EPA's Role with the North American Development Bank (NADB)
Following the 1993 signature of the North American Free Trade Agreement (NAFTA), two binational institutions were created to develop the environmental infrastructure of the U.S.-Mexico border region and enhance the well-being of residents in both nations. The Border Environment Cooperation Commission was created to identify, develop and certify environmental infrastructure projects in the U.S.-Mexico Border area. The North American Development Bank was created, capitalized, and governed equally by the United States and Mexico to finance environmental infrastructure projects in the border region.
These institutions have fulfilled an essential role in supporting the improvement of environmental conditions in the border region.
On November 10, 2017, the Border Environment Cooperation Commission (BECC) and the North American Development Bank merged as one institution, called the North American Development Bank (NADB), continuing to fulfill these essential functions. Exit
The NADB is jointly governed by the United States and Mexico, via a 10-member Board of Directors:
- From the federal government of the United States, the board members include the Administrator for EPA, and the Secretaries of State and Treasury.
- From the federal government of Mexico, the board members include the Secretaries for the Environment and Natural Resources (SEMARNAT), Treasury (Hacienda; SHCP), and External Relations (Secretaria de Relaciones Exteriores; SRE).
- The board also includes one state representative and one border resident from each country.
EPA has been an active participant as a member of the Board of Directors for NADB, helping to ensure that the projects approved by the Board achieve human health and/or environmental benefits, and that completed projects have achieved the anticipated results. In addition, EPA has made it a top priority that transparency and accountability continue to guide the work of the NADB.
The total number of projects funded by NADB and the amount of financing provided by NADB from its inception until December 31, 2017 is approximately US$3 billion in loans and grants to help finance 244 certified projects. To date, 92% of the contracted financing has been disbursed for project implementation.
Of the 244 projects receiving financing from the Bank, 182 have completed construction and financing activity and/or have been closed out.