FOR IMMEDIATE RELEASE
March 25, 2004
CONTACT: Kevin Schweers
CONGRESS APPROVES SWEEPING NADBANK REFORM
New Fund Will Support Water, Environmental Projects on the Border
WASHINGTON, DC -- Congress today approved legislation authored by U.S. Senator Kay Bailey Hutchison (R-TX) to extend the reach and effectiveness of the North American Development Bank (NADBank), including a new fund for environmental infrastructure and water projects on the border with Mexico. The Senator's proposal would allow the entity to finance projects from a new, roughly $50 million account through a mix of loans and grants to fund more initiatives and extend the life of the program. The measure now goes to the White House for the president's signature.
"I am pleased Congress approved my bill to help NADBank more effectively address Valley priorities, including water needs," Sen. Hutchison said. "This legislation will enable the new fund to support more projects and make the most of its capital. I will work with the White House counsel to get the bill signed by the president as soon as possible."
In March 2002, President Bush and Mexican President Vicente Fox agreed to a number of reforms to improve NADBank's effectiveness. Two changes requiring congressional action would: 1) create a $50 million grant program, funded from the bank's paid-in capital; and 2) expand the area of operations in Mexico from 62 miles to 186 miles from the border.
Sen. Hutchison believes financing should be structured so NADBank provides grants from its paid-in capital only in combination with loans. This will accomplish two positive outcomes. First, by combining grants with loans, the grants will go farther and can be used to assist more projects. Second, including a loan component will help to ensure projects being financed are viable, ongoing enterprises.
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