Connecting Waterpeople

NADB to invest in two water projects

NADBank Managing Director, Calixto Mateos announces Bank to invest in new project types

  • NADB Board of Directors approves expanding project eligibility for financing.

  • US$87.5 million approved in financing for four new environmental projects. 

About the entity

North American Development Bank NADB
NADB is a binational financial institution established by the Governments of the United States and Mexico to provide financing to support the development and implementation of infrastructure projects.
Schneider Electric

During its second virtual meeting of the year, the Board of Directors of the North American Development Bank (NADB) agreed to complement the Bank’s current lending portfolio with investments in a wider variety of infrastructure projects that will help tackle climate change and promote the green economy.

“The expansion of eligible projects for financing will grow NADB’s loan portfolio and promote new project types that are important for the agendas of both the U.S. and Mexico presidents, which will complement water, wastewater and solid waste projects,” stated María del Carmen Bonilla Rodríguez, Head of the Public Credit Unit from Mexico’s Ministry of Finance and Public Credit and Board chair. “This direction will continue to keep NADB at the forefront of developing and financing environmental infrastructure that improves the quality of life for the residents of the U.S.-Mexico border region.”

“The Board looks forward to continuing to work with NADB to generate environmental benefits for border communities, advance climate change adaptation and mitigation goals and assist the region in a transition to a green economy through expanded project eligibility. As NADB pursues the new project types, we are confident that it will also continue to provide maximum support to priority projects in the water, wastewater, municipal solid waste and other core sectors,” said Deputy Assistant Secretary Mathew Haarsager of the U.S. Treasury Department and Board co-chair.

With the strategic expansion of projects, NADB will be able to invest in infrastructure related to energy storage, mobility (including ports of entry), urban development, sustainable buildings and industrial parks, green manufacturing, sustainable food value chains, climate change adaptation and climate resilience, among others.

“We are excited to take full advantage of NADB’s lending capacity to address other urgent infrastructure and environmental needs in the U.S.-Mexico border region,” said Calixto Mateos Hanel, NADB Managing Director. “We also want to assure our stakeholders that in allocating NADB resources, we will continue to prioritize the projects that provide the greatest environmental benefits for communities,” added Mateos Hanel.

The Board also approved financing for up to US$87.5 million for four new projects that represent a total investment of US$151.7 million and will benefit approximately 3.4 million border residents. These new projects include a portfolio of energy storage systems in San Diego, California; a private medical facility in San Luis Rio Colorado, Sonora that will incorporate sustainable construction techniques to reduce water usage and energy consumption; improvements to the international outfall interceptor by relocating lateral connections and installing erosion protection in Nogales, Arizona; and improvements to the wastewater treatment plant in Patagonia, Arizona.

EnerSmart Storage Operating LLC will receive a NADB loan for up to US$70 million for the design, construction and operation of a portfolio of 44 energy storage systems with a combined capacity of 132 megawatts of alternating current (MWAC) in San Diego, California. The project is expected to store and deliver up to 87,650 megawatt-hours of energy a year. As a result, it will displace the emission of an estimated 31,100 metric tons/year of carbon dioxide and also improve grid reliability, increase energy efficiency, and maximize the use of renewable energy.

Novem Uno Corporativo, S.A. de C.V., will receive a loan for up to US$14.2 million under the NADB COVID-19 Recovery Program (ProRec), for the OSME Medical Complex Project in San Luis Rio Colorado, Sonora, which consists of the design, construction and operation of a hospital and a medical specialties center focused on serving seasonal agricultural workers. The project will incorporate sustainable construction techniques and thermally efficient building materials that are expected to use 43% less water than a typical healthcare facility and 18% less electricity.

The Bank will provide a $2.8-million grant from the Border Environment Infrastructure Fund (BEIF), which is funded by the U.S. Environmental Protection Agency (EPA) and administered by NADB, for improvements to the international outfall interceptor (IOI) related to the relocation of lateral connections and erosion protection in Nogales, Arizona. Reducing the risk of pipeline failures in the IOI will prevent the potential discharge of approximately 15.2 million gallons per day of wastewater to the Nogales Wash.

Finally, the Town of Patagonia, Arizona will receive a US$500,000 grant through the NADB Community Assistance Program (CAP) for improvements to its wastewater treatment plant that provides sufficient capacity for the volume of current and future wastewater flows. The project will eliminate the risks for inconsistent treatment or plant failure by replacing some plant equipment that has fallen into disrepair and repairing structural issues that compromise the treatment process, thus preventing the potential discharge of approximately 45,000 gallons per day of wastewater to Sonoita Creek, a tributary of Patagonia Lake. 

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