NADBank Launches US$400 Million Water Fund for Mexico-US Border

In response to escalating drought conditions along the Mexico-US border, the North American Development Bank (NADBank) is launching a major investment initiative aimed at bolstering water conservation and infrastructure. During its first semiannual meeting of 2025, NADBank’s Board of Directors, comprising top officials from both countries, agreed to allocate up to US$400 million through a newly proposed Water Resilience Fund (WRF).

“This approach is designed to strengthen the overall investment ecosystem and accelerate the implementation of high-priority water infrastructure projects. Available resources will be allocated equally between the United States and Mexico to ensure equitable distribution of support across the border region,” says John Beckham, Managing Director, NADBank.

The WRF is designed to provide concessional financing and low-interest loans to accelerate the implementation of critical water infrastructure projects in the border region. The bank may also combine these instruments with market-rate financing to further extend the impact of the fund.

With the WRF, the bank aims to promote water conservation, diversification, and resilience in vulnerable communities on both sides of the border. In a commitment to transparency and community engagement, NADBank will open a 30-day public comment period next week, inviting feedback on the proposed fund before the NADBank Board makes its final approval.

The board is composed of 10 members, including representatives from the US Departments of the Treasury, State, and Environmental Protection Agency, and from Mexico’s Ministries of Finance, Foreign Relations, and Environment. It also includes border state and resident representatives from both countries, ensuring a binational and community-informed decision-making process.