United States
Environmental Protection
Agency
Office Of Water
(4204)
EPA 832-B-96-008
September 1996
Catalog Of Financial Support
Sources For U.S. - Mexico
Border Water Infrastructure

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                               Table of Contents
Introduction				.	... 1

Section 1 - Overview of Findings ...— ........ —	:	2

Section 2 - Summary Matrix of Funding Sources	 3

Section 3 - Funding Sheets  .	....		 9

      United States Sources			10
      Mexico S'ources			39
      Multilateral Sources	•............ 44

Section 4 - Interview Summary Notes  —	.-.	 48

      United States Contacts	49
      Mexico Contacts			63
      Multilateral Contacts		66

Section 5 - Foundation Funding	69

Section 6 - Commercial Bank Funding ...	...... '•.	 75

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                                      Introduction

       Historically, communities residing on the U.S.-Mexico border have had difficulty obtaining
financing for basic infrastructure projects. However, the passage of the North American Free
Trade Agreement (NAFTA) and supplemental agreements have directed more attention to this
problem. One program receiving closer scrutiny is the condition of water and wastewater
infrastructure along the border.  Many border communities lack access to potable water or
sewage treatment.

       U.S., Mexican and multilateral funding sources recognize the importance of and demand
for border project financial assistance. The U.S. EPA expects to  continue to participate in the
development of water and wastewater projects, and the purpose of this catalog is to identify
fiinancial sources for these projects hi addition to direct EPA funding. The catalog can serve as a
resource document to make certain that all available funding sources have  been sought for a
specific project. It may also encourage cooperation among funding sources and lead to a pooling
of resources that could[address larger-scale environmental projects.

       The information for this  catalog was obtained through telephone interviews as well as
traditional library and on-line research methods.  United States, Mexican and multilateral
financing sources were researched.  Among the information requested from each funding source
was project and applicant eligibility requirements, amounts of available resources, and the
existence of any preferential consideration for communities along the U.S.  - Mexico border.

       This catalog is organized into six sections.  The first three sections  provide increasing
detail about the sources of available traditional funding.  Section four summarizes interviews
conducted in preparing this catalog. Section five provides funding information for foundations
that may be able to contribute to. infrastructure development. The last section is a list of
commercial banks active in large-scale project lending.

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                          Section 1 - Overview of Findings

       Sources of financial support for U.S.-Mexico border water and wastewater infrastructure
projects are numerous.

       Many U.S. federal and state agencies offer programs that can assist low-income border
communities in improving their environmental infrastructure.  In some cases, funding sources are
considering public education campaigns to inform the border communities of the available
funding.  Most of these programs have specific set-aside funding for "colonias" in the U.S.-
Mexico border region.  Colonia is a term used to describe a small, rural, low-income community
located on the U.S. side of the border.  Typically these communities lack safe roads and access to
clean water.                           ••.,.,.

       Infrastructure funding sources on the Mexican side of the border are federal agencies in
Mexico.  States are expected to participate in the future. Additionally, the two largest funding
sources for water infrastructure projects in Mexico are actually only intermediary lenders, re-^
lending funds received from multilateral contributions. The interest rates of funding sources in
Mexico have been impacted by the recent devaluation of the peso.

       Finally, multilateral sources are playing a role  in water infrastructure development along
the border. Although World Bank funding has recently been cut, it is still a key player in funding
large-scale water and wastewater projects.         ..'.'•'

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                Section 1 - Summary Matrix of Funding Sources

The following section provides a summary matrix of funding sources. This matrix provides an
overview of the available funding sources and also indexes the more-detailed funding descriptions
(funding sheets) found in Section 3.
                                         3

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                             Section 3 - Funding Sheets

       This section provides one-page funding sheets describing the information for each funding
source in the summary matrix. United States funding sheets begin on page 10, followed by
Mexico funding sheets beginning on page 39 and multilateral funding sheets beginning on page 44.
Each sheet provides information on me following:

             Relevant program
             Funding source
             Administering Agency
             Contact
             Type of Assistance
             Eligible Recipients
             Eligible Projects      .
             Whether there is targeted Funding for Border Projects
             Amount of Funding Available - Targeted
             Amount of Funding Available - Total
             Eligibility Criteria / Preferences
             Funding Limitations
             Application Procedure
             Review Process
             Selection Process     "
             Outiook for Border Projects / Comments

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Funding Sheets - United States Sources
                  10

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Financing Program •
Funding Source
Administering Agency
Contact
Type of Assistance
Eligible Recipients
Eligible Projects
Targeted Funding for Border
Projects? .
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available- .
Total (millions)
Eligibility Criteria / Preferences
Funding Limitations
Application Procedure
Review Process >
Selection Process
Outlook for Border Projects /
Comments
U.S. EPA Mexico Border Facilities Construction Program
U.S. Environmental Protection Agency
EPA Office of Wastewater Management
Eliot Tucker .
EPA Headquarters
(202)260-5842
Grants for wastewater and drinking water infrastructure projects
Border area communities
Planning, design and construction of wastewater and drinking
water system improvements
Yes . ' '.'/.
$100 million FY '96; possible continuation
Not known
Projects addressing priority human health and/or ecological
issues with U.S. side benefit (may benefit both sides). BECC
certified projects only. Priority given to projects with maximum
other funding sources. Adequate planning and operations and
maintenance provisions.
Cost sharing
BECC certification and NADBank funding package (see page
37).
EPA will evaluate requests from applicants. Will review
requests with appropriate State(s) and NADBank
BECCprqcess
Good
11

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Financing Program
Funding Source
Administering Agency
Contact
Type of Assistance
Eligible Recipients
EUgibk Projects
Targeted Funding for Border
Projects?
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available -
Total (millions)
Eligibility Criteria / Preferences
Funding Limitations
Application Procedure
Review Process
Selection Process
Outlook for Border Projects /
Comments
U.S . EPA Wastewater Assistance for U.S . Colonias
U.S. Environmental Protection Agency
New Mexico Environment Department
Texas Water Development Board
Oscar Cabra
U.S. EPA Region 6
Dallas, Texas :
(214)665-2718
Grants
Colonias in the States of Texas and New Mexico
Please refer to "New Mexico Colonias Wastewater Grant
Program", page 32 and "Texas Economically Distressed Areas
Program (EDAP)", page 36.





' • . i
•'• • . - '



12

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Financing Program
Funding Source
Administering Agency
Contact
Type of Assistance
Eligible Recipients
Eligible Projects
Targeted Funding for Border
Projects?
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available -
Total (millions)
Eligibility Criteria / Preferences
Funding Limitations
Application Procedure
Review Process
Selection Process
Outlook for Border Projects /
Comments
Arizona Colonias Set- Aside Program
United States Department of Agriculture (USD A) - Rural
Utilities Service
Rural Economic & Community Development Services (RECD)-
Arizona
Jack Cox
Chief of Community & Business Programs
RECD -Arizona
(602)280-8700
! »
Grants USDA set-aside is 100% grant funding, but AZ RECD
encourages loan/grant packages.
Designated Arizona colonias only.
Water and wastewater system design, engineering and
construction.
Yes - Arizona colonias
$2.0 for FY '96
$2.0 for FY '96
Funding recipient must be a designated Arizona colonia,
meeting RECD's definition. Purpose of program is to fund
infrastructure in Arizona colonias.
First come, first served.
Comprehensive RECD application is submitted to RECD
district or state office at any time during year. Complicated
application usually requires consulting assistance to prepare pre-
engineering, design specifications, financial capability analyses
for loan payback, etc.
RECD reviews engineering and design specifications, cost
estimates and financial/managerial capabilities of recipient
Application completeness, availability of funds and colonia's
readiness to proceed. . .
FY 1996 funding represents a 24% reduction from FY 1995
(from $25M to $19M total). Future of the set-aside program is
uncertain. Program success reliant on grant-only funds, as
colonias cannot afford loan repayment
13

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Financing Program
Funding Source
Administering Agency
Contact
Type of Assistance
Eligible Recipients
Eligible Projects
Targeted Funding for Border
Projects?
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available -
Total (millions)
Eligibility Criteria / Preferences
Funding Limitations
Application Procedure
Review Process
Selection Process
Outlook for Border Projects /
Comments
California Colonias Set- Aside Program
United States Department of Agriculture (USD A)
Rural Economic & Community Development Services (RECD)-
California
Charles Qendenin
Chief of Community & Business Programs
RECD - Calif ornia
(916)668-2087 .
Grants
USDA set-aside is 100% grant funding.
Designated Calif ornia colonias only.
Water and wastewater system design, engineering and
construction.
Yes - California colonias
$2.0 for FY '96
$2.0 for FY '96
Funding recipient must be a designated California colonia,
meeting RECD's definition.
First come, first served. ••
Comprehensive RECD application is submitted to RECD
district or state office at any time during year. Complicated
application usually requires consulting assistance to prepare pre-
engineering, design specifications, financial capability analyses
for loan payback, etc.
RECD reviews engineering and design specifications, cost
estimates and financial/managerial capabilities of recipient
Application completeness, availability of funds and colonia's
readiness to proceed.
FY 1996 funding represents a 24% reduction from FY 1995
(from $25M to $19M total). Future of the set-aside program is
uncertain. Program success reliant on grant-only funds, as
colonias cannot afford loan repayment
14

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Financing Program
Funding Source
Administering Agency
Contact
Type of Assistance
Eligible Recipients
Eligible Projects
Targeted Funding for Border
Projects?
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available -
Total (millions)
Eligibility Criteria / Preferences
Funding Limitations

Application Procedure
Review Process
Selection Process
Outlook for Border Projects /
Comments • .
New Mexico Colonias Set- Aside Program
United States Department of Agriculture (USD A)"~x
Rural Economic & Community Development Services (RECD)-
New Mexico
Gilbert Gallegos
Chief of Community & Business Programs
RECD - New Mexico
(505) 761-4950
Grants
USDA set-aside is 100% grant funding.
Designated New Mexico colonias only.
Water and wastewater system design, engineering and .
construction.
Yes - New Mexico colonias
$5.9 for FY '96
$5.9 for FY '96
Funding recipient must be a designated New Mexico colonia,
meeting RECD's definition.
First come, first served. .
Comprehensive RECD application is submitted to RECD
district or state office at any time during year. Complicated
application usually requires consulting assistance to prepare pre-
engineering, design specifications, financial capability analyses
for loan payback, etc.
RECD reviews engineering and design specifications, cost
estimates and financial/managerial capabilities of recipient
Application completeness, availability of funds and colonia's
readiness to proceed.
FY 1996 funding represents a 24% reduction from FY 1995
(from $25M to $19M total). Future of the set-aside program is
uncertain. Program success reliant on grant-only funds, as
colonias cannot afford loan repayment
15

