The Multilateral Cooperation Center for Development Finance (MCDF) has approved the first three projects under its Finance Facility totalling USD1.825million.  These projects proposed by the Asian Infrastructure Investment Bank (AIIB) in Brazil, Cambodia and China are expected to support the adoption of higher IFI environmental and social safeguards by financing institutions in the recipient countries. The three projects are:

• A USD1 million grant to Brazil’s BDMG Enhanced Environmental and Social Framework (EESF) project to support the BDMG Asia Connectivity Facility. Banco de Desenvolvimento de Minas Gerais S.A. (BDMG) is a subnational public development bank controlled by the Government of the State of Minas Gerais in Brazil. The objective of the MCDF grant is to improve BDMG’s environmental and social framework, management system and practices. In addition, the MCDF grant will support BDMG in using such enhanced environmental and social standards and systems as a template of best practices to train other banks and financial institutions in Brazil. The lessons learnt will be shared with relevant institutions across Latin America through existing networks.

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• A USD145,000 grant to provide technical assistance to the Ministry of Economy and Finance of Cambodia to develop a comprehensive masterplan supporting a multi-purpose Special Economic Zone (SEZ) in Sihanoukville. This sub-region has the only international deep-sea port in the country and is a driver of Cambodia's international investment and trade activities; it is also a critical link for connectivity within the Greater Mekong area and beyond. The MCDF grant focuses on investment cycle capacity building for integration of standards (with a focus on environmental and social standards), risk management and trade facilitation. The support provided aims to improve the future formulation of high-quality infrastructure and connectivity investment projects (project preparation) in connection with the SEZ.

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• A USD680,000 grant to China EXIM Bank (CEXIM) to assist CEXIM in enhancing and implementing the ESMS to support the China EXIM Bank Green On-Lending Facility through the application of the improved standards reflected in CEXIM’s revised policies and procedures and developing a Green Financing Framework (GFF) that can be applied also to other projects or business lines in the future, thereby strengthening the bank’s institutional capacity in this field. The MCDF grant will also enable sharing lessons learnt and research with industry peers to support building a case study for the banking industry in China to take up similar approaches.

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MCDF’s CEO, Zhongjing Wang noted, “I am delighted to announce that the MCDF Governing Committee has approved – within the first year of its establishment – its first three projects. These grants will help support improved environmental and social frameworks, management system and practices of our new partners.” Frederic Asseline, MCDF’s Head of the Program Team, welcomed the new projects stating, “AIIB has brought three innovative projects to the Finance Facility this year, involving two important new partners. We look forward to our continued engagement with AIIB in the coming year.”