North American Development Bank
The North American Development Bank (NADB) is a binational financial institution capitalized and governed equally by the Federal Governments of the United States of America and Mexico for the purpose of financing environmental projects certified by the Border Environment Cooperation Commission (BECC).
The two institutions work together with communities and project sponsors in both countries to develop and finance infrastructure necessary for a clean and healthy environment for border residents. Established in 1994 with headquarters in San Antonio, Texas, its mission is to serve as a binational partner and catalyst in communities along the U.S.-Mexico border in order to enhance the affordability, financing, long-term development and effective operation of infrastructure that promotes a clean, healthy environment for the citizens of the region.
The NADB provides financial assistance to public and private entities involved in developing environmental infrastructure projects in the border region. Potable water supply, sewage treatment and municipal solid waste management form the core sectors of the Bank’s activities and are its primary focus. However, assistance can also be provided in other areas—such as air quality, clean energy and hazardous waste—where sponsors are able to demonstrate tangible health and/or environmental benefits for residents living in the area.
Created as interdependent institutions, NADB and BECC work as a team to develop integrated, sustainable and fiscally responsible projects with broad community support in a framework of close cooperation and coordination between Mexico and the United States. Within this partnership, BECC verifies the technical feasibility and environmental integrity of the projects seeking financing from the NADB, as well as ensures community support for the project. Consequently, every project must pass through a public participation and certification process performed by the BECC.
In its efforts to help border communities develop and finance affordable, self-sustaining environmental infrastructure projects with broad community support, NADB works with local governments and municipal utilities to increase their financing options by helping them implement sound financial and business practices that provide a basis for well-managed debt financing. As part of this strategy, NADB promotes a comprehensive, long-term approach to infrastructure planning and project finance, offering both loan and grant programs to address different needs.
The NADB (and the BECC) were established by the Border Environment Cooperation Agreement of November 1993 (Agreement Between the Government of the United States of America and the Government of the United Mexican States Concerning the Establishment of a Border Environment Cooperation Commission and a North American Development Bank.)
In the United States, participation by the government was authorized by North American Free Trade Agreement Implementation Act § 541 (22 U.S.C. § 290m).