The Asian Development Bank has formed a tie-up with the New Development Bank, formerly known as the BRICS Development Bank, to co-finance sustainable development projects in Asia.
The two multilateral lenders have signed a memorandum of understanding through which they aim to co-invest in sectors including renewable energy, energy efficiency, clean transportation, sustainable water management and sewage treatment.
“This MOU creates a platform for sharing knowledge and seeking co-finance opportunities,” said Kundapur Vaman Kamath, president of NDB, in a statement.
“There are several synergies between the two organisations and we hope that this MOU will harness these and benefit both in the long run. This partnership will enable NDB to leverage insight of ADB and help us strive towards our common development goals.”
The NDB looks to approve loans totalling $1.5 billion by the end of this year, according to the bank’s website. The organisation plans to boost its aggregate lending to between $2.5 to $3 billion in 2017.
The bank is set to disburse its first set of loans after approving a $811 million package to 2.4GW worth of renewable projects last April. NDB was founded two years ago by Brazil, Russia, India, China and South Africa, which have brought in capital of $1 billion as initial contribution.
ADB has been busy sealing partnerships with peers lately, having approved a $100 million loan to a Pakistani road project alongside the Asian Infrastructure Investment Bank last month, its first co-investment with the Beijing-based institution.