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Community Assistance Program (CAP)

Through this program, NADB offers grants to support the implementation of critical environmental infrastructure projects for public entities with limited capacity to incur debt in low-income communities in the border region.

Grants for up to US$500,000 are available for projects in all environmental sectors eligible for NADB financing, with priority given to drinking water, wastewater, water conservation and solid waste projects.

Eligible Uses

CAP grants may be used for:

  • Project construction and related costs
  • Project management and supervision
  • Equipment purchase
  • Other project components

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 land, equipment or other tangible assets or cost components of a project may be considered towards fulfilling this contribution.

Funding Independence

The funding, construction and operation of the proposed project must be completely independent and not depend on the construction or completion of any other pending investment.

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

To be eligible for financing and other forms of assistance from NADB, projects must remedy an environmental and/or human health problem. Some examples of eligible project types are listed below.

  • Water: Drinking water supply, treatment & distribution; wastewater collection, treatment & reuse; water conservation; storm drainage & flood control
  • Waste Management: Sanitary landfills, dumpsite closure, collection & disposal equipment, recycling & waste reduction, hazardous waste treatment & disposal facilities, industrial site remediation
  • Air Quality: Street paving & roadway improvements; public transportation; ports of entry, reduction of industrial emissions; methane capture
  • Energy: Clean and renewable energy sources: solar, wind, biogas & biofuels, hydroelectric, geothermal; Energy efficiency: equipment replacement, public lighting, building retrofits
  • Basic Urban Infrastructure: These projects consist of a mix of works from various sectors, such as street paving, installation or replacement of water and sewer lines, storm drainage and public lighting

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. 

Requirements

The CAP program is exclusively for public and not-for-profit entities with projects ready for construction. It requires that final design and procurement documents are complete in order to be considered for financing.

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 & Selection Criteria

NADB reviews the project development status described in the application and demonstrated by the project documentation to determine if the project meets the threshold for advancing to the approval process. 

Project Readiness 

The project is evaluated based on the completion of applicable technical and environmental tasks. Projects with a complete package of technical documents that support the sponsor’s readiness to initiate project procurement are selected as candidates for program funds.

Priority Sectors

CAP grants are available for public projects in all sectors eligible for NADB financing, with priority given to drinking water, wastewater, water conservation, and solid waste infrastructure. 

Financial Need

The program is intended to support projects that may not be affordable without the participation of CAP resources. Therefore, project sponsors with the greatest financial need—for example communities with a low median household income or with limited or no debt capacity—will be given higher priority.

Environmental Benefit

Higher priority will be given to projects aimed at providing first-time basic services to unserved populations or to projects that employ sustainability measures resulting in water or energy savings in utilities, such as the replacement of leaky pipes/equipment; water reclamation, recycling or reuse within existing facilities or processes; installation of energy-efficient equipment; or the use of renewable energy sources.

CAP Financing Process

The main steps that the Bank follows in reviewing and approving a project to receive a CAP grant, are outlined below.

1
Application Review

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.

2
Project Selection

Projects are evaluated and selected based on their readiness to begin implementation. Should program funding be insufficient to support all eligible projects at any given time, projects will also be prioritized based on sector, financial need and environmental benefits.

3
Approval Process

Upon project selection, NADB 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.

4
Financial Closing

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.

5
Project Implementation

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, NADB can provide support during the procurement process, as well as supervision services during construction.

6
Project completion and closeout

Upon project completion and in compliance with the grant agreement, the project sponsor will provide required reports to NADB in a timely manner. NADB will perform a closeout process for the project 1 year after project startup with support from the project sponsor.

Getting Started (210) 231-8000

To get the conversation started, complete the form below or call the number above to talk to a project development officer.