INSTITUTIONAL DEVELOPMENT COOPERATION PROGRAM

INSTITUTIONAL DEVELOPMENT COOPERATION PROGRAM

NORTH AMERICAN DEVELOPMENT BANK
TECHNICAL ASSISTANCE REPORT
MARCH 2013
The North American Development Bank (NADB) uses a portion of its retained earnings to offer
technical assistance and training to project sponsors for the purpose of strengthening their
financial performance and ensuring the long-term sustainability of their infrastructure. This
assistance is provided through two programs: the Technical Assistance Program (TAP) and the
Utility Management Institute (UMI).
Technical Assistance Program (TAP)
Under this program NADB provides assistance for studies related to the design and
implementation of environmental infrastructure projects, as well as for capacity-building
measures aimed at achieving the effective and efficient operation of public services.
During the past quarter, a pilot solar energy capacity-building project in Chihuahua, Chihuahua,
was completed. A 250-kW solar plant was installed to supply electricity to the new children’s
hospital in the city of Chihuahua, which is expected to help cut its energy costs by about 12
percent.
In addition, two development studies were approved for TAP funding: a pilot solar energy
capacity-building project for the Las Californias Children’s Hospital in Tijuana, Baja California; and
a study of the monetization of renewable energy tax incentives in Mexico.
Consequently, as of March 31, 2013, NADB had five active projects under the TAP program. The
total grant commitment for those studies was US$397,535. The status of the studies is provided in
the chart below.
1.
2.
3.
4.
5.
Project
Development legal structure for 30MW solar project for the State of Sonora
Credit rating for the water utility in Piedras Negras, COAH
Credit rating for the Municipality of Playas de Rosarito, B.C.
Pilot solar energy project for Hospital de las Californias in Tijuana, B.C.
Study of monetization of renewable energy tax incentives in Mexico for NADB
Status
In development
In process
In development
In development
In development
Since program inception, NADB has authorized technical assistance for a total of 221 institutional
strengthening and project development studies benefiting 101 border communities. A summary
of all technical assistance financed by NADB to date is provided in the following table.
CUMULATIVE TECHNICAL ASSISTANCE BY STATE
As of March 31, 2013
(U.S. Dollars)
State
UNITED STATES
Arizona
California
New Mexico
Texas
Communities
Benefiting
Total
Studies
11
11
1
29
23
15
4
48
$1,503,468
$730,987
$187,327
$2,925,797
1
$50,000
52
91
$5,397,579
5
7
4
6
15
12
20
22
7
6
32
15
$2,404,259
$2,427,473
$689,868
$1,129,214
$2,750,451
$2,326,472
22
$4,210,753
124
$15,938,490
Non-state specific*
U.S. Subtotal
MEXICO
Baja California
Chihuahua
Coahuila
Nuevo Leon
Sonora
Tamaulipas
Non-state specific*
Mexico Subtotal
49
Other**
Total Funding
Committed
6
TOTAL
101
221
$175,004
$21,511,073
* This category consists of border-w ide, agency and other non-state
specific studies, including regional w ater conservation studies.
** Project-related or institutional studies of NADB.
Utility Management Institute (UMI)
Established in March 1998, this training program offers an annual series of seminars aimed at
providing practical instruction in the financial administration and planning of water utilities. The
basic program is presented to U.S. and Mexican utility professionals in San Antonio, TX, as well as
on site to regional groups. In addition, UMI offers ongoing educational opportunities through
intensive seminars to UMI graduates who have attended all four modules of the basic program.
More recently, under the auspices of UMI, NADB has also been promoting other types of
environmental infrastructure projects with state and local officials through one-day seminars
focused on developing and financing projects in areas such as energy efficiency in public lighting
and air quality improvement through street paving.
UMI will start its 14th year of seminars in April 2013, with a regional group sponsored by the
Sonora state water agency, Comisión Estatal de Agua de Sonora (CEA) in Hermosillo, Sonora. Since
NADB TECHNICAL ASSISTANCE REPORT * MARCH 31, 2013
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its inception, training has been provided to a total of 2,080 utility professionals, representing 200
border communities in Mexico and the U.S., either in San Antonio or in local on-site modules. Of
those participants, 912 have attended all four modules of the basic program, hence earning a
certificate from the University of the Incarnate Word in San Antonio.
Given the success of last year’s training program for Mexican wastewater treatment plant
operators, which provided training to 250 operators from 14 utilities, NADB decided to extend the
program to utility plant workers that did not have the opportunity to participate in 2012. In
March, NADB signed a new agreement with the Latin American and Caribbean water center,
Centro del Agua para América Latina y el Caribe (CDA), of the Monterrey Technological Institute
(ITESM) to continue the training program, which is targeted to utility personnel of communities
that previously received financing from NADB to construct or upgrade priority wastewater
infrastructure. The purpose of the program is to provide both classroom instruction and hands-on
training in the adequate and efficient operation and maintenance of wastewater treatment plants
so as to facilitate compliance with current effluent quality standards. The utilities scheduled to
receive training this year are in Tecate and Playas de Rosarito, Baja California; San Luis Río
Colorado and Sonoyta, Sonora; Miguel Alemán and Reynosa, Tamaulipas; and Ciudad Juárez,
Chihuahua.
Publications
As part of its technical assistance and training programs, NADB also develops and publishes
informational manuals in its ongoing efforts to support project sponsors and utilities in the
development of their projects, as well as enhance their financial and administrative capacities.
The following manuals are available on the Bank’s website (www.nadb.org):

