 
Many communities in the U.S.-Mexico border region do not have the human and financial resources necessary to adequately plan and design infrastructure projects that can be certified by the Border Environment Cooperation Commission (BECC) and subsequently financed by the North American Development Bank (NADB). The lack of these development funds is one of the main factors inhibiting the NADB’s ability to more fully utilize its capital and achieve its overall mission of improving the border environment. Consequently, the NADB has established the Project Development Program (PDP) to provide technical assistance to communities and utilities to help finance the costs involved in preparing projects for construction.
Objective
The primary purpose of this technical assistance program is to help utilities in border communities with the planning and design of environmental infrastructure projects that will be submitted to the BECC for certification and to the NADB for financing.
To ensure efficient and coordinated development of these projects, this program is implemented in close consultation with the BECC.
Eligibility
To be eligible for PDP support, the
infrastructure project must be deemed eligible to receive NADB funding in one of
the environmental sectors in which the NADB is authorized to operate. The
project must also be located within 100 kilometers (62 miles)
north of the international border in boundary in the four U.S. states of Texas,
New Mexico, Arizona and California and within 300 kilometers (about 186 miles)
south of the border in the six Mexican states of Tamaulipas, Nuevo Leon,
Coahuila, Chihuahua, Sonora, and Baja California.
All public project sponsors that meet the above criteria are eligible for grants under this program. However, in accordance with standard banking practices, PDP assistance will be subject to full or partial reimbursement as part of a NADB lending package. Private-sector project sponsors are also eligible, but in all cases must agree to reimburse the funds within a timeframe established by the NADB at the time of funding.
In consultation with the BECC, the NADB will ensure that strong candidates for certification have priority for funding on a first-come, first-served basis.
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ELIGIBLE USES
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- final design
- master plans
- environmental assessments
- facility plans
- feasibility studies
- needs assessments
- financial analyses
- geological studies
- preparation of BECC certification documents
- solid waste production analyses
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Uses of Funds
PDP grant assistance may be used to help fund design and related studies needed for the proper development of infrastructure projects in any of the environmental sectors in which the NADB operates, including water conservation.
A list of eligible studies and activities under this program is shown in the
tabele.
Public participation activities necessary for BECC certification may also be eligible for funding.
General Funding Terms
Maximum Grant Amount
Grants may be awarded in amounts up to US$200,000 per project. In the case of regional projects involving two or more communities, the grant limit per project may be increased to US$300,000.
Local Match Requirement
Up to 50% of the amount of a PDP award must be matched by the project sponsor or other project partner. This match may be achieved as follows:
- a cash contribution toward the cost of the work being funded by the PDP award;
- directly related in-kind activities that reduce the cost of the work being funded by the PDP award and are acceptable to NADB;
- funding by the project sponsor or other project partner of another study or other work that is directly related and necessary to the advancement of the project being supported by the PDP award and acceptable to NADB; or
- a combination of these mechanisms acceptable to NADB.
Operation
The project sponsor must submit a written request to the NADB for PDP assistance, describing the environmental infrastructure project under development and the type of assistance requested. The project sponsor will also be responsible for preparing the terms of reference of the study.
The project sponsor or the BECC, as determined by the NADB, will manage the contract in accordance with the terms of reference approved by the NADB.
The contract manager will be responsible for contracting directly with the consultant. However, procurement of goods and services with PDP funds must be carried out in compliance with NADB Procurement Policies and Procedures. The contract manager must approve and pay all consultant invoices with its own resources. The NADB will reimburse the contract manager for payments made to the relevant consultant in accordance with the contract.
Receiving assistance through the PDP or any other NADB-sponsored assistance program does not imply or guarantee NADB project funding.
For more detailed information about this program, see the PDP Operating Guidelines (pdf).
Complementary Assistance
In addition to assisting communities with the development and design of their environmental infrastructure projects, the NADB can also help reinforce the institutional capacities of utilities through its Institutional Development Cooperation Program (IDP). Assistance is available for studies and actions aimed at enhancing the financial performance and managerial efficiency of the utilities, which will contribute to the long-term viability of a project.
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