Through this program, NADBank offers grants to support the implementation of critical environmental infrastructure projects for economically distressed communities in the U.S.-Mexico border region.
Grants for up to US$750,000 are available for water and solid waste projects and for up to US$250,000 for emergency infrastructure repairs.
2024 Project Selection Results
NADBank has completed its evaluation of the eligible CAP grant applications received in response to the request for proposals published in October 2023, with six projects selected as candidates for CAP funding in 2024. The other applications will continue to be considered for future funding, and the application process remains open with evaluations occurring on a periodic basis.
Eligible Uses
CAP grants may be used for:
- Project construction and related costs
- Project management and supervision
- Equipment purchase
- Other project components
- Emergency repairs
Financing Terms & Conditions
Sponsor Contribution
The project sponsor must contribute at least 10% of the total project cost in the form of cash. On a case-by-case basis, in-kind contributions such as design, land, equipment or other tangible assets or cost components of a project may be considered towards fulfilling this contribution.
Supervision
Qualified supervision services must be procured by the sponsor for the project. Costs for supervision shall be included as part of the total project cost and will be considered an eligible use of the CAP grant.
Timeline
The period from Board certification and CAP funding approval to the signing of the grant agreement may not exceed three months. The period from grant signing to the initiation of project implementation may not exceed six months.
Eligibility
Project Type
Infrastructure projects in the following categories are eligible for CAP financing:
- Drinking water
Projects that support access to sustainable and safe drinking water, including supply, treatment, transmission, storage, distribution, metering, conservation and point-of-use technologies. - Wastewater
Projects that help eliminate exposure to unsanitary water conditions, including service connections/on-site systems, collection, conveyance, treatment and reuse - Stormwater
Projects that support adequate stormwater management, including piped systems, retention basins, culverts, canals, berms, erosion control, flow velocity control and green infrastructure - Solid waste
Projects that promote proper management of solid waste, including collection containers and equipment, transfer stations, landfills, site closure and infrastructure for waste stream reduction, such as organic composting or recycling.
Project Location
Projects must be located within the border region, defined as 100 kilometers (62 miles) north of the international boundary in the four U.S. states of Arizona, California, New Mexico and Texas and within 300 kilometers (about 186 miles) south of the border in the six Mexican states of Baja California, Chihuahua, Coahuila, Nuevo Leon, Sonora, and Tamaulipas.
Legal Authority
The project sponsor must have the legal authority to develop the project, provide the proposed services and/or contract the proposed financing. A project must also observe or be capable of observing the environmental and other laws and regulations of the place where it is to be located or executed, including obtaining the necessary operating permits, licenses, and other regulatory requirements related to land acquisition and rights-of-way.
Featured Projects
Requirements
The project must meet or be capable of meeting the technical, environmental and financial criteria for certification and funding approval by the Board of Directors. More detailed information about these requirements, as well as the minimum documentation required to apply for CAP funding, is provided at the following link.
Evaluation Criteria
Eligible CAP applications are evaluated based on a methodology to rank projects from highest to lowest priority. The priority factors and maximum points available for each one is provided below. Additional details regarding the priority methodology are provided in the CAP Program Guidelines.
Priority Factors |
Max. Points |
|
Environmental or human health objective |
40 |
|
Project readiness |
25 |
|
Degree of financial need |
20 |
|
Underserved community or community with |
15 |
CAP Financing Process
The main steps that the Bank follows in reviewing and approving a project to receive a CAP grant, are outlined below.
Applications for emergency needs will be considered on a case-by-case basis and approved by NADBank management using an expedited process as described in the CAP Guidelines
Grant applications must include all required technical, environmental and financial documentation. Incomplete applications will not be accepted, and the applicant will be notified of the missing documents or pending issues.
Projects will be prioritized based on factors related to environmental or human health benefits, project readiness, degree of financial need and lack of service or environmental justice concerns.
Upon project selection, NADBank initiates the approval process, which includes analyzing construction readiness, project costs and operation and maintenance budget impacts, as well as determining the recommended amount of CAP funding. A project certification and financing proposal is prepared and submitted to a 14-day public comment period, prior to submission to the Board of Directors for approval.
The grant agreement has to be signed within three months following funding approval. Disbursements will generally be made directly to suppliers and contractors against invoices for work completed.
Project implementation has to begin within six months after the signing of the grant agreement. The procurement of goods, works and services related to the project is the responsibility of the project sponsor; however, NADBank can provide support during the procurement process.
Upon project completion and in compliance with the grant agreement, the project sponsor will provide required reports to NADBank in a timely manner. NADBank will perform a closeout process for the project 1 year after project startup with support from the project sponsor.
Applying for CAP Financing
Projects may receive a CAP grant for no more than 90% of the project costs with a maximum of US$750,000. CAP funds may be awarded as a traditional non-reimbursable grant or as a component of a blended loan. The appropriate option will be determined based on the characteristics of the project sponsor and the population to benefit.
For questions about CAP program requirements or if you need support to complete your project application, please contact NADBank staff at CAPapplication@nadb.org.
CAP Financing Application:
In the case of emergency repairs, the CAP grant is limited to US$250,000, and the sponsor will be required to fund its own repair and replacement reserve account in an amount equal to the emergency CAP grant amount. The sponsor must demonstrate that CAP funds are necessary as the funding of last resort to address repairs to critical infrastructure, when:
- operational failure is due to an act of nature or unforeseen external influence (e.g., earthquake, storm event, power failure/surge, vandalism), and
- failure has caused or, if not repaired promptly, will cause an acute environmental or human health effect.
For questions about requirements for emergency CAP funding or if you need support to complete your emergency project application, please contact NADBank staff at CAPemergency@nadb.org.
CAP Emergency Financing Application: