North American Development Bank

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North AmericanDevelopment Bank
NADB history, performance and outlook
Presentation to Global Economic Forum Sponsored
by the Federal Reserve Bank of Dallas San
Antonio, TexasJuly 5, 2006
Henry E. Sauvignet Director of Administration
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Development Bank from United States and Mexico

• The NADB is a bilaterally-funded, international
  organization, capitalized and governed equally by
  the United States and Mexico for the purpose of
  financing environmental infrastructure projects
  along their joint border.
• Its mission is to promote a clean, healthy
  environment for the citizens of the U.S.-Mexico
  border region by serving as a binational partner
  and catalyst to enhance the
• Affordability
• Financing
• Long-term development
• Effective operation of infrastructure

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U.S.- Mexico Development Bank

• Established in 1995
• Capitalized in equal parts by Mexico and U.S.
• Bi-national board and structure

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NADB Geographic Expansion
California
Arizona
New Mexico
B.C.
Texas
Sonora
Chihuahua
Coahuila
N.L.
100 Km
300 Km
Tamaulipas
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NADB Capital
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NADB Strategies

• Combining loans with grants
• Leveraging capital
• Structural institutional reforms
• Long-term solutions reserves
• Project technical costs review
• Coordination community outreach

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NADB Programs evolution
2003 WCIF Water Conservation Grants 2002
PDP Grants for project design 2001 LIRF
Low-Interest Rate Lending 1999 SWEP Grants
for SW Projects out of net earnings 1999 UMI
Training in Management Finance 1998 COFIDAN
For Direct Lending in Mexico.
FOAEM Exchange Rate Hedge. 1997 IDP Grants
For Technical Assistance 1997 BEIF Grants For
W Ww Projects With Epa Funds 1996 Lending At
Market Rates
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NADB Programs

• Loan and Guaranties
• Includes Banks role as financial institutional
  advisor and as investment banker
• Grants
• Infrastructure financing available for water,
  wastewater, solid waste and water conservation
  projects.
• Technical Assistance Training
• NADB provides grant assistance and training to
  project sponsors for institutional strengthening
  and project development studies.

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Loan Guaranty Program

• Up to 50 of project cost
• Types of financing available
• Direct loans at market and low-interest rates
• Interim financing
• Participation in municipal bond issues
• Partial guaranties

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Low Interest Rate Lending Facility (LIRF)

• Up to 100M from Banks paid-in capital
• Water, Wastewater, Solid Waste Water
  Conservation projects
• Rate comparison As of 2/1/06 (15-year loan)
• Market-rate loans - 5.87 to 6.82
• LIRF - 3.78 to 3.80 (in dollars)

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Border Environment Infrastructure Fund (BEIF)

• Funding from EPA Border Fund
• Eligible projects water wastewater
• Types of assistance available
• Transition including debt service and start-up
  costs
• Construction including residential hook-ups and
  construction management

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Solid Waste Environmental Program (SWEP)

• Established in October 1999
• 5 M from NADB retained earnings
• 50 total project cost
• Construction of sanitary landfills
• Closure of existing disposal sites,
• Purchase of collection disposal equipment
• 500,000 per community (1.5 million per
  regional facility)

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Water Conservation Investment Fund (WCIF)

• Established with US80 million NADB retained
  earnings
• Mexico US40 million for Delicias project
• US5 million in Tech. Assistance for water
  districts
• U.S. 20 Projects with US39.56 million in
  approved NADB funding

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NADB Performance

• 90 projects with funding approval
• Total Cost 2.3 billion
• NADB Participation 703.8 million
• NADB Disbursed 383.49 million (01/06)
• 197 technical assistance studies for 93
  communities
• Total Funds Awarded 23.8 million
• 130 studies completed, 67 in progress
• UMI Training 870 participants from 125
  communities

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NADB Portfolio (1/06)
By Program
By Sector
Construction Progress

