Development bank announces new funding for climate, green economy projects on border

Martha Pskowski, El Paso Times
·4 min read
The North American Development Bank has financed multiple water and wastewater infrastructure projects in El Paso and Juárez, including through the Lower Valley Water District.
The North American Development Bank has financed multiple water and wastewater infrastructure projects in El Paso and Juárez, including through the Lower Valley Water District.
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A development bank founded with the signing of the North American Free Trade Agreement can now finance a broader range of environmental and climate projects along the border.

The North American Development Bank's board of directors voted Friday to expand its portfolio to include green manufacturing, energy storage, climate change adaptation and mobility at ports of entry. The bank, established in 1994, has historically focused on wastewater, solid waste and water projects.

“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," said Calixto Mateos Hanel, the bank's managing director.

The bank's board also approved four projects for financing at the meeting. Up to $87.5 million in financing will be available for new projects in San Diego; San Luis Rio Colorado, Sonora, Mexico; and Nogales and Patagonia in Arizona.

Development bank dates to NAFTA

The governments of Mexico and the United States established the North American Development Bank in 1994. Leaders acknowledged significant infrastructure improvements and environmental protections were needed in the border region as NAFTA went into effect.

The bank is headquartered in San Antonio. Both Mexican and U.S. officials serve on the board. In 2017, the bank merged with the Border Environment Cooperation Commission, based in Juárez. The bank is authorized to finance projects within 100 kilometers, about 62 miles, north of the international boundary in Texas, New Mexico, Arizona and California, and within 300 kilometers, about 186 miles, south of the border in Tamaulipas, Nuevo Leon, Coahuila, Chihuahua, Sonora and Baja California.

NAFTA's successor, the United Sates-Mexico-Canada Agreement, went into force on July 1, 2020. The USMCA authorized a $215 million capital increase for the bank. Politicians called for increased funding to meet the immense need for environmental infrastructure improvements along the border.

More: 'No one ... can resolve this on their own': Improving air quality in El Paso-Juárez a bi-national effort

Texas politicians back bank's expansion

"It's a very welcome step in the right direction," U.S. Rep. Veronica Escobar, D-El Paso, said of the bank's new financial directives. She pointed to the success of the bank's projects for water infrastructure in the Borderland and said the additional funding could help address other urgent environmental needs in the area.

"I think there are tremendous opportunities, for example, at our ports of entry," Escobar said. "What we have seen, especially during really busy times, is a lot of air pollution stemming from long wait lines and idling traffic. We've got to find innovative ways to expedite it."

More: New agreement to foster continuous monitoring in El Paso Air Basin: Opinion

Escobar pointed to the generation of more renewable energy as another priority for El Paso and Juárez.

Other Texas politicians, including Republican U.S. Sen. John Cornyn and Democratic U.S. Rep. Henry Cuellar of District 28, voiced support for the bank's announcement.

New project financing approved

The bank announced new financing for up to $87.5 million for projects on Friday. These new projects include improvements to the wastewater treatment plant in Patagonia and a loan to the OSME Medical Complex Project in San Luis Rio Colorado, which will serve seasonal agricultural workers and incorporate sustainable construction techniques.

Water and wastewater infrastructure has been a key area of North American Development Bank financing, including in El Paso County communities.
Water and wastewater infrastructure has been a key area of North American Development Bank financing, including in El Paso County communities.

More: Vista del Este water system to be improved

The bank has financed several projects in El Paso County in recent years, including extending residential wastewater connections to the Rosa Azul Subdivision in Socorro and expanding and improving the existing water distribution system in the Lower Valley Water District. The bank also is disbursing funds for air quality monitoring in Juárez. The bank also has financed wastewater, solar energy and paving projects in Juárez.

A ribbon-cutting for the Rosa Azul wastewater project was set for Wednesday, Dec. 8, at Mauro Rosas Park, 350 Flor Morada Road, in Socorro. Through the project, 278 homes will get access to wastewater collection and treatment services.

More: Fabens residents paying water rates twice as high as neighbors to see some relief

Staff writer Martha Pskowski may be reached at mpskowski@elpasotimes.com and @psskow on Twitter.

This article originally appeared on El Paso Times: Development bank sets new funding for green projects on border