In a historic move, the New Development Bank (NDB) board convened for its 42nd meeting in Dubai, United Arab Emirates, on November 28, 2023.
This marked the first time the Board met in a non-founding member country, showcasing NDB’s commitment to fostering collaboration among emerging markets and developing nations.
Key agenda items were deliberated during the meeting, including project approvals, the funding plan and strategy 2024, independent evaluation of projects, and membership expansion.
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Project approvals
The Board approved three significant projects:
Loan to the Republic of India for the Gujarat Rural Road Program
The Board greenlit a loan of up to US $500 million to enhance rural connectivity in Gujarat, which is expected to benefit at least 12.65 million people. The Gujarat Rural Road Program aligns with NDB’s General Strategy and Sustainable Development Goal (SDG) 9, focusing on resilient infrastructure and sustainable industrialisation.
Loan to the Republic of India for the Bihar Rural Roads Project (Phase 2)
A loan of US $638.12 million was approved to improve rural transport connectivity in Bihar, benefiting around 2.25 million people. Aligned with SDG 9 and SDG 10, this project aims to reduce inequality by providing first-time road connectivity to rural habitations.
Loan to the Bank of Huzhou for the sustainable infrastructure project
NDB approved a US $50 million equivalent loan in RMB to the Bank of Huzhou for sustainable infrastructure projects in Zhejiang Province, China.
This marks NDB’s first non-sovereign loan in China and contributes to SDGs 9, 13, 11, and 6, emphasising resilient infrastructure, combating climate change, sustainable cities, and access to water and sanitation.
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Updates and Evaluations
The Board received updates on ongoing projects, independent evaluations of past initiatives, and progress reports on implementing NDB’s General Strategy for 2022-2026.
Independent evaluations covered COVID-19 Emergency Programme Loans, Brazil Renewable Energy Projects, South Africa Greenhouse Gas Emissions Reduction, and China Luoyang Metro Project.
Funding and strategy approval
The Board approved the Annual Funding Plan and Strategy for 2024, outlining a clear roadmap for the Bank’s borrowing activities in the upcoming year. The meeting also included discussions on funding activities in Q3 2023.
Membership expansion and future plans
Acknowledging the progress made in membership expansion, the Board affirmed its commitment to broadening the membership base gradually. The Board also discussed proposed amendments to business travel arrangements and the Board’s Rules of Procedure.
Additionally, the Board Workplan for 2024 was a key topic of discussion.
Preceding the central meeting, the 29th meeting of the Audit, Risk and Compliance Committee and the 25th meeting of the Budget, Human Resources, and Compensation Committee took place on November 27, 2023.
Background Information
The New Development Bank, established by Brazil, Russia, India, China, and South Africa, focuses on mobilising resources for infrastructure and sustainable development projects in BRICS and other emerging market economies.
In 2021, NDB initiated membership expansion, welcoming Bangladesh, Egypt, United Arab Emirates, and Uruguay as new member countries.