• 30 completed
• 48 under construction
• 12 in bidding or design

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Participation in Arizona
NOGALES WASTEWATER 74.10 M BEIF 59.50
M RESIDENTS TO BENEFIT 21,574 UNDER DEVELOPMENT
GILA GRAVITY MAIN CANAL WATER CONSERVATION 1.76
M WCIF 0.83 M UNDER CONSTRUCTION
YUMA COUNTY WUA WATER CONSERVATION 6.16 M
WCIF 3.01 M UNDER CONSTRUCTION
PATAGONIA WASTEWATER 2.39 M BEIF 1.34
M RESIDENTS TO BENEFIT 881 COMPLETED
BISBEE WASTEWATER 30.07 M BEIF 11.30
M RESIDENTS TO BENEFIT 6,096 UNDER CONSTRUCTION
SOMERTON WATER 3.44 MBEIF 1.07 M RESIDENTS
TO BENEFIT 3,200 UNDER CONSTRUCTION WASTEWATER
7.88 M BEIF 3.97 M RESIDENTS TO BENEFIT
7,905 UNDER CONSTRUCTION
DOUGLAS WATER / WASTEWATER 8.47 M BEIF3.71
M RESIDENTS TO BENEFIT 18,000UNDER CONSTRUCTION
GADSDEN WASTEWATER 5.34 M BEIF 1.53
M RESIDENTS TO BENEFIT 888 COMPLETED
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Participation in California
WESTMORLAND WASTEWATER 4.4 M BEIF 1.78
MRESIDENTS TO BENEFIT 2,300 COMPLETED
BRAWLEY (1) WATER 25.7 M LOAN .97
MCOMPLETED BRAWLEY (2) WATER / WASTEWATER
13.76 M BEIF 6.39 MUNDER CONSTRUCTION RESIDEN
TS TO BENEFIT 26,770
DESERT SHORES WASTEWATER 1.20 M BEIF 0.19
M LOAN 0.5 M RESIDENTS TO BENEFIT
1,208 COMPLETED
HEBER (1) WASTEWATER 3.38 M BEIF 1.08
MCOMPLETED HEBER (2) WATER / WASTEWATER 6.87
M BEIF 4.26 MCOMPLETED RESIDENTS TO BENEFIT
3,400
SAN DIEGO WASTEWATER 99.59 MBEIF 17.20
M RESIDENTS TO BENEFIT 1.2 M COMPLETED
BARD WATER DISTRICT WATER CONSERVATION 8.06
M WCIF 4 MUNDER CONSTRUCTION
CALEXICO WATER 11.33 MBEIF 6.48 M RESIDENTS
TO BENEFIT 26,400 UNDER CONSTRUCTION
IMPERIAL I.D. WATER CONSERVATION 5 M WCIF 2.5
MUNDER CONSTRUCTION
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Participation in New Mexico
DOÑA ANA COUNTY SOUTH CENTRAL WASTEWATER 28.8
MCOMMUNITIES BERINO, CHAMBERINO, LA MESA/SAN
MIGUEL, VADO/DEL CERROBEIF 12.1 MRESIDENTS TO
BENEFIT 9,140 UNDER CONSTRUCTION
DOÑA ANA COUNTY SOLID WASTE 3.14 MLOAN 1.51
MSWEP 1.0 MRESIDENTS TO BENEFIT
174,682 COMPLETED
ELEPHANT BUTTE I.D. WATER CONSERVATION 8.5
M WCIF 4.0 M UNDER CONSTRUCTION
LA UNION WASTEWATER 7.3 MBEIF 4.8
MRESIDENTS TO BENEFIT 1,003 UNDER CONSTRUCTION
SALEM/OGAZ WASTEWATER 3 MBEIF 0.9
MRESIDENTS TO BENEFIT 788 COMPLETED
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Participation in Texas El Paso, Terrell
Brewster Counties
EL PASOWATER 37.82 MBEIF 14.91
M COMPLETEDWASTEWATER 100.35 MBEIF 11.02
MRESIDENTS TO BENEFIT 47,000 COMPLETED
FABENS WATER / WASTEWATER 12 MBEIF 6.10
MLOAN 4.75 MRESIDENTS TO BENEFIT 7,066 UNDER
DEVELOPMENT
SANDERSON WASTEWATER 3.64 MBEIF 0.35 M
RESIDENTS TO BENEFIT 1,128 COMPLETED
TORNILLO WASTEWATER 12.74 MBEIF 5.68 M
RESIDENTS TO BENEFIT 3,176 UNDER
DEVELOPMENT
MARATHON W / WW 1.95 MBEIF 1.44
MRESIDENTS TO BENEFIT 660 UNDER CONSTRUCTION
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Participation en TexasMaverick, Starr, Uvalde,
Val Verde Webb Counties
DEL RIO WATER 44.63 MBEIF 15.18
M COMPLETEDSOLID WASTE 1.16 MSWEP 0.47 M
RESIDENTS TO BENEFIT 47,276 COMPLETED
UVALDE SOLID WASTE 3.42 MSWEP 0.5