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Financing Program
Funding Source *v
Administering Agency
Contact
Type of Assistance
Eligible Recipients
Eligible Projects
Targeted Funding for Border
Projects?
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available -
Total (millions)
Eligibility Criteria / Preferences
Funding Limitations
Application Procedure
I ,
Review Process
Selection Process
Outlook for Border Projects /
Comments
Texas Colonias Set- Aside Program
United States Department of Agriculture (USDA)
Rural Economic & Community Development Services (RECD)-
Texas -
Gary Lightsey
Chief of Water and Waste Programs
RECD - Texas
(817)744-1307
Grants
USDA set-aside is 100% grant funding.
Designated Texas colonias only.
Water and wastewater system design, engineering and
construction.
Yes - Texas colonias
$6.3 for FT '96
$6.3 for FY '96 . .
Funding recipient must be a designated Texas colonia, meeting
RECD's definition.
First come, first served.
Comprehensive RECD application is submitted to RECD
district or state office at any time during year. Complicated
application usually requires consulting assistance to prepare pre-
engineering, design specifications, financial capability analyses
for loan payback, etc. »
RECD reviews engineering and design specifications, cost
estimates and financial/managerial capabilities of recipient
Application completeness, availability of funds and colonia's
readiness to proceed. .
FY 1996 funding represents a 24% reduction from FY 1995
(from $25M to $19M total).. Puture of the set-aside program is
uncertain. Program success reliant on grant-only funds, as
colonias cannot afford loan repayment ' '
16

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Financing Program
Funding Source
Administering Agency
Contact
Type of Assistance
Eligible Recipients
Eligible Projects
\
Targeted Funding for Border
Projects?
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available -
Total (millions)
Eligibility Criteria / Preferences
Funding Limitations
Application Procedure
Review Process
Selection Process
Outlook for Border Projects /
Comments
Arizona Water and Waste Disposal Program
United States Department of Agriculture (USDA)
Rural Economic & Community Development Services (RECD)-
Arizona
Jack Cox -
Chief of Community & Business Programs
RECD - Arizona
(602) 280-8700
Grants and loans
Grant percentage of package varies by financial capability of
applicant, to a maximum of 75%. ,
Communities must be smaller than 10,000 in population and not
exceeding 80% of state median non-metropolitan household
income.
Water and wastewater system design, engineering and
construction. .
No , .
N/A
$4.3 (loans) for FY '96
$2.5 (grants) for FY '96
"Rural" communities lacking any water infrastructure are
preferred to upgrade projects.
Fkst come, first served - limited grant funds each year.
Comprehensive RECD application is submitted to RECD
district or state office at any time during year.
Complicated application usually requires consulting assistance
to prepare pre-engineering, design specifications, financial
capability analyses for loan payback, etc.
RECD reviews engineering and design specifications, cost
estimates and financial/managerial capabilities of recipient
Loan/grant percentages are calculated.
Application completeness, availability of funds and community's
reaoUness to proceed.
RECD's Water and Waste Disposal Program has been in
existence for many years and will most likely continue, possibly
at reduced funding levels. While an attractive program, this
program is not useful to border communities that can rarely
afford to repay the loan portion of the funding package.
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Financing Program
Funding Source
Administering Agency
Contact
Type of Assistance
Eligible Recipients
Eligible Projects
Targeted Funding for Border
Projects?
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available -'
Total (millions)
Eligibility Criteria / Preferences
Funding Limitations
Application Procedure
Review Process
Selection Process
Outlook for Border Projects/ '
Comments
California Water and Waste Disposal Program
United States Department of Agriculture (USD A)
iural Economic & Community Development Services (RECD)-
California
Charles Qendenin
Chief of Community & Business Programs
RECD - California
(916) 668-2087
Grants and loans
Grant percentage of package varies by financial capability of
applicant, to a maximum of 75%.
Communities must be'smaller than 10,000 in population and not
exceeding 80% of state median non-metropolitan household
income. ,
Water and wastewater system design, engineering and
construction.
No , •
N/A
$i3.8 (loans) for FY '96
$8.2 (grants) for FY '96
"Rural" communities lacking any water infrastructure are
preferred to upgrade projects.
First come, first served - limited grant funds.
Comprehensive RECD application is submitted to RECD
district or state office at any time during year.
Complicated application usually requires consulting assistance
to prepare pre-engineering, design specifications, financial
capability analyses for loan payback, etc.
RECD reviews engineering and design specifications, cost
estimates and financial/managerial capabilities of recipient
Loan/grant percentages are calculated.
Application completeness, availability of funds and community's
readiness to proceed.
RECD's Water and Waste Disposal Program has been in
existence for many years and will most likely continue, possibly
at reduced funding levels. This program is not useful to border
communities that can not afford to repay the loan portion of the
funding package. . ,
18.

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financing Program
Funding Source
Administering Agency
Contact
Type of Assistance
Eligible Recipients
Eligible Projects
Targeted Funding for Border
Projects?
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available »
Total (millions)
Eligibility Criteria / Preferences
Funding Limitations
Application Procedure
Review Process
Selection Process
Outlook for Border Projects /
Comments
New Mexico Water and Waste Disposal Program
United States Department of Agriculture (USDA)
Rural Economic & Community Development Services (RECD>
New Mexico ;
Gilbert Gallegos
Chief of Community & Business Programs
RECD - New Mexico .
(505)761-4950
Grants and loans
Grant percentage of package varies by financial capability of
applicant, to a maximum of 75%.
Communities must be smaller than 10,000 in population and not
exceeding 80% of state median non-metropolitan household
income.
Water and wastewater system design, engineering and
construction.
No .
N/A - ' '
$4.3(loans)forFY'96
$2.5(grants)forFY'96
"Rural" communities lacking any water infrastructure are
preferred to upgrade projects.
First come, first served - limited grant funds.
Comprehensive RECD application is submitted to RECD
district or state office at any time during year.
Complicated application usually requires consulting assistance
to prepare pre-engineering, design specifications, financial
capability analyses for loan payback, etc.
RECD reviews engineering and design specifications, cost
estimates and financial/managerial capabilities of recipient
Loan/grant percentages are calculated.
Application completeness, availability of funds and community's
readiness to proceed.
RECD's Water and Waste Disposal Program has been in
existence for many years and will most likely continue, possibly
at reduced funding levels. This program is not useful to border
communities that can riot afford to repay the loan portion of the
funding package.
19

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Financing Program
Funding Source
Administering Agency
Contact
Type of Assistance
Eligible Recipients
Eligible Projects
Targeted Funding for Border
Projects?
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available -
Total (millions)
Eligibility Criteria / Preferences
Funding Limitations
Application Procedure
Review Process
Selection Process
Outlook for Border Projects /
Comments
Texas Water and Waste Disposal Program
United States Department of Agriculture (USD A)
Rural Economic & Community Development Services (RECD)-
Texas
GaryLightsey
Chief of Water and Waste Programs
KECD- Texas
(817) 744-1307
Grants and loans
Grant percentage of package varies by financial capability of
applicant, to a maximum of 75%.
Communities must be smaller than 10,000 in population and not
exceeding 80% of state median non-metropolitan household
income.
Water and wastewater system design, engineering and
construction.
No .''.-'.
N/A
$2.3 (loans) for FY '96
$13.4 (grants) for FY '96
"Rural" communities lacking any water infrastructure are _
preferred to upgrade projects.
First come, first served - limited grant funds.
Comprehensive RECD application is submitted to RECD
district or state office at any time during year.
Complicated application usually requires consulting assistance
to prepare pre-enguieering, design specifications, financial
capability analyses for loan payback, etc.
RECD reviews engineering and design specifications, cost
estimates and financiaVmanagerial capabilities of recipient
Loan/grant percentages are calculated.
Application completeness, availability of funds and community's
readiness to proceed.
RECD's Water and Waste Disposal Program has been hi
existence for many years and will most likely continue, possibly
at reduced funding levels. This program is not useful to border
communities that can not afford to repay the loan portion of the
funding package.
20

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Financing Program
Funding Source
Administering Agency
Contact
Type of Assistance
Eligible Recipients
Eligible Projects
Targeted Funding for Border
Projects?
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available -
Total (millions)
Eligibility Criteria / Preferences
Funding Limitations
Application Procedure
Review Process
Selection Process
.Outlook for Border Projects /
Comments
Arizona Community ^Development Block Grant Program
United States Department of Housing and Urban Development
(HUD)
Arizona Department of Commerce (ADOC)
Rivko Knox, CDBG Program Manager
Arizona Department of Commerce
(602)280-2162
Grants (infrastructure and planning), some TA funds
Incorporated towns, cities and counties may apply. Counties
may apply on behalf of unincorporated entities.
Planning, design, engineering and construction or rehabilitation
of water and wastewater systems (in addition to a number of
other CDBG-eligible projects).
Yes, Arizona colonias • , , L
$1.1 for FY '96
$9.3 for FY '96 (total for the state)
At least 51% of recipients must be defined by HUD as of
"low/mod" income, which is equal or below 80% of the county
or statewide median.
Highly competitive for non-targeted grant funds.
Comprehensive application process, usually requiring third-party
assistance for engineering, financials, etc. Colonias set-aside
funding; applicants apply directly to ADOG by 12/31. For non-
targeted funds, applications made to regional COG. (Timelines
vary by COG)
Colonias set-aside applications are ranked using special criteria.
(Lack of potable water, location, etc.) Non targeted fund
applications are ranked by the percentage of low/mod benefit.
(51% - 100%)
Highest ranking for targeted and non-targeted are funded based
on readiness to proceed withrproject Competition is severe as
public works projects must compete with all other CDBG-
eligible categories.
Targeted funds are most attractive for border communities due
to the less competitive review and selection process. Funding is
anticipated to continue for the colonias. Successful program.
21

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Financing Program
Funding Source
Administering Agency
Contact
Type of Assistance
Eligible Recipients
Eligible Projects
Targeted Funding for Border
Projects?
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available -
Total (millions)
Eligibility Criteria / Preferences
Funding Limitations
Application Procedure
Review Process
Selection Process
Outlook for Border Projects /
Comments
California Community Development Block Grant Program
United States Department of Housing and Urban Development
(HUD)
California Department of Housing and Community
Development (HCD)
Larry Davis
Calif omia Department of HCD
(916)322-9864
Grants (infrasuTicture and planning), some TA funds
Incorporated towns, cities and counties may apply. Counties
may apply on behalf of unincorporated entities.
Planning, design, engineering and construction or rehabilitation
of water and wastewater systems (in addition to a number of
other CDBG-eligible projects such as housing rehab, etc.)
Yes - California colonias
$0.9 for FY '96
$43.3 for FY '96 '
At least 5 1 % of recipients must be defined by HUD as of
"low/mod" income, which is equal or below 80% of the county
or statewide median.
Highly competitive for non-targeted grant funds. (Plenty of
targeted colonias funds available.)
Comprehensive application process, usually requiring third-party
assistance for engineering, financials, etc. Applications
submitted to CA HCD in late April.
Applications are ranked by percentage of benefit to low/mod
income recipients. (51% - 100%)
Applications with highest ranking for both targeted and non-
targeted projects are funded based on readiness to proceed with
project
Targeted funds are most attractive for border communities due
to reduced competition. California has had trouble distributing
the targeted funds in the past - more public education is needed.
Funding is anticipated to continue for the colonias.
22

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Financing Program
Funding Source
Administering Agency
Contact
Type of Assistance
Eligible Recipients
Eligible Projects
Targeted Funding for Border
Projects?
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available -
Total (millions) .
Eligibility Criteria / Preferences
Funding Limitations
Application Procedure
Review Process
Selection Process
Outlook for Border Projects /
Comments
New Mexico Small Cities Community Block Grant Program
United States Department of Housing and Urban Development
(HUD)
State of New Mexico
Department of Finance and Administration
Local Government Division
Anita Hisenberg
New Mexico* CDBG Program
(505)827-4950
Grants (infrastructure and planning), some TA funds
Incorporated towns, cities and counties may apply. Counties
may apply on behalf of unincorporated entities.
.Planning, design, engineering and construction or rehabilitation
of water and wastewater systems (in addition to a number of
other CDBG-eligible projects such as housing rehab, etc.).
Yes - New Mexico colonias
$1.2 forFY'96
$11.5 for FY '96
At least 51% of recipients must be defined by HUD as of
"low/mod" income, which is equal or below 80% of the county
or statewide median. ,
Highly competitive for non-targeted grant funds. (Plenty of -
targeted colonias funds available.
Comprehensive application process, usually requiring third-party
assistance for engineering, financials, etc. Applications for set-
aside and non set-aside are submitted to Administering Agency
in February.
Targeted and non-targeted applications are ranked based on
seven criteria: need, appropriateness, fiscal capacity,
leveraging, citizen participation, readiness and cost/benefit
Applications with highest rankings based on review criteria are
funded.
New Mexico has had difficulty distributing the Colonias
targeted funds in past years, thus plenty of funding is available.
Future of CDBG program and targeted funding seems certain.
More public education needed to enable targeted fond
utilization. .
23

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Financing Program
Funding Source
Administering Agency
Contact
Type of Assistance
Eligibk Recipients
Eligible Projects
Targeted Funding for Border
Projects?
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available -
Total (millions) * •
Eligibility Criteria /Preferences
Funding Limitations
Application Procedure
Review Process
Selection Process
Outlook for Border Projects /
Comments
Texas Community Block Grant Program
United States Department of Housing and Urban Development
(HUD)
Department of Housing and Community Affairs
State of Texas
Sandy Mauro
CDBG Program Manager
(512)475-3800
Grants (infrastructure and planning), some TA funds
Incorporated towns, cities and counties may apply. Counties
may apply on behalf of unincorporated entities.
Planning, design, engineering and construction or rehabilitation
of water and wastewater systems (in addition to a number of
other CDBG-eligible projects such as housing rehab, etc.).
Yes - Texas colonias
$0.9 for FY '96
$9.0 for FY '96
At least 5 1 % of recipients must be defined by HUD as of
"low/mod" income, which is equal or below 80% of the county
or statewide median.
Highly competitive for non-targeted grant funds.
Comprehensive application process, usually requiring third-party
assistance for engineering, financials, etc. Applications for set-
aside and non set-aside submitted to regional or state offices
(due dates vary).
Applications ranked based on various criteria, including
percentage of low/mod income recipients. Colonias without any
water or wastewater service given special priority for targeted
funds.
Applications with highest rankings based on review criteria are
funded if ready to proceed.
Texas' CDBG Colonias targeted funding has been quite
successful, spending out the entire targeted amount in past
years. Program should continue, depending on HUD funding.
24

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Financing Program
Funding Source
Administering Agency
Contact
Type of Assistance
Eligible Recipients
Eligible Projects
Targeted Funding for Border
Projects?
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available -
Total (millions)
Eligibility Criteria / Preferences
Funding Limitations
Application Procedure
Review Process
Selection Process
Outlook for Border Projects /
Comments
Arizona State Revolving Fund (SRF) Program
EPA capitalization with 20% state matching funds and state
bond issuance
Arizona Wastewater Management Authority
Arizona Department of Environmental Quality
Greg Schwartz
SRF Coordinator
(602) 207-4707
Loans
Municipalities, counties, sanitation districts and Indian tribes.
Wastewater projects and related water pollution control;
planning, design, engineering and construction
No
N/A
$53.0 (Balance available as of 11/30/95)
Most wastewater treatment projects are eligible and SRF
program does not require loan recipients to be categorized as
low income.
None. Substantial amount of loan funds available.
Comprehensive application packet includes design, pre-
engineering and financials submitted to ADEQ Wastewater
Management Authority. .
ADEQ reviews applicant's project description, design readiness
to proceed, repayment sources, public health implications,
environmental assessments, etc. The applications are then
ranked based on these parameters.
Applications ranked the highest on state priority list are funded.
Arizona has a large amount of funding available for wastewater
infrastructure through its SRF program. However, border
communities are rarely able to afford any loan repayment terms:
25

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Financing Program
Funding Source
Administering Agency
Contact '
Type of Assistance
Eligible Recipients
Eligible Projects
Targeted Funding for Border
Projects?
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available -
Total (millions)
Eligibility Criteria / Preferences
Funding Limitations
**
Application Procedure
Review Process
Selection Process
Outlook for Border Projects /
Comments
California State Revolving Fund (SRF) Program
EPA capitalization with 20% state matching funds
State of California .
State Water Resources Control Board (SWRCB)
EricTorguson
SRF Coordinator
State Water Resources Control Board
(916)227-4449
Loans
Municipalities, counties, sanitation districts and Indian tribes.
Wastewater projects and related water pollution control;
planning, design, engineering and construction
No
N/A
$314.0 (Balance available as of 11/30/95)
Most wastewater treatment projects are eligible and SRF
program does not require loan recipients to be categorized as
low income. ,
None. Substantial amount of loan funds available.
Comprehensive application packet containing project
description, design, and flnancials submitted to Regional Water
Quality Control Boards (due dates vary by region).
RWQCBs review applicant's readiness to proceed, repayment
sources, environmental assessments, etc. Applications are then
ranked based on these parameters. RWQCB submits SRF
priority list to SWRCB .which creates a master SRF priority list
Applications ranked the highest on state priority list are funded;
California has a large amount of funding available for
wastewater infrastructure through its SRF program. However,
border communities are rarely able to afford any loan repayment
terms.
26

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Financing Program
Funding Source
Administering Agency
Contact
Type of Assistance
Eligible Recipients
Eligible Projects
Targeted Funding for Border
Projects?
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available -
Total (millions) ,
Eligibility Criteria / Preferences
Funding Limitations
0 • ! •
Application Procedure
Review Process
Selection Process
Outlook for Border Projects /
Comments
New Mexico State Revolving Fund (SRF) Program
EPA capitalization with 20% state matching funds
New Mexico Environment Department
Construction Programs Bureau
State Revolving Loan Fund Program
Rusty Rodkey
SRF Coordinator
(505)827-1055 :
Loans -
Municipalities, counties, sanitation districts and Indian tribes. .
Wastewater projects and related water pollution control;
planning, design, engineering and construction
No ' . '
N/A
$25.0 (Balance available as of 1 1/30/95)
Most wastewater treatment projects are eligible and SRF
program does not require loan recipients to be categorized as
low income.
None. Substantial amount of loan funds available.
Comprehensive application packet including design, costs
estimates and financials of. applicant submitted to New Mexico
Environment Department in March.
New Mexico Environment Dept reviews applicant's project
description, public health implications, readiness to proceed,
repayment sources, , environmental assessments, etc. The
applications are then ranked based on these parameters.
Loans may be offered to any project oh priority list regardless of
ranking. First come, first served.
New Mexico does not consider its SRF program useful for
border communities, as loan repayment for border communities
at any interest rate is extremely difficult
27

-------
Financing Program
Funding Source
Administering Agency
Contact
Type of Assistance
Eligible Recipients
Eligible Projects
Targeted Funding for Border
Projects?
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available -
Total (millions)
Eligibility Criteria / Preferences
Funding Limitations
Application Procedure
Review Process
*
Selection Process
Outlook for Border Projects /
Comments
Texas State Revolving Fund (SRF) Program
EPA capitalization with 20% state matching funds and bond
issuance ".
Texas Water Development Board
Engineering Division
Kevin Ward
SRF Coordinator
Texas Water Development Board .
(512) 463-0991
Loans .
Municipalities, counties, sanitation districts and Indian tribes.
Wastewater projects and related water pollution control;
planning, design, engineering and construction
No
N/A
$200.0 (Balance available as of 1 1/30/95)
Most wastewater treatment projects are eligible and SRF
program does not require loan recipients to be categorized as
low income. •
None. Substantial amount of loan funds available.
Comprehensive application packet submitted to Texas Water
Development Board.
Board reviews applicant's project description, cost estimates,
readiness to proceed, repayment sources, environmental
assessments, etc. The applications are then ranked based on
these parameters.
Based on application completeness, priority ranking, repayment
ability and readiness to proceed, application is funded.
While a large funding pool is available in the Texas SRF
program, border communities have difficulty repaying loans.
28

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Financing Program
Funding Source
Administering Agency
Contact
Type of Assistance
Eligible Recipients
Eligible Projects
Targeted Funding for Border
Projects?
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available -
Total (millions)
Eligibility Criteria / Preferences
Funding Limitations
Application Procedure
Review Process
Selection Process
Outlook for Border Projects /
Comments
Arizona International Development Authority Bond Issuance
Arizona International Development Authority (AIDA)
Arizona Department of Commerce (ADOC)
Carol Sanger
ADOC
(602)280-1374 ,
Loan/grant guarantor and revenue bond issuances '
Cities and counties via Industrial Development Agencies (ED As)
Bonds are issued on behalf of applicant, using ID As.
Most public infrastructure, including sewage disposal and water
pollution control facilities that contribute to economic
development and international trade.
Yes, see Eligibility Criteria below
N/A - bonding guarantor only
Bonding authority only. (Roughly $65M is available for total.
water infrastructure development in Arizona as of 1/96.) AIDA
must share with all other state bonding agencies and does not:
have its own pool.
Projects located within 100km north and 10km south of the
Arizona-Mexico border receive preference for ADDA programs.
Projects along the border most likely will require a credit
enhancement as AIDA requires a single "A" bond raring for its
applicants.
Comprehensive application including executive summary,
project narrative and other supporting documentation submitted
to ADOC with $1,000.
ADDA Application Review Committee reviews application for
completeness, statutory and project appropriateness and
financial marketability. .
Project should also facilitate international commerce between
U.S. and Mexico. Selection on case by case basis, Committee
can accept or reject application for any reason.
ADDA is relatively new and has yet to make a guarantee or issue
bond. Application procedure and cost may be a burden for
border communities. Program relies on voter approval on bond
issues - sometimes unreliable. Future effectiveness unknown.
29

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Funding Source
•s
Administering Agency
Contact
Type of Assistance
Eligible Recipients
Eligible Projects
Targeted Funding for Border
Projects?
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available -
Total (millions)
Eligibility Criteria / Preferences
Funding Limitations
Application Procedure
Review Process
Selection Process
Outlook for Border Projects /
Comments
United States Department of .Commerce/Economic
Development Administration
Varies by state.
David McElwain
USDOC/EDA - Mexico Representative
(202) 482-5265
Grants
Low income communities currently pursuing economic
development projects are eligible.
Water and wastewater facilities design, engineering and
construction.
No .
N/A
$169.0 (1996 estimate only) Nationally
Project must be in ED A-designated redevelopment area (all
U.S.-Mexico border communities are approved). Area must be
in the process of redevelopment or economic development
Only 60% maximum of total project costs awarded in most
cases, 80% in extreme cases.
Applications accepted on a continuous basis are submitted to
EDA regional offices. Application focuses on potential
economic development rather than public health threats, etc.
Applications must meet eligibility criteria and are evaluated by
EDA Project Review Committees for appropriateness and
ability to encourage economic development in financially
depressed areas.
Based on evaluation and availability of funds, applications are
funded first come, first served.
Few border communities identify economic development as a
prime objective and would not be very competitive applicants
for this funding. In fact, the poverty in many border
communities has been due to the reduction of industry. The
20% match is also a hardship, especially for projects that can
cost millions of dollars.
30

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Financing Program
Funding Source
Administering Agency •

Contact ' ' .
Type of Assistance
Eligible Recipients
Eligible Projects
Targeted Funding for Border
Projects?
Amount Of Funding Available -
Targeted (millions)
Amount of Funding Available -
Total (millions)
Eligibility Criteria / Preferences
Funding Limitations .
Application Procedure
Review Process
Selection Process
Outlook for Border Projects /
Comments
Section 219 - Colonia Infrastructure Program
•E^
U.S. Army Corps of Engineers
U.S. Army Corps of Engineers
Los Angeles District .
Water Resources Branch
Maricris C. Estabillo
Study Manager
(213) 894-0496
Grants
Designated colonias only (AZ, CA, NM, TX) .
Water supply, treatment and storage facilities, wastewater
treatment facilities design.
Yes
$0.00 in 1996 (as of 1/96) - no appropriation
$0.00 ($698,000 in 1995)
Designated colonias with no access to water supply or
wastewater treatment are given priority for the limited funding.
Requires 25% state match (usually CDBG). Funding can only
be used for planning and design. ,
Case by case basis - no formal application. Colonia submits
letter of interest and resolution.
First come, first served if meeting eligibility.
Same as above.
The Section 219 program may not be funded in 1996 and will
most likely be terminated.
31

-------
Financing Program
Funding Source
Administering Agency
Contact
Type of Assistance
Eligible Recipients
Eligible Projects
Targeted Funding for Border
Projects?
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available -
Total (millions)
Eligibility Criteria / Preferences
Funding Limitations
Application Procedure
Review Process
Selection Process
Outlook for Border Projects /
Comments
New Mexico Colonias Wastewater Grant Program
United States Environmental Protection Agency and State of
New Mexico, State Appropriation match
New Mexico Environment Department
Orren Drake .
New Mexico Environment Department
(505)827-2812
Grants
Designated New Mexico colonias
Wastewater system design, engineering and construction.
Yes - New Mexico colonias.
$12.5 (approximate balance as of 1/96) ' ,
$12.5 (approximate balance as of 1/96)
($10M U.S. EPA appropriation in 1994, and $2.5M remaining
from 1993 appropriation of $10M.)
Designated New Mexico colonias lacking wastewater treatment
facilities. .
Fkst come, first served (not a problem as the 1993 $10M
appropriation is not yet spent).
Applications including description, design, costs and public
health implications are accepted at any time and must be
submitted by the county to New Mexico Environment
Department on the colonia's behalf.
Applications placed on a priority list much like the SRF
program, based oh health concerns, readiness to proceed, etc.
Based on readiness to proceed, approved applications are
funded. .
This is a successful program, . Colonias/border communities
need not worry about loan repayment No more EPA funding is
envisioned, based on meeting the needs identified in State of
New Mexico assessments.
32

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.Financing Program
Funding Source
Administering Agency
Contact
Type of Assistance
Eligible Recipients
Eligible Projects
Targeted Funding for Border
Projects?
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available -
Total (millions)
Eligibility Criteria / Preferences
Funding Limitations
Application Procedure
Review Process
Selection Process
Outlook for Border Projects /
Comments
New Mexico Rural Infrastructure Revolving Loan Fund
State of New Mexico, Special Legislative Appropriation 1992,
1993,1994,1995
New Mexico Environment Department
RamonaRael i
New Mexico Environment Department
Rural Infrastructure Program Manager
(505)827-2812 *
Loans
Any incorporated city, town, village, county, mutual domestic
association, public water cooperative association or sanitation
district whose water supply facility serves a population
of less than 10,000 persons
Design, engineering and construction of water and wastewater
treatment infrastructure
No ' , . .-
N/A
$5.0 (approximate balance 1/96)
Recipients whose water supply facilities are in a demonstrably
hazardous or inadequate condition.
$500,000 maximum per project in any given year.
Applications accepted once per year, are submitted to New
Mexico Environment Department Applications include design,
feasibility studies and financials.
Applications are ranked much like SRF program, with priority
given to projects that will correct significant health hazards.
Funds are awarded based on priority ranking, readiness to
proceed and applicant's demonstrated ability to repay the loan.
Most low-income border communities cannot afford loan
repayment This program, while designed to assist the rural
poor, is not an affordable option for border communities.
33

-------
Financing Program
Funding Source
Administering Agency
Contact
f
Type of Assistance
Eligible Recipients
Eligibk Projects
Targeted Funding for Border
Projects?
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available -
Total (millions)
Eligibility Criteria / Preferences
Funding Limitations
Application Procedure
Review Process
Selection Process
Outlook for Border Projects /
Comments
Texas Community Loan Fund
Community Resource Group, Inc.
Community Resource Group, Inc.
Bob Anderson
Community Loan Fund Manager
Community Resource Group
(501) 756-2900
Loans
Local government entities (low income)
Any water or wastewater system infrastructure project
No
N/A
$3.0 (approx. loan fund balance as of 1/96)
Applicant must serve primarily low-income customers in
communities of less than 25,000 persons and be located in
Texas.
Loan amounts may not exceed $75,000 for any one project,
making infrastructure development difficult
Applications, consisting primarily of project description and
repayment assurances are made directly to Community
Resource Group, Inc. and are accepted at any time.
Case by case basis - CRG reviews applications and interviews
applicants personally.
If eligibility is met and the entity demonstrates it is unable to
obtain funding from other sources AND it is able to repay loan
with system revenues, the project is funded.
Most border communities will be unable to afford loan
repayment Loan maximum may limit infrastructure
development
34

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Funding Source
Administering Agency
Contact
Type of Assistance
Eligible Recipients
Eligible Projects
Targeted Funding for Border
Projects?
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available -
Total (millions)
Eligibility Criteria / Preferences
Funding Limitations
Application Procedure
Review Process
Selection Process
Outlook for Border Projects /
Comments
,*.
CoBank - National Bank for Cooperatives
"'-..
GoBank -National Bank for Cooperatives
Steve Gustafson
Vice President
(303)740-4310
Loans
Private or public drinking water systems
Design, engineering and construction or upgrades of drinking
water systems. . •
No
N/A . .
N/A - Loan amounts range from $500,000 to hundreds of
millions of dollars. •
CoBank lends only to good credit risks.
None. Loan terms are typically 2 to 3% over the 20-year T-bill
rate for 20 years.
Loan applications are submitted directly to CoBank national or
regional offices. ,
Standard bank lending practices; applications are reviewed by
financial experts to determine credit risk and project feasibility /
reasonableness. '
Loan applicants meeting eligibility criteria and credit reference
tests are funded.
While CoBank, technically, could fund drinking water
infrastructure projects along the border, the bank is not a
realistic funding possibility. Most border communities do not
possess the required credit ratings to be eligible for CoBank's
standard loan program. CoBank does not offer hardship terms
or other instruments to assist low-income applicants in securing
infrastructure funding.
35

-------
Financing Program
Funding Source
Administering Agency
Contact
Tjpe of Assistance
Eligible Recipients
Eligible Projects
Targeted Funding for Border
Projects?
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available -
Total (millions)
Eligibility Criteria / Preferences
Funding limitations
•*
Application Procedure
Review Process
Selection Process
Outlook for Border Projects /
Comments
Texas Economically Distressed Areas Program (ED AP)
U.S. EPA grants and Texas general obligation bond issuances
Texas Water Development Board
Jeannie Cisneros
ED AP Program Manager
(512)463-8050
Grants and loans (90%/10% ratio)
Designated Texas Colonias only
Water and wastewater system design, engineering and
construction (only wastewater projects are supported by EPA
funding)
Yes
$440 (approx. balance remaining as of 1/96)
$440 (approx. balance remaining as of 1/96)
EDAP-eligible counties only, with 125% of the state average
unemployment and 75% of the state average income. Colonia
must be at least 80% occupied.
First come, first served.
Comprehensive applications are completed by city or county on
behalf of the applying colonia and are accepted by Texas Water
Development Board year-round. Applications require design,
feasibility analyses and financials of applicant
Applications are reviewed by Texas Water Development
board's legal, engineering and finance department for
completeness and eligibility verification.
First come, first served - no priority criteria. "All applicants are
equally deserving" according to the Texas Water Development
Board.
EDAP is very successful. Texas Water Development Board will
need to receive another appropriation or issue more GO bonds
once current resources are depleted, but based on the success of
the program the future looks good. EPA funding expected to
continue thru FY 98, based on meeting the needs identified in
the Texas need assessments.
36

-------
Funding Source
Administering Agency

Contact
Type of Assistance
Eligible Recipients
/
Eligible Projects
Targeted Funding for Border
Projects?
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available -
Total (millions)
Eligibility Criteria / Preferences
Funding I imitations
0
Application Procedure
Review Process
\
Selection Process
Outlook for Border Projects /
Comments
North American Development Bank (NADBank)
Border Environment Cooperation Commission (BECC)
Sarah Foryt (NADBank)
(210)231-8000
*
Tracy Williams (BECC)
011-521-629-2395
Loans and loan guarantees, some funding for TA
Border communities residing within 100km on either side of the
U.S.-Mexico border.
Environmental infrastructure development
Yes - All funding is for border region.
See below
$3,000 (projection only)
Creditworthy entities defined as a governmental borrower,
agency, or political subdivision applying for funding for eligible
transactions in eligible sectors - (water pollution, wastewater
treatment or solid waste projects).
None recognized as of 1/96
Application begins with BECC. Comprehensive project
information, participants, technical information, economic
information, financial (ability to pay) information and
legal/regulatory information submitted for preliminary review.
Once a project is deemed acceptable by BECC, NADBank,
BECC and the applicant evaluate the project in terms of
repayment assurances and other finance security measures.
BECC recommends the project funding. (BECC has only
recently finalized its project selection procedure.)
NADBank and BECC are in their infancy and procedures are
still under development Project application and approval
processes appear tedious and require third-party assistance.
There is a concern that border communities will not be able to
afford loan repayment in any form, a recent criticism of
BECC/NADBank.
37

