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NDB’s COVID-19 Emergency Assistance
COVID-19, which emerged in late 2019, quickly developed into a global crisis that disrupted health systems, economic activity and livelihoods worldwide. As infections surged, several countries experienced severe strain on healthcare infrastructure, while lockdowns and mobility restrictions led to widespread loss of income and livelihoods and significant contraction in economic activity. Governments were forced to balance urgent healthcare spending and social support amid limited fiscal capacity.The New Development Bank (NDB) played a crucial role by providing rapid financing support to member countries. NDB was the first multilateral institution to approve a COVID-19 loan facility and to issue a COVID-19 related bond in China. The Bank approved a series of loans worth USD 9 billion equivalent in pandemic-related assistance, including measures to aid economic recovery in its member nations. The financing helped member countries strengthen healthcare systems, protect vulnerable groups, stabilise livelihoods and rejuvenate economic activity.Key success factors included NDB’s strategic adaptability, rapid and agile financing, strong alignment with country systems, and favourable lending terms, enabling timely and targeted crisis response. Its focus on member needs, innovative bond issuances, and coordination with partners further strengthened the impact. Key takeaways include the importance of speed, flexibility, and country-driven approaches in crisis response, demonstrating how adaptable financing frameworks can enhance institutional effectiveness in future global shocks.
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The Pará Sustainable Municipalities Project
Pará is the second largest state in Brazil by total land area. Population influx during the construction of large infrastructure projects in 1970s and 2010s has not seen commensurate improvement in urban development. The Pará Sustainable Municipalities Project was designed to address the long-standing deficits in urban roads, drainage, sanitation, and digital connectivity in underserved municipalities of the state.Approved by NDB with financing of USD 50 million in March 2018 as part of a USD 125 million project co-financed with CAF, it marked both NDB’s first sovereign guaranteed project in Brazil and its first co-financed operation globally. The project focused on urban road paving and drainage, solid waste management, and fibre-optic expansion. Early results from NDB-financed activities indicate strong development impact, including improved access to paved roads, reduced flooding, better access to public services, increased local economic activity, and higher municipal tax revenues.Overall, the project offers an important example of how targeted infrastructure project can deliver inclusive and resilient growth, supported by strong institutions, partnerships and adaptive implementation. At the same time, it also highlighted the importance of better design, risk management, and capacity building for future projects.
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Renewable Energy Sector Development Project
India’s power sector is heavily dependent on fossil fuels. This has resulted in high greenhouse gas emissions, air pollution, and resource depletion, posing significant environmental and health risks. Meanwhile, electricity demand has continued to rise, driven primarily by industrial and commercial consumption. Recognising these challenges, the Government of India has set renewable energy installed capacity target of 500 GW by 2030.In October 2019, NDB approved a USD 300 million loan to Rural Electrification Corporation (REC) Limited to finance the construction of renewable energy power plants and associated evacuation transmission lines. The project delivered substantial development, environmental, and economic benefits. Operational renewable energy capacity of 655.6 MW was installed, contributing meaningfully to India’s clean energy supply. Beyond generation capacity, the project facilitated critical transmission infrastructure. As NDB’s first non‑sovereign operation in India, the Rural Electrification Corporation project marked the Bank’s initial engagement in green financing through a domestic development finance institution in India.Key takeaways include the importance of regulatory stability, institutional capacity, and robust project preparation in renewable energy investments.
