In line with its mandate of mobilizing resources for infrastructure and sustainable development projects, the New Development Bank (NDB) is ramping up operations in South Africa and strengthening its project pipeline in the country.
The Bank is fully committed to bridging the infrastructure gap in South Africa, supporting projects tailored to the country’s needs and fully respecting its development priorities and strategies.
On 31 March 2019, the Board of Directors of the NDB approved three projects from South Africa with loans aggregating to approx. USD 780 mln, bringing the total amount of approvals for South Africa to over USD 1.4 billion.
In the energy sector, the approved projects contribute to reducing pollution and support South Africa’s transition to an environmentally sustainable and low-carbon economy. In the water sector, the Bank will finance construction of water transfer infrastructure aimed at reducing water scarcity in Gauteng Province, South Africa’s economic powerhouse.
On 1 April 2019, New Development Bank and Development Bank of Southern Africa (DBSA) signed the Loan Agreement for Greenhouse Gas Emissions Reduction and Energy Sector Development Project. Under the Agreement, the NDB will provide a loan without a sovereign guarantee to the national financial intermediary DBSA with an amount of up to USD 300 million.
The objective of the Project is to facilitate investments in renewable energy that will contribute to the power generation mix and reduction in carbon dioxide (CO2) emissions in South Africa, in line with the South African Government’s Integrated Resource Plan 2010 and its target of reducing greenhouse gas emissions as articulated in the National Development Plan 2030.
Original source: NDB
Published on 02 April 2019
