North American Development Bank approves grant for sewer system improvements in Patagonia, Arizona

NADB has approved US$1.3 million in grant funds to assist in financing a wastewater treatment facility replacement and sewer system improvements project for the town of Patagonia, Arizona.

San Antonio, Texas, March 12, 2003 -- The North American Development Bank (NADB) has approved US$1.3 million in grant funds to assist in financing a wastewater treatment facility replacement and sewer system improvements project for the town of Patagonia, Arizona.

This grant is being provided through the NADB's EPA-funded Border Environment Infrastructure Fund (BEIF).

Other funding sources for the US$2.3 million project include the U.S. Department of Agriculture Rural Development (USDA-RD), the Arizona Water and Infrastructure Finance Authority (WIFA), and the State of Arizona through the Community Development Block Grant (CDBG) program.

"We are pleased to expand the Bank's portfolio by approving this grant for the town of Patagonia, Arizona," said Raúl Rodríguez, NADB Managing Director. "With this approved BEIF grant, the residents of Patagonia will receive the quality utility services that they deserve."

The two-phase project consists of constructing a new wastewater treatment plant and rehabilitating the sewer collection lines. The first phase consists of constructing a new 110,000 gallon per day wastewater treatment facility, and the second phase consists of the replacement and in-site repair of the town's sewer collection lines.

As a result of these improvements, health and environmental problems will be reduced for the 881 residents of Patagonia, which is located approximately 20 miles from the U.S.-Mexico border. The improved treatment facilities will produce a better quality effluent and rehabilitation of the sewage collection system will reduce the amount of untreated wastewater leaking from deteriorated lines and infiltrating into the ground water.

"This funding means that the town's aging wastewater system can be replaced with a new facility that will be capable of operating without a negative effect on the water quality of Sonoita Creek," said Mayor Terri Woodhouse. "Without this grant, and the transition assistance offered by the NADB, the low to moderate income families of the town may not have been able to afford the utility rates necessary to finance this project. The town and the NADB have worked countless hours to see this moment arrive."

Through its BEIF program, the NADB has approved more than US$426 million in EPA-funded grants to support the construction of environmental infrastructure in various communities, which will benefit residents on both sides of the U.S.-Mexico border. Since its inception in 1995, the NADB has approved more than US$486 million in loans and grants for 56 infrastructure projects in the region.

For more information on the NADB, visit www.nadb.org.

The North American Development Bank, created under the auspices of NAFTA, is a financial institution established and capitalized in equal parts by the United States and Mexico for the purpose of financing environmental infrastructure projects along their common border. As a pioneer institution in its field, the Bank is working 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.

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