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Renewable Energy Development Project
A key structural constraint in the economic growth of South Africa has been its energy sector, which relies heavily on coal, accounting for about 90% of the energy mix in 2016. This has led to high GHG emissions and inefficiencies. Persistent gaps in infrastructure, financing, and grid capacity negatively affected economic growth and requires substantial investment, making private sector participation critical. To address this, the government introduced the Integrated Resource Plan (IRP), prioritising renewable energy expansion.The New Development Bank supported this transition by lending ZAR 1.15 billion to the Industrial Development Corporation (IDC), which financed renewable energy sub-projects. The initiative has contributed to an increase of 250 MW electricity capacity, generating about 774 GWh annually and reducing up to 0.8 million tonnes of CO₂ emissions each year. The projects also incorporated hybrid solar and storage systems that enhanced grid stability. The project created around 4,000 employment opportunities during construction peak and a more inclusive society through Black Economic Empowerment (BEE) shareholding.Key takeaways from the project included the importance of alignment with national priorities, adoption of innovative technologies for grid reliability, and strong public-private partnerships to mobilise large-scale investment.
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Madhya Pradesh Major District Road Project
Madhya Pradesh, India’s second‑largest state by area, faced persistent infrastructure challenges due to its landlocked geography, predominantly rural population, and low per capita income. The lack of adequate transport infrastructure in the state constrained access, raised transport costs, and limited market integration.In November 2016, NDB approved a sovereign loan of USD 350 million to upgrade 1,500 km of Major District Roads to intermediate lane width with all‑weather access, implemented by Madhya Pradesh Road Development Corporation. The project’s expected impact was realised through increased productivity and economic growth in the predominantly rural areas of the state based on increased capacity, efficiency, and improved accessibility for the local population. The project contributed to substantial expansion of employment and income opportunities for the beneficiaries.Key takeaways from the project include the importance of alignment with local development needs and the role of capable implementing agencies and robust institutional arrangements in translating finance into tangible outcomes.
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Luoyang Metro Project
Luoyang city of Henan province in central China has rich historical and cultural heritage sites and attracts large numbers of tourists. Despite its cultural prominence and growing urbanisation, the city faced urban mobility challenges. In recognition of the need to create an efficient, integrated, and sustainable urban transit system in Luoyang, the municipal government developed a four-phase strategy to create a metro network in the city, starting from Metro Line 1 (Line 1) that connects the eastern and western parts of the city with the historical city centre.In July 2018, the New Development Bank (NDB) approved a sovereign loan of USD 300 million to support Luoyang Metro Project, representing about 10.8% of the total estimated project cost of roughly USD 2.8 billion. Passenger satisfaction reached 98% in 2022, exceeding the appraisal target of 97%.The project aligned with national policies promoting green urban mobility and provided an opportunity for multilateral development financing to support sustainable infrastructure in medium sized cities, an area where NDB demonstrated impact. Technological innovations under the project have been replicated in other city metro systems in China.
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Putian Pinghai Bay Offshore Wind Power Project
China’s rapid economic growth has relied heavily on coal, which accounted for around 73% of electricity generation in 2015. In response to the need to reduce reliance on carbon-intensive energy sources and to ensure a stable power supply for sustained growth, the government has prioritised scaling up renewable energy. Coastal provinces such as Fujian faced challenges, including limited scope for further thermal and hydropower expansion, alongside rising demand from industrialisation and urbanisation. By 2018, Fujian was already anticipating a power shortfall, underscoring the urgency of developing alternative energy solutions.The Putian Pinghai Bay Offshore Wind Power Project, approved by NDB in 2016, was designed to harness offshore wind resources to generate clean electricity and support China’s energy transition. The project has delivered significant environmental benefits, producing over 1,043 GWh of clean electricity in 2022 and avoiding approximately 1.02 million tonnes of CO₂ emissions annually. The project reinforced China’s commitments to the Paris Agreement and its “dual carbon” pledge. Further, the project has supported regional development by creating jobs, enhancing technical capacity, and facilitating the establishment of a new industrial base for offshore wind manufacturing.Experiences from the project’s design and construction provided valuable lessons for future offshore wind development. A larger project was commissioned in the third phase of the Putian Pinghai Bay wind farm, highlighting the project’s key role in demonstrating technology and helping increase offshore wind’s share in China’s energy mix. This project’s demonstration effect and scalability provided a blueprint for future offshore wind developments globally.
