MOSCOW – The New Development Bank aims to finance the sustainable progress of infrastructure projects in developing economies.
The total value of investment projects approved by the New Development Bank (NBD) of the BRICS member countries has exceeded $10 billion, according to Russian Foreign Minister Sergei Lavrov.
“Boosting BRICS strategic associations is one of Russia’s foreign policy priorities,” the Russian foreign minister said in an interview with Suriname’s National Information Institute.
According to Lavrov, the economy is an integral part of the BRICS association, “particularly since this group of countries outperformed the G7 in joint economic power.”
“The successfully operating NBD has already approved investment projects valued at over $10 billion. The BRICS Contingency Reserve Agreement, designed to help maintain the financial stability of the five-country group, is also working very effectively,” said the Russian foreign minister.
The BRICS bloc, formed by Brazil, Russia, India, China and South Africa, founded NBD in 2014. Each country owns 20% of the shares and benefits from the same voting rights at the Shanghai-based institution.
The purpose of this institution, whose initial authorized capital was $100 billion, is to finance the sustainable development of infrastructure projects in developing economies.
Meanwhile, last month Brazilian Environment Minister Ricardo Salles said he continues to negotiate a $500 million loan with the BRICS New Development Bank, the NDB.
The funds will be passed on to Brazilian municipalities to carry out sanitation , waste treatment and renewable energy works. The contribution should occur early next year, reported Brazil Agency.
“The work now is to study the best way of immediate implementation of the resource, whether it is the transfer to consortia of municipalities, individual municipalities or assemblies of waste disposal structures made by the federal government in partnerships with the municipalities,” said Ricardo Salles.
The Environment Minister attended a meeting in Sao Paulo with environment ministers of BRICS in the framework of preparations for the BRICS summit, which will will be headquartered in November in the country’s capital .