-------
Funding Source
Administering Agency
Contact
Type of Assistance
Eligible Recipients
Eligible Projects
Targeted Funding for Border
Projects?
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available -
Total (millions)
Eligibility Criteria / Preferences
Funding Limitations
Application Procedure
Review Process
Selection Process
Outlook for Border Projects/ '
Comments
Export-Import Bank of the United States
Export-Import Bank of the United States
Paula Priestly
Program Manager
(202)565-3921
Loans/Loan Guarantees
U.S. Exporters
Foreign purchasers of U.S. goods and services.
Exported goods or services (non-military) containing at least
50% U.S. content
No, but current focus is towards exported environmental
goods/services in developing nations.
N/A •
Varies by credit worthiness of borrower and primary lender (for
guarantees).
EX-IM Bank's primary role is to support the sales of U.S.
exports worldwide. The bank will make loans and loan
guarantees to foreign buyers of U.S. goods and services as long
as the export is of at least 50% U.S. content
Direct loans and guarantees up to 85% of U.S. export value - .
no dollar amount limitation.
Foreign buyers, U.S. exporters, lending institutions, or
representing firms apply directly to EX-IM Bank for a
Preliminary Commitment (PC) for loan guarantees.
Applications can also be made at any of the four regional U.S.
Export Assistance Centers.
Once the PC is obtained, the applicant can "shop" for the most
competitive loan terms based on the guarantee. Smaller lending
institutions on both sides of border become lenders with EX-IM
Bank's loan guarantees.
Case by case basis
Program is designed to assist exporting businesses. Few border
communities could afford the terms of EX-IM Bank's Direct
Loan program. Latin American borrowers primarily use the
Guarantees. However, borrowers must still be able to repay the
loans, a condition of the guarantor (as well as the primary
lender), and often a hardship.
38

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Funding Sheets - Mexico Sources
              39

-------
Funding Source
Administering Agency
Contact
Type of Assistance
Eligible Recipients
Eligible Projects
Targeted Funding for
Border Projects?
Amount of Funding
Available - Targeted
(millions)
Amount of Funding
Available - Total (millions)
Eligibility Criteria/
Preferences
Funding Limitations
Application Procedure
Review Process
Selection Process
Outlook for Border Projects
/ Comments
Banco National de Obras y Servicios Ptiblicos (BANOBRAS)
BANOBRAS
Jaime Corador
General Director - BANOBRAS
011-525-723-6202
Intermediary government lender ("Bancos de segundo piso"),
provides matching funds for World Bank and IDB, some funds for
TA
Any Mexican community
Water /.wastewater (sanitation) infrastructure design, engineering
and construction
No , .
N/A
N/A -Fluctuates with World Bank contributions. BANOBRAS is a
federal re-lender, but is also often required to provide matching
funds.
N/A - As a "banco de segundo piso", the criteria is usually
determined by the primary lender.
BANOBRAS1 primary role is as an intermediate lender between
World Bank and/or Inter-American Development Bank (IDB). The
federal organization has little money itself for infrastructure
development other than matching and some TA funds.
Project applications are submitted to BANOBRAS directly which
include detailed studies of project's social, economic and financial
feasibility.
Application studies are reviewed by BANOBRAS and primary
lenders. (World Bank, IDB, etc.)
Projects are reviewed and ranked internally by BANOBRAS, but
primary lenders make the final decision, as BANOBRAS is merely a
passthrough agency for World Bank or IDB funds.
As a re-lender, BANOBRAS does not finance infrastructure
projects by itself. However, it does support infrastructure by
working with the private sector towards development, occasionally
guaranteeing loans made to municipal governments. Like many
federal agencies, BANOBRAS is facing budget shortfalls and
program limitations.
40

-------
Funding Source
Administering Agency
Contact
Type of Assistance
Eligible Recipients
Eligible Projects
Targeted Funding for Border
Projects?
Amount of Funding Available -
Targeted (millions) ,
Amountof Funding Available -
Total (millions)
Eligibility Criteria / Preferences
Funding Limitations
CT
Application Procedure
Review Process
Selection Process
Outlook for Border Projects /
Comments
Mexico Infrastructure Fund (MIF)
This fund is currently under development, but has already been
approved by El Presidente.
Banco Nacional de Obras y Servicios Ptiblicos (BANOBRAS)
Jaime Corador
General Director - BANOBRAS
011-525-723-6202
Revolving loan fund, grants
All Mexican communities
Projects^with a "high social value", including highways, ports,
urban transport and water and wastewater treatment
No
N/A
Approximately 1 .7 billion new pesos (in the form of venture
capital and subordinated capital)
None. Eligibility is determined by committee (see below).
Unknown
A project profile and pre-feasibility study is submitted to
BANOBRAS on behalf of the municipal or state applicant
Study will show project benefits and economic development
potential as well as preliminary design and cost
A "Technical Committee" made up of representatives of the
Ministries of Finance (SHCP), Communications and Transport
(SCT), National Commission for Water Works (NCA) and the
Comptroller General (SECODAM) will review all applications.
Once the project profile and pre-feasibility studies are approved,
a formal feasibility study is developed and reviewed by the
executive project team. Projects are selected on a case by case
basis. "•,•':• ,
The future of this fund is unknown. Further, the ability of
border communities to secure portions of this funding source is
also unclear. Non-water projects may demand more attention
from the fund. There is some concern that the fund will focus
on the urban needs in Mexico City rather than border needs to
the north.
41

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Funding Source
Administering Agency
Contact
Type of Assistance
Eligible Recipients
Eligibk Projects
Targeted Funding for .Border
Projects?
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available -
Total (millions)
EligSbilily Criteria / Preferences
Funding Limitations
Application Procedure
Review Process
Selection Process
Outlook for Border Projects /
Comments
National Financeria, S.N.C. (NAFINSA)
National Financeria, S.N.C. (NAFINSA)
Hector Portilla Ibarguengoitia
National Financeria
011-252-325-7816 .
Wholesale lender / intermediary lender, loan guarantor,
matching funds for IDB some funds for TA
Mexican states, municipalities, other financial institutions in
Mexico and the private sector.
Water and sewer, system construction.
No .
N/A • '
N/A - Fluctuates with contributions from the Inter-American
Development Bank (IDB). .NAFINSA is a re-lender for IDB,
providing a small percentage of matching funds for the
multilateral-funded projects.
For IDB re-lending, eligibility is set by IDB. NAFINSA also
provides loan guarantees and credit .discounts to commercial
banks and other financial intermediaries.
N/A - Limitations are based on the IDB contributions and other
private or public sector primary lenders.
Varies - IDB program funds can be applied for through
NAFINSA. (See IDB information.)
See later- American Development Bank
See Inter- American Development Bank
In addition to IDB passthrough, NAFINSA is working to
develop additional programs that could assist in border
infrastructure development Under these programs, NAFINSA
provides credit discounts to commercial banks involved in
infrastructure projects or provides credit risk guarantees to
domestic and foreign financiers. NAFINSA's role is not likely
to change as long as IDB is in existence, however. As is the
case with other federal agencies in Mexico, NAFINSA's internal
funding and structure is volatile at times. NAFINSA's ability to
influence infrastructure beyond Mexico City is uncertain.
42

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Funding Source
Administering Agency
Contact
Type of Assistance
Eligible Recipients
Eligible Projects
Targeted Funding for Border
Projects? .
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available -
Total (millions)
Eligibility Criteria /Preferences
Funding Limitations ~
Application Procedure
Review Process
Selection Process
Outlook for Border Projects /
Comments
• \
Fondo Financiero de Nuevo Leon (Nuevo Loan Fund)
Fondo Financiero de Nuevo Leon
Lie. Fernando Reyes Santos
Fondo Financiero de Nuevo Leon
Revolving loan fund
Urban communities in Northern Mexico
Basic inff structure (highways, dams, tunnels, bridges, water
treatment plants); industrial infrastructure; and urban
development infrastructure (housing, water supply systems)
No . •
N/A
N/A - The Nuevo Leon Fund is composed of local government
contributions and private investors. It operates via investment
capital from mutual fund contributions and venture capital.
Current fund balance is not available, but the fall of the Mexican
peso in December 1994 has been blamed for the fund's currently
limited position.
Projects supporting industrial and economic development in
Northern Mexico.
Amount of funding limited by fund balance (and strength of
Mexican currency). According to contacts, the fund is very
limited when it comes to financing larger infrastructure projects..
Project applications are submitted to the Nuevo Leon Fund
directly. Applications include project descriptions, cost
estimates and feasibility studies.
Projects are reviewed by committee and ranked by project's
ability to support economic development and growth in poverty
stricken areas.
Successful review and fund availability determines project
selection.
The outlook for border projects is poor, as the peso devaluation
has drastically limited the mutual fund and venture capital
contributions to this fund.
43

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Funding Sheets - Multilateral Sources
                 44 .

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Funding Source
Administering Agency
Contact
Type of Assistance
Eligible Recipients
Eligible Projects
Targeted Funding for Border
Projects?
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available -
Total (millions)
Eligibility Criteria / Preferences
Funding Limitations
Application Procedure
Review Process
Selection Process
Outlook for Border Projects /
Comments
Inter- American Development Bank (IDB)
IDB
Michelle Miller .,
U.S. Department of Commerce Liaison
(202) 482-3399
Technical assistance grants .
Project development loans
Latin American and Caribbean member country government
national and regional authorities, and private sector
Physical Infrastructure (energy, transportation, communication)
Productive Sectors (agriculture, fisheries, industry, mining)
Social Infrastructure (environment, public health, education)
Planning and Reform (export financing, preinvestment)
No, have an understanding that the World Bank will provide
such assistance. Have funded non-border Mexican sanitation
projects in Mexico City and elsewhere.
$0 •
$6,000 - $7,000 per year
Target needier countries
Must have approval of the country to receive funding
Staff specialists visit member countries to work with
government officials to identify desirable projects to be funded
that are compatible with the countries development plans. Loan
applications are then prepared/negotiated.
Loan applications are presented to the IDB Board of Executive
Dkectors for approval.
Projects are selected based on institutional/financial capability,
project feasibility and sustainability, socio-economic impact, and
environmental impact
Technically could be a financing source, but appears unlikely at
the present time given the understanding with the World Bank.
45

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Funding Source
•«, .
Administering Agency
Contact
Type of Assistance
Eligible Recipients
Eligible Projects
Targeted Funding for Border
Projects?
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available -
Total (millions)
Eligibility Criteria / Preferences
Funding Limitations
Application Procedure
Review Process
Selection. Process
Outlook for Border Projects /
Comments
International Finance Corporation (IFC)
Enhanced Cofinancing Operation (ECO)
Multilateral Investment Guarantee Agency (MIGA)
World Bank .
Jerry Esmay
Environmental Projects Specialist
(202)473-7954
Guarantees
Private firms in developing countries.
Any business related project
No

N/A
Looking for financially sound projects to support

Develop business plan and funding needs.
Work with commercial banks to obtain actual financing.
Project must be approved for a loan from the Bank.
Unlikely funding source for public water and wastewater.
46

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Funding Sources
Administering Agencies •
Contact
Type of Assistance
Eligible Recipients
Eligible Projects
" i
Targeted Funding for Border
Projects?
Amount of Funding Available -
Targeted (millions)
Amount of Funding Available -
Total (millions)
Eligibility Criteria / Preferences
Funding Limitations
Application Procedure
Review Process
Selection Process
Outlook for Border Projects /
Comments
World Bank, Northern Border Environment Project
United Mexican States
Banco National de Obras y Servicios Publicos (BANOBRAS)
Secreteria de Desarrollo Social (SEDESOL)
Institute National de Ecologia (INE)
Procuraduria Federal de Protection al Ambiente (PFPA)
Comision National del Agua (CNA)
Ventura Bengoechea
World Bank Environmental Specialist
(202) 473-0068
Environmental project loans
Grants for institutional strengthening, technical assistance to
SMIs, environmental monitoring, and several other activities.
Loans to Mexican Border Communities
Grants to PFPA, SMIs, SEDESOL, INE, and BANOBRAS
Industrial pollution
Toxic and Solid Waste
Water and Sanitation
Air Quality and transport related pollution
Protection of vital ecological areas and biodiversity
Yes, specifically targeted to border projects
$202.0 - Institutional Strengthening and Haz Waste Mgmt
$560,0 - Environmental Services Improvement
same as above .
Completion of an adequate master plan approved by CNA.
Existence of independent operating agencies to manage the
investments (water and sanitation). Adopt sufficient user
charges to cover O&M and debt service. Cities with population
of more than 80,000 or priority cities. Economic return of at
least 12%.
Limited by the criteria and project type.
Send written petition for assistance to BANOBRAS and follow
detailed process of developing the project, including obtaining
concurrence at appropriate points in the process.
Must follow project development process, receiving approval
along the way and meeting the eligibility criteria.
Selection is a process of elimination with only 5 to 6 cities
believed to be ultimately eligible for the program.
Excellent for large scale water, wastewater and other
environmental projects.
47

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                      Section 4 - Interview Summary Notes
       The following interview summaries provide background for the information used to
compile this catalog. Each summary provides the name, title, address and phone number of each
agency contact and summarizes the key points of the interview. In addition to verbally providing
information many of the contacts sent program materials. Information from these materials were
also included in the catalog.

