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New Development Bank (NDB) approves 2 projects of Brazil & India worth $ 800 million

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On October 24, 2019, the New Development Bank (NDB)’s  Board of Directors has approved two projects namely, Fundo Clima Brazil National Climate Fund Project ($ 500 million )& Renewable Energy Sector Development Project ($ 300 million) with the loans totaling $ 800 million. Now the Bank’s portfolio stands at 44 projects with loans aggregating to $ 12.4 billion.
Key points:
i. Fundo Clima Brazil National Climate Fund Project: It is undertaken by the Federative Republic of Brazil with the aim to capitalize Fundo Clima (a fund established in 2010 under the Ministry of Environment (MMA) to respond to the National Policy on Climate Change) to expand its on-lending operations to sub-projects focusing climate change mitigation and adaptation. The loan given for urban mobility, waste treatment, renewable energy, energy efficiency under this project by NDB is expected to be fully committed by 2024. The Bank will provide a sovereign loan of USD 500 million.

ii. Renewable Energy Sector Development Project: This project is undertaken by Government of India (GoI) aimed at improving the energy mix in India by providing funds for the construction and commissioning of renewable energy sub-projects, which will create much-needed jobs and also contribute to the reduction of carbon emissions and environmental pollution. The Bank will provide a loan of USD 300 million to REC Limited (ormerly Rural Electrification Corporation Limited.

About NDB:
Formation: July 2014
Headquarters: Shanghai, China
Membership: Brazil Russia India China South Africa (BRICS)
President: K.V. Kamath
It is a multilateral development bank established by the BRICS states to mobilize resources for infrastructure and sustainable development projects in BRICS and other developing countries.