NADB, city of El Paso sign $53M loan for stormwater project
SAN ANTONIO, TX, Sept. 29, 2009 -- The North American Development Bank has purchased US$53 million in municipal revenue bonds from the City of El Paso, Texas, for a project to improve and expand the city's stormwater systems and thus reduce its risks of flooding...
• With this loan, NADB surpasses the billion dollar mark in funding for environmental infrastructure on the U.S.-Mexico border
SAN ANTONIO, TX, Sept. 29, 2009 -- The North American Development Bank (NADB) purchased US$53 million in municipal revenue bonds from the City of El Paso, Texas, today for a project to improve and expand the city's stormwater systems and thus reduce its risks of flooding.
The bonds were issued for a 20-year term through the Build America Bond program authorized under the American Recovery and Reinvestment Act of 2009. Under this program the federal government will reimburse the City for 35% of the interest payments on the loan. The bond proceeds will cover about 78.5% of the total cost of the project.
"We are very pleased to be partnering with El Paso on this great project, which in addition to improving flood prevention controls, will also help recharge the Hueco Bolson Aquifer, an important source of drinking water for the El Paso-Ciudad Juarez region," stated NADB Managing Director Jorge C. Garces.
The US$67.5 million project, which forms the first phase of a comprehensive capital investment program, was certified by the Border Environment Cooperation Commission (BECC) at the beginning of the month and covers stormwater works in the Central, East, Mission Valley, Northeast, and Northwest watersheds. The El Paso Water Utilities Board (EPWU) will be in charge of carrying out the project within a period of no more than three years.
On a related note, Mr. Garcés also reported that "with this loan, the largest made by the Bank to date, NADB has surpassed the one billion dollar mark in funding contracted with project sponsors and looks forward to continuing to provide affordable financing options to border communities for the sustainable development of their infrastructure."
Overall, NADB is helping fund 130 environmental infrastructure projects throughout the U.S.-Mexico border region with a total of US$1.03 billion in loans and grants.
The North American Development Bank 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. For more information about NADB, visit our website at www.nadb.org.