North American Development Bank 2 nd Regional Border Economic Development Forum Jorge C. Garcés Managing Director Border Legislative Conference February 24, 2006

North American Development Bank Development Bank from United States and Mexico Established in 1994, 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

North American Development Bank NADB Programs Loan and Guaranties ►Includes Bank’s 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.

North American Development Bank 90 projects with funding approval: ►Total Cost: $2.3 billion ►NADB Participation: $703.8 million ►NADB Disbursed : $ 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 NADB Performance

North American Development Bank NADB Pending Loan Approvals BorrowerType of ProjectLoan ($US) Matamoros, TAMSWastewater10,000,000 Nogales, SONWater9,260,000 Nuevo Laredo, TAMSStorm Drainage22,000,000 Nuevo Laredo, TAMSWastewater5,600,000 Puerto Peñasco, SONAir Quality2,270,000 Reynosa, TAMSWastewater8,000,000 Reynosa, TAMSAir Quality17,000,000 Sonoyta, SONAir Quality1,000,000 San Luis RC, SONAir Quality4,550,000 State of Baja California (PIPCA II) Air Quality20,000,000 US$99.68 million

North American Development Bank Projects in the Pipeline ProjectTypeTotal Cost Estimated NADB Loan Yuma, AZWW Mexicali, BCSW Tijuana, BCSW Anapra, Cd. Juárez, ChihWW La Grulla, TXW/WW Starr County, TXSW Pharr, TXWW Monterrey Industrial, NLEE Monterrey Industrial NLEE Peñascal, Kenedy County, TXCE Baja California Wind EnergyCE Tijuana, BC Street PavingAQ VITRO Pollution Control Phase 1AQ EE: Energy Efficiency CE: Clean EnergySW: Solid Waste AQ: Air QualityWW: Wastewater W: Water

North American Development Bank Case Study: State of Baja California (PIPCA) Air Quality improvement and Street Paving Program (PIPCA) Regional Project to pave 14.9 million m 2 of street surface in all 5 municipalities of Baja California (Ensenada, Mexicali, Rosarito, Tecate & Tijuana) to benefit 2.5 million residents. Total cost: US$487 million First Phase: ►Cost: US$65.2 million ►NADB Loan: US$27.6 million ►More than 80 contracts have been awarded to pave 250 km in more than 135 subdivisions. ►98% completed. Second Phase: ►The State of BC submitted a request to NADB for a US$20 million loan extension to pave 1.52 million m 2 for the second phase of PIPCA. Loan request is under review by NADB Board of Directors. Before After

North American Development Bank Case Study: Reynosa, Tamps. Comprehensive Sanitation Project Rehabilitation of the existing wastewater treatment plant, construction of two treatment plants, and rehabilitation and expansion of the sewage system. ►Cost: US$83.4 million ►NADB BEIF Grant: US$33.5 million ►NADB Loan under approval: US$8 million ►473,500 residents to benefit ►Approximately 5,200 hookups have been installed. Pump stations No. 4 and 10 are complete. Construction of Wastewater Treatment Plant No. 3 and the connecting force main will begin once all funding is in place. ►Implementation of this project will address the city’s sanitation problems by providing 100% wastewater treatment and sewer capacity.

North American Development Bank Case Study: Desert Shores, CA Wastewater Collection System Improvements Replacement of portions of the existing wastewater collection system and improvements to the pump system. ►Cost: US$1.2 million ►NADB BEIF Grant: US$193,869 ►NADB Loan: US$500,000 ►1,208 residents benefited ►The new lines were installed at flatter slopes and shallower depths, simplifying the pumping infrastructure, which is significantly reducing maintenance requirements for the district. ►Construction was completed in December 2004 and the system is in operation. ►The improvements ensure that effluent discharges from the treatment plant comply with California quality requirements.

North American Development Bank Case Study: Doña Ana County, NM Solid Waste Landfill Expansion, Transfer Station Improvements and Equipment Replacement Project Expansion of the Corralitos Regional Landfill by completing the second cell, improvements to existing facilities, and replacement and purchase of equipment. ►Cost: US$3.13 million ►NADB SWEP Grant: US$999,660 ►NADB Loan: US$1.5 million ►174,682 residents benefited ►Cell 2B was completed in April 2004 and began operations in July Rehabilitation of the transfer station, including the purchase and delivery of equipment, was completed in September ►Expansion of the landfill and other improvements allows the facility to continue to serve its customers and will help reduce illegal dumping in and around the city and county.

