Government

Marina del Pilar announces first water projects with green financing

Through the Technical Committee of Investments, it is expected that the allocation and implementation of resources is done in a transparent manner

The government of Baja California, led by Marina del Pilar Ávila Olmeda, announced the first 13 projects that will be carried out with support from green financing, which will be done in order to provide a solution to the hydraulic infrastructure