NADBank will allocate $400 million to projects to alleviate water stress on the U.S. border.

Monterrey, NL. During the first semiannual meeting of the governments of Mexico and the United States in Ciudad Juárez, the Board of Directors of the North American Development Bank (NADBank) agreed to invest up to $400 million in priority infrastructure for the conservation and diversification of water supply sources, in response to the persistent drought along the U.S.-Mexico border region.

In a statement, NADBank emphasized that it is open to public comment on the Water Resilience Fund (HRF) for a 30-day period, after which the Board will consider final approval of the fund.

The creation of the FRH is the latest action taken by the NADBank Board of Trustees to enable the Bank to invest in infrastructure that addresses the severe water shortages throughout the border region.

Through innovative financial instruments such as the FRH, the Bank seeks to strengthen actions that promote the conservation and diversification of supply sources and eliminate gaps in access to basic drinking water and sanitation services.

John Beckham, CEO of NADBank, said: "As one of the most arid regions in Mexico, Sonora faces constant challenges regarding the depletion and sustainability of its water resources. With the Water Resilience Fund, the bank will be able to complement the resources available in various sectors of the state to invest in conservation and diversification projects."

They seek to accelerate the execution of projects

The North American Development Bank announced it will allocate up to $100 million of its retained earnings over the next five years to soft finance operations (which can include negotiation, relationship building, effective communication, adaptability, and problem-solving).

In addition, it will use up to $300 million from its credit program to provide low-interest loans. NADBank could complement these instruments with its market-rate financing to expand the reach and impact of available resources.

Beckham explained that: “This approach is designed to strengthen the overall investment ecosystem and accelerate the execution of high-priority water infrastructure projects,” said John Beckham, CEO of NADBank.

The executive stated, "In order to ensure that support is distributed equitably throughout the border region, available resources will be allocated equally between Mexico and the United States."

In the first phase of financing through the FRH, projects are expected to be prioritized to address urgent drought needs in the agricultural sector, he explained.

They meet with representatives of communities

Separately, the NADBank Board of Directors chaired a public meeting—in a hybrid format—with approximately 100 attendees, including representatives from border communities, the public and private sectors, project developers, and non-governmental organizations, who provided input on the topic and made proposals for environmental projects for their communities.

The NADBank Board of Directors is comprised of a total of 10 members from Mexico and the United States. The Mexican board includes the heads of the Ministries of Finance and Public Credit, Environment and Natural Resources, and Foreign Affairs, as well as their U.S. counterparts from the Department of the Treasury, the Environmental Protection Agency, and the Department of State. There is also a representative from the border states and a representative from civil society from each country.