November 14, 2019

Seven new environmental projects with total investment of US$386 million approved by NADB Board of Directors

Seven new environmental projects with total investment of US$386 million approved by NADB Board of Directors

  • NADB to provide a total of US$168 million in loan and grant financing for the projects
  • Board appoints Managing Director

San Antonio, Texas – The Board of Directors of the North American Development Bank (NADB) announced the approval of US$168 million in financing for seven new projects in the sectors of water and renewable energy that will benefit more than 1.23 million residents in communities on both sides of the U.S.-Mexico border. The Board also appointed Dr. Calixto Mateos-Hanel as Managing Director of the NADB. Dr. Mateos-Hanel will serve in this capacity through December 31, 2023.

The announcements were made by José de Luna, Head of the Public Credit Unit at Mexico’s Ministry of Finance (SHCP) and NADB Board chair for 2019, during a semiannual public meeting of the NADB Board of Directors held in San Antonio, Texas. He also congratulated NADB management and staff, recognizing the 25th anniversary of NADB’s establishment.

Among the projects approved today, two are in the renewable energy sector: a solar park in Benjamin Hill, Sonora, and a wind farm in Reynosa, Tamaulipas. These projects will increase the installed capacity of renewable energy resources in Mexico by 242 megawatts (MW) and are expected to generate 845 gigawatt-hours (GWh) of electricity during their first year of operation, equivalent to the annual consumption of 117,793 households. Altogether, the projects will help avoid the emission of more than 364,769 metric tons/year of carbon dioxide and other greenhouse gases from conventional fossil-fueled-based power plants.

NADB is providing a loan for up to US$100 million to Infraestructura Energética Nova, S.A.B. de C.V. for the 125-MW Don Diego solar project in Benjamín Hill, Sonora, as well as a loan for up to US$50 million to Delaro, S.A.P.I. de C.V., for the 117-MW Delaro Wind Project in Reynosa, Tamaulipas.

Two wastewater projects were also approved for funding. The first consists of rehabilitating and upgrading the North and South Wastewater Treatment Plants (WWTPs) in Chihuahua, Chihuahua, which together treat an average flow of 39.9 million gallons per day. This project also includes construction of a cogeneration facility in the South WWTP that will supply part of the electricity to operate the plant. NADB will provide a US$11.2 million loan to Aguas de Reúso y Energía Renovable, S.A. de C.V. (ARERSA), the company created by the consortium that was awarded a build-operate-transfer contract by the municipal water utility, Junta Municipal de Agua y Saneamiento de Chihuahua (JMAS), to carry out the project.

The second wastewater project, in the Village of Vinton, Texas, consists of the construction of a sewer system to provide first-time service to over 2,000 residents and convey an estimated 275,000 gallons per day of sewage to a wastewater treatment plant operated by El Paso Water Utilities. The community is receiving a $3.0 million grant from the Border Environmental Infrastructure Fund (BEIF), funded by the U.S. Environmental Protection Agency (EPA) and administered by NADB.

Two other projects will support improvements to the drinking water systems in Presidio, Texas and Magdalena, Sonora. In Presidio, the project will improve water service reliability for 4,000 residents by eliminating line breaks that can lead to contamination of the water supply, as well as preventing at least 160,000 gallons a day in water losses from the distribution system. The city is receiving a US$3.0 million BEIF grant and a loan from NADB of up to US$800,000.

In Magdalena, Sonora, the project will improve access to sustainable drinking water services for more than 12,000 residents by improving service reliability and reducing water losses, currently estimated at 264 million gallons a year. The local utility is receiving a US$500,000 grant from the Bank’s Community Assistance Program (CAP).  

Lastly, a project to improve storm water management in Ciudad Acuña, Coahuila, will also protect a critical sewer force main, which due to erosion in two canals is vulnerable to collapse, thereby reducing the risk of direct wastewater discharges to the Rio Grande. The Municipality of Acuña is receiving a US$500,000 CAP grant.

A complete bio of Dr. Mateos-Hanel is available on the NADB website at the following link:


NADB 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.