BRICS Bank Approves $1B for Urban Renewal in South Africa and $700M for Lucknow Metro in India

The 51st Board of Directors meeting of the New Development Bank (NDB) took place at its headquarters in Shanghai from 9 to 10 June 2026. During the board meeting, NDB approved a loan of USD one billion (R16B) to upgrade urban infrastructure in South Africa, and another loan of USD 700 million to build the Lucknow Metro Project in India.

In the case the Lucknow Metro in India, NDB is providing a sovereign-backed loan of ₹5,801 crore in local currency for implementing Phase 1B. The Project will extend the East-West Corridor linking Chargh to Vasant Karj by 11.16 kilometers. Being electric powered and a more efficient mass transit solution, it has the potential to reduce carbon emissions.

The eight beneficiary municipalities in South Africa are Johannesburg, Cape Town, Tshwane, Ekurhuleni, Ethekwini, Nelson Mandela Bay, Mangaung, and Buffalo City. These metropolitan areas are home to 22 million people, who make up nearly 40% of the total population of South Africa. The cities are also South Africa’s main population and economic centers. The funding will not only improve the lives of citizens but will also contribute to bettering the business environment in these cities.

The budget for city infrastructure fell from 30% of the GDP in the early 1980s to just 15% in 2022. Thus, the city faced challenges in maintaining existing and building new infrastructure. The financing will go to improving water supply and sanitation, electricity access, and solid waste management.

Inasmuch as its alignment with the UN Sustainable Development Goals (#SDG), the NDB favors projects with a green component or at least incorporate environmental mitigation measures. In the cases of India and South Africa, these are specifically: SDG13 for Climate Action, SDG11 for Sustainable Cities, SDG9 for Industry, Innovation and Infrastructure, SDG6 for Clean Water and Sanitation, SDG7 for Affordable and Clean Energy.