The board of directors of the New Development Bank is likely to meet next month to begin working on recruitment as well as other infrastructure issues that are required for making it operational and ready to start lending in local currency by next year.
“The building for the Bank is likely to be provided by the Chinese government in Shanghai but other issues on hiring of executives and support staff still has to be finalised. A meeting of the board of directors of the NDB is likely to take place in August or September,” said a senior government official, adding that the key priority would be to find the right kind of executives and bankers for the job who would have experience in multi-lateral funding agencies.
The $100 billion NDB is promoted by Brazil, Russia, India, China, and South Africa for investments in infrastructure in the five nation bloc.
While the Board of Governors of the NDB are ministerial rank representatives from each of the five founding members, the board of directors are likely to be senior officials from each of the five countries. The directors would be responsible for the conduct of its general operations and approve it organisational structure.
Headquartered in Shanghai, the Bank’s first president KV Kamath has announced that it would start lending in local currency by April 2016. “I think we will start lending process sometimes early first quarter next year (April) …The idea is that by April next year, we will create a state of projects from all the member countries (for lending),” he had said earlier this month.
Accordingly, the infrastructure and the staff of the Bank would have to be readied by the year end, said the official, pointing out that it can then only begin appraising projects for lending.
However, finding the right staff for the Bank could be a challenge. “Working out of Shanghai, there would obviously be a problem of language barrier. But more importantly, not everyone has the required experience of working in a multi-lateral funding agency,” said the official.
Apart from putting out advertisements for executives, the Bank could also consider deputation of officers from member nations. Last week, the Export-Import Bank of India signed a multilateral agreement to cooperate with NDB along with other member development banks of BRICS nations. The agreement is aimed at capacity building of personnel, including project development skills along with sharing of knowledge, information and best practices; promotion of joint events, research and programmes; development of effective and sustainable financing solutions for projects of mutual interest.