NADB and its sister institution, the Border Environment Cooperation Commission (BECC), were created by the governments of the United States and Mexico in a joint effort to preserve and enhance environmental conditions and the quality of life of people living along the U.S.-Mexico border.

Created as interdependent institutions, NADB and BECC function as a team, working with communities and project sponsors to develop, finance and build affordable and self-sustaining projects with broad community support. Within this project development model, each institution is charged with specific responsibilities, with BECC focusing on the technical aspects of project development, while NADB concentrates on project financing and oversight for project implementation.

Specifically, BECC is charged with verifying the technical viability and environmental/health impacts of projects through a certification process that ensures transparency and public participation. Each infrastructure project must be certified by BECC in order to be eligible for financing from NADB. For more information about the BECC and its activities, visit its website.

NADB offers direct financing in the form of loans and grants to public and private entities for the implementation of their projects. NADB verifies that the proposed projects are financially feasible and works closely with the sponsors and other funding partners to structure appropriate and affordable financing packages to meet the specific needs of each community and project.

In addition, NADB works with local governments and other project sponsors to help them implement sound financial and business practices that provide a basis for well-managed debt financing. As part of this strategy, NADB also promotes a comprehensive, long-term approach to infrastructure planning and project finance, as well as offers technical assistance to build institutional capacity and support the development of sustainable infrastructure.

History:

The North American Development Bank (NADB) and its sister institution, the Border Environment Cooperation Commission (BECC), were created under the auspices of the North American Free Trade Agreement (NAFTA) to address environmental issues in the U.S.-Mexico border region. The two institutions initiated operations under the November 1993 Agreement Between the Government of the United States of America and the Government of the United Mexican States Concerning the Establishment of a Border Environment Cooperation Commission and a North American Development Bank (the “Charter”).

NADB was established in San Antonio, Texas, and began operations on November 10, 1994, with the initial capital subscriptions of the U.S. and Mexican governments.

In June 2000, the NADB Board of Directors initiated discussions on expanding the Bank’s financing activities to more effectively serve border needs. These discussions gave rise to a broad set of reform initiatives, some of which required changes to the original BECC-NADB Charter. Following passage of the necessary U.S. and Mexican legislation, an amended Charter went into force on August 6, 2004.