Secure Approval From US and Mexican Congress
The North American Development Bank, which finances environmental infrastructure projects along the U.S.-Mexico border, has been approved for a capital increase of $3 billion from the U.S. and Mexican governments over the next five years as approved by President Obama and Mexican President Peña Nieto in January 2015. The Chamber supports a general capital increase as it will allow NADBank to continue fulfilling its mission of improving environmental infrastructure and the quality of life on both sides of the border.
Since their establishment as part of NAFTA negotiations two decades ago, the North American Development Bank (NADB) and Border Environmental Cooperation Commission have provided more than $2.5 billion in loans and grants to support the implementation of 211 environmental infrastructure projects in the border region.
At a White House meeting on January 6, 2015, President Obama and Mexican President Peña Nieto agreed to support a general capital increase of US$3 billion for NADB.
The amount apportioned by both governments over an estimated period of five years includes $450 million in paid-in capital and the rest in callable capital. The proposed capital increase will bolster the bank’s capital adequacy so that it may continue to provide loans for needed projects.
Through this funding, NADB will continue improving our bilateral relationship and quality of life for residents of the border region through sustainable and affordable infrastructure.
The Chamber supports a general capital increase for NADB, as proposed by President Obama and President Peña Nieto, has activated a letter writing campaign to Senate and House in support of the appropriation of funds, and met with members of the San Diego Congressional delegation.
In July of this year, the U.S. Senate Committee on Appropriations approved a $22.5 million capital increase and $255 million in callable capital to the NADB. The approved funding came in at half the amount proposed by both U.S. and Mexican institutions, but Chamber officials remain hopeful that the final amount will match the original.
Read the Chamber’s letter of support.
For more information about the bank, visit NADG.org.