BRICS New Development Bank Approves New Projects
One of several recently formed infrastructure development banks, the New Development Bank (NDB) of the BRICS emerging economies, will approve a batch of investment projects worth up to US$3 billion by the end of this year, according to Russia’s President Vladimir Putin. “This year, the NDB is to approve a second package of investment projects worth $2.5 – $3 billion in total. I am convinced that their implementation will not only be a boost to our economies but will also promote integration between our countries.”
The bank was established in mid-2014 by Brazil, Russia, India, China, and South Africa to finance infrastructure and sustainable development projects both within BRICS and other emerging economies. Putin said it had already approved seven investment projects worth around US$1.5 billion.
Thus far, the NDB has been catching the eye as all the projects it has been financing are in the green energy sector, with loans being fairly evenly spread among the investor nations. The bank is capitalized at US$50 billion, half of that of the World Bank; it, however, has a call on another US$50 billion from members. The projects the NDB has invested in so far have been in tandem with either the World Bank or the Asian Development Bank.
The 9th BRICS summit is about to be held, in Xiamen, China, from September 3rd-5th.
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