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TABLE 1: ELIGIBLE ENVIRONMENTAL SECTORS
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Priority Sectors
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- Water supply
- Water conservation
- Wastewater treatment
- Municipal solid waste
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Expanded Mandate Sectors
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- Air quality improvement
- Clean & renewable energy
- Energy efficiency
- Industrial and hazardous waste
- Public transportation
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TABLE 2: BASIC INFORMATION REQUIREMENTS
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- Brief description of the project, including environmental and/or health benefits
- Estimated project cost and sources of funding
- Status of project development, including project design, authorization from governing boards and/or agencies, and anticipated costruction start-up
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TABLE 3: MAIN INFORMATION REQUIREMENTS FOR FINANCIAL ANALYSIS
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- Audited financial statements (previous 5 years)
- Current budget and/or proposed budget for coming year
- Current debt and conditions
- Operations & maintenance costs
- Capital Investment Program
- Credit rating, if available
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General Eligibility Criteria
To be eligible for financing and other forms of assistance from NADB, projects must meet the following basic criteria:
- Projects must remedy an environmental and/or human health problem. A list of some eligible environmental sectors is provided in Table 1.
- The project must be located within 100 kilometers (62 miles) north of the international boundary in the four U.S. states of Arizona, California, New Mexico, and Texas and within 300 kilometers (about 186 miles) south of the border in the six Mexican states of Baja California, Chihuahua, Coahuila, Nuevo Leon, Sonora, and Tamaulipas. However, projects outside this region may be eligible if they remedy a transboundary environmental or health problem.
- Projects must be certified by the Border Environment Cooperation Commission (BECC).
For additional program-specific requirements, go to Border Environment Programs. If you have doubts concerning the eligibility of your project, contact BECC or NADB.
Applying for
Certification and Financing
First Steps
If your project falls within an eligible environmental sector and is located within the border region as defined above:
- Contact BECC to initiate the certification process. For more information, visit www.cocef.org.
- At the same time, contact NADB to perform a preliminary assessment of the project’s financial feasibility.
- Be prepared to provide basic information to NADB about the project (see TABLE 2).
During the preliminary review, BECC & NADB confirm project eligibility and verify the technical and financial viability of the project based on the preliminary information presented by the sponsor.
Application Process
- Submit a formal
certification and financing application to BECC in the format provided.
(Application
- pdf)
- In the case of loans, sign an acceptance agreement with NADB regarding the comprehensive analysis of the project proposal and reimbursement of the NADB’s expenses and pay the respective application fee.
- Gather and submit the information required by the Bank to perform its financial analysis (see TABLE 3)
Through their technical assistance programs, BECC & NADB can help you finance studies to generate information needed for the proper development of your projects. (Applying for Technical Assistance).
During Funding Approval Process
While the NADB performs its analysis of the project and obtains funding approval from its Board of Directors and/or EPA for BEIF grants, you should proceed with the development of the project:
- Work with BECC to meet the public participation requirements for certification.
- Complete design and begin preparing procurement documents; meet with NADB procurement staff to review Bank’s guidelines and requirements.
- Obtain any necessary authorization and permits for contracting financing and constructing the project; work with other funding sources to secure their participation.
- Begin gathering legal documents required for closing and/or disbursing the loan/grant agreement.
- Remain in regular contact with NADB & BECC and provide any new or updated information as soon as it becomes available.
After Funding Approval
Once the project is certified and funding is approved, the project sponsor is responsible for project implementation:
- Negotiate and finalize terms and conditions of the loan/grant with NADB; sign the corresponding financing agreement.
- Carry out bidding and contracting processes in accordance with NADB procurement guidelines.
- Submit disbursement requests, in accordance with agreed terms and schedule.
- Oversee construction and provide regular reports to funding agencies.
Tips for a Successful Project
- Make realistic selection of project(s) to present for certification and funding; projects that are affordable, achievable and that will have the best benefit for the use of scarce funds; establish priorities.
- Appoint a project manager who can dedicate the time needed to coordinate project.
- Hire consultants and contractors with sufficient qualifications to design and build the project, particularly in the case of new technologies.
- Ensure that critical elements, such as land acquisition, right-of-ways, and power line installations, have been accounted for prior to proceeding with project design.
- Take advantage of technical assistance & grant support available from BECC, NADB, and other state and federal agencies.
- Develop plan for moving project through the political process of municipal & state authorization early in process to avoid delays once financing has been approved.
- Ensure that all funding sources have been identified and committed; all funding will be available when needed.
- Review terms and conditions of funding agreements carefully to determine how they will affect day-to-day operations and plan to meet these conditions.
- Begin to lay the political and public groundwork early if the project will require an increase in rates; develop a public relations campaign to generate support for the project.
- Begin collecting legal documents that will be required as soon as possible.
- Consult regularly with BECC / NADB during project design phases to ensure project remains on track.
- As projects are being carried out, begin planning for the next projects, taking into account lessons learned.
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