NADBank provides for environmental infrastructure financing for communities in northern Sonora

San Antonio, Texas. – The North American Development Bank (NADBank), through its Mexican subsidiary Corporación Financiera de América del Norte, S.A. de C.V. SOFOM E.N.R. (COFIDAN), and the Government of the State of Sonora today signed a loan agreement for up to $650 million pesos (~US$36.2 million) to finance public infrastructure works and priority investment projects in 2026.

“Today’s agreement with NADBank enables us to draw on shared binational experience and strengthen our finances with the firm objective of addressing challenges on both sides of the border and building fairer, better managed and more transparent states together,” commented Sonora Governor Alfonso Durazo Montaño.

For his part, NADBank Deputy Managing Director Alejandro Olivo noted that the financing will allow the Bank to support Sonora in projects that will have a direct impact on the well-being of its communities. “We recognize that behind every project are families waiting for better services and a more dignified living environment. Seeing how these efforts impact the daily life of people inspires us to continue partnering with the State.”

The agreement was signed by the NADBank Deputy Managing Director and Carlos Hernández Cordero, the Sonora Secretary of Finance, representing the state governor.

The investment is part of the plan authorized in November 2025 by the local Congress through a decree that allows the State to contract up to $1.5 billion pesos for priority infrastructure projects. In accordance with the Mexican Financial Discipline for States and Municipalities, on January 12, 2026, the State launched a competitive process to secure up to $1.5 billion pesos in financing. NADBank participated through COFIDAN and was awarded a loan of $650 million pesos. The loan is notable for having the lowest interest rate ever in the history of Sonora.

The investment program includes projects in 28 communities located within 300-kilometers border region of the state and is expected to benefit more than 1.5 million people. These investments are part of the Comprehensive Investment Program implemented by the Government of the State of Sonora and designed to address essential infrastructure needs, generate environmental benefits and promote economic development.

Projects to be financed under the program must be aligned with the Sonora Sustainable Public Finance and Investment Framework, published in 2026. In addition, a Technical Committee will be formed to oversee the use of the loan proceeds, project implementation and provide operational oversight to ensure that the assets function properly in the long term.

Comprehensive Investment Program includes activities in various sectors:

• Water and wastewater management: rehabilitation, relocation and equipping of 27 water wells in 15 municipalities; replacement of deteriorated waterlines in nine localities and improvements in wastewater collection and treatment systems.
• Transportation infrastructure: paving of dirt roads and rehabilitation of deteriorated roadway infrastructure to optimize urban vehicular and pedestrian mobility in Hermosillo, Agua Prieta and Nogales.
• Waste management: Expansion, construction and equipping of infrastructure for the disposal of municipal solid waste, including construction of a second phase of the Puerto Peñasco sanitary landfill.
• Energy efficiency: rehabilitation, modernization and equipment to increase the energy efficiency of four public buildings in Hermosillo and Magdalena
• Urban development: rehabilitation and equipment for parks, green areas and public spaces, and equipment for the sport facilities in Hermosillo, incorporating energy- and water-efficient measures, improvements in stormwater management (including rainwater harvesting) and environmental infrastructure with demonstrable merits.

The projects funded under this program are expected to improve basic water, wastewater and solid waste services; generate water and energy savings; and reduce related contamination. A portion of the loan proceeds will also be allocated to investments in wastewater infrastructure in the cities of Nogales and Naco, to complement projects supported by the Border Environment Infrastructure Fund (BEIF), which is funded the U.S. Environmental Protection Agency (EPA) and administered by NADBank.

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