India: New Development Bank and EIB Sign Memorandum of Understanding to Structure Future Cooperation
1 April 2017
European Investment Bank and New Development Bank signed Memorandum of Understanding to structure future cooperation between the two institutions. The MoU was signed by Mr. K.V. Kamath, the President of the NDB and Mr. Werner Hoyer, the President of EIB on the sidelines of the NDB Second Annual Meeting in New Delhi, India.
According to the MoU, the NDB and EIB intend to explore cooperation in the areas of infrastructure, environment, and sustainable development projects in accordance with their respective mandates and policies. The two banks will seek to co-finance projects of mutual interest in eligible countries, including projects that contribute to the enhancing of sustainable infrastructure as well as engage in other initiatives.
“I am pleased to sign this Memorandum of Understanding together with EIB President Mr. Werner Hoyer. We greatly appreciate the support offered by EIB during the formation stage of NDB and look forward to further advancing our cooperation,” said Mr. K.V. Kamath, President NDB. “The MoU structures our cooperation and lays the groundwork for working together for many years ahead. Collaboration between NDB and EIB will improve the ability of both banks to meet the expectations of their respective member states,” he added.
“Establishing partnerships with key national and global institutions is essential for NDB in order to provide the best possible products and services to our members. We will strive to make a positive difference by complementing the efforts of other multilateral development banks, including EIB,” said Mr. K.V.Kamath.
“Strengthened cooperation, enhanced knowledge sharing and stronger institutional and operational collaboration between leading international financial institutions is crucial to develop synergies and more effectively unlock new investment that improves people’s lives and transforms economic opportunities. The European Investment Bank and New Development Bank have worked closely during the formation stage of the NDB and we look forward to building on this track record to jointly back transformational infrastructure around the world. As the EU Bank, we share the New Development Bank’s commitment to support sustainable development and climate related investment. We look forward to enhancing this partnership in the years ahead,” highlighted Werner Hoyer, President of the European Investment Bank.
The EIB will invest EUR 600 million in construction of two new lines of the metro rail and acquisition of 102 modern metro cars in the city of Pune, India. The new metro rail system will reduce commuting hours for more than three million people living in the city. This is the fourth EIB investment in metro rail systems in India; to date the EU`s Bank supported metro rail systems in Bhopal, Bangalore and Lucknow. With the Pune investment, the total amount of the EIB approved support for metro rail systems in India reached EUR 2 billion.
The EIB today confirmed new backing for investment across India. The EIB will increase support for onshore wind investment through expansion of an existing lending programme with the State Bank of India, has approved a new credit line with Yes Bank to accelerate private investment in wind and solar projects and expects to work closely with Indian partners to support offshore wind projects.