Through this program, NADBank offers grants to support the implementation of critical environmental infrastructure projects for economically distressed communities in the U.S.-Mexico border region.
Grants for up to US$750,000 are available for water and solid waste projects and for up to US$250,000 for emergency infrastructure repairs.
CAP grants may be used for:
Sponsor Contribution
The project sponsor must contribute at least 10% of the total project cost in the form of cash. On a case-by-case basis, in-kind contributions such as design, land, equipment or other tangible assets or cost components of a project may be considered towards fulfilling this contribution.
Supervision
Qualified supervision services must be procured by the sponsor for the project. Costs for supervision shall be included as part of the total project cost and will be considered an eligible use of the CAP grant.
Timeline
The period from Board certification and CAP funding approval to the signing of the grant agreement may not exceed three months. The period from grant signing to the initiation of project implementation may not exceed six months.
Infrastructure projects in the following categories are eligible for CAP financing:
Projects must be located within the border region, defined as 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.
The project sponsor must have the legal authority to develop the project, provide the proposed services and/or contract the proposed financing. A project must also observe or be capable of observing the environmental and other laws and regulations of the place where it is to be located or executed, including obtaining the necessary operating permits, licenses, and other regulatory requirements related to land acquisition and rights-of-way.
Equipment for Sanitary Landfill Operations and Waste Collection in Región Cinco Manantiales, Coahuila
Location: Región Cinco Manantiales, Coahuila
NADBank Funding: 0.41M USD
Sector: Solid waste
Location: El Paso, Texas
NADBank Funding: 0.5M USD
Sector: Water
Location: Nogales, Arizona
NADBank Funding: 0.45M USD
Sector: Wastewater
The project must meet or be capable of meeting the technical, environmental and financial criteria for certification and funding approval by the Board of Directors. More detailed information about these requirements, as well as the minimum documentation required to apply for CAP funding, is provided at the following link.
CAP Program Guidelines
Project Certification Criteria
Eligible CAP applications are evaluated based on a methodology to rank projects from highest to lowest priority. The priority factors and maximum points available for each one is provided below. Additional details regarding the priority methodology are provided in the CAP Program Guidelines.
Environmental or human health objective
40
25
Degree of financial need
20
Underserved community or community with
environmental justice concerns
15
The main steps that the Bank follows in reviewing and approving a project to receive a CAP grant, are outlined below.
Applications for emergency needs will be considered on a case-by-case basis and approved by NADBank management using an expedited process as described in the CAP Guidelines
Application ReviewGrant applications must include all required technical, environmental and financial documentation. Incomplete applications will not be accepted, and the applicant will be notified of the missing documents or pending issues.
Project SelectionProjects will be prioritized based on factors related to environmental or human health benefits, project readiness, degree of financial need and lack of service or environmental justice concerns.
Approval ProcessUpon project selection, NADBank initiates the approval process, which includes analyzing construction readiness, project costs and operation and maintenance budget impacts, as well as determining the recommended amount of CAP funding. A project certification and financing proposal is prepared and submitted to a 14-day public comment period, prior to submission to the Board of Directors for approval.
Financial ClosingThe grant agreement has to be signed within three months following funding approval. Disbursements will generally be made directly to suppliers and contractors against invoices for work completed.
Project ImplementationProject implementation has to begin within six months after the signing of the grant agreement. The procurement of goods, works and services related to the project is the responsibility of the project sponsor; however, NADBank can provide support during the procurement process.
Project completion and closeoutUpon project completion and in compliance with the grant agreement, the project sponsor will provide required reports to NADBank in a timely manner. NADBank will perform a closeout process for the project 1 year after project startup with support from the project sponsor.
Projects may receive a CAP grant for no more than 90% of the project costs with a maximum of US$750,000. CAP funds may be awarded as a traditional non-reimbursable grant or as a component of a blended loan. The appropriate option will be determined based on the characteristics of the project sponsor and the population to benefit.
For questions about CAP program requirements or if you need support to complete your project application, please contact NADBank staff at CAPapplication@nadb.org.
CAP Financing Application:
In the case of emergency repairs, the CAP grant is limited to US$250,000, and the sponsor will be required to fund its own repair and replacement reserve account in an amount equal to the emergency CAP grant amount. The sponsor must demonstrate that CAP funds are necessary as the funding of last resort to address repairs to critical infrastructure, when:
For questions about requirements for emergency CAP funding or if you need support to complete your emergency project application, please contact NADBank staff at CAPemergency@nadb.org.
CAP Emergency Financing Application:
