Texas Border Business
Texas Border Business
Ciudad Juárez, Chihuahua – The North American Development Bank (NADBank) has announced plans to invest up to US$400 million in a major new effort to combat escalating water scarcity in the U.S.-Mexico border region. This decision was made during the Bank’s 2025 semiannual Board of Directors meeting, held this year in Ciudad Juárez, and reflects a growing urgency to address long-standing drought conditions affecting both countries.
The funding will be channeled through the newly proposed Water Resilience Fund (WRF), which is designed to support water conservation, infrastructure upgrades, and diversification projects across the region. Of the total amount, US$100 million will be drawn from NADBank’s retained earnings over the next five years and made available as concessional financing. An additional US$300 million will be offered as low-interest loans from the Bank’s existing lending capacity. NADBank may also use market-rate instruments to expand the initiative’s reach.
“The Rio Grande River is facing severe water shortages from prolonged drought and outdated infrastructure. The two southernmost counties in Texas have declared emergencies due to dwindling supplies,” stated John Beckham, NADBank Managing Director. “With the new Water Resiliency Fund, NADBank will invest in conservation and diversification projects for local, regional, and binational stakeholders, offering critical relief.”
Beckham emphasized that initial funding will target high-priority projects in the agriculture sector, where water stress has reached particularly critical levels. The Bank will also ensure equal distribution of financial resources between the U.S. and Mexico to support a coordinated, binational response to the crisis.
The proposal for the Water Resilience Fund will undergo a 30-day public comment period before final approval by the Board. This process will include feedback from local communities, environmental groups, project developers, and public and private stakeholders. Approximately 100 participants joined the meeting in person or virtually to voice their concerns and offer project proposals relevant to their communities.
The NADBank Board of Directors includes representatives from the U.S. Department of the Treasury, the Department of State, and the Environmental Protection Agency, Mexico’s Ministry of Finance and Public Credit, the Ministry of Foreign Relations, and the Ministry of Environment and Natural Resources. Border state and community representatives from both countries also serve on the Board, ensuring regional interests are well represented in decision-making.
The creation of the WRF marks a significant step in NADBank’s ongoing efforts to address urgent infrastructure and environmental challenges along the border. The initiative aims to deliver long-term solutions to one of the region’s most pressing issues by focusing on sustainable investment and leveraging cross-border cooperation.