Manual for Drafters of Interlocal Agreements for Utilities and Other Services. Available
only in English, this manual provides guidelines for determining the feasibility of regional
facilities that serve two or more communities, as well as for negotiating and
implementing the corresponding agreement based on U.S. laws.

Local and Financial Aspects of Urban Water Management for Six Cities at the U.S.-Mexico
Border. This study examines and compares local, financial and quality management of the
water utilities in three pairs of sister cities along the Texas border with Mexico: Del Río
and Ciudad Acuña, Coahuila; Laredo and Nuevo Laredo, Tamaulipas; and McAllen and
Reynosa, Tamaulipas. This report is available in both Spanish and English.

Mejores prácticas de Servicios de Agua y Drenaje de Monterrey (SADM). Available only in
Spanish, this manual documents various successful practices in proper water
management used by the Monterrey water utility, SADM, that can serve as a guide for
solving problems commonly found in other communities and help improve operational
and administrative practices.

Análisis comparativo de costos y tarifas de agua potable entre organismos operadores de
servicios de agua y drenaje en la frontera México-EUA. Available only in Spanish, this
manual presents a comparative analysis of costs and rates using quantitative criteria to
NADB TECHNICAL ASSISTANCE REPORT * MARCH 31, 2013
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identify opportunities for improving the costs of water utilities located in the Mexican
border states by correcting operational inefficiencies.

Propuesta de estructura tarifaria de agua potable para los organismos operadores de los
servicios de agua y drenaje en la frontera México-EUA. This document is a sequel to the
comparative cost and rate analysis above and proposes a methodology for structuring
more effective water rates for Mexican utilities in the border region. This manual is also
only available in Spanish.

Mejores prácticas de operaciones municipales de agua potable: Experiencias del Premio
Gobierno y Gestión Local. This report presents various cases of good water management
in urban areas of Mexico deriving from actions aimed at strengthening the financial,
operational and technical capacities of the utilities. Each experience illustrates the
improvements that can be achieved with programs based on the principles of good
management. This manual is also only available in Spanish.

Indicadores de desempeño y el enfoque empresarial para una mejor gestión de los
organismos de agua: El caso de Saltillo. This study, which is available only in Spanish,
examines the local, national and international indicators used in evaluating the
performance and objectives of water utilities, and offers a recommendation for a system
of indicators for water utilities in Mexico.

Principios Gerenciales y Eficiencia Operativa de los Servicios del Agua: Los Casos de
Saltillo, Tijuana y Monterrey. This study identifies the management models used by three
successful water utilities in Mexico, analyzes their organizational principles and values,
and proposes a series of recommendations for the creation of a successful organizational
model to enhance the daily performance of utilities. The report is only available in
Spanish.
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