VEB and BRICS New Development Bank Consider Consolidated Financing of Projects in Russia

A delegation from Vnesheconombank headed by First Deputy Chairman - Member of the Board Nikolay Tsekhomsky took part in the Annual Meeting of the Board of Governors of the New Development Bank (31 March - 2 April 2017, India, New Delhi).

Nikolay Tsekhomsky had a meeting with the President of the New Development Bank, Mr. Kundapur Vaman Kamath. The parties discussed the prospects of collaboration in the sphere of transport infrastructure development projects in Russia.

“At the earliest possible time, we have to start putting our agreements into practice, identify the projects of mutual interest and set forth the conditions of our collaborative work. Presently, VEB considers making investments in a number of facilities having strategic significance for our country, such as, for example, a new air terminal in Khabarovsk. Such projects are perfectly in sync with the mandate of the NDB and we see plenty of opportunities for cooperation in this sphere,”- noted VEB’s First Deputy Chairman.

Nikolay Tsekhomsky also gave a presentation at a financial seminar. His presentation was focused on the issues of financing sustainable development projects.

In his speech, VEB’s First Deputy Chairman noted: “This year Vnesheconombank celebrates 10th anniversary of its activities as a development institution. During this time, we have implemented a number of large-scale infrastructure projects in Russia. According to the priorities of the new strategy, this work will be continued, and VEB counts on support of its BRICS partners in this respect.” “The importance and diversity of mechanisms available to development institutions for providing support to their clients in the preparation and subsequent active management of projects should not be underestimated. This will enable banks to upgrade their credit portfolios and minimize risks inherent in large-scale development projects,”- Nikolay Tsekhomsky said.

The other speakers at the session were the heads of the biggest financial institutions of India (ICICI), Saudi Arabia (Islamic Development Bank Group) and the RSA (DBSA). The speakers put more focus on inherent risks of long-term infrastructure projects, bank-government interaction during the implementation of development projects, management of troubled assets and corresponding aspects of the national laws.

The New Development Bank (NDB) is an international financial organization, a bank for development, established by the BRICS Member States (Brazil, Russia, India, China and South Africa). The goal of the Bank's operation is to finance infrastructure and sustainable development projects in the BRICS member states and developing countries. The supreme collective body of the bank is the Board of Governors which comprises a governor and its deputy from each member country. In 2015, Mr. Kundapur Vaman Kamath, one of India’s most accomplished and acknowledged business leaders, was appointed President of the New Development Bank. Since 1996, he has held office as President of ICICI, India’s largest bank.

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