BRIC bank loans of $300 million will target Russian renewable energy projects in the Far East. The loans will finance projects in wind, solar, and small hydropower energy generation technologies. Russia is increasingly targeting its Far Eastern regions as it intensifies its strategic policy goals in Asia.
Owned equally by the so-called BRIC nations, the New Development Bank has approved four new infrastructure and development projects with loans totaling $1.4 billion. New investments bring the BRIC bank’s portfolio to 42 projects worth $11.6 billion.
The decision to finance the projects in India, Russia, and South Africa was made at the 21st meeting of the board of directors in Shanghai earlier this month, according to an NDB statement released on Sept. 16, 2019.
South Africa received around $480 million for improving arterial transport routes. The funds will cover works at the existing toll sections of national roads, construction of additional lanes, and development of related infrastructure, such as bridges and intersections.
Regarding the Russian project, a statement from the NDB news service noted: “The objective of the project is to facilitate investment in renewable energy generation plants that will contribute to Russia’s power generation mix in line with the country’s Energy Strategy 2030, and to avoid carbon dioxide emissions.”
Far East Russia borders China, Mongolia and North Korea, with maritime borders with Japan and the United States across the Bering Strait, while the territory comprises Kamchatka, Primorsky and Khabarovsk Krai, Amur, Magadan and Sakhalin Oblasts, Yakutia and Chukotka. Although it is technically part of Siberia, it is administered as a separate region in Russia.
India will enjoy two equal loans totaling $626 million for road development projects in the southeastern state of Andhra Pradesh. Around 3,000km (1,864 miles) of state and regional highways will be widened and more than 470 bridges will be reconstructed, according to development plans.
The NDB was established in 2014 by the BRICS states (Brazil, Russia, India, China, and South Africa) with an initial capital of $100 billion. The body’s goal is to mobilize resources for infrastructure and sustainable development projects in emerging economies.