Project Approval and Implementation Process at the BRICS New Development Bank
The BRICS New Development Bank (NDB) aims to conduct the structuring, negotiation, review, and approval of loans with high speed and efficiency, while maintaining project quality and risk-management standards. In general, the project cycle at the Bank includes the following stages:
Project Cycle Stages
- Project identification
- Project concept preparation (project definition)
- Project design and appraisal
- Internal review process after appraisal
- Loan-related negotiations
- Project approval by the Board of Directors of the BRICS New Development Bank
- Project implementation, budget allocation, and supervision
- Final project evaluation
Essential Analyses in the Project Preparation Process
- Environmental, social, and developmental analysis
- Screening and verification of project approval requirements
- Credit-risk analysis and financial appraisal
- Legal and regulatory reviews
- Compliance control, anti-money laundering, and counter-terrorism financing management
- Alignment of the project with the overall strategy of the BRICS New Development Bank
- Analysis of the project’s development outcomes
Identification
Projects are identified during the planning and initial review process in countries
(while preparing the preliminary list of projects).
Preparation
A request is received. In fact, a project concept document is prepared,
reviewed by experts, and submitted to the Executive Vice President and
Managing Director for approval.
Appraisal
- An explanatory note or Memorandum of Understanding is prepared.
- Project feasibility is assessed based on 10 criteria.
- A draft project document is prepared for the Board of Directors and revised after expert review.
Negotiation & Approval
- Board discussions on the draft project document and loan eligibility.
- Credit and Investment Committee reviews supporting documents.
- Final decision is taken by the Board of Directors.
- The agreement is signed and project implementation begins.
Implementation
- After the first disbursement, projects are referred to the regional office.
- Implementation support is provided.
- Progress and performance reports are prepared.
- Periodic supervision missions are conducted annually or twice a year.
- Technical compliance of the project is monitored.
Completion
- All stages of loan repayment and project completion are finalized.
- The borrower prepares the project completion report.
- A completion review mission is carried out.
- The Bank’s Credit and Investment Committee approves the completion report.
- The Independent Evaluation Office validates the completion reports.
Projects Not Supported by the BRICS New Development Bank
- Production or trade of prohibited products under national laws or international agreements
- Wildlife trade or products related to endangered species
- Transboundary transfer of prohibited waste (Basel Convention)
- Production or trade of weapons and ammunition, military materials, strong alcoholic beverages, tobacco, loose asbestos, gambling, and similar activities
- Activities contrary to biodiversity protection or cultural heritage laws
- Deforestation operations or procurement of logging equipment in tropical or old-growth forests
- Destructive fishing practices harmful to sensitive species
- Transport of oil or hazardous materials using tankers that do not meet IMO standards
