Mexico City – Today, the Board of Directors of the North American Development Bank (NADBank) held its first semiannual meeting of 2023 in Mexico City, during which the Board reviewed the Bank’s operations, policies and recent project activity, as well as strategic planning issues for the next four years. The Board met in Mexico City and commemorated 200 years of diplomatic relations between Mexico and the United States.
During the meeting, the Board approved the Environmental, Social and Governance (ESG) Policy and the Gender Equality and Inclusion Policy. Both policies are aligned with international standards and are focused on the development and implementation processes of the environmental projects the Bank finances. These processes include evaluating, approving and monitoring projects to maximize their environmental benefits, ensure equitable access to such benefits, while reducing and effectively managing their risks, as well as working with sponsors to incorporate gender-equality and inclusion considerations into their projects. By adopting these policies, NADBank reaffirms its commitment to its mission to preserve, protect and enhance the environment of the U.S.-Mexico border region, including combating climate change and its effects.
In addition, the Board approved a proposal to update the operating guidelines of the Community Assistance Program (CAP). Established in 2011, this grant program supports critical environmental infrastructure projects in underserved populations in the U.S.-Mexico border region. Modifications to the CAP guidelines include refocusing project eligibility on investments in water and solid waste infrastructure, establishing an impact-oriented project selection approach and creating new financing options, including an increase in the maximum grant amount and an option for emergency funding.
A public meeting was held in a hybrid format, where the Board heard from representatives of communities on both sides of the U.S.-Mexico border, as well as from the private sector, project developers and non-governmental organizations. The session was attended by around 100 people, either in person or virtually via the internet.
During the public session, NADBank management reported that since the last Board meeting held in November 2022, the Board has approved just over US$279 million in financing for seven new environmental infrastructure projects in the water, solar energy and sustainable food sectors. The impact of these projects includes avoiding 256,972 tons a year of carbon dioxide emissions, improving wastewater treatment capacity by 73 million gallons a day and saving more than 2.4 billion gallons a year in drinking water, among other benefits.
Likewise, for the first three months of 2023, the Bank disbursed close to US$59 million in loans and grants to support the implementation of 16 projects. In this context, it was also noted that the percentage of the loan portfolio corresponding to the water sector has increased, which is in line with the NADBank strategy.
The NADBank Board of Directors is formed by 10 members, with the heads of the Ministry of Finance and Public Credit, the Ministry of Foreign Relations and the Ministry of Environment and Natural Resources on behalf of Mexico and by the U.S. Department of the Treasury, the U.S. Department of State and the U.S. Environmental Protection Agency for the United States, as well as border state and resident representatives from both countries.
NADBank 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 environmentally and financially sustainable projects with broad community support in a framework of close cooperation and coordination between Mexico and the United States. For more information about NADBank, visit www.nadb.org.