Cautious optimism as NDB wraps up inaugural annual meeting

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Devex

The New Development Bank approved $100 million in development financing for an energy project in Russia to cap off its first tranche of projects — mostly on renewable energy — worth $911 million during its inaugural annual meeting in Shanghai, China, last week. The initial investments hew closely to the bank’s commitment to finance green and sustainable programs in its five founding countries: Brazil, Russia, India, China and South Africa.

“Our first set of loans the bank has begun the process of establishing [the NDB’s] credentials as an institution that supports green and sustainable infrastructure," NDB President K. V. Kamath said during the opening ceremonies of the Shanghai-based institution's first annual meeting on July 20. He said that the NDB “will strive to make a positive difference quickly and effectively.”

The announcements helped the annual meeting conclude on a positive note, leaving development professionals, civil society leaders, and bank officials optimistic about the potential for the NDB to finance green and sustainable development projects. Still, concerns persist over the transparency and thoroughness of the bank’s environmental standards and other policies. And some question just how different the bank will be from existing multilaterals.

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