North American Development Bank Case Study: Bisbee, AZ Wastewater System Improvements Rehabilitation of the wastewater collection system and construction of a new wastewater treatment plant. ►Cost: US$30.07 million ►NADB BEIF Grant: US$11.30 million ►6,096 residents benefited ►Rehabilitation of the sanitary sewer lines was completed in September Construction of the treatment Plant is underway. ►Replacing and rehabilitating the sewer system will greatly reduce sewage back-ups and overflows. The new treatment plant will ensure compliance with all federal and state discharge standards.

North American Development Bank Case Study: Hidalgo County I.D. No. 2, TX Wisconsin Canal Water Conservation Improvements Project Replacement of the 2-mile open-air canal with reinforced concrete pipe and new farm turnouts, gates and/or valves to better control flows. ►Cost: US$1.6 million ►NADB WCIF Grant: US$600,000 ►Construction was completed in 2005 and system is in operation. ►The project will reduce water losses from seepage and evaporation, resulting in an estimated savings of 977 acre- feet of water a year. Energy savings from reduced pumping requirements are estimated at 109,289 KWH/year on average.

North American Development Bank Case Study: San Luis RC, SON Construction of a Wastewater Treatment Plant and Rehabilitation of the Wastewater Collection System (First Phase) Rehabilitation and expansion of the sewer lines and construction of a wastewater treatment plant. ►Cost: US$16.7 million ►NADB BEIF Grant: US$5.9 million ►NADB Loan: US$7.2 million ►170,413 residents benefited ►Construction of the wastewater treatment plant began in September 2004 and is 92% completed. ►With this project the city will be able to provide wastewater service coverage to 85% of the population over a ten-year period and 100% of the collected wastewater will be treated.

North American Development Bank Case Study: Piedras Negras, COAH Comprehensive Sanitation Project The Project is divided into three phases to be carried out over a 20-year period and is designed to offer sewerage coverage to the city’s entire population, which is currently estimated at 262,000 residents. ►Cost: US$56.8 million ►NADB BEIF Grant: US$8.4 million ►NADB Loan: US$2.5 million ►The BEIF & loan funds will be used for the construction of sewer lines and pump stations in Phases II and III of the project. ►With the implementation of this project, all Piedras Negras residents will receive wastewater collection and treatment services. It will also improve the overall health and well- being of current and future residents of Piedras Negras, Coahuila, and Eagle Pass, Texas.

North American Development Bank Case Study: Ciudad Juárez, CHIH North and South Wastewater Treatment Plants Project and Supplemental Wastewater Collection Projects Construction of two wastewater treatment plants (north and south), collectors, sewer lines and pumps to convey wastewater to the plants for treatment. Rehabilitation and replacement of sanitary sewer lines in the city. ►Cost: US$31.49 million ►NADB BEIF Grant: US$12.18 million ►NADB Loan: US$4.6 million ►1.2 million residents benefited ►Both plants have been in operation since ►Sewer service coverage increased from 80% to 93%. First-time wastewater treatment for the City, with 67% of wastewater generated by city treated.

North American Development Bank Case Study: China & General Bravo, NL Municipal Solid Waste Comprehensive Management Project Construction of a regional sanitary landfill, creation of a municipal sanitation utility, and closure of three open- air dump sites. ►Cost: US$945,968 ►NADB SWEP Grant: US$472,414 ►17,300 residents benefited ►Creation of the sanitation utility, construction of the new regional landfill and closure of the old dumpsites are complete. Equipment funded by the Bank has been purchased and delivered. The landfill began operations in January ►Proper solid waste management, as well as the closing of the current open-air dumps will reduce the contamination of soil, air and groundwater resources and thus help protect the health and well-being of local residents.

North American Development Bank Jorge C. Garcés Managing Director Border Legislative Conference February 24, 2006