Baja California pulls in US$9.3 million in financing from the NADBank

North American Development Bank to help fund various environmental infrastructure projects, including water & wastewater projects in Mexicali and Tecate...

MEXICALI, BC, Mexico, Aug. 31, 2005 -- The state of Baja California and the North American Development Bank (NADBank) have signed financing agreements totaling US$9.3 million to continue construction of water and wastewater projects in the cities of Mexicali and Tecate. The bank also announced approval of grant funding to carry out studies for the development of future environmental projects in the state.

At the state executive office in Mexicali, Baja California, Gov. Eugenio Elorduy and NADBank Managing Director Raúl Rodríguez signed a $6.8 million-peso loan agreement (US$591,304) to complete the rehabilitation of the Tecate Wastewater Treatment Plant (WWTP).

In addition, they announced the recent signing of an US$8 million grant agreement for Mexicali and a US$650,000 grant agreement for Tecate, both through the Border Environment Infrastructure Fund (BEIF) administered by the bank and funded by the U.S. Environmental Protection Agency (EPA) for their respective water and wastewater projects. Both projects have received BEIF funding since 2000, and are being implemented by the respective local water utilities.

Construction of the Tecate WWTP is the last component of the third and final phase of the Water and Wastewater System Improvement and Expansion Project. The total cost of the project is US$9.75 million, with the NADBank contributing US$5.36 million in grants and loans.

In the case of Mexicali, NADBank is providing a total of US$12.8 million in BEIF funding for its US$30.16 million wastewater project, which mainly consists of the construction of the "Las Arenitas" Wastewater Treatment Plant. A grant agreement for US$4.8 million was previously signed.

In addition to the infrastructure financing, NADBank announced its intentions to support three studies for the development of clean energy and water reuse projects. Up to $415,000 in grant funds for these studies will be made through NADBank's technical assistance programs.

Since its inception in 1995, the North American Development Bank has approved more than US$703 million in loans and grants for 89 infrastructure projects in the U.S.-Mexico border region. Created under the auspices of NAFTA, it's 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. For more information on the NADBank, visit


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