During the December 2024 intersessional period, the Board of Directors (Board) of the New Development Bank (NDB) approved four project proposals with loans totaling approximately US$776 million.
Madhya Pradesh State Road Improvement Project
On December 19, 2024, the Board approved a loan of up to USD 490 million to the Republic of India for the Madhya Pradesh State Road Improvement Project.
The project aims to strengthen transport infrastructure in the state of Madhya Pradesh by expanding and reconstructing state highways. It will improve road connectivity between district headquarters, major commercial cities and agricultural and industrial areas, through two-lane and four-lane highways.
The project is mainly aligned with UN SDG 9 – Industry, Innovation and Infrastructure, in particular, with Target 9.1 – Develop quality, reliable, sustainable and resilient infrastructure.
Brasilia Capital of Solar Lighting Project
On December 26, 2024, the Board approved a loan of up to 94 million euros guaranteed by the Federative Republic of Brazil to the Energy Company of Brasilia (Companhia Energética de Brasília) for the execution of the Brasilia Capital Solar Lighting Project in the Federal District of Brazil.
The project includes the modernization of the public lighting system of the Federal District of Brasilia by replacing existing lamps with light-emitting diode (LED) technology and the construction of a large-scale photovoltaic solar plant.
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The project will support the Government of Brazil’s plan to reduce total net greenhouse gas emissions in line with its long-term objectives under the Paris Agreement, by increasing the share of solar energy in the energy mix. and the promotion of energy efficiency.
The project development outcomes are primarily aligned with SDG 7 – Affordable and Clean Energy. The project will also contribute to other SDGs, including SDG 11 on Sustainable Cities and Communities and SDG 13 on Climate Action.
SAEL 300 MW renewable energy project
On December 27, 2024, the Board approved a loan of up to USD 63 million to SAEL Solar MHP1 Private Limited for the construction and operation of the 300 MW solar photovoltaic power plant in Kurnool, Andhra Pradesh, India. The project sponsor is SAEL Industries Limited, an emerging renewable energy developer in India. The project is co-financed by the NDB, the Asian Infrastructure Investment Bank (AIIB) and Societe Generale (SocGen).
The new solar plant is expected to generate more than 80 MW of electricity per year and reduce annual CO2 emissions by more than 0.63 million tonnes. The project aligns with India’s renewable energy goals and supports its commitment to the United Nations Framework Convention on Climate Change.
Shriram funds sustainable transportation project
On December 29, 2024, the Board approved a loan of USD 125 million to Shriram Finance Limited (SFL) for the Shriram Finance Sustainable Transportation Project.
NDB approved four project proposals with loans totaling approximately USD 776 million
The aim of the project is to increase the penetration of low-carbon vehicles in India and support pollution reduction by financing sustainable commercial vehicles. The NDB loan will provide long-term financing to SFL to support and expand SFL’s financing for the procurement of energy-efficient commercial vehicles for individual drivers, owners, first-time borrowers, micro, small and medium enterprises (MSMEs), including small road fleet operators with 4-5 vehicles dedicated to transportation and logistics in India.
The project is expected to primarily align with the United Nations SDG 7 – Affordable and Clean Energy, SDG 9 – Industry, Innovation and Infrastructure and SDG 13 – Climate Action. The project contributes to the NDB’s climate mitigation financing.
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