Cornyn: US-Mexico border region is reaping the rewards of NADBank’s investment in key infrastructure projects

SAN ANTONIO, Texas – As the North American Development Bank celebrates its 30th anniversary, U.S. Sen. John Cornyn has praised the binational institution for its work along the U.S.-Mexico Border.

In a letter dated Nov. 14, 2024, that was sent to NADBank’s leadership, Cornyn said he was honored to work to include the bank’s capital increase in the United States–Mexico–Canada Agreement.

“I am glad that the border region is reaping the rewards of that funding for much-needed infrastructure,” Cornyn wrote. 

NADBank’s board of directors comprises ten members, with the heads of the U.S. Department of the Treasury, the U.S. Department of State and the U.S. Environmental Protection Agency for the United States and 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. The board also includes border state and resident representatives from both countries.

In his letter, Cornyn points out that he has, along with other Texas lawmakers, expressed “strong support” for reestablishing NADBank’s Water Infrastructure Fund.

“I applaud the North American Development Bank’s decision to restore this critical program and for taking this significant step to ensure long-term water security for both municipal and agricultural communities,” Cornyn wrote. “NADBank plays a critical role in our nation’s relationship with Mexico through developing and financing infrastructure that benefits our agriculture and trade industry.”

Here is a copy of the letter:

November 14, 2024

Dear Friends:

Congratulations to the board, management team, and staff of the North American Development Bank (NADBank), as well as members of the Rio Grande Valley community, on the 30th anniversary of your institution. This incredible milestone is a testament to the important work NADBank has done to improve the lives of nearly 20 million people in the border community, including financing more than 300 environmental infrastructure projects for a total infrastructure investment of nearly $12 billion.

I was honored to work to include the bank’s capital increase in the United States–Mexico–Canada Agreement, and I am glad that the border region is reaping the rewards of that funding for much-needed infrastructure.

In October, I expressed my strong support for reestablishing NADBank’s Water Infrastructure Fund alongside some of my colleagues from Texas. I applaud the North American Development Bank’s decision to restore this critical program and for taking this significant step to ensure long- term water security for both municipal and agricultural communities.

NADBank plays a critical role in our nation’s relationship with Mexico through developing and financing infrastructure that benefits our agriculture and trade industry. Through the leadership of John Beckham, Salvador Lopez, and Jesse Hereford, NADBank has achieved so much for the South Texas region, and I look forward to seeing how the bank will continue to benefit this region for years to come.

We have lots more to accomplish together for the U.S.-Mexico border, while fulfilling the bank’s mandate, and I will continue supporting your efforts in the U.S. Senate.

Thank you again for all that you do for Texas and the entire border region.

Sincerely,

John Cornyn

United States Senator

Cornyn sent the letter to coincide with NADBank’s semi-annual meeting, which was held in San Antonio.

NADBank’s communications department has sent out a press release detailing the decisions made at the meeting. The press release highlights these items:

• Board directed the Bank to move forward with the development of a comprehensive initiative to invest in water conservation and diversification projects to alleviate water stress in the border region.

• Board recognized the impact of two projects recently approved to receive US$11.7 million in financing

• Board approved Bank participation as custodian of toll revenue for a new international land port of entry at the Mesa de Otay II/Otay Mesa East International Border Crossing.

• Board took steps to appoint new NADBank Deputy Managing Director.

Here is the NADBank press release:

SAN ANTONIO, Texas – The Board of Directors of the North American Development Bank (NADBank) held its second semi-annual meetings of 2024 on November 13and 14^.

During the meeting the Board highlighted the two projects recently approved to receive US$11.7 million in financing, which demonstrate the importance of binational collaboration and funding between the U.S. and Mexico, as well as authorized the Bank to serve as custodian of the toll revenue to be collected by the new Mesa de Otay II/Otay Mesa East International Border Crossing and Port of Entry. 

In addition, the Board discussed a comprehensive NADBank initiative to invest in infrastructure needed for water conservation and diversification to benefit the agriculture sector and border municipalities. To support this initiative, the Board intends to direct an important portion of the Bank’s 2024 operating income to reactivate NADBank’s Water Conservation Investment Fund, with additional significant investments targeted over the next five to seven years. The Board also took steps to complete the appointment of a new Deputy Managing Director of the institution.

In response to persistent drought throughout the border region, the Board of Directors provided feedback on a comprehensive investment initiative for projects aimed at conserving and diversifying water resources in agriculture and communities. The Board agreed to consider in early 2025 a detailed proposal on the instruments, eligibility criteria and expected demand for the financing.

Additionally, the Board instructed the Bank to publish the Water Investment Program (WIP) for a 30-day public comment period with the goal of launching the program early in 2025. The WIP proposes establishing the programmatic certification of mid-sized water projects to streamline evaluation of these critical infrastructure investments.

Recently approved projects included an alternative drinking water supply for five schools in Monterrey, Nuevo Leon, by installing hydropanels that condense water from the air and operate using photovoltaic cells and batteries. The hydropanels will supply safe drinking water for an estimated 1,470 students and teachers, minimizing school closures and contributing to a healthy learning environment. NADBank is providing a US$500,000 grant through its Community Support Program (CAP) for this initiative.

The second approved project is a green loan for up to $200 million pesos (approx. US$11.2 million) to Altum CP, S.A.P.I. de C.V., SOFOM, E.N.R., a Mexican non-bank financial institution that provides financing to non-bank financial intermediaries, as well as small and medium-sized businesses. With the proceeds of this loan, Altum CP plans to finance energy efficiency projects in sustainable buildings located within the Mexican border region and promote circular economies through green manufacturing practices. These projects will support the displacement of greenhouse gas emissions, as well as generate energy and water savings.

During the meeting, the Board authorized NADBank to act as the custodian of the toll revenue from the new Mesa de Otay II/Otay Mesa East International Border Crossing and Port of Entry, which is being built and operated by the San Diego Association of Governments (SANDAG), the California Department of Transportation (CALTRANS) and the Mexican Ministry of Infrastructure, Communications and Transportation (SICT). This initiative is the first U.S.-Mexico port of entry where tolls will be collected at a single point and subsequently distributed in accordance with a toll revenue sharing agreement. NADBank’s participation gives all parties confidence in the proper accounting and distribution of the toll revenue.

Likewise, the appointment of Alejandro Olivo Villa as Deputy Managing Director by the Government of Mexico was ratified today by the Board of Directors. He has nearly 30 years of experience in the public and private sectors, in particular in finance, public policy, sustainable investment and global capital markets. Prior to his appointment, Mr. Olivo was a senior advisor to the transition team for the Mexican Ministry of Finance and Public Credit and over the past four years has held various management positions at Moody’s Investors Services in Mexico, the United States and France. He holds a bachelor’s degree in Economics from the Instituto Tecnológico Autónomo de México (ITAM) and a master’s degree in Finance and International Relations from Johns Hopkins University.

The Board of Directors also held a virtual public meeting with the participation of about 110 border communities, representatives of the public and private sectors, project developers, academia and non-governmental organizations, who provided public comments related to environmental issues, progress achieved and current needs in their communities and various sectors.

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