Mar 27, 2013

• Institutions may collaborate in sustainable projects and the development of infrastructure in Africa

On March 27, the president of the Brazilian Development Bank (BNDES), Luciano Coutinho, signed two agreements that strengthen relations between the Brazilian bank and the development institutions in the BRICS. The documents pave the way for collaboration between countries in the bloc, with initiatives to foster a low-carbon economy and to develop infrastructure on the African continent.

The agreements were drawn up during the BRICS 5th Summit, which is being held in the city of Durban, in South Africa. Besides the BNDES, the signatory institutions include the Bank for Development and Foreign Economic Affairs (Vnesheconombank), the Export-Import Bank of India, the China Development Bank (CDB) and the Development Bank of Southern Africa (DBSA).

The BRICS Multilateral Cooperation and Co-financing Agreement for Sustainable Development seeks to establish the basis for coordination and an exchange of information between the development institutions in the five countries, aimed at improving mechanisms for sustainable development and building partnerships in this area.

According to the interests and the rules within each development institution, agreements may be signed to finance projects connected to sustainability and the low-carbon economy. Examples include projects for mitigating and adapting climate change, infrastructure projects in keeping with the principles of sustainable development, investments in renewable energy and energy efficiency, or that foster the sustainable use of biodiversity, ecosystems and the regeneration of natural resources, in addition to efforts aimed at developing, disseminating and transferring environmentally-sustainable technology.

The BRICS Multilateral Agreement on Co-financing for Infrastructure in Africa is aimed at facilitating bilateral pacts between development banks in the bloc in order to provide support to develop infrastructure on the African continent. Another aim is foster and facilitate the trade of goods and services, as well as investments between BRICS countries and Africa.

By means of bilateral accords that will be made in the future, the countries may structure and co-finance projects of mutual interest on the continent, providing support for investments from companies in their respective countries, for example.