The Ministry of Finance and the New Development Bank of the BRICS will consider infrastructure projects of Krasnodar

Prospects of cooperation were discussed at the working meeting of the Mayor of Krasnodar Evgeny Pervyshov, chief economist-expert of the Ministry of Finance of the Russian Federation Olga Polikarpova and representative of the BRICS New Development Bank Charlie Tian. The meeting was held at the Forum of small and medium business "Make way for small", which takes place in the regional center in the exhibition complex "Expograd-Yug". They talked on the possibilities of financing by the BRICS Bank the projects prepared by Krasnodar.

"Krasnodar is in dire need of additional financial opportunities for the implementation of important infrastructure projects — such as the Kuban River bank protection, the construction of a medical cluster, new supply energy centers. We use all the opportunities — participate in regional and federal programs on the terms of co-financing, attract investment funds, but this is not enough for the dynamic development of the city with a million-plus population. It would be a huge plus for the city if our projects will be implemented with the help of international financial institutions — such as the New Development Bank under the guarantees and the support of the Ministry of Finance," said Evgeny Pervyshov.

The Mayor of the city and Charlie Tian discussed already existing in Krasnodar best practices in the field of infrastructure, energy, housing and communal services. The representative of the New Bank, the leader of the valuation committee said that the BRICS Bank has been financing a number of infrastructure projects in Russia in different regions in the field of energy, housing and communal services and public health. In particular, the construction of two small hydroelectric power plants in Karelia, the construction of cancer center in Tyumen and a number of others. Olga Polikarpova clarified that, if the project is approved and funding is provided, 80% of the borrowed funds will be returned to the Bank by the Ministry of Finance of Russia, 20% — by the subject of the RF together with the city.

At the meeting it was agreed that Krasnodar will provide the Ministry of Finance with initial summary information on each of the projects proposed by the city with the amount of funding and payback periods for further consideration by both government agencies and the international Bank.

The agreement on the creation of the New Development Bank of the BRICS was signed in 2014 at the VI summit of BRICS countries (Brazil, Russia, India, China and South Africa). The agreement is open for accession by new participants - the members of the UN, including developing and developed countries. At the same time, the founding documents provide for a special role for the BRICS countries, whose total share in the Bank's capital will never fall below 55%.

The Bank's goal is to finance infrastructure and sustainable development projects in the BRICS and developing countries. The NDB should become a significant source for attracting long-term investments in order to finance large-scale infrastructure projects in the Russian Federation. The founding documents of the Bank provide for the use of a wide range of financial instruments, including loans, guarantees, equity participation, technical assistance.