The BRICS New Development Bank (NDB) has agreed to sanction loan for four projects. These four loans are worth $811 million, including the first package of $250 million to India’s Canara Bank. The four projects in Brazil, China, South Africa and India are all in the renewal energy development sphere. The decision came by the NDB at the board of governors on the sidelines of the International Monetary Fund (IMF) and the World Bank spring meetings in Washington, DC.
The money, which is to be disbursed soon, will be used to support the renewable energy projects with a capacity of 2.379 MW in the four countries. The NDB has decided to provided loan worth $300 million to Brazil, $81 million to China, $250 million to India and $180 million to South Africa. The bank has estimated that the renewable energy field projects with a capacity of 2.37 MW together can help reduce the amount of harmful emissions by 4 million tons annually.
The money being given to the India’s Canara Bank will be utilized as an ‘on lending to projects for generating 500 MW additional renewable energy capacity’. A NDB official said, “There are many more new projects in the pipeline including projects from Russia. They are at various stages of considerations or appraisal.”
The New Development Bank which was created by Brazil, Russia, India, China and South Africa started its operations in July, 2015 with initial authorized capital of $100 billion. The headquarter of the bank is in Shanghai. The bank was established by the BRICS countries to fund infrastructure projects in emerging economies for sustainable development.
The ministers are also planning of creating a rating agency of their own which will tackle the western dominance in this sphere. The bank is being seen as a challenge to others banks such as the World Bank. The first project that the bank has approved are in area related to the green and renewable energy. NDB is led by KV Kamath, a former private banker from India.