NADB approves 5 environmental projects worth $21.5m
The North American Development Bank has approved five new environmental projects that represent a total investment of $21.5 million.
NADB will provide $19.3 million in loan and grant financing for the projects that will benefit close to 137,500 residents on both sides of the US-Mexico border region.
Of the five projects approved, four are related to water infrastructure improvements and represent a total investment of $8.45 million. NADB will provide a $4.26 million loan to Jim Hogg County, Texas, for the replacement of a water treatment plant and upgrades to water meters for the entire city of Hebbronville.
The communities of Socorro, Texas and Agua Prieta, Sonora, will each receive a $500,000 grant through the Bank’s Community Assistance Program for their respective wastewater projects. The water utility in Ojinaga, Chihuahua, will receive a $1.02 million grant from the Border Environment Infrastructure Fund, which is funded by the US Environmental Protection Agency and administered by NADB. The BEIF grant will support improvements to wastewater collection infrastructure, reducing the risk of pipeline failure and eliminating approximately 281,000 gallons per day of untreated wastewater.
The fifth project consists of a $13 million debt refinancing project for Agua SUD, which will result in annual savings of roughly $140,000 for the utility during the first 13 years of amortization and increase available cash flows for the maintenance and operation of existing water and wastewater infrastructure.
The lender also announced the approval of an umbrella program to expedite the refinancing of existing debt for public entities affected by COVID-19. The program establishes the guidelines and expedited procedures for the certification and financing of these types of operations.