MRESIDENTS TO BENEFIT 26,000 COMPLETED
LAREDOWATER / WASTEWATER 21.58 MBEIF 6.23
MRESIDENTS TO BENEFIT 3,725 UNDER CONSTRUCTION
EAGLE PASSW / WW 105.34 MBEIF 17.99
MRESIDENTS TO BENEFIT 45,878 UNDER CONSTRUCTION
ROMA WATER/ WASTEWATER 34.18 MBEIF 5.57
MRESIDENTS TO BENEFIT 21,000 UNDER CONSTRUCTION
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Participation in Texas Hidalgo Willacy
Counties
TEXAS PLAN W / WW 6.23 MBEIF 4.19
MRESIDENTS TO BENEF 15,776COMMUNITIES DONNA,
MERCEDES, SAN JUAN, DEL RIO UNDER CONSTRUCTION
MERCEDES W / WW 11.16 MBEIF 0.9 MLOAN
1.87 MRESIDENTS TO BENEF 15,500 COMPLETED
ALTON WASTEWATER 14.47 MBEIF 0.26
MRESIDENTS TO BENEFIT 6,000 COMPLETED
DONNA W / WW 21.62 MBEIF 2.61 MRESIDENTS
TO BENEF 20,000 UNDER CONSTRUCTION
HIDALGO I.D. No. 1 WATER CONSERVATION 5.78
MWCIF 2.89 M / UNDER CONSTRUCTION HIDALGO I.D.
No. 2 WATER CONSERVATION 5.04 MWCIF (A)
0.59 M / COMPLETEDWCIF (Wis) 0.60 M /
COMPLETED HIDALGO I.D. No. 6 WATER CONSERVATION
3.0 MWCIF 1.5 M / UNDER CONSTRUCTION HIDALGO
I.D. No. 16 WATER CONSERVATION 3.52 MWCIF
1.38 M / UNDER DEVELOPMENT HIDALGO/CAMERON I.D.
No. 9 WATER CONSERVATION 2.50 MWCIF 1.25 M /
UNDER DEVELOPMENT
DELTA LAKE I.D. WATER CONSERVATION 7.12
MWCIF 3.56 M UNDER CONSTRUCTION
RAYMONDVILLE WATER 7.45 MBEIF 4.51
MRESIDENTS TO BENEF 10,774 UNDER CONSTRUCTION
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Participation in Texas Cameron County
SAN BENITO W / WW 32.44 MBEIF 17.91 MLOAN
8 MRESIDENTS TO BENEFIT 28,168 UNDER
CONSTRUCTION
TEXAS PLAN WATER / WASTEWATER 2.16 MBEIF
2.16 MRESIDENTS TO BENEFIT 7,379COMMUNITIES
COMBES, PRIMERA, SAN BENITO
LA FERIA W / WW 18.64 MBEIF 6.95 M LOAN
6.13 M RESIDENTS TO BENEF 6,115 UNDER
CONSTRUCTION
SANTA ROSA W / WW 9.72 MBEIF 3.98
MRESIDENTS TO BENEF 4,400 UNDER DEVELOPMENT
VALLEY MUNICIPAL No. 2 WATER CONSERVATION 2.48
MWCIF 1.1 M UNDER DEVELOPMENT
HARLINGEN I.D. No. 1 WATER CONSERVATION 3.56
MWCIF 1.78 M UNDER CONSTRUCTION
CAMERON COUNTY I.D. No. 2 WATER CONSERVATION
15.32 MWCIF (Canal) 1.80 MWCIF (Pump)
4.00 M COMPLETED
BROWNSVILLE I.D. WATER CONSERVATION 2.36 M
WCIF 1.18 M COMPLETED
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Participation in Baja California
TECATEWATER /WASTEWATER 9.73 M BEIF 4.72
M LOAN 0.63 M RESIDENTS TO BENEFIT
82,794 UNDER CONSTRUCTION
TIJUANA (1)WASTEWATER 27.43 MBEIF 16
M LOAN 5.95 M COMPLETED TIJUANA
(2)WASTEWATER 42.01 M BEIF 18.01 M LOAN
4.92 M UNDER CONSTRUCTION RESIDENTS TO BENEFIT
1.3 M
MEXICALI WASTEWATER 54.67 M BEIF 20.62
MUNDER CONSTRUCTION MEXICALI II WASTEWATER
30.16 M BEIF 12.85 MUNDER CONSTRUCTION RESIDE
NTS TO BENEFIT 658,185
STATE OF BAJA CALIFORNIA AIR QUALITY 487 M
LOAN 27.62 M RESIDENTS TO BENEFIT 2.5 MUNDER
CONSTRUCTION
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Participation in Coahuila
CD. ACUÑA WASTEWATER 78.80 M BEIF 16.73
M LOAN 5.30 M RESIDENTS TO BENEFIT
113,194UNDER CONSTRUCTION
PIEDRAS NEGRAS WASTEWATER 56.82 M BEIF 8.40
MLOAN 2.5 M RESIDENTS TO BENEFIT
132,561 UNDER CONSTRUCTION
REGION 5 MANANTIALESWASTEWATER 20.98 M LOAN
8.59 MRESIDENTS TO BENEFIT 28,206UNDER
CONSTRUCTION
