NADBank Board of Directors Holds Semi-Annual Meeting


The Board of Directors of the North American Development Bank (NADBank) held its second semi-annual meetings of 2024 on November 13th and 14th. Image for illustration purposes
The Board of Directors of the North American Development Bank (NADBank) held its second semi-annual meetings of 2024 on November 13th and 14th. Image for illustration purposes
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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. 

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

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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.

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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.

The NADBank Board of Directors is formed by 10 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, as well as border state and resident representatives from both countries.

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