For Immediate Release Contact:
May 14, 2008 Juan Antonio Flores
  (210) 231-8000

NADB provides US$18.95 million loan for third wastewater collection and treatment project in Mexicali, Baja California 

San Antonio, Texas – The North American Development Bank (NADB) is providing an US$18.95 million loan to the local water utility in Mexicali, Baja California—Comisión Estatal de Servicios Públicos de Mexicali (CESPM)—for the construction of the Mexicali IV wastewater collection system to serve more than 26,000 residents in nine subdivisions on the east side of the city.

 With this project, CESPM will be able to provide first-time wastewater collection and treatment services to an area currently without service. The project consists of installing sewer lines in nine subdivisions, constructing six collectors and three force mains and pump stations, as well as doubling the capacity of the Las Arenitas Wastewater Treatment Plant, from 20 million to 40 million gallons per day (MGD), which will be sufficient to serve 337,900 residents in the medium and long term.

 The total cost of the project is estimated at US$46.96 million, and NADB is financing approximately 38 percent of the cost with a 15-year, market-rate loan.

 This project is the third phase of CESPM’s Wastewater Collection and Treatment Master Plan.  The first two phases—known as the Mexicali Sanitation Program and the Mexicali II Wastewater System Improvements Project—focused on rehabilitating and expanding the Mexcali I and II wastewater collection and treatment systems, which were completed in September and October 2007, respectively. 

 For the first two phases, NADB provided a total of US$33.5 million in grants through its Border Environment Infrastructure Fund (BEIF), which is funded by the U.S. Environmental Protection Agency (EPA).

 As a result of these projects, Mexicali’s wastewater collection system now reaches approximately 91% of the city’s population and 100% of the wastewater collected is treated in compliance with Mexican federal regulations.

 The Mexicali IV project was certified by the Border Environment Cooperation Commission (BECC) and received funding approval from NADB on October 30, 2007. The corresponding loan agreement was signed on April 30, 2008.

To date, NADB has helped fund 118 environmental infrastructure projects throughout the U.S.-Mexico border region with a total of $958.5 million in loans and grants

 For more information about NADB, visit our website at:


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.