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Participation in Nuevo Leon
CHINA GENERAL BRAVOSOLID WASTE 0.95 MSWEP
0.47 M RESIDENTS TO BENEFIT 17,300 COMPLETED
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Participation in Tamaulipas
REYNOSAWASTEWATER 83.4 MBEIF 33.5
MRESIDENTS TO BENEFIT 420,463 UNDER CONSTRUCTION
NUEVO LAREDOWATER / WASTEWATER 57.70 M BEIF
20 MRESIDENTS TO BENEFIT 915 UNDER CONSTRUCTION
MATAMOROSWATER/WASTER (I PHASE) 76.6 MBEIF
33 M RESIDENTS TO BENEFIT 418,141UNDER
CONSTRUCTION
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Participation in Chihuahua
CIUDAD JUAREZ WASTEWATER 31.49 M BEIF 12
M LOAN 4.61 MRESIDENTS TO BENEFIT 1.2
MCOMPLETED AIR QUALITY 14.70 M LOAN 5.5
MRESIDENTS TO BENEFIT 30,000 UNDER DEVELOPMENT
PUERTO PALOMAS WASTEWATER 5.18 M BEIF 1.88
MRESIDENTS TO BENEFIT 7,490 COMPLETED
OJINAGA WASTEWATER 4.95 M BEIF 2.12 M LOAN
1 MUNDER CONSTRUCTION SOLID WASTE 1.77 M
SWEP 0.50 MUNDER CONSTRUCTION RESIDENTS TO
BENEFIT 24,307
DELICIAS WATER CONSERVATION 143.60 M WCIF 40
MRESIDENTS TO BENEFIT 180,000 UNDER CONSTRUCTION
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Participation in Sonora
PUERTO PEÑASCO SOLID WASTE 2.18 M SWEP 0.47
MRESIDENTS TO BENEFIT 33,115 COMPLETED
SAN LUIS RC WASTEWATER 16.74 M BEIF 5.94
M LOAN 7.22 MRESIDENTS TO BENEFIT 170,413
MUNDER CONSTRUCTION SAN LUIS RC SOLID WASTE
4.01 M SWEP 0.50 M LOAN 1.08 M UNDER
CONSTRUCTION
NOGALES WATER 39 M BEIF 8.69 MUNDER
CONSTRUCTION WASTEWATER 11.09 M BEIF 5.55
M UNDER CONSTRUCTION RESIDENTS TO BENEFIT 190,057
EL SÁSABE WASTEWATER 0.94 M BEIF 0.47
MRESIDENTS TO BENEFIT 1,081 UNDER CONSTRUCTION
AGUA PRIETA SOLID WASTE 1.91 M LOAN 0.45
MRESIDENTS TO BENEFIT 60,236 COMPLETED AIR
QUALITY 17 M LOAN 4 MRESIDENTS TO BENEFIT
78,236 UNDER CONSTRUCTION
NACO W / WW 2.07 M BEIF 0.95 M LOAN 0.18
MUNDER CONSTRUCTION SOLID WASTE 0.60 M SWEP
0.30 M COMPLETED RESIDENTS TO BENEFIT 6,108
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NADB Benefits

• Social/Health
• Air Quality 2.6 million residents. Reduced
  exposure to air pollution from PM10.
• Solid Waste 547,000 residents with better
  services for the collection and disposal of solid
  waste.
• Water/Wastewater 6.7 million residents. Upgrades
  rehabilitation of WWTP and collection lines.
  First-time water and wastewater services will be
  provided for some communities.
• Water Conservation Estimated annual water
  savings of 201,626 acre-feet in Mexico 158,996
  acre-feet in the U.S.

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Projects in the Pipeline

• In total, the BECC and NADB currently have more
  than 55 projects in the development pipeline.
• Total estimated cost of these projects is US944
  million.
• NADB estimates a lending potential of over
  US200 million for these projects.

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www.nadb.org

• Latest Information on NADB Projects Activities
• Downloadable Copies of printed materials
• Quarterly status reports
• Program brochures
• Procurement notices
• Direct link for feedback to NADB
• Electronic Newsletters
• NADB News
• Connections