The government of Baja California obtained a green credit 3 billion pesos from the North American Development Bank (NADBank), which will enable the expansion and modernization of the infrastructure for the wastewater treatment and reuse of the city of Tijuana.
The green financing has a 30-year term, with a three-year grace period on principal payments and increasing amortizations at 1.1%, with competitive interest rates, he explained to Forbes. Calixto Mateosgeneral director of the NADBank.
He detailed that the financing is divided into two tranches, the first for 1 billion pesos at a fixed rate of 10.165%, even below the 28-day TIIE, and a second tranche for 2 billion pesos at a rate of TIIE + 0.925%.
The development bank executive indicated that in order to think of an optimal development of this border region that they share Mexico y United States it is very important to have an adequate wastewater treatmentThis is why this green credit will double the capacity of the International Wastewater Treatment Plantto treat Mexican wastewater that crosses into U.S. territory.
In addition, the plants of La Morita y Arturo Herrera will receive investments to improve sanitation infrastructure and the reuse of treated wastewater.
The Governor of Baja California, Marina del Pilar Avilasaid that with NADBank's intervention and green financing, there will be an improvement in water management in the NADBank watershed. Tijuana river and in the Californian and Baja California coastlines.
"We are guaranteeing the immediate implementation of these actions, but the most important thing is that today we are laying the foundations for long-term sustainable development," said the Governor.
This first sustainable financing The Mexican government's commitment to the objectives to which it has committed itself as part of the United Nations Conference on Climate Change and with the Sustainable Development Goals of the Agenda 2023 of the United Nations (UN).
Avila emphasized that achieving this green credit for investment in water infrastructure is the result of long working groups in which more than 100 professionals from Mexico and the United States were actively involved in defining a joint strategy,
"With this solid teamwork, we are taking a transcendental step that will positively impact the quality of life of future generations on both sides of the border," he said.
Marco Antonio Moreno MexíaThe Secretary of Finance of Baja California, emphasized that for the first time the state government has signed a green financingThe new financial instrument, an innovative financial instrument that will allow greater transparency in infrastructure investments by promoting accountability and greater clarity in the expected results.
He added that NADBank assisted in the preparation of the Sustainable Financing FrameworkIn addition, it will provide US$257,000 in non-reimbursable resources from its Technical Assistance program to support the implementation of the financing.
Gabriel Yorio Gonzalezsaid that the federal Finance and Public Credit undersecretary, said that the agency is developing a strategy of sustainable financing which seeks to mobilize economic resources for projects and actions that benefit both the environment and society.
Source: Forbes