       Summaries of interviews with United States contacts being on page 49.  Summaries of
Mexico source interviews begin on page 63, and the multilateral summaries begin on page 66.
                                          48

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                  United States Contacts: Interview Summaries

Rural Economic and Community Development Services (RECD)
United States Department of Agriculture (USD A) - Arizona

Contact:      Jack Cox, Community & Business Programs Chief
             3003 North Central Avenue, Suite 900
             Phoenix, AZ 85012
             (602) 280-8700
Summary of Key Points:
                          '.,.''       •     •..'   '        '•             •••'.»
Mr. Cox provided information on both the Colonias Set-Aside program as well as RECD's Water
and Waste Disposal program.

Arizona was allocated $2,000,000 for Colonia Set-Aside for FY '96. RECD's national funding for
this program was reduced by 24% in 1996. The set-aside funding is 100% grant, but RECD in
Arizona encourages applicants to consider combined grant-loan packages. However, Mr. Cox
explained that it is difficult for the very poor communities along the border to repay the loan
portion of the package.

This program is limited to designated colonias in Arizona. In order to meet the RECD definition
of a colonia, the community must:

•    be designated as a colonia by the state or county (in writing);
•    lack a water supply and sewer service; and
•    in general lack adequate roads, safe and sanitary housing, and other infrastructure.

The Water and Waste Disposal program has been in operation for many years.  FY '96 funding in
Arizona for the program is $2,552,000 in grants and $4,323,000 in loans.

Border communities can apply to either funding program.

Both programs assist in environmental infrastructure improvement, providing funding for
planning, design, engineering and construction of water and wastewater systems or system
improvements. The application process is the same for both programs, requiring the applicants to
complete a  pre1engineering design study as well as providing detailed information concerning the
repayment ability of the applicant Financial controls and rate schedules are also required to show
the recipient can adequately manage the infrastructure.

Although recent congressional action makes the future of the set-aside program uncertain the
Water and Waste Disposal program will most likely survive.

           ,                               49

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Rural Economic and Community Development Services (RECD)
United States Department of Agriculture (USDA) - California

Contact:     Chuck Qendenin, Community & Business Programs Chief   .
            194 West Main Street, Suite F
            Woodland, CA 95695-2915

Summary of Key Points:

Me. dendenin discussed both the Colonias Set-Aside program as well as RECD's Water and
Waste Disposal program. He explained that the RECD Colonias Set-Aside and Water and Waste
Disposal programs are identical in all Mexico-bordered states.

Rural Economic and Community Development Services (RECD)
United States Department of Agriculture (USDA) - New Mexico

Contact     Gilbert Gallegos, Community & Business Programs Chief
            6200 Jefferson NE
            Albuquerque, MM 87109
            (505)761-4950
$ummary of Key Points:
Mr. Gallegos was not available to provide information for this report. However, as previously
stated RECD Colonias Set-Aside and Water and Waste Disposal programs are identical in all
Mexico-bordered states.

Rural Economic and Community Development Services (RECD)
United States Department of Agriculture (USDA) - Texas

Contact:     Pat Liles, Business Programs Chief
             Federal Building
             101 South Main Street, #102
             Temple, TX 76501  .
             (817)774-1307

             Gary Lightsey, Chief, Water and Waste Program
             (817)774-1307
                                        50

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Summary of Key Points:

Mr. Liles suggested that Gary Lightsey would be the best person to provide information. Mr.
Liles went on to explain REGD in Texas is organized a bit differently than in the other states, as it
divides business and water programs between two divisions. He also noted the RECD Colonias
Set-Aside and Water and Waste Disposal programs are identical in all Mexico-bordered states.
                                     \
Mr. Lightsey provided the 1996 funding levels for both programs which were recorded on the
funding sheets. Mr. Lightsey also provided a RECD program description and application packet
for the infrastructure funding programs. This information is identical throughout RECD offices in
all states and can serve as reference material for the agency as a whole.
United States Department of Housing and Urban Development
Community Development Block Grant Program (CDBG) - Arizona

Contact:      Rivco Knox   -.••-•
             CDBG Program Manager
             Arizona Department of Commerce •
             3800 North Central Avenue, Suite 1200
             Phoenix, AZ 85012
             (602)280-2162

Summary of Key Points:
Ms. Knox discussed the CDBG program in Arizona, specifically addressing each item on the
funding sheet, including eligibility requirements, application procedures and funding levels for
1996. She also described the set-aside program for colonias as well as the non-set-aside CDBG
program. Both offer grants for the improvement of water and wastewater infrastructure. ADOC
uses the same definition for a colonia as does RECD.

Current FY 1996 set-aside colonias is $1,141,900. However, that funding is for ALL CDBG-
eligible projects, including housing rehab, public services projects and neighborhood economic
revitalization. Public works (infrastructure) is just one possible eligible project for these funds.
CDBG eligibility guidelines originate with U.S. HUD, so they are consistent among all border
states interviewed.  "Standard" CDBG program, exclusive of set-aside is funded at $9,329,966.
                                          51

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United States Department of Housing and Urban Development
Community Development Block Grant Program (CDBG) - California

Contact:      Lany Davis                                   .       .              '
             Community Development Representative
             State of California, Department of Housing and Community Development
             Community Development Block Grant Program
             P.O. Box 952054
             Sacramento, CA 94252-2054
             (916)322-9864

Summary of Key Points:

Larry Davis explained the key features of the CDBG program in California.

The program is operated by the Department of Housing and Community Development California
CDBG also has a set-aside for designated colonias in the amount of $865,000 for FY96. The
maximum amount for any one project is $500,000.

CDBG eligibility guidelines originate with U.S. HUD, so they are consistent among all border
states interviewed.

Mr. Davis suggested talking to Lisa Phillips, the regional CDBG manager for Imperial and San
Diego Counties. Both are border counties.

Contact:      Lisa Phillips
             (916)327-3615

fiummary of Key Points:                        .

Ms. Phillips provided additional program information.

California has had difficulty dispersing the set-aside funds over recent years. The program is not
well known and it appears that the competition for these funds is minimal. The program is
planning an outreach program to increase interest  Ms. Phillips  sent detailed information on the
CDBGprogram.
                                         52

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                                                               .
United States Department of Housing and Urban Development
Community Development Block Grant Program (CDBG) - New Mexico

Contact:      Anita Hisenberg
             New Mexico CDBG Program
             State of New Mexico, Department of Finance and Administration
             Local Government Division
             Bataan MemorialBuilding, Suite 201
             Santa Fe, New Mexico 87503
             (505)827-4950                                      -

Summary of Key Points:

As with Arizona and California, New Mexico has a funding set-aside for designated colonias that
amounts to 10% of the total CDBG program. For FY '96 this is $1,148,720. this set-aside is for
ALL CDBG-eligible projects. Similar to California, New Mexico has had a difficult time
distributing the set-aside funds, and plenty of funds are available.
              /
CDBG Eligibility guidelines originate with U.S. HUD, so they are consistent among all border
states interviewed.  New Mexico uses the.same definition for a colonia as does RECD.

United States Department of Housing and Urban Development
Community Development Block Grant Program (CDBG) - Texas

Contact:      Sandy Mauro
             CDBG Program Manager
             Texas Department of Housing and Community Affairs
             P.O. Box 13941
             Austin, TX 78711-3941
             (512) 475-3800   .

Summary of Key Points:

Ms. Mauro provided specific information concerning eligibility and application procedures. The
set-aside for Texas colonias is approximately $9 million for FY '96, or roughly 10% of the total
Texas CDBG allocation for the year. Unlike California and New Mexico, Texas has been quite
successful in distributing the colonias set-aside funds.

CDBG eligibility guidelines originate with U.S. HUD, and are consistent among border states.
                                        53

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Clean Water State Revolving Loan Fund Program (Wastewater) - Arizona

Contact:     Greg Schwartz
             Coordinator
             Arizona Wastewater Management Authority                   .
             Arizona Department of Environmental Quality
             3033 North Central Avenue
             Phoenix, AZ 85012
             (602)207-4707

Summary of Key Points:

Mr. Schwartz provided information about the SRF program in Arizona, and specifically, it's
usefulness for communities in need of infrastructure development along the U.S. -Mexico border.

.The Arizona SRF program is administered by the Arizona Department of Environmental Quality's
Arizona Wastewater Management Authority. As. with other states, the SRF program does not
have stringent eligibility requirements. Any city or county may apply for funding, subject to
placement on a state-wide priority list Almost all wastewater infrastructure construction
improvement projects are eligible to receive SRF funding. Therefore, border communities may
apply for this funding. However, there is no preferential treatment for low-income communities
along the border.                          .   •  ;

Based on the Ohio Water Development Authority's "Annual SRF Survey" Arizona's SRF program
had approximately $53 million available for loans (as of November 1995).

Mr. Schwartz explained that is it difficult to utilize SRF funds and loans for border infrastructure
development primarily because border communities will be unable to meet any repayment
schedule regardless of interest rate. Border communities require grants to improve their
environmental infrastructure.                -
 Clean Water State Revolving Loan Fund Program (Wastewater) -

 Contact:      EricTorgusen
              SRF Coordinator
              State Water Resources Control Board
              2014 T Street.
              Sacramento, CA 95814   ,
              (916) 227-4449
                                          54

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Contact:      Bart Christensen
             Sr. Engineer / Border Coordinator
             State Water Resources Control Board
             ^2014T Street
             Sacramento, CA 95814
             (916) 227-4426
Summary of Key Points:

Mr. Torgusen and Mr. Christensen provided information about the SRF program in Calif ornia,
andspecifically addressed the SRFs applicability to communities in need of infrastructure
development along the U.S.-Mexico border.         .    .

California's SRF program is administered by the California State Water Resources Control Board
(SWRCB).  As of November 1995, California has approximately $314 million available to loan for
wastewatef infrastructure development and improvements.

California does not use its SRF program to fund wastewater infrastructure along the U.S.-Mexico
border, though border communities are fully eligible to receive the funds. Again, border
communities are unable to meet repayment schedules. Also, California does not have any
hardship criteria or special programs for border (wastewater) infrastructure development.
Clean Water State Revolving Loan Fund Program (Wastewater) - New Mexico

Contact:      Patrick Olaechea
             SRF Program Manager
             New Mexico Department of Environment
             Environmental Improvement Division
             (505)827-2797

          .   Rusty Rodkey                                           .
             New Mexico Departmentof Environment
             Construction Programs
             (505)827-1055

Summary of Key Points:                •                    .        ,            ,

Mr. Olaechea suggested interviewing Mr. Rodkey. Mr. Rodkey provided information about the
SRF program in New Mexico and its potential for providing financial assistance to communities in
need of infrastructure development along the U.S.-Mexico border.
                                         55

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The New Mexico SRF program is administered by the New Mexico Environment Department's
Construction Programs Bureau. Based on the 1995 Annual SRF Survey, New Mexico has
approximately $76 million available to fund wastewater infrastructure improvements.

Border communities are eligible for SRF loans. Unlike Arizona and California, New Mexico
offers "hardship criteria" for low-income SRF loan recipients.  Most border communities Would
fall into this category. However, New Mexico does not currently apply any SRF funds to border
(wastewater) infrastructure projects.

Clean Water State Revolving Loan Fund Program (Wastewater) - Texas

Contact:      Kevin Ward
             SRF Program Manager                                .
             Texas Water Development Board
             Engineering  Division
             (512)463-0991
          o Ke  Points:
Mr. Ward provided information about the SRF program in Texas, as well as the program's role in
assisting border communities. The SRF program in Texas is administered by the Texas Water
Development Board.                   •                                 .

The eligibility requirements among the border state SRF programs are essentially the same.
Border communities are eligible for funding (for wastewater infrastructure) under Texas' SRF
program. According to the 1995 Annual SRF Survey, Texas has approximately $200 million
available for wastewater infrastructure funding. As with other border states, Texas does not use
the SRF program, to fund infrastructure along .the border due to the inability of communities to
service the debt repayment
                                                                         r ,  .
Arizona International Development Authority (AIDA)                           ;
Arizona Department of Commerce (ADOC)

Contact:      Victoria Kessler
              ADOC - Border Infrastructure Finance Office
              3800 North Central Avenue, Suite 1400
              Phoenix, AZ 85012
              (602)280-8193
                                          56

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                  •'•*>.-•'.        •        .                 '    •
             Carol Sanger
             ADOC - Arizona International Development Authority x
             3800 North Central Avenue, Suite 1400
             Phoenix, AZ 85012
             (602)280-1374

Summary of Key Points:

Victoria Kessler at the ADOC Border Infrastructure Finance Office suggested contacting Ms.
Sanger of the Arizona International Development Authority (ADDA). Ms. Sanger provided
information about the Arizona International Development Authority and its role in financing
border infrastructure.

AIDA is a bonding authority that can, issue tax-exempt bonds on behalf of projects within 100km
north and 10km south of Arizona-Mexico border. AIDA may participate in environmental
projects and/or those enhancing Arizona's role in international trade and commerce. Arizona is
limited to $211 million in bond issuances. The percentage available to AIDA is unknown at this
point Since bonds are repaid through user fees, the border community may be unable to repay
the funding source.

AEDA is a very young organization; only recently approving its application form and project
review process.
United States Department of Commerce
Economic Development Administration

Contact:      David Mcflwain
             Mexico Representative
             USDOC/EDA
             14th & Constitution Ave., N.W.
             Room 7804
             Washington, D.C.  20230
             (202)482-5265
Summary of Key Points:

Mr. Mcllwain discussed the USDOC/EDA programs that could benefit water infrastructure
development along the U.S.-Mexico border. The program's total funding for FY96 is currently
unknown. EDA's programs are designed to assist in economic development, obviously. All
projects must be located in an "EDA-designated redevelopment area."  All border communities
meet this requirement, however the area must also be in the process of redevelopment or
                                         57

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economic development Most border communities do not fall into the second eligibility category.
Further, usually only 60% of the total project costs are provided to the recipient The remainder
must come from other sources.

USDOC/EDA programs also include technical assistance for economic/redevelopment In terms
of infrastructure development however, the outlook for border communities is not good.

United States Army Corps of Engineers
Section 219 - Colonias Infrastructure Program
                     /
Contact:      Maricris C. Estabillo
             U.S. Army Corps of Engineers - Los. Angeles District
             Water Resources Branch
             300 N. Los Angeles Street
             P.O. Box 2711
             Los Angeles, CA 90053-2325
             (213) 894-0496

          of Key Points:
The Section 219 program was originally designed to assist designated California colonias with
developing water and wastewater infrastructure. Over the last two years, the program has lost
funding and now has only design and planning funds to offer colonias. In 1995, total funding for
the program was $698,000. All of the funds were disbursed. The program was not refunded in
the 1996 appropriative cycle and will most likely be terminated.

New Mexico Environmental Department
Colonias Wastewater Grant Program

Contact:      Orren Drake                                                      .
              Construction Programs Bureau
              New Mexico Environment Department
              Harold Runnels Building
              1190 St Francis Drive, P.O. Box 26110                                    .
              Santa Fe,NM87502r01 10
              (505)827-2812
                                          58

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Summary of Key Points:

Patrick Olaechea, Chief of Construction Programs for New Mexico Environment Department,
suggested interviewing Mr. Drake. Mr. Drake explained the colonias Wastewater Grant Program
is funded through a 1993 and a 1995 USEPA appropriation, each of which were for $10 million.
Currently, the fund has approximately $12.5 million in available funding for designated New
Mexico colonias lacking wastewater treatment facilities.

This program is quite successful in New Mexico because it provides grant funding.
New Mexico Environment Department          .
Rural Infrastructure Program

Contact:      RarhonaRael
             Rural Infrastructure Revolving Loan Fund
             New Mexico Environment Department
             Harold Runnels Building
             1190 St Francis Drive, P.O. Box 26110
             Santa Fe,NM 87502-0110
             (505)827-2812
Summary of Key Points:

Patrick Olaechea, Chief of Construction Programs for New Mexico Environment Department,
suggested interviewing Ms. Rael.   :

Ms. Rael explained the program is a revolving loan fund that funds improvement to public water
systems or sanitation districts for infrastructure improvements.  The program does not offer any
special programs for border communities, but does allow a hardship provision for loan repayment,
with rates as low as zero percent Again^ most low income communities along the border can not
utilize this program, as they can not afford to repay loans at any interest rate.

Community Resource Group, Inc.
Community Loan Fund

Contact:      Bob Anderson
             Community Loan Fund Manager
             Community Resource Group, Inc.
             2503 East Robinson Avenue
             Springdale, Arkansas 72764
             (501)756-2900
                                         59

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Summary of Key Points:

CRG is a regional office for the Rural Community Assistance Program, Inc. (RCAP), a national
501(c)(3) non-profit organization that provides assistance to the rural poor. The CRG loan fund
is available to local government entities in Texas. While the CRG loan fund can provide
assistance to border communities, loan amounts can not exceed $75,000.     '
CoBank - National Bank for Cooperatives

Contact:     Steve Gustafson
             Vice President
             CoBank
             5500 S. Quebec Street
             Englewood, CO 80111
             (303)740-4025
          o Ke  Points:
Mir. Gustafson provided information about CoBank's standard loan program and its possible
relevance to border infrastructure development CoBank is the largest lender of funds for
drinking water infrastructure improvements. Loans range from $500,000 to up to $400 million,
sometimes financing huge projects that serve millions of people. Technically CoBank is a possible
funding source for U.S. -Mexico border infrastructure.  However, two factors make CoBank an
unlikely source of funding.  First, border communities cannot afford low-interest loan repayments
to SRF programs and will therefore not be able to repay commercial interest rate loans. CoBanks
currently charges an interest rate 2-3% over the 20 year T-biU on twenty year loans.
Texas Water Development Board
Economically Distressed Areas Program (EDAP)

Contact:     Jeannie Qsneros
             EDAP Program Manager
             Texas Water Development Board
             P.O. Box 13231
             Austin, TX 78711-3231
             (512) 463-8050
                                          60

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Summary of Key Points:

The Texas Water Development Board is funded through a special USEPA appropriation
(wastewater only), as well through the issuance of state general obligation bonds. The program is
currently funded at approximately $440 million. These funds can be used for environmental
infrastructure development only in EDAP-eligible counties. The program is very successful, due
to the high percentage of grants available in the financing package. The program's future depends'
'on future USEPA appropriations as well as the bond issuance considerations.
 North American Development Bank (NADBank)

 Contact:      Sarah Foryt
              Finance Manager
              NADBank
              425 Spledad, Suite 610
              San Antonio, TX 78205-1506
              (210)231-8000

 Summary of Key Points:
 NADBank and its sister agency BECC (Border Environment Cooperation Commission, see page
 79) are still in the formative stages of development BECC has only recently developed the
 criteria it will use to approve projects for NADBank funding.  Subsequently, NADBank has yet to
 make a loan for environmental infrastructure improvements on either side of the U.S.-Mexico
 border. Further, NADBank has yet to be fully capitalized. Due to the collapse of the peso, the
 amount of paid-in capital and callable capital is approximately 60% shy of earlier projections.
 There is also some concern about the stability of Mexico's existing monetary contribution to the
 Bank. The short-term future of funding is uncertain.
 Export-Import Bank of the United States

 Contact:      Paula Priestly
              Program Manager
              EX-IMBank
              Sll.VermOnt Avenue, N.W.
              Washington, D.C. 20571
              (202)565-3921'
                                          61

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Summary ofKev Points:
Ms. Priestly explained EX-IM Bank's primary role is to assist in the exporting of United States
goods and services. The Bank makes loans and loan guarantees to foreign buyers of U.S. goods
and services as long as the export is at least 50% U.S. content EX-IM Bank has relied on its
loan guarantee programs for border infrastructure financing. Once foreign buyers, U.S, exporters,
or lending institutions receive a preliminary commitment from the Bank, they are in a better
position to "shop" for financing, usually at rates much more attractive than if the loan were not
guaranteed. Dkect loans and guarantees are made for up to 85% of U.S. Export value.

Although EX-IM Bank guarantees allow borrowing entities more reasonable financing, loan
repayment remains an issue for the low-income border communities. The ideal situation would
involve EX-IM Bank financing for a private infrastructure project, thus removing the loan
repayment burden from the community itself and placing it on a private owner of the •
infrastructure project                                                       .
                                           62

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                     Mexico Contacts: Interview Summaries

Banco National de Obras y Servicios Pulicos (BANOBRAS)u

Contact:      Jaime Corador
             BANOBRAS
          .   TecoyotMa No. 100, Piso 4
             Colonia Florida
             Mexico, D.F. Mexico
             011-525-723-6202

Summary of Key Points:

Ms; Corador provided information about BANOBRAS1 ability to fund environmental
infrastructure. U.S. Department of Commerce staff (see page 81) provided additional
information. USDOC staff is knowledgeable about Mexican funding sources.

BANOBRAS is basically a passthrough intermediary lender for the World Bank. World Bank
Contributions to Mexico are all routed through BANOBRAS.  Other than a small amount of
matching funds, BANOBRAS has very little money of its own for environmental infrastructure
development Some BANOBRAS funds are used for technical assistance and environmental
planning.

BANOBRAS supports infrastructure development in the private sector by offering loan
guarantees to municipal governments that are purchasing environmental infrastructure from
private entities.

Mexico Infrastructure Fund
Banco Nacional de Qbras y Servicios Publicos (BANOBRAS)

Contact:      Jaime Corador                          •   '  . ,  •
             Tecoyotifla No. 100, Piso 4
             Colonia Honda
                                                                    x
             Mexico, D.F. Mexico                                              .
             011-525-723-6202

Summary of Key Points:

The Mexico Infrastructure Fund was recently mandated by Mexico's president in order to
encourage the development of infrastructure projects that contain a "high social value." These
projects include things like highways, ports, urban transport and water/wastewater systems. The
                                        63

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fund, once fully capitalized, will total approximately 1.7 billion (new) pesos. There is some
concern that the fund will not be able to assist with the larger water infrastructure projects,
especially in light of the fact that fund needs to be used for a variety of other uses as well,
including very expensive projects such as urban transportaion systems.
ComJsi6n Nacional del Agiia (CNA)

Contact:     Carlos A. Buerba
             Subgerente de Construction
             Comisi6n Nacional del Agua
             Insurgentes Sur No. 2140, Piso 2
             Col. Ermita San Angel
             Mexico, DJF. (01070) Mexico
 Nacional Financeria, S.N.C. (NAFINSA)      ,

 Contact:      Hector Portilla Ibarguengoitia
              NAFINSA
              Rio Magdalena No. 4, Mezanine
              Mexico, D.F. Mexico
              011-525-325-7816

 ftummary of Key Points:

 NAFINSA's primary role is to re-lend contributions from multilateral funding sources, primarily
 the Inter-American Development Bank (IDB). Additionally, the organization provides loan
 guarantees and credit discounts to commercial banks and other financial intermediaries to
 promote infrastructure development                      .
 Fondo Financiero de Nuevo Leon
 (Nuevo Leon Fund)

 Contact      Lie. Fernando Reyes Santos
              Fondo Financiero de Nuevo Leon
              Ave. Lazaro Cardenas No. 329
              Edfficio No. 8.
              San Pedro, Garza Garcia, N.L.
              C.P. 66220
              011-528-319-0461   .
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Summary of Key Pointi:

The Nuevo Leon Fund was created to fund basic infrastructure, including anything from highways
to dams, bridges to urban development, etc. Additionally, the fund will finance water systems.
Like the Mexican Infrastructure Fund, this Fund has a very aggressive goal and very little capital.
The fund relies on local government contribution and private investment The fund's balance is
very limited (exact figures were not provided). The collapse of the peso in December, 1994 had a
significant effet on the fund's effectiveness. The funds future is in doubt.
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             Multilateral Funding Contacts: Interview Summaries

      While the following agencies do not currently provide funding for U.S.-Mexico border
water infrastructure, conversations and interviews with agency contacts facilitated the
identification of funding sources.


United States - Mexico Border Progress Foundation

Contact:      Elsa Saxod, Executive Director
             1615 Murray Canyon Road, #1000
             San Diego, CA 92108
           • (619) 291-1574                        .
Border Environment Cooperation Commission (BECC)

Contacts:     Tracy Williams
             Loufs-Raul Dominguez
             Gonzalo Bravo
             P.O. Box 2211648
             El Paso, TX 79913
             011-5216-2923-95
Institute of the Americas

Contacts:     Sherry White
             LeeTablewski
             10111 North Torrey Pines Road
             La Jolla,CA 92037
             (619) 453-5560
 International Boundary and Water Commission, Washington, D.C.

 Contact:     Paul Storing, Special Assistant
             Office of Mexican Affairs
             ARA/MEX,-Room 4258, Department of State
             Washington, D.C. 20520
             (202)647-8529
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International Boundary & Water Commission, El Paso, Texas
(CELA is the IBWC sister agency in Mexico)

Contacts:    Manuel (Bobby) Ybarra
            P.O. Box 10525
            El Paso, TX 79995
            (915)534-6677
U.S. Department of Commerce

Contacts:     Michelle' Miller (202) 482-2000
             Dennis Burke (202) 482-0305
             Sara Kent (202) 482-3637
             14tii and Pennsylvania Avenue, N.W. #3022
             Washington, D.C. 20230
New Mexico Engineering Research Institute (NMERI)

Contacts:     Tracy Eagle (505) 272-7372
             Norm Falk, Director (505) 272-7343
             1001 University Blvd., Suite 101
             Albuquerque, NM 87106
Mexican Embassy - Washington, D.C.

Contact:      Jane King
             Border Affairs  .'•-.'
             Embassy of Mexico
             1911 Pennsylvania Ave.
             Washington, D.C. 20006
             (202)728-1641

U.S. Overseas Private Investment Corporation (OPIC)

Contact:      N/A
             1100 New York Avenue, N.W.
             Washington, D.C. 20527
             (202) 336-8799
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       •                        ,                          "^
UJS. Agency for International Development (US AID)

Contact:      Joe Duncan, Latin American representative
             Center for Trade and Investment Services
             USAID, G/BD/CnS
             SA-2, Room 100
             Washington, D.C. 20523-0229

Secretaria de Medio Ambiente, Recursos Naturales, y Pesca (SEMARNAP)
Mexico, DJ?. Mexico

Contact:      Lie. Julio Samaniego
             0115256280650

Note: Roughly speaking, SEMARNAP is Mexico's equivalent to the USEPA.  An agency that
       has been restructured many times, SEMARNAP is the primary federal regulator of water
       quality and protection.  The agency does not have funding for environmental (water)
       infrastructure, offering little more than technical assistance.
Secretaria de Desarollo Social (SEDESOL)
Mexico, D.F. Mexico

Contact:      Jaime Sancho, Director
             0115252777938

Note: While SEDESOL (an agency responsible primarily for urban development) has some
funding for border infrastructure, it seems to be mor6 focussed on issues affecting Mexico City.
The agency has some funding for technical assistance-type activities, but the small amount of
funding stays in Mexico City.
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                         Section 5 • Foundation Funding

      A number of foundations provide funding for natural resource protection and conservation
efforts. However, many of the foundations focus primarily on technical assistance and education
and prohibit grant funds from being applied to equipment acquisition and contstruction costs. The
following foundations have historically provided funding categorized as environmental/natural
resource protection and community development projects.
Ford Foundation
(212)573-5000

       Average award: $10,000 - $2,000,000
•      Funding for technical assistance, seed money, operating support
•      No funding for construction
•      Latin American focus
CS Mott Foundation
(810)238-5651       -            /    .

•      Average award: $20,000 - $200,000
•      Funding for technical assistance, seed money, operating support
W.K. Kellogg Foundation
(616)968-1611

    -   Average award: $75^000 - $250,000
•      Seed money
•      Latin American focus „
•      No funding for building or equipment
David and Lucile Packard Foundation
(415)948-7658                     .

       Average award: $5,000 - $500,000
•      Funding for technical assistance building renovation, construction, equipment and land
       acquisition
•      Latin American focus
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Wm. Wrigley Jr. Company Foundation
(312)645-3950

      Average award: $1,000 - $99,000
•     Funding for urban/community development and national basic health issues
Moriah Fund
(301)951-3933                                       .

       Average award: $25,000 - $75,000                      •
*      Funding for urban/community development, technical assistance, matching funds
»      Latin American focus
         *
International Foundation                            .
(201)838-4664

       Average award: $5,000 - $50,000
*      Funding for building/renovation, equipment, seed money
*      Latin American focus       ,

Echoing Green Foundation
(212)756-4700

       Average award: $1,000 - $25,000
•      Funding for technical assistance, consulting, seed money

Rockefeller Brothers Fund
(212) 373-4200

       Average award: $25,000 - $200,000
*      Funding for technical assistance, consulting, seed money
•      No funding available for building or land acquisition
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 Surdna Foundation, Inc.
 (212)730-0030    f.

       Average award: $5,000 - $50,000
 •      Funding for technical assistance and seed money
 •      No funding available for building or land acquisition
 Pew Charitable Trusts
 (215)575-9050

 •      Average award: $100,000-$6,000,000
. •      Funding for building/renovation, technical assistance, seed money and consulting services
 •      Latin American focus

 Xerox Foundation
 (203)968-3445

 •      Average award: $1,000 - $10,000     '
 •      Funding for equipment and technical assistance
 •      Latin American focus

 Hearst Foundation, Inc.
 (212)586-5404                      ;

 •    .  Average award: $10,000 - $35,000
 •      Funding for building/renovation
       Funding available to U.S. territories only

 Giles W. and Elise G. Mead Foundation
 (707)257-6737

       Average award: $10,000-$50,000
 •      Funding for equipment, land acquisition, seed money and matching funds
 •      Western United States emphasis '
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Moore Family Foundation
23965 Jabil Lane
Los Altos Hills, CA 94024

Average award: $5,000 - $250,000
Funding for building/renovation
One World Fund
793 Turnpike Street
North Andover, MA 01845                                       .
(Phone #N/A)

       Average award: $1,000 - $10,000
•      Funding for national resource conservation and protection efforts
Kresge Foundation
(810) 643-9630

       Average award: $100,000 - $500,000
•      Funding for major building/renovation projects, land acquisition and matching funds
AT&T Foundation
(212)841-4747

•      Average award $5,000 - $50,000
•      Funding for technical assistance, consulting services and matching funds
Perkins Charitable Foundation
(216)621-0465

«      Average award: $1,000 - $60,000
•      Funding for natural resource conservation and protection effort
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Beneficia Foundation
One Pitcaiin Place
Jenkintown, PA 19046-3593
(Phone#N/A)               .

       Average award: $3,000 - $110,000
•      Funding for natural resource conservation and protection efforts
Posner Foundation of Pittsburgh
381 Mansfield Avenue             -
Pittsburgh, PA 15220
(Phone #N/A)

      Average award: $1,000 - $250,000
•     Funding for natural resource conservation and protection efforts
USX Foundation
(412)433-5237

       Average award: $1,000 - $25,000,
•      Funding for building/renovation, equipment and seed money
Gannett Foundation
1100 Wilson Blvd.
Arlington, VA  22234                    :

•      Average award: $5,000
•      Funding for building/renovation, equipment, seed money and matching funds

Wilburforce Foundation
(206)286-4554

       Average award: $1,000 - $50,000
•      Funding for equipment, technical assistance, consulting services and matching funds
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786 Foundation
P.O. Box 7900                  .    .
Madison, WI 53707 ,

      Average award: $1,000 - $250,000
•     Funding for natural resource conservation and protection efforts
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                      Section 6 - Commercial Bank Funding

       World Bank staff discussed the role of commercial banks in financing border projects.
Banks from Canada, France, and the Netherlands were mentioned along with U.S. banks as being
very active in looking for sound projects/businesses to invest in. The financial condition of many
border communities is likely to diminish the chance of a border project being considered a sound
commercial bank investment The following U.S. banks were identified as being potentially
active:

       •     BayBank
       •     J.P; Morgan
       *  .   Nations Bank
       •     Citicorp
       •     Washington Capital
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