NDB to help emerging economies

With open arms to more potential members, the New Development Bank will make greater efforts to advance economic growth in emerging economies and help address pressing tasks such as climate change, said Dilma Rousseff, president of the New Development Bank.

To help emerging countries achieve stable development and avoid crises, the NDB is positioned to facilitate sound development in infrastructure in logistics, education, digital services and healthcare, Rousseff said during an interview in September after she received the Chinese Government Friendship Award — the highest honor that China gives to foreign experts who contribute to the nation's development.

Indeed, the NDB has been stepping up its efforts to finance infrastructure projects in member countries. Headquartered in Shanghai, the NDB has cumulatively approved loans of $35 billion for about 100 projects.

Key projects include the Mumbai Urban Transport Project-III in India, the Serra da Palmeira Wind Power Project in Brazil, and the Jiangxi Urban and Rural Cold Chain Logistics Project in China, according to a Xinhua News Agency report.

At the end of August, the NDB announced a $280 million loan agreement with Transnet, South Africa's leading freight transport and logistics company, to support the modernization and improvement of the country's freight rail sector.

During the 44th meeting held by the bank's board of directors in late August, a $1-billion loan was approved for financing South Africa's water and sanitation infrastructure development. Another $150-million loan was awarded to China's Bank of Communications Financial Leasing Company for the acquisition of at least three liquefied natural gas carriers.

In January, the NDB inked three loan agreements with India to boost the country's transportation, water and sanitation infrastructure in designated areas. The combined value of the loans is about $700 million.

As Rousseff pointed out, developing countries are limited in their capacity to address climate change. There should be more renewable energies to be better developed and used, she said.

And as China is already a world leader in the electric vehicle industry, she hopes the nation will make more progress in energy storage and stable renewable energy supply.

According to NDB's strategy between 2022 and 2026, climate change mitigation will be one major focus, as the majority 40 percent of the bank's $30 billion financing to be provided by 2026 has been reserved for such green goals.

After issuing a 6-billion-yuan ($840 million) five-year panda bond — yuan-denominated bonds issued by overseas institutions in the Chinese onshore market — at the beginning of the year, the NDB issued in July an 8-billion-yuan three-year panda bond. The bonds are part of the bank's efforts to finance member states' infrastructure and sustainable development while addressing the United Nations' Sustainable Development Goals.

Founded by Brazil, Russia, India, China and South Africa in 2014 with the purpose of mobilizing resources for infrastructure and sustainable development projects in emerging markets and developing countries, the NDB was formally opened in July 2015, with its headquarters in Shanghai.

Model for Global South

In 2021, the NDB began expanding its membership and admitted Bangladesh, Egypt, the United Arab Emirates and Uruguay as its new member countries.

"The partnership within the NDB does not sit on the development goals of respective members but rather is representing the vision of member countries and better connecting them," Rousseff said, adding that the NDB welcomes other countries.

According to Rousseff, China's development trajectory can serve as a good reference to the Global South. The nation's experiences show that economic, infrastructure and technological development can overcome barriers, sanctions and obstacles, she said.

Applauding China's achievements in its socioeconomic and cultural development over the past 75 years, Rousseff said that it is now taking the lead in innovation, helping to advance globalization and reform.

The country's stress on the development of new quality productive forces has shown its dedication to scientific and technological development.

"I feel like there is no one single moment that I can have a full picture of China, as it is always developing, taking on a new look. The ever going reform and opening-up has been refreshing China's image," she said.

The stronger ties between China and Brazil are another good example, showing that partnership among the Global South countries can help facilitate economic growth and improve people's wellbeing, she said.

Under the Belt and Road Initiative, China and Brazil have strengthened their cooperation in terms of trade and technology. At the same time, Brazil has served as China's largest food supplier over the past few years, playing an important role in China's food security, said Rousseff.

Meanwhile, Chinese companies' presence in Brazil is of great importance, facilitating Brazil's re-industrialization, she said.

As Rousseff further explained, there are several highlights in terms of China's investments in Brazil.

These include the China National Offshore Oil Corporation's concession contracts with Brazil's leading oil and gas company Petrobras for oil exploration in the Pelotas Basin in southern Brazil.

Also, the less-developed areas in Brazil have benefited from China's investment in power and overall energy supply, and high-voltage direct transmission lines built by China have helped address Brazil's energy shortage, she said.

Since 2009, China has been Brazil's largest trading partner and a major source of investment, while Brazil is China's largest trading partner in Latin America. Trade volume between China and Brazil reached $181.53 billion last year.