic
and Social Aspect aspect, a new industrial cluster will develop, as an effect of this
project, creating employment opportunities and helping the
local economy to grow. The project is assigned as a category
“B” project. Strict compliance with NDB’s policy and China’s
country system of safeguards is ensured. The implementing
company adjusted its work schedules to minimize the impact
on the underwater ecosystem from construction noise.
Comprehensive assessments have been conducted with the
objective to protect the marine ecological environment
throughout the implementation of the project.
Financing Aspect The total cost of the project is estimated to be RMB 4.96 billion.
The NDB supports the project through a long-term loan of about
36
RMB 2.00 billion. The Loan is repayable in 30 semi-annual equal
principal installments, over a period of 15 years starting from
2021, with a grace period of 3 years.
Financier Amount (RMB billion)
Fujian Investment and

Development Group Co., 0.99
Ltd
Chinese banks 1.97
The project was implemented from 2017 to 2021, and full

capacity was connected to the grid on December 21, 2021. The
suppliers for the Project were selected through a competitive
Implementation
bidding process, open to all NDB member countries.
Procurement proceeded in accordance with the national
framework and NDB’s Procurement Policy.
5)
Project Name Lingang Distributed Solar Power Project
Sector Clean Energy
Board Approval
13 April 2016
Date
Total Project Cost RMB 750.0 Million (initial estimate), RMB 328.5 Million (final)
37
Initial Limit of
RMB 525.0 Million
NDB Financing
Current Limit of
RMB 222.6 Million
NDB Financing
Implementing
Shanghai Lingang Hongbo New Energy Development Co. Ltd.
Agency
Global energy markets are transitioning to cleaner, lower carbon

fuels, driven by environmental concerns and technological
advances. China is the leading country to drive this agenda
forward, as the country moves to a more sustainable pattern of
growth. The National Energy Administration established the
Introduction development goal of 50 GW of solar power by 2020. In this
context, the Lingang Distributed Solar Power Project is designed
to support roof-top solar power technology advancements. The
project is aligned with the New Development Bank’s objective to
accelerate green financing and promote the development of clean
energy.
The objective of the project is to reduce carbon emission and

promote renewable energy development, through using roof-top
solar photovoltaic power technology to generate electricity in
Shanghai Lingang Industrial Area (SLIA). The project consists of
installation of 65 MW roof-top solar photovoltaic panels (initially
planned size of 100 MW was scaled down, in line with the updated
Project
demand forecast). With the benefits from near point electricity
Description
generation, the project helps save the costs of potential
transmission losses from importing electricity from provinces
outside Shanghai. The project is divided into more than 30 sub-
projects, sequentially implemented over a 4-year period.
Electricity generated by the roof-top solar photovoltaic power is
delivered to SLIA and the state grid.
The project contributes to a lower carbon environment. It aligns

Environmental with NDB’s primary focus to support projects that aim at
and Social Aspect developing renewable energy sources. The project is estimated to
reduce carbon dioxide emissions by approximately 47,450 tons per
year and NOx emissions by 845 tons per year.
38
Negative environmental aspects of solar PV panels, like usage of
toxic materials during their production and disposal of panels at
the end of their productive life, are addressed by the Implementing
Agency through extensive usage of nontoxic materials and
environmentally friendly disposal and recycling of solar PV
modules.
Amoun
Financier t (RMB
million)
Financing Aspect
Lingang Group 105.9
The Project was implemented over 4 years from 2017 to 2020 and
Implementation
was came into full operation in 2020.
SOUTH AFRICA:
1)
Project Name Battery Energy Storage Project
Country The Republic of South Africa
Sector Clean Energy
Concept
26 August 2019
Approval Date
39
Board Approval
16 December 2019
Date
Total Project
Up to USD 1,200 million
Cost
Initial Limit of
Up to ZAR 6,000 million (approx. USD 400 million)
NDB Financing
Current Limit of
Up to ZAR 6,000 million (approx. USD 400 million)
NDB Financing
Borrower Eskom Holdings SOC, Ltd
Implementation
Eskom Holdings SOC, Ltd
Agency
South Africa is transitioning toward a low carbon economy. The

government has adopted the Integrated Resource Plan 2019 (IRP)
and intends to add more than 20,000 MW of wind and solar energy
generation capacity, with their share in the country’s energy mix
growing from the current 3% to 24% by 2030. Up to now, many
renewable energy generators have been integrated into the power
grid. However, as uncontrollable supply resources, the high output
hours from wind and solar power do not coincide with the time of
peak electricity consumption in a day, resulting in excess electricity
Project Context during low demand hours and curtailment of production from
renewable energy. This presents a challenge for effective utilization
of the growing renewable generation capacity in South Africa’s
power sector.
At the same time, South Africa is facing power shortages due to
aging generating assets and delayed completion of new generation
facilities. To meet the electricity demand, Eskom has to run diesel-
based power plants during peak hours and implements load shedding
to prevent failure of power grid. Therefore, meeting electricity peak
demand is another immediate challenge for the country.
Project Objective The Battery Energy Storage Project (Project) provides a solution to
address both challenges. The Project can store excess renewable
energy in low demand periods and release the energy during peak
40
hours, meeting the demand with energy from renewable resources
and minimizing the use of fossil-fuel based generation. The Project
will also reduce the power load on transmission network and
therefore defer the investment needs for network augmentation.
Besides, the Project can provide frequency support to the power
grid.
The components of the Project include 1,440 MWh of distributed

battery storage, 60 MW of solar photovoltaic generation facility, and
Project application software to optimize the performance of distributed
Description battery storage. The Project will be implemented at approximately
17 sites, located within or adjacent to existing distribution
substations of Eskom, across four provinces of South Africa.
The benefits of the Project include:

Expected 1. increased electricity supply of 525 GWh during peak demand
Benefits hours, and
2. avoided CO2 emission of 90,000 tons every year.
The Project has been assigned category “B” in accordance with

NDB’s Environmental and Social Framework (ESF). E&S impacts
Environmental of the Project include potential leakage of battery electrolyte and soil
and Social contamination, potential pollution from waste battery disposal, loss
Aspect of habitats and potential impacts to protected species at some sites.
E&S risks and impacts will be mitigated by adherence to country
system requirements.
The total cost of the Project is estimated to be up to USD 1,200

million with contingencies and financing costs, etc. NDB will
finance ZAR 6,000 million, accounting for about 33% of the total
cost. The remaining balance will be financed by the World Bank,
African Development Bank and Eskom.
Financing Aspect Source of Fund Amount (USD million)
New Development Bank Up to 400
Other Financiers and Eskom 800
41
Implementation
The Project is planned to be implemented over 3 years by Eskom.
Agency
NDB Eskom Holdings SOC, Ltd

Contacts
Public Sector Department
Priscilla Jezi
Yang Luo
JeziNP@eskom.co.za
2)
Project Name Renewable Energy Sector Development Project
Sector Clean Energy
Concept Approval
06 March 2019
Date
Board Approval
31 March 2019
Date
Total Project Cost ZAR 11.85 billion
Initial Limit of
ZAR 1.15 billion
NDB Financing
Current Limit of
ZAR 1.15 billion
NDB Financing
42
Industrial Development Corporation of South Africa Limited
Borrower
(IDC)
Implementing
IDC
Agency
South Africa is on the trajectory of greener and more sustainable

development, transitioning away from fossil fuel based energy
sources. In particular, South Africa has committed to reduction
in greenhouse gas emissions from its emissions growth trend by
34% in 2020, and by 42% in 2025, under the United Nations
Framework Convention on Climate Change. Industrial
Development Corporation of South Africa Limited (IDC), a
National Financial Intermediary (NFI) in South Africa, has been
Introduction
an important player towards realizing these goals, being a
significant financing provider in South Africa’s energy sector
and facilitating private sector participation in the sector. In this
context, the Renewable Energy Sector Development Project is
designed to help the economy shift towards a more sustainable
energy path, through facilitating investments in renewable
energy that will contribute to power generation mix and
avoidance of carbon dioxide emissions in South Africa.

renewable energy that will contribute to power generation mix
and avoidance of carbon dioxide emissions in South Africa, in
Project Objective
line with the South African Government’s Integrated Resource
Plan, and its target of reducing greenhouse gas emissions as
articulated in the National Development Plan 2030.
The proposed NDB loan through the modality of a two-step loan

Project Description will be used by IDC for on-lending to its identified sub-projects
including solar, biomass and wind energy sectors.
Expected Benefits The positive impacts of the Project include increase in

generation capacity from renewable energy sources leading to
avoidance of CO2 emissions. After successful implementation of
the Project, electricity of no less than 500 GWh will be
generated annually from renewable sources leading to savings in
CO2 emissions of around 480,000 tons annually. The
development impacts of the Project also include an overall
increase in the efficiency of the energy sector in South Africa,
which is now heavily reliant on coal. In addition, the Project is
43
expected to contribute to unlocking private sector investment,
and increasing availability of long-term local currency (ZAR)
funds for energy sector projects in South Africa.
The Project has been classified as Category “FI-B”, in

accordance with NDB Environment and Social Framework
(ESF), as funding will be through a financial intermediary. The
individual sub-projects are likely to be Category “B”, in
accordance with the NDB ESF. NDB will have the right to
Environmental and
review the environmental and social categorization of sub-
Social Aspect
projects by IDC, and if a sub-project is categorized as Category
“A” in accordance with the NDB ESF, it will require NDB’s
approval. The sub-projects to be supported are required to
comply with the requirements of the environmental and social
framework in South Africa.
NDB will provide a loan without sovereign guarantee to the NFI,

IDC, with an amount up to ZAR 1.15 billion. NDB’s financing
may not exceed 50% of sub-project costs, unless otherwise agreed
by NDB.
Source of Fund Amount (ZAR billion)

Financing Aspect
NDB 1.15
Other Sources (Loans,

10.50
Equity)
The Project is estimated to be implemented between 2019 and

Implementation 2023. Suppliers for the Project will be selected through
competitive and transparent bidding processes.
NDB Borrower/Implementing Agency
Contacts
Africa Regional Centre: Mlungisi Mkhwanazi
Tshifhiwa Mukwevho mlungisim@idc.co.za
44
3)
Project Name Environmental Protection Project For Medupi Thermal Power Plant
Sector Clean Energy
Board Approval
31 March 2019
Date
Initial Limit of
USD 480 million
NDB Financing
Current Limit of
USD 480 million
NDB Financing
Borrower Eskom Holdings SOC, Ltd
Implementing
Agency
South Africa’s indigenous energy resource base is dominated by

coal, which is used in generation of around 90% of the electricity
produced in South Africa. In 2005, the Government of South Africa
passed the National Environmental Management Air Quality Act
Introduction
(NEMAQA), which defines the pollutant emissions limits for
power plants. The Project is designed to support South Africa’s
commitment to reducing environmental pollution in the energy
sector.
Project The objective of the Project is to achieve sulphur dioxide (SO2)
45
emission reduction of Medupi coal-fired power plant from 3,500
mg/m3 to below 500mg/m3 from 2026 onwards. The contents of
Description
the Project include the design and construction of six flue gas
desulphurization units along with ancillary facilities.
The positive impacts of the Project include reduction of SO2

concentration in Waterberg municipal district of Limpopo Province,
contributing to: i) decreased adverse health impacts, particularly for
respiratory health of the residents of the area; ii) reduced negative
environmental impact caused by acid deposition.
The Project has been classified as Category “A”, in accordance

Environmental
with NDB Environment and Social Framework (ESF). The negative
and Social Aspect
environmental and social impacts can be mitigated by adherence to
established environmental and social practices and requirements of
the country system, as well as additional social management plans
that have been developed for the Project. The negative impacts
mainly pertain to i) risks related to labor strikes; ii) social tensions
with communities related to expectations of employment; iii)
compromised road safety resulting in high road accident rate.
The total cost of the Project is estimated to be USD 2,750 million.

The NDB will finance USD 476 million, accounting for 17% of the
Financing Aspect
total cost. The remaining balance will be financed by other co-
financiers.
The Project is planned to be implemented over 7 years. Eskom will

Implementation
be the Project Implementation Agency.
4)
Greenhouse Gas Emissions Reduction and Energy Sector

Project Name
Development Project
Sector Clean Energy
46
Board Approval
20 July 2018
Date
Initial Limit of NDB

USD 300 million
Financing
Current Limit of
NDB USD 300 million
FinancingAmount
Borrower The Development Bank of Southern Africa (DBSA)
Implementing
DBSA
Agency
South Africa is on the trajectory of greener and more

sustainable development in the backdrop of improved domestic
macroeconomic environment. Reducing carbon emissions and
deviating from fossil fuel based energy sources have been
included in the national strategy. In particular, South Africa
committed to reduction in greenhouse gas emissions from its
emissions growth trend by 34% in 2020, and by 42% in 2025,
under the United Nations Framework Convention on Climate
Change in 2009. Following this commitment, the National
Climate Change Response White Paper (2011) outlined the
target of reducing the country’s annual greenhouse gas
Introduction emissions to a range between 398 and 614 million metric tons
of CO2 equivalent by 2030. To realize these goals, the National
Financial Intermediary DBSA is an important contributor, as
DBSA has been historically playing a significant role in South
Africa’s energy sector and devoted about 48.5% of its loan
portfolio to the sector alone. In this context, the Greenhouse
Gas Emissions Reduction and Energy Sector Development
Project (the Project) is designed with financing from NDB to
DBSA to support renewable energy projects in South Africa
and help the economy to shift to a more sustainable energy
path through structural transformation of the energy sector with
emerging renewable technologies.
47
renewable energy that will contribute to power generation mix
and reduction in CO2 emissions in South Africa, in line with
the South African Government’s Integrated Resource Plan
2010 and its target of reducing greenhouse gas emissions as
Project Description articulated in the National Development Plan 2030.
The proposed NDB loan will be in the form of a two-step loan

of up to USD 300 million to DBSA, which in turn will be on-
lent to its identified subprojects, including the wind, solar, and
biomass energy sectors.
The Project will bring significant developmental impacts

through the subprojects, particularly related to environmental
and social benefits from reduction in carbon dioxide emissions,
increase in generation capacity from renewable energy sources,
and increase in the efficiency of the overall energy sector in
South Africa. The Project is also expected to have impacts of
unlocking private sector investment, and increasing availability
of long-term funds for projects in the energy sector in South
Africa.
Environmental and
The Project is categorized as “FI” in accordance with the NDB
Social Aspect
Environment and Social Framework (ESF), as funding will be
through a financial intermediary. The categorization of
individual subprojects are likely to be Category “B” in
accordance with the NDB ESF. NDB will have the right to
review the environmental and social categorization of
subprojects by DBSA, and if a subproject is categorized as
Category “A” in accordance with the NDB ESF, it will require
NDB’s approval. The subprojects to be supported are required
to comply with the requirements of the environmental and
social framework in South Africa.
NDB will provide a loan without sovereign guarantee to the

national financial intermediary DBSA with an amount up to
USD 300 million. NDB financing may not exceed 50% of
subproject’s costs, unless otherwise agreed by NDB.
Financing Aspect
Financier Amount (USD billion)
48
The Project is estimated to be implemented over 15 years
Implementation between 2018 and 2033. Suppliers for the Project will be
selected through competitive and transparent bidding process.
5)
Project Name Project Finance Facility for Eskom
Sector Clean Energy
Board Approval
13 April 2016
Date
Total Project Cost Rand 3.60 billion (USD 225 million)
Initial Limit of
Rand 2.88 billion (USD 180 million)
NDB Financing
Current Limit of
Rand 2.88 billion (USD 180 million)
NDB Financing
Borrower Eskom Holdings State-Owned-Company Limited
Implementing
Eskom Holdings State-Owned-Company Limited
Agency
Introduction The Republic of South Africa is the most developed economy in

sub-Saharan Africa, yet it is facing strong headwinds from
slowing growth. Frequent electricity shortages complicate the
challenge for the economy from the supply side. According to
the country’s National Treasury, GDP growth will increase by
49
roughly 2% if the issue of electricity shortage is addressed.
Securing energy supply and developing renewable energy are
therefore the government’s main policy concerns. Coupled with
electricity shortage, grid facilities are getting outdated. In
Soweto, a township in South Africa, electricity constraint is
severe, with aging electricity infrastructure reaching the end of
its usage life. Any outage of one circuit can put down the entire
electricity network. In this context, the New Development
Bank’s (NDB) Project Finance Facility (PFF) is proposed to
support the development of grid connection infrastructure,
which is vital for the development of renewable energy projects.
The project will also help increase electricity supply to the
Soweto area for the town’s sustainable development.
With the objective to develop grid connection infrastructure, the

NDB will provide a PFF loan of USD 180.0 million to Eskom
Holdings State-Owned-Company Limited (Eskom). The PFF
will support renewable energy development and reduce the
country’s reliance on fossil fuels. The grid connection
infrastructure will be used for renewable energy projects and
augmentation of the Eskom transmission network to the Soweto
area.
Project Description
The PFF project will be divided into sub-projects. Current sub-
projects include integration of 7 renewable energy projects of
independent power producers, integration of expedited
independent power producer project for Upington, construction
of transmission lines and substation for Soweto area, and
construction of transmission lines for Ankerlig-Sterrekus. Future
sub-projects will be proposed by Eskom, subject to selection
criteria and approval from the NDB, to ensure alignment with
the overall development objective of the project.
Environmental and The project contributes to the reduction of the country’s reliance
Social Aspect on fossil fuels. It will enhance the country’s capacity for
renewable energy while achieving sustainable growth. It also
aligns with NDB’s focus to support projects that aim at
developing renewable energy sources. The project will integrate
a total of 670 MW of renewable energy to the grid by Eskom.
This accounts for 10% of the national target for renewable
energy capacity from 2020 to 2021. The transmission lines, once
developed, will help meet the demand for electricity in the
implementation regions and lay a foundation for future
renewable energy development.
50
The environmental and social impacts of the project are
contained in the Environmental Management Plan (EMP) which
includes proposed mitigations to ensure minimal residual risk.
Eskom shall monitor and ensure implementation of the EMP
while ensuring full compliance with the South African
legislative requirements and the NDB’s ESF.
The overall cost of the project is estimated to be Rand 3.60 billion.

The proposed financing plan includes a term loan of USD 180.0
million (Rand 2.88 billion) from NDB and Rand 0.72 billion
financed by Eskom.
Financing Aspect Financier Amount (Rand billion)
Eskom 0.72
The project will be implemented by Eskom. Eskom has full-

fledged functions for generation, transmission and distribution.
Future sub-projects can be proposed to NDB by Eskom up to a
Implementation total term loan of USD 180.0 million. The selection of the sub-
projects will be based on criteria including technical,
environmental, social, developmental, economic and financial
dimensions.
ENVIRONMENTAL PROTECTION:
INDIA:
No projects.
BRAZIL:
51
1)
Project Name Environmental Protection Project
Sector Environmental Protection
Board Approval
28 May 2018
Date
Initial Limit of
USD 200 million
NDB Financing
Current Limit of
USD 200 million
NDB Financing
Borrower Petroleo Brasileiro S.A. (Petrobras)
Implementation
Not Applicable
Agency
Introduction Petrobras is one of the world’s largest integrated oil and gas
companies, and one of the largest corporations in Brazil, with
USD 89 billion in revenues in 2017. The Company’s current
activities account for the significant majority of Brazil’s
petroleum industry.
Petrobras maintains market leadership in all vertical of the

hydrocarbon sector, from upstream where it holds large proved
reserves, to its dominant downstream refining capabilities, and
to a fully developed distribution infrastructure. In line with NDB
Policy on Transactions without Sovereign Guarantee, the Project
will have significant developmental impacts, in particular related
to environmental and social benefits from reduced water
contamination and improved emissions. In this context, the
52
Project is designed with financing from NDB to support
Petrobras to improve its environmental protection track record
and comply with new regulatory requirements.
The Project consists of upgrades in infrastructure and equipment

of two existing refineries that will improve the Company’s
environmental performance and address new regulations
required by local environmental legislation. As a result of the
Project, harmful emissions will be significantly reduced and
water and soil contamination will be avoided. NDB will support
Project Description the Project through a senior, unsecured corporate loan of up to
USD 200 million.
The Project’s components are divided into four sub-projects in

two different refineries – REGAP (located in the municipality of
Betim, in the state of Minas Gerias) and REDUC (located in the
municipality of Duque de Caxias, in the state of Rio de Janeiro).
The Project will bring significant developmental impacts,

particularly related to environmental and social benefits from
reduced water contamination and improved emissions. The
Project interventions which are based on international best
practices and best environmental technology and processes will
improve the company’s environmental performance
Environmental and
significantly.
Social Aspect
The Project is categorized as “B” in accordance with the NDB
Environment and Social Framework with no irreversible adverse
social and environmental impacts. Identified negative impacts
are site-specific and in most cases mitigation measures can be
readily implemented.
Financing Aspect The total cost of the Project is estimated to be USD 376.8 million.
NDB will support the Project through a senior, unsecured
corporate loan of USD 200 million, accounting for 53% of the
total cost. The balance of USD 176.8 million will be financed by
Petrobras.
53
Petrobras 140
The Project is estimated to be implemented over 6 years

Implementation between 2016 and 2021. Suppliers for the Project will be
selected through competitive and transparent bidding process.
RUSSIA:
No projects.
CHINA:
No projects.
SOUTH AFRICA:
No projects.
WATER RESOURCE MANAGEMENT, SUPPLY AND SANITATION:
INDIA:
1)
Project Name Himachal Pradesh Rural Water Supply Project
54
Sector Water Resource Management, Supply and Sanitation
Board Approval
08 December 2021
Date
Total Project
USD 100 million equivalent
Cost
Initial Limit of
USD 80 million
NDB Financing
Current Limit
of NDB USD 80 million
Financing
Implementing
Jal Shakti Vibhag
Agency
Himachal Pradesh lacks sustainable infrastructure for the rural water

supply. Hilly and difficult terrain makes the task more challenging.
Around 42% of the habitations in the state have limited access to
Project Context clean drinking water and are classified as partially covered for water
supply. Non-availability of reliable water supply also causes the
rural population to spend up to 2 hours for water fetching and storing
related activities.
The objective of the Project is to provide piped drinking water to

Project
14% of the total partially covered rural habitations and improve the
Objective
quality of water supplied.
Project The Project will construct 24 rural water supply schemes to provide
Description drinking water to 1,255 villages covering eight districts in Himachal
Pradesh.
The Project also includes information, education and communication

activities, which will increase awareness among the rural population
55
about the importance of safe drinking water, improve citizen
participation, and instill ownership behavior for water supply
schemes.
The Project will free up the time taken for fetching drinking water
from distant sources, thereby allowing more time dedicated to
productive accomplishments, adult education, empowerment
Expected activities and leisures.
Benefits
The Project will enhance sanitation coverage in rural areas by
providing enhanced water supply to rural homes, improving health
and hygiene conditions.
The Project is Category “B” in line with NDB’s Environmental and

Social Framework (ESF). The environmental and social (E&S)
impacts of the Project will mainly include (i) conversion of forest
land and associated impacts on biodiversity, (ii) impacts of surface
and groundwater abstraction, (iii) common impacts derived from
civil works such as air emissions, noise, waste and wastewater, and
Environmental (iv) workers’ health and safety issues during the construction stage.
and Social The Project will not require physical resettlement or people or
Aspect significant acquisition of private land.
The Environmental and Social Impact Management Plan (ESIMP)

has been prepared for the Project. The ESIMP includes actions for
E&S capacity building, mitigation of key E&S impacts and risks,
assuring compliance with the country systems, and E&S
performance supervision and reporting.
Financing The total Project cost is estimated at USD 100 million. The Project
Aspect will be financed through a loan of USD 80 million from NDB and a
counterpart fund of USD 20 million from the Government of
Himachal Pradesh (GoHP).
New 80
Development
Bank
56
GoHP 20
The Project will be completed by the end of 2024. GoHP will be the
Implementation Project Entity and Jal Shakti Vibhag will be the Implementing
Agency.
Implementation
NDB Borrower
Agency
Ministry of Finance
Contacts Public Sector of Government of
Jal Shakti Vibhag
Department India
Er. Sushil Justa
Mr. Mukund Dr. Prasanna V
encphpjsv@gmail.com
Kumar Salian
pv.salian@nic.in
2)
Project Name Manipur Water Supply Project
Board Approval
2 December 2019
Date
Initial Limit of
USD 312 million
NDB Financing
57
Current Limit of
USD 312 million
NDB Financing
Implementing
Public Health Engineering Department, Government of Manipur
Agency
Manipur, a small mountainous state in the northeastern region of

India, is facing serious challenges in clean drinking water
supply. The key issues affecting Manipur’s water supply are
inadequate coverage of piped water supply and service, obsolete
water treatment and distribution infrastructure, contamination of
water sources, and high water leakage levels. Households are
spending up to one to two hours daily to collect water. A
Introduction significant number of households are currently using public
hydrants for domestic water needs. Due to limited water supply,
most of the state’s population is dependent on private water
suppliers, who charge much higher than the public water
supplier – the Public Health Engineering Department. This puts
an additional financial burden on the local families. Due to the
use of untreated water, Manipur has witnessed a surge of water
borne diseases, especially among children.
The Manipur Water Supply Project is proposed to address the

above challenges through construction and upgrade of drinking
water supply infrastructure. The components of the Project
include construction and upgrade of drinking water supply
Project Description
systems in: i) Imphal Planning Area, the capital city of Manipur;
ii) 25 other towns; and iii) 1,731 rural habitations. The Project
will provide safe drinking water supply to about 3.11 million
people in Manipur by 2025.
Environmental and The positive impacts of the Project include: (i) increased
Social Aspect capacity of safe drinking water supply; (ii) improved water
supply network with household connections in urban, suburban
and rural areas; (iii) time savings for fetching water; (iii)
improved water quality through enhanced water treatment
capacity; (iv) reduced medical expenses incurred by water
related diseases; (v) reduced loss of time and labor from water
related diseases; and (vi) improved quality of living for the local
population.
58
The Project is Category “B” in line with NDB’s Environmental
and Social Framework (ESF). Main environmental and social
impacts include: (i) clearance of existing land, vegetation or
building; (ii) generation of construction and demolition wastes
including scraps; (iii) soil erosion and silt runoff, particularly at
intake works; and (iv) community safety risks. E&S impacts will
be mitigated by adherence to Indian E&S regulations and
implementation of E&S management plans specifically
developed for the Project.
The total cost of the Project is estimated to be USD 390 million.

The NDB will finance USD 312 million or 80% of the total
estimated cost. The remaining balance will be financed by
counterpart funds from the Government of Manipur.
Financing Aspect Financier Amount (USD million)
Government of Manipur 78
The Project is to be implemented over five years. The Public

Health Engineering Department of Government of Manipur will
Implementation be the Implementing Agency. Procurement will be conducted in
compliance with the national law and regulations, and meet the
core principles of NDB’s policy.
3)
Rajasthan Water Sector Restructuring Project for the Desert

Project Name
Areas
59
Board Approval
20 November 2017
Date
Initial Limit of
USD 345 million
NDB Financing
Current Limit of
USD 345 million
NDB Financing
Implementing
Rajasthan Water Resources Department
Agency
Rajasthan, as India’s largest state by area, is also India’s driest

state. Limited availability of utilizable surface water and ground
water resources has been the challenge for Rajasthan’s
economy. With frequent droughts and deteriorating agriculture
infrastructure, the state is faced with downside risks from
inefficient water usage. The state’s GDP per capita is below the
nation’s average by 13%. With scarce water resources, per
capita water availability in Rajasthan is about 780 cubic meters
Introduction
per year. This number is severely low by the international
standards. Yields of many major crops in Rajasthan are below
the national average. Two thirds of the state’s population work
for agriculture sector, but output of the sector only accounts for
about 28% of the state’s GDP. In this context, Rajasthan Water
Sector Restructuring Project for the Desert Areas (the Project) is
designed, with the support from the New Development Bank
(NDB) and counterpart funds from Government of Rajasthan.
Project Description The objective of this Project is rehabilitation of Indira Gandhi

canal system to prevent seepage, conserve water, and enhance
water usage efficiency. The Indira Gandhi canal system was
designed as one of the largest irrigations systems in India, to
60
carry about 8 million acre feet of surplus water from Ravi and
Beas rivers to the arid state of Rajasthan. The Project will help
in arresting seepage of water through rehabilitation of the
deteriorating canal lining, which will improve water carrying
efficiency of the canal system and enable reclamation of
waterlogged areas. Micro irrigation component is also included
under the Project, which will contribute to enhancement in water
usage efficiency.
The Project also includes capacity building measures for
strengthening the capacity of local water users’ associations,
agricultural institutions, water resources department and
farmers. These measures will facilitate adoption of modern
irrigation and sustainable farm techniques, and optimal
utilization of irrigation systems. The Project activities will cause
an increased availability of water for drinking and irrigation
purposes and bring additional land under irrigation in the Project
area.
The Project will help conserve water and enhance water usage
efficiency. It brings timely attention to the pressing need for
rehabilitation of the canal system to solve water seepage issue,
and reclamation of waterlogged areas for cultivation. Ensuring
water supply for both drinking and irrigation purposes is
essential for quality of life of the people and the development of
agriculture industry, on which majority of the population of
Rajasthan depend for sustenance.
Environmental and social impact of the activities under Phase I

of the Project are related to rehabilitation of a portion of the
Environmental and
canal system through desilting and relining of canals. Activities
Social Aspect
proposed under Phase II of the Project are related to desilting
and relining of the remaining portion of the canal system,
reclamation of waterlogged areas, micro irrigation and capacity
building. Civil works activities for both the phases are similar in
nature. There will be no rehabilitation issues. Risk classification
of Phase I and Phase II is Category “B”. Environmental and
Social Impact Management Plan (ESIMP) has been proposed to
ensure implementation monitoring and reporting to NDB on
E&S aspects. Implementation of E&S management and
monitoring, ESIMP, and regular supervision will ensure
compliance with the country system requirements.
Financing Aspect The total cost of the Project is estimated to be USD 495 million.
NDB will finance USD 345 million in two loan tranches under a
multi-tranche financing facility, accounting for 70% of the total
Project cost. Tranche I loan amount is USD 100 million and
61
Tranche II loan amount is USD 245 million. The remaining
portion of Project cost will be financed by Government of
Rajasthan. Tranche I loan was approved in 2017 and Tranche II
loan was approved in 2022.
Government of Rajasthan 150
The Project is planned to be implemented by February 2025.

Suppliers for the Project will be selected through competitive
Implementation and transparent bidding process. Government of Rajasthan will
be the Project Entity and Rajasthan Water Resources
Department will be the Implementing Agency.
4)
Project Name Madhya Pradesh Multi Village Water Supply Project
Board Approval
30 August 2017
Date
Initial Limit of
USD 470 million
NDB Financing
62
Current Limit of
USD 470 million
NDB Financing
Implementing
Madhya Pradesh Jal Nigam Maryadit
Agency
Madhya Pradesh is the second largest state by area in India, yet

it remains socio-economically underdeveloped relative to the
rest of the country. Only a small number of the rural households
in Madhya Pradesh have access to safe drinking water on their
premises. Many villagers have to fetch water from the nearest
source which is usually at least half a kilometer away. The
state’s population depends largely on uncovered dug wells and
hand pumps for drinking water. Along with inadequate access to
safe drinking water, chemical and bacteriological contamination
Introduction in current water sources is also a rising concern. The need for
clean and safe drinking water from sustainable sources is
aggravated and has been highly recognized by both the state and
the central government. In this context, the Madhya Pradesh
Multi Village Water Supply Project (the Project) is designed,
supported by financing from the New Development Bank
(NDB) to provide piped drinking water to rural areas and
achieve the goal of full access to clean drinking water. The
Project is in alignment with the NDB’s objective to promote
sustainable development.
The objective of the Project is to provide piped drinking water to

rural areas of Madhya Pradesh and to help the state’s water
program to achieve 100% household water connections. NDB
will provide a loan of USD 470 million to the Government of
India for on-lending to the Government of Madhya Pradesh to
finance the water supply schemes. The Project will support 9
Project Description multi-village rural water supply schemes in Madhya Pradesh,
ensuring doorstep availability of clean and safe drinking water.
The Project will cover 3,400 villages and benefit over 3 million
people. Availability of clean water at household level will
significantly impact the standards of living for the villagers, who
will benefit largely from saved water-fetching time, reduction of
water-borne diseases, and improved sanitation conditions.
63
The Project contributes to improved productivity, increased
economic activity and enhanced education opportunities as a
result of reduced water-fetching time and improved health
conditions. The successful implementation of the Project helps
extend the development benefits to the most needed rural areas
and fulfil the basic human need of having access to safe and
clean drinking water.
Environmental and
Social Aspect The Project is classified as Category “B”. NDB’s due diligence
on environmental and social assessments found the limited
negative impacts are site-specific and mitigation plans have been
put in place. Land acquisition and use of forest land are
minimized for optimal project design. Compliance with
environment and social regulations in India and with the core
principles of NDB’s Environment and Social Framework will be
ensured.
The total cost of the Project is estimated to be USD 670 million.

NDB will finance the Project with a long term loan of USD 470.0
million, accounting for 70% of the total Project cost. The
Government of Madhya Pradesh will provide the counterpart
funding of USD 200.0 million.
Financing Aspect Financier Amount (USD million)
Government of Madhya
200
Pradesh
The Project will be implemented over 4 years. The Government

of Madhya Pradesh will be responsible for implementation and
oversight. A dedicated project management unit will be formed
Implementation by the project implementation agency at the headquarter level
with 4 project implementation units at field level to closely
monitor the implementation of the Project. The Project loan will
be repayable in 32 equal semi-annual instalments over 16 years.
64
BRAZIL:
1)
Project Name SABESP Investment Program
Concept Approval
1 September 2020
Date
Board Approval
18 July 2022
Date
Total Project Cost BRL 8 billion
Initial Limit of
Up to USD 300 million
NDB Financing
Current Limit of
Up to USD 300 million
NDB Financing
Water and Sanitation Company of the State of Sao Paulo

(Companhia de Saneamento Básico do Estado de São Paulo –
Borrower
SABESP) with Sovereign Guarantee from the Federative
Republic of Brazil
65
Project Entity SABESP
In the State of Sao Paulo (the State), water security remains one
of the greatest development challenges. Irregular settlements,
uncontrolled discharge of wastewater and untreated sewage
continue to deteriorate water reservoirs that are important
sources of water supply. Major gaps remain in expanding the
water and sanitation service coverage towards the goal of
Project Context universal access, reducing pollution in the water bodies, and
increasing operational efficiency of water utilities.
SABESP, the State’s main water and sanitation service provider

covering 62% of its total population, has embarked on the
SABESP Investment Program (the Program) in order to address
these challenges.
The objective of the Program is to support SABESP in its

Project Objective capital expenditure program for service expansion,
environmental protection and operational sustainability.
The Program comprises the following components:
 Service expansion: connecting more households to

water supply and sewage collection networks to ensure
universal access;
Project  Environmental protection: delivering more wastewater

Description to treatment facilities and augmenting treatment
capacities to enhance pollution control; and
 Operational sustainability: supporting applications of

sustainable solutions in selected sewage treatment
plants, contributing to reduction of greenhouse gas
emissions.
Expected Benefits The Program will contribute to the water security and economic
competitiveness of the State through the development of
sustainable water supply and sanitation infrastructure, in
accordance with Brazil’s national plan of the water sector. In
particular, the Program will support expansion of water and
sanitation services towards reaching universal access, meeting
growing demand for services, and reduction of negative
environmental impacts as well as water losses.
66
The Program is aligned with NDB’s General Strategy and the
Bank’s key areas of operation which include “Irrigation, water
resource management and sanitation”. The Program will
contribute to achieving the Sustainable Development Goal 6,
which aims at ensuring availability and sustainable management
of water and sanitation for all.
The Program has been categorized as Category B in line with

the NDB’s Environment and Social Framework (ESF), with an
environmental and social risk tier of B-2 ‘Medium Risk’. Main
E&S impacts will be addressed and mitigated by implementing
Environmental relevant E&S management plans as per the country system,
and Social Aspect E&S permit conditions, and additional measures for the
Program agreed with NDB and reflected in the Environmental
and Social Impact Management Plan. Upon successful
implementation of these plans, the Program will comply with
the requirements of the E&S country systems and NDB’s ESF.
The Project will be financed through loan from NDB and

counterpart funding from SABESP.
Source of Fund Amount

Financing Aspect
NDB USD 300.0 million
SABESP BRL 6.5 billion
Implementation The implementation period of the Program: 2022-2024.
Contacts NDB Borrower and Project Entity
Public Sector SABESP

Department
Superintendent of Fundraising and
He Tian Investor Relations
Mario Sampaio
67
maasampaio@sabesp.com.br
Manager for Fundraising,

Coordination of Project Preparation
Marcelo Rampone
mrampone@sabesp.com.br
2)
Project
Water and Wastewater Services Expansion Project in Manaus
Name
Area of
Water & Sanitation
Operation
Concept
Approval 8 Oct 2021
Date
Board
Approval 13 December 2022
Date
Total Project
USD 356 million
Cost
Initial Limit
of NDB USD 80 million
Financing
Current USD 80 million
68
Limit of
NDB
Financing
Borrower Manaus Ambiental S.A., a fully owned subsidiary of AEGEA Group
Manaus is a growing industrial city in the north-western state of

Amazonas in Brazil. While access to water infrastructure is available to
98 per cent of the city’s residents, access to wastewater infrastructure is
Project rather low and available only to 26 per cent of the population. The
Context existing infrastructure has not kept pace with the recent accelerated
urban growth in the city, especially in the areas occupied by the poorest
segments of the population, and requires significant investments in its
modernization and expansion.
The Project aims at rehabilitating or developing water and wastewater

infrastructure in Manaus to guarantee access to reliable and affordable
Project
water and wastewater services for the population; improving public
Objective
health and reducing water-borne diseases; and ensuring compliance with
environmental standards.
The Project comprises the following components:
 Expansion and improvements in the water infrastructure;
 Expansion and improvements in the wastewater infrastructure;

Project
Description
 Loss reduction; and
 Operational efficiency, security, and other investments.
The key benefits of the Project include: (i) improved quality of water
services for the citizens with a greater number of households connected
Expected to the water network; (ii) reduction of untreated effluent or improved
Benefits quality of wastewater discharged into the Amazon River basin; and (iii)
improved condition and quality of underground water and soil by
connecting more households to the sewage network.
Environment The Project has been categorized as Category B in line with the NDB’s
69
Environment and Social Framework, with an environmental and social
risk tier of B-2 ‘Medium Risk’. Main E&S impacts will be addressed and
al and Social mitigated by implementing relevant E&S management plans as per the
Aspect country system, the Borrower’s Environmental and Social Management
Systems, and additional measures for the Project agreed with NDB and
reflected in the Environmental and Social Impact Management Plan.
Source of
Amount (USD million)
Fund
Financing
Aspect New
Developm 80
ent Bank
Other
276
sources
Implementat
The implementation period of the Project is 2022-2027
ion
Contacts NDB Borrower Implementation Agency
Private
Sector and
Non-
Sovereign
Guarantee Manaus Ambiental S.A. Manaus Ambiental S.A.
d
Transactio Gabriel Bertolazzi, Gabriel Bertolazzi,
ns Financial Operations Financial Operations
Departmen
t: gabriel.bertolazzi@aegea.c gabriel.bertolazzi@aegea.c
om.br om.br
Akhil
Kumar
70
Americas
Regional
Office:
Mauricio
Xavier
RUSSIA:
1)
Project Name Water Supply and Sanitation Program in Russia
Concept
12 May 2020
Approval Date
Board Approval
29 September 2020
Date
Total Program
USD 170 million
Cost
Initial Limit of
USD 100 million
NDB Financing
Current Limit of
USD 100 million
NDB Financing
71
Borrower Eurasian Development Bank
Implementing
Eurasian Development Bank
Agency
Russia is endowed with one-fifth of the world’s fresh water

resources, however, faces challenges with discharge of untreated
wastewater into its water bodies. The majority of the water supply
and sanitation systems in the Russian Federation were constructed
during the 1970s to 1980s and due to physical and technological
wear, require replacement or modernization. The current state of
Project Context
water supply and sanitation infrastructure has an adverse impact
on the environmental situation in the country. With the target to
enhance the quality of water supply and sanitation facilities, the
Government of the Russian Federation (GoRF) has adopted the
National Project “Ecology” which is aimed at pollution abatement
in Russia.
The Program is aimed at improving environmental protection

across Russia as set out in the National Project “Ecology” through
Project Objective
reconstruction of water supply and sanitation facilities in different
regions of the country.
The proposed NDB loan through the modality of a two-step loan

Project will be used by Eurasian Development Bank (EDB) to finance
Description water supply and sanitation sub-projects meeting selection criteria
agreed with NDB.
The positive outcomes and impacts of the Program include: i)

increased wastewater treatment capacity in line with the country
quality standards; ii) increased sludge removal capacity to avoid
Expected
sludge being disposed in landfills; iii) overall improvement in
Benefits
water quality; iv) increased health benefits from avoided costs of
health treatment associated with people contracting water-borne
diseases; and v) improved quality of lives for the beneficiaries.
Environmental The Program is Category “FI-B” in line with NDB’s

and Social Environmental and Social Framework (ESF). The sub-projects are
Aspect likely to be Category B due to moderate environmental and social
(E&S) impacts and risks that will be mitigated by adherence to the
country systems. For sub-projects with significant E&S impacts
and risks, including Category A, financing of such sub-project
72
needs to be approved by NDB.
Financing Aspect
Other Sources (Loans, Equity,

70
Grants)
The Program is to be implemented over four years between 2020

and 2024. It is expected that most sub-projects will be implemented
Implementation
by public entities, following mandatory procurement requirements
as per the country system.
Borrower & Implementing

NDB
Agency
Contacts Private Sector and Non- Eurasian Development Bank

Sovereign Guaranteed
Transactions Department: Olga Gaponova
Nokuthula Mabuza capital@eabr.org
2)
The Development of Water Supply and Sanitation Systems

Project Name
Project
73
Board Approval
28 May 2018
Date
Initial Limit of
USD 320 million
NDB Financing
Current Limit of
USD 320 million
NDB Financing
Borrower The Russian Federation
Implementing The Saint Petersburg Foundation for Investment Projects

Agency (FISP)
The Volga River is widely viewed as the mother river of

Russia. 11 out of the 20 largest cities of Russia are situated in
the Volga River Basin. Contamination of water in the Volga
River has become one of the most pressing environmental
issues in the country. Wastewater from households, farms and
industries are flushed through rain and floods into the Volga
River, accounting for more than one-third of total discharges in
Russia. Deteriorating conditions of existing infrastructure
along the Volga River have significantly impacted the quality
of water supply and sanitation services. Concerns on water
Introduction quality affect the life of the residents and the development of
the local economy. Currently, over 65% of water supply
systems and 63% of wastewater collection and treatment
systems are in need of an upgrade or replacement. The Russian
government’s Policy for Economic Development until 2030
aims to ensure ecologically oriented economic growth. In this
context, the Project is designed with financing from NDB to
help modernize water supply and sanitation systems in five
competitively selected cities in the Volga River Basin. The
Project is in close alignment with NDB’s mandate of
supporting sustainable infrastructure development.
74
The objective of the Project is, through modernizing and
constructing integrated water supply and sanitation systems, to
reduce ecological damage and increase health security of the
residents in the five participating cities in Russia. The NDB
will support the Project through a Sovereign Project Loan up
to USD 320 million.
Project
Description
The content of the Project includes: i) constructing advanced
facilities of water treatment, water supply network, water
drainage network, sewage treatment, and storm water
collection and treatment system; ii) improving process
efficiency of existing infrastructure with advanced technology
and equipment.
The Project will bring benefits of: (i) increased operating

efficiency of water supply and sanitation systems, (ii) reduced
growth of utilities tariffs for the population, (iii) reduced
investments in capital repairs for rehabilitation of water supply
and sanitation systems, (iv) significant reduction of
environmental damage of Volga River with wastewater
treatment, (v) increased health security for citizens with
improved quality of water supply, (vi) easy maintenance of
Environmental infrastructure built with application of advanced technology.
and Social Aspect
The Project is categorized as “B” in accordance with the NDB
Environment and Social Framework with limited adverse
social and environmental impacts. Potential cases of land use
during construction of pipelines will be regulated by the
country system requirements. Appropriate compensation will
be provided for land temporary use to the owners of the land.
No conversion of natural habitats or negative impacts on
biodiversity or indigenous peoples was found.
Financing Aspect The total cost of the Project is estimated to be USD 400 million.
NDB will support the Project through a Sovereign Project Loan of
USD 320 million. Counterpart financing is USD 80 million, out of
which USD 49 million is from federal budget of the Russian
Federation and USD 31 million is from the city governments and
water service providers.
75
Federal Budget 49
City Governments and

31
Water Service Providers
The Project is estimated to be implemented between 2019 and

Implementation 2024. Suppliers for the Project will be selected through a
competitive and transparent bidding process.
CHINA:
1)
Zhejiang Green Urban Project – Shengzhou Urban and Rural

Project Name
Integrated Water Supply and Sanitation Project (Phase II)
Board Approval
31 March 2019
Date
Total Project Cost RMB 1,868 million
Initial Limit of
RMB 825 million
NDB Financing
76
Current Limit of
RMB 825 million
NDB Financing
Implementing
People’s Government of Shengzhou Municipality
Agency
Shengzhou, a municipality in Zhejiang Province in China, has

been facing challenges in water supply and sanitation facilities.
Till 2018, quality of drinking water falls below the national
average. The challenge is more severe in its rural area, which is
the main focus of the Project. In some rural villages of
Shengzhou, infrastructure and facilities of water and sanitation
are often found obsolete. Current capacity of water supply and
Introduction sanitation facilities is not sufficient for the local people and is a
constraint to the sustainable development of Shengzhou’s
economy. To address this challenge, the Project is designed with
an integrated approach to enhancing the economic efficiency of
water resources, improving water quality for local people, and
enhancing the effectiveness of water management system in
Shengzhou. The Project is well aligned with NDB’s mandate of
supporting sustainable infrastructure development.
The objectives of the Project are to upgrade the urban and rural
water supply and sewage facilities and to enhance the economic
efficiency of water resources and the effectiveness of water
management system in Shengzhou through financing the
construction of four water supply plants, three sewage treatment
plants, associated pipelines and a smart water management center,
thereby fostering socio-economic development of Shengzhou
Municipality. The Project has four components: (i) construction
Project Description
of water supply plants and pipelines; (ii) construction of sewage
treatment plants and pipelines; (iii) smart water management
center; (iv) capacity building and project management.
The NDB loan through the modality of Sovereign Project Loan

will be used by the People’s Republic of China for on-lending to
the People’s Government of Shengzhou Municipality through the
People’s Government of Zhejiang Province.
Environmental and The positive impacts of the Project include: (i) improved water
Social Aspect quality; (ii) increased water supply; (iii) increased sewage
77
treatment capacity; (iv) enhanced effectiveness of water
management system; (v) enhanced awareness of water
preservation and environmental protection by the local residents.
Successful completion of the Project will have a significant
development impact on improving the quality of lives of local
residents in Shengzhou.
The Project has been categorized as Category “B” in line with

NDB Environmental and Social Framework (ESF) and China’s
environmental impact assessment regulations. Main project
environmental and social impacts include land acquisition and
potential resettlement, wastewater discharge and sludge disposal.
These impacts are confined to project footprint and will be
mitigated by adherence to requirements of E&S country system.
The total cost of the Project is estimated to be RMB 1,868 billion.

NDB will finance RMB 825 billion, accounting for 44% of the
total cost. The remaining balance will be financed by counterpart
funds from Shengzhou Municipal Government and Shengzhou
Water Group Co, and loans from domestic banks.
Financier Amount (RMB million)
Financing Aspect New Development Bank 825
Shengzhou Municipal
100
Government
Shengzhou Water Group Co 273
Domestic Bank 670
The Project is estimated to be implemented over five years.

People’s Government of Shengzhou Municipality will be the
Implementation Project Implementation Agency. Contractors for the Project will
be selected through a competitive and transparent bidding
process.
78
SOUTH AFRICA:
1)
Project Name Lesotho Highlands Water Project Phase II
The Republic of South Africa (Borrowing Country), Kingdom of

Country
Lesotho (Country of implementation of the Project)
Board Approval
31 March 2019
Date
Total Project Cost ZAR 32 billion
Initial Limit of
ZAR 3.2 billion
NDB Financing
Current Limit of
ZAR 3.2 billion
NDB Financing
Borrower Trans-Caledon Tunnel Authority
Implementing
Lesotho Highlands Development Authority
Agency
South Africa is a semi-arid country characterized by low rainfall,

limited underground aquifers, and heavy reliance on water transfers
from the neighboring country, Lesotho. The Lesotho Highlands
area is one of the primary water sources to the Vaal River that
Introduction provides water for Gauteng, Free State, North West and
Mpumalanga provinces, together representing roughly 60% of the
South Africa’s GDP and 45% of the population. Water supply
shortages in this area now pose a significant threat to South
Africa’s sustainable development.
79
The Lesotho Highlands Water Project Phase II is a next phase of an
existing joint project between the Government of the Republic of
South Africa and the Government of the Kingdom of Lesotho with
the objective to augment water supply in the Vaal River Basin by
transferring water from Lesotho to South Africa.
The NDB Sovereign Guaranteed Project Loan will be used by

Trans-Caledon Tunnel Authority (TCTA), a government agency of
the Republic of South Africa, for financing the construction of the
Project dam and water transfer tunnel on the territory of Lesotho.
Description
The Project will promote South Africa’s resilience to climate
change, support economic growth and foster sustainable livelihoods
of people by increasing available water by 437 million m 3 in the
long run and by reducing the amount of restrictions imposed due to
drought. The Project will also contribute directly to South Africa’s
commitments to the Sustainable Development Goals (SDGs),
specifically objective 6.4, to reduce water scarcity. It also seeks to
enable inclusive and sustainable economic growth in South Africa,
a goal embodied in SDG 8.
The Project has been classified as Category “A” in accordance with

NDB’s Environment and Social Framework (ESF). Main
environmental and social impacts include land acquisition and
involuntary resettlement of households; inundation of large areas
by the water reservoir and associated loss of arable and grazing
land and habitats of important flora and fauna species; impacts on
downstream environments and communities due to decreased river
Environmental
flow; increased pressure on rangelands and wetlands by displaced
and Social Aspect
livestock and people; impact on cultural heritage sites; community
safety risks during construction; potential anti-social behavior and
negative gender impacts due to influx of construction workforce.
These impacts will be mitigated by adherence to country systems
and provisions of E&S management plans, and implementation of
additional E&S action plan developed for the project in line with
NDB’s ESF.
The total cost of the Project is estimated to be ZAR 32 billion.

NDB will finance ZAR 3.2 billion, accounting for 10% of the total
Financing Aspect cost. The remaining balance will be financed by other Multilateral
Development Banks, commercial and institutional investors
through Bond Issuance by TCTA.
Implementation The Project is estimated to be implemented over 6 years. Lesotho

Highlands Development Authority will be the Project
80
Implementation Agency. Key contractors for the Project will be
selected through international competitive bidding procedures.
SUSTAINABLE INFRASTRUCTURE:
INDIA:
No projects.
BRAZIL:
No projects.
RUSSIA:
1)
Project Name Sustainable Infrastructure in relation to “ZapSibNefteKhim” Project
Sector Sustainable Infrastructure
Board Approval
18 September 2018
Date
Total Project
USD 9,424 million
Cost
81
Initial Limit of
USD 300 million
NDB Financing
Current Limit of
USD 300 million
NDB Financing
Borrower SIBUR
Implementing
ZapSibNefteKhim LLC
Agency
The Project will enhance environmental safety at ZapSibNefteKhim

Project Context
polyolefin complex under SIBUR management.
The objective of the Project is to construct general purpose

infrastructure including facilities that contribute to protecting
environment, saving water and energy resources through modern
Project Objective
and clean technologies for reduced environmental impact. The
Project is in alignment with the NDB’s objective to promote
infrastructure and sustainable development.
The NDB loan through the modality of Non-Sovereign Project

Project Loan was used by SIBUR for construction of general infrastructure,
Description and to a large extent for the financing of environmental protection
measures.
The benefits of the Project are: (1) contribution to the effective

utilization of Russia’s midstream feedstock by implementing
international best practices; (2) creation of new jobs; (3)
Expected Benefits
improvement of the environmental footprints through financing of
environmental protection measures such as wastewater discharge
and treatment facilities.
The Project was classified as category A in accordance with NDB’s

Environment and Social Framework (ESF). It was also categorized
Environmental
as highest E&S category by the Russian environmental regulations,
and Social Aspect
and classified as Category A by the Equator Principles and IFC
E&S performance Standards.
82
The total cost of the Project was USD 9,424 million financed
Financing Aspect
through 53.6% of debt and 46.4% of equity.
Implementation The Project was completed, commissioned and put into operations.
CHINA:
No Projects.
SOUTH AFRICA:
No Projects.
Chapter-5 Funding Strategy

NDB’s funding strategy aims to ensure that sufficient resources are available to meet the
Bank’s liquidity needs, driven primarily by the Bank’s expanding project portfolio as well as
its operating and other expenses. NDB finances its operations from its own capital, which
includes paid-in capital provided by shareholders and accumulated retained earnings, as well
as from funds borrowed in the capital markets through the issuance of securities.
NDB’s strong international and domestic credit ratings enable the Bank to access funding at
favourable market terms and to pass the benefits on to the borrowers, which is a key purpose
of its intermediary role in providing development finance. NDB aims to utilise a diversified
array of funding instruments in local currencies of member countries and other currencies,
based on the parameters of the Bank’s project portfolio and demand from its clients.
83
To achieve this, the Bank intends to raise funds regularly in global capital markets as well as
in domestic capital markets of member countries, with due regard to appropriate hedging
mechanisms, in line with its policies and risk management framework. In accordance with a
strong focus on sustainability, the Bank is also committed to actively exploring opportunities
in green bonds and other green finance instruments, taking into account market conditions
and trends.
In the year 2017

 The year 2017 was NDB’s second full year of operation and was marked by the approval
of USD 1.85 billion in loans. While the demand for finance to support infrastructure and
sustainable development continues to rise globally, NDB has reaffirmed its commitment
to prioritising green and sustainable infrastructure projects in its member countries. All
projects approved in 2017 were assessed based on their environmental and social impacts.
For those projects that may have potential adverse effects, comprehensive mitigation
measures have been prepared and implemented. NDB’s learning curve has mirrored its
rapid operational growth rate. This has enabled NDB to work with member countries and
assess projects that will have a positive development impact. There were 6 projects 3 of
water. 1 of energy, 1 of transport and 1 of social infrastructure.
84
85
86
Loan Portfolio Of NDB
87
INDIA
Developing Water Resources
Rajasthan Water Sector Restructuring Project for the Desert Areas
CHINA
Restoring Critical Ecosystems
Hunan Ecological Development Project
INDIA
Improving Rural Water Supply
88
Madhya Pradesh Multi-Village Water Supply Project
CHINA
Helping Industries to Go Low Carbon
Jiangxi Industrial Low Carbon Restructuring and Green Development Pilot Project, China
89
RUSSIA
Helping Cities to Connect Better
Ufa Road Eastern Exit Project
RUSSIA
Building a More Transparent Judicial System
Judicial System Support Project
90
In the year 2018
 The year 2018 marked the third consecutive successful year for NDB since its
establishment. While continuously building its institutional capacity with a focus on
quality and technical rigour, this year NDB approved 17 projects in all member countries,
more than the total number of projects approved during the preceding two-and-a-half
years. The Bank’s overall portfolio expanded to 30 projects, valued at about USD 8
billion. Throughout 2018, the Bank’s portfolio has become increasingly diversified. The
Board of Directors (BoD) approved four non sovereign projects in South Africa, Russia
and Brazil. The Bank has also started to develop policies and procedures to provide
infrastructure guarantees and engage in equity investments.
91
92
Brazil :- Pará Sustainable Municipalities Project
93
PAVING THE WAY TO A MORE SUSTAINABLE FUTURE FOR CITIES
Russia :- Volga River Project
USD 320 MILLION FUNDING FOR CLEANER, SUSTAINABLE USE OF RUSSIA’S

ICONIC VOLGA RIVER
94
India :- Bihar Rural Roads Project
BUILDING ALL-WEATHER ROADS TO INCREASE CONNECTIVITY AND IMPROVE
RURAL LIVELIHOODS
95
China :- Guangdong Offshore Wind Power Project
96
RMB 2 BILLION FOR OFFSHORE WIND POWER TO ACHIEVE A GREENER
ENERGY MIX
South Africa :- Greenhouse Gas Emissions Reduction and Energy Sector Development
Project
97
FACILITATING CLEAN ENERGY GENERATION PROJECTS IN SOUTH AFRICA
AND REDUCING GREENHOUSE GAS EMISSIONS
In the year 2019

In 2019, NDB continued to mobilise resources for high-quality infrastructure and sustainable
development projects in an agile and efficient way. The Bank is now reaching a steady state
of operations, with USD 7.2 billion in approvals in 2019, a 53% increase over the year
before, while annual disbursements increased by 52% compared to the previous year.
Significant progress has also been made in terms of portfolio composition.
98
The share of non-sovereign operations, including equity investments, increased from 18% to
20% of cumulative approvals over the year, and the share of financing denominated in local
currencies rose from 20% to 27% over the same period. The Bank has also introduced new
operational modalities, such as multi-currency loans and equity investments, and improved
the balance in distribution of operations across member countries.
Throughout 2019, NDB continued to implement its General Strategy: 2017–2021. In order to
deliver on its mandate and achieve its strategic objectives, the Bank sharpened its focus on
financing infrastructure and sustainable development projects that contribute directly to
member countries’ development priorities,
Especially those in line with their commitments under the United Nations 2030 Agenda for
Sustainable Development (2030 Agenda) and the 2015 Paris Agreement. Development
impact considerations, such as projects’ alignment with member countries’ SDG
commitments and contributions to climate change adaptation and mitigation, have become
increasingly mainstreamed into the preparation and implementation of NDB’s operations.
99
100
101
102
103
104
In the year 2020
In 2020, NDB was the first MDB to respond to its members in combating the COVID-19
pandemic and it was fully operational throughout the entire financial year. The Bank
approved 19 new projects with a total value of USD 10.3 billion, including substantial
COVID-response programmes.
The Bank’s portfolio at end-2020 reached USD 24.4 billion spread across 67 projects10. In
its Fifth Annual Meeting, held in virtual format on 20 April 2020, NDB’s BoG issued a
Statement on Response to the COVID-19 outbreak. Governors welcomed the Bank’s target to
provide up to USD 10 billion in crisis-related assistance through emergency assistance
programmes, including support for member countries’ economic recovery.
In responding to global financial volatility in 2020, the Bank maintained considerable
liquidity throughout the year. To support its funding needs, the Bank tapped for the first time
into international capital markets in US dollars. It also issued the first-ever RMB-
denominated COVID-19 Combating Bond in the Chinese local market. By end-2020, total
accumulated bond issues reached USD 3.6 billion and RMB 13 billion. In 2020, the Bank
started its LIBOR transition project by setting up working groups and committees to ensure
efficient coordination for a smooth transition throughout 2021.
19 10.5 Billion
No. Of Projects
Approved Approved Loans
in 2020
105
106
Funding activities in 2020
In April 2020, the Bank issued a RMB 5 billion 3-year Coronavirus Combating Bond in
China. The transaction attracted interest from high-quality domestic and international
investors and it had successful results, notably:
• Final order book in excess of RMB 15 billion, more than three times oversubscribed;
• Bond priced at the lower end of the announced pricing range;
• Largest-ever RMB-denominated bond issued by an MDB in China;
• First RMB-denominated Coronavirus Combating Bond issued by a MDB in China;
• Distribution of investors by region: China Mainland – 41%, EMEA – 45%,
APAC (excl. China Mainland) – 14%.
• Distribution by investor type: Central Banks/Official Institutions – 54%, Banks – 45%,
Securities Companies – 1%.
Transaction highlights were:
• NDB became the first MDB to execute its debut placement in the international markets in a
fully virtual format;
• Largest debut USD transaction under Reg. S format since 2011;
• Exceptional support from high-quality investors, with strong participation from central
banks and official institutions, which represented 75% of allocations;
• Distribution of investors by region:
Asia – 56%,
EMEA – 29%,
Americas – 15%
107
108
109
110
In the year 2021
In 2021, NDB approved total financing of USD 5.1 billion through ten operations, including
three COVID-19 emergency programme loans and seven project loans in the areas of urban
development, transport infrastructure, clean energy, as well as irrigation, water resource
management and sanitation.
In 2021, NDB maintained its high credit ratings and actively accessed both international and
domestic capital markets, raising a record amount of over USD 5.5 billion in various
currencies at competitive terms. These fundraising activities made sufficient resources
available to meet the needs of accelerated project disbursements, which reached USD 7.6
billion in 2021 alone, more than the total of all the previous years combined.
As NDB prepares its transition into a new five-year strategy cycle, the Bank is well
positioned to further expand its reach within and beyond its current member countries,
delivering development benefits to a larger share of the world’s population living in EMDCs.
111
112
113
114
Chapter-6 Conclusion
New Development Bank(NDB) is a multilateral development bank jointly founded by the
BRICS countries at the 6th BRICS Summit in Fortaleza, Brazil in 2014. It was formed to
support infrastructure and sustainable development efforts in BRICS and other underserved,
emerging economies for faster development through innovation and cutting-edge technology.
It is headquartered at Shanghai, China. In 2018, the NDB received observer status in the
United Nations General Assembly, establishing a firm basis for active and fruitful
cooperation with the UN.
Governance : NDB is managed by a Board of Directors and a Board of Governors, both
composed of five seats, each occupied by a founding country. The presidency of the bank is
rotating and it is periodically occupied by a representative of one of the BRICS members,
while the others are responsible for the nomination of the four vice-representatives.
Member of NDB: NDB has only five members since its foundation: Federative Republic of
Brazil, Russian Federation, Republic of India, People’s Republic of China and Republic of
South Africa. Borrowing or non-borrowing membership, however, is open to any member of
the United Nations, as long as the terms and conditions set by a special majority at the Board
of Governors are met. The Board of Governors may accept International Financial
Institutions or countries interested in becoming members as observers at its meetings.
Leadership: Leadership is essential in every organization
Board of Governance:
115
Board of Directors:
116
Senior Management:
COMMITTEES
The Board of Directors of the NDB appoints the following committees to ensure seamless
execution of our work:
Audit, Risk and Compliance Committee:
All Board Members including the President
The Committee shall meet at least four times a year
Budget, Human Resources and Compensation Committee:
All Board Members including the President
The Committee shall meet at least quarterly or as needed
117
Credit and Investment Committee:
The President (Chair) and the 4 Vice-Presidents
The Committee shall meet monthly or as needed
Finance Committee:
The President (Chair) and the 4 Vice-Presidents
The Committee shall meet monthly or as needed
Voting Structure:
Voting power is based on the number of one’s subscribed share in the capital stock of the
Bank, and the share of the BRICS countries can never be below 55% of the total votes.
Currently, each of the five NDB members has equal voting rights of 20%.
NDB Funding Pattern:
In 2021, NDB admitted Bangladesh, Egypt, United Arab Emirates and Uruguay as new
members. They add over 280 million people that can benefit from NDB's mission, while
strengthening the Bank's global outreach. Also in 2021, the Bank moved to its permanent
headquarters, a modern architectural landmark located in Shanghai.
So As per the above analysis of the last 5 years of funding pattern of NDB’s in various areas
and countries we can see that over the past 5 years from 2017 to 2021 there were total of 74
projects approved with amount of 29219 million USD. In 2020 and 2021 Covid 19 related
emergency Fund was given more importance 3100 M almost 61% of funds allocated in that
area.
Diversification of Funding Portfolio in terms of currencies, tenors and types of interest rates
are part of funding strategy of NDB. In 2017, Water Projects at 1122 Million USD and India
was the highest funded with Rural Water Supply projects almost 470 million USD. In 2018,
Clean energy was the highest funded and chins was highest funded with Offshore wind power
Project at 2.7 billion USD.
In 2019, Transport Infra at 4421 USD million and China at 1478 million USD was highest
funded with transport infra at centre stage. In 2020, Emergency Assistance programmes for
Covid 19 and Loans & Disbursements worth 1 billion USD for all 5 countries were the main
fundings and In 2021 also Covid 19 related funds with China at 2487 million USD were the
main projects.
Road Map Ahead
118
During its Seventh Annual Meeting held on May 19, 2022, the Board of Governors of the
New Development Bank (NDB) approved the Bank’s General Strategy for 2022–2026
entitled “Scaling Up Development Finance for a Sustainable Future.” The General Strategy
sets the course for NDB’s evolution into a leading provider of solutions for infrastructure and
sustainable development for emerging market economies and developing countries.
Seeking to elevate NDB to a higher standard of operational excellence and development
impact, the General Strategy targets enhancements in the Bank’s capacity to mobilise
resources at scale, finance diversified types of projects, employ sophisticated instruments,
maximise impact, and continue building a robust institutional profile.
The General Strategy includes the following main targets, which reflect NDB’s primary
aspirations for the 2022-2026 periods:
 Provide USD 30 billion in total volume of approved financing from the Bank’s
balance sheet over 2022–2026;
 Extend 30% of total financing in local currencies over 2022–2026;
 Provide 30% of total financing to non-sovereign operations over 2022–2026;
 Co-finance 20% of projects (in numbers of projects) with partner MDBs over 2022–
2026;
 Direct 40% of total financing to projects contributing to climate change mitigation
and adaptation, including energy transition, over 2022–2026; and
 Increase female representation to 40% of professional and managerial staff by 2026
119
Chapter-7 References
https://www.ndb.int
120

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Available Formats

I.E.

“New Development Bank”

POST GRADUATE DEPARTMENT OF

Chapter-2 Organisational structure of NDB-----------------------------------12

Chapter-3 MOU & Agreements --------------------------------------------------14

Chapter-4 NDB Projects -----------------------------------------------------------16

Chapter-5 Funding Strategy ------------------------------------------------------71

Chapter-6 Conclusion --------------------------------------------------------------104

• NDR BOARD OF DIRECTORS HELD ITS 38TH MEETING

EXPLORING THE NEW DEVELOPMENT BANK'S (NDB) APPROACH TO

In above chart the organisational structure of NDB is explained by Diagram

List of Current MoUs

1. National Development Banks

 Agricultural Development Bank of China (September 14, 2021)

 Export-Import Bank of China (May 28, 2021)

 Brazilian Development Bank – BNDES (November 13, 2019)

 Development Bank of Southern Africa (May 28, 2018)

 China Development Bank (September 1, 2017)

2. Multilateral Development Banks

 Asian Development Bank (June 23, 2022)

 International Bank for Economic Co-operation (June 28, 2021)

 African Development Bank (October 18, 2019)

 Inter-American Development Bank & IDB Invest (April 19, 2018)

 European Bank for Reconstruction and Development (April 1, 2017)

 European Investment Bank (April 1, 2017)

 Asian Infrastructure Investment Bank (April 1, 2017)

 International Investment Bank (April 1, 2017)

 Development Bank of Latin America – CAF (September 9, 2016)

 World Bank Group (September 9, 2016)

 Caixa Econômica Federal (November 16, 2022)

 Axis Bank (October 19, 2021)

 Banco do Brasil S.A. (June 28, 2021)

 State Bank of India (May 28, 2018)

 Industrial and Commercial Bank of China (September 2, 2017)

 Agricultural Bank of China (September 2, 2017)

 Bank of Communications, China (November 10, 2016)

 Standard Bank of South Africa (August 31, 2016)

 China Construction Bank (June 8, 2016)

 Bank of China (January 14, 2016)

4. Multilateral Institutions and Initiatives

 BRICS Interbank Cooperation Mechanism (June 22, 2022)

 Collaboration on Matters to Establish the Multilateral Cooperation Center for

 BRICS Business Council (September 4, 2017)

 BRICS Export Credit Agencies (June 13, 2017)

 Russian Railways (September 6, 2017)

Chapter-4 NDB projects

Project Name REC Renewable Energy Sector Development Project

Country The Republic of India

Sector Clean Energy

Total Project Cost USD 426.83 million

Borrower The Republic of India

India today still relies heavily on thermal power, which accounts

The NDB loan proceeds to REC will be used to finance

The total cost of the Project is estimated to be USD 426.83

Financier Amount (USD million)

New Development Bank 300

Counterpart Funds 126.83

The Project is to be implemented over two years. REC will be the

Country The Federative Republic of Brazil

Sector Clean Energy

Total Project Cost USD 600 million

Borrower The Brazilian Development Bank (BNDES)