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“I am pleased to announce that a major goal of Presidents Bush and Fox was achieved last week by the signing into law of the North American Development Bank (NADB) reforms,” said U.S. Ambassador Tony Garza. “The efforts of the presidents in Crawford propelled this agreement and both countries will benefit from the improved quality of life for border communities.”
President Bush on April 5th signed into law reforms based on an agreement between the United States and Mexico to improve the operations of the NADB and the Border Environment Cooperation Commission (BECC). Through the NADB, the United States and Mexico promote more efficient use of scarce water resources in the border area and address urgent environmental concerns. Such projects contribute to the fulfillment of the water treaty between the two nations.
The new bill increases the area for projects from 100 km south of the border to 300 kms allowing more small communities access to resources for conservation and environmental projects. The geographic area of 100 kms north of the border remained unchanged.
A new system of financial targeting will concentrate grants and low interest rate loans for projects in the poorest communities in both countries.
Communities can also access funds in sectors that include clean air projects, public transportation, clean energy and hazardous waste reduction. For the first time, the NADB will also support the financing of projects that address coastal issues and the pollution problems in both countries, affecting the environment along the Pacific Ocean and the Gulf of Mexico.
Under the new reforms, the NADB will double its funding for its Low Interest Rate Lending Facility, providing a greater level of financial flexibility so that its capital can be used more effectively.
The United States and Mexico established the BECC and the NADB in 1993, under the auspices of NAFTA, to help develop and finance environmental infrastructure projects on the U.S.-Mexico border. The BECC works with the border states and local communities to develop and certify projects, and the NADB arranges financing for these projects.
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