NADBank updates project selection criteria

The North American Development Bank (NADBank) approved new policy guidelines to consider when analyzing financing for projects. 

The two guidelines approved are the environmental, social and governance (ESG) policy, and a focus on gender equality and inclusion. The bank’s board also approved the upgrade of the Community Assistance Program (CAP), which focuses on supporting environmental infrastructure projects in marginal regions of the US-Mexico border. 

The changes were adopted Wednesday during NADBank’s first 2023 semiannual meeting in Mexico City, in which members of Mexico’s finance ministry and the US Treasury Department were present. 

“Modifications to the CAP guidelines include refocusing project eligibility on investments in water and solid waste infrastructure, establishing an impact-oriented project selection approach and creating new financing options, including an increase in the maximum grant amount and an option for emergency funding,” the bank said in a statement. 

Among NADBank’s most recent loans approved is a 3bn-peso (US$175mn) credit for water and sanitation projects in Baja California state. Granted in early March, the loan will be used for projects on the Tijuana River, according to governor Marina del Pilar Águila. 

The bi-national bank’s board has approved more than US$279mn in financing for seven environmental infrastructure projects along the border in the water, solar energy and sustainable food sectors since its last meeting in November 2022.