The New Development Bank (NDB), set up by the BRICS countries, will devote about two-third of its loans to sustainable infrastructure development in the next five years, the bank announced today. Physical infrastructure is a critical enabler of economic growth and sustainability is essential for the physical and social environment of current and future generations, the bank said in its General Strategy 2017-2021. The NDB also retains the flexibility to provide funding to other areas including traditional infrastructure and sustainable development projects in line with the borrowing country’s overall development agenda.
The NDB was founded by BRICS nations — Brazil, Russia, India, China and South Africa — during their fifth summit in Fortaleza in July 2014 and was launched a year later. The Shanghai-headquartered bank is an expression of the growing role of BRICS and other emerging markets in the world economy and their greater willingness to act independently in matters of international economic governance and development.
The NDB is designing a strategy to expand membership to other countries to ensure geographic diversity and a reasonable mix of advanced, middle-income and lower-income countries. The bank is also planning more regional offices worldwide. The first regional office is being set up in Johannesburg, state-run Xinhua news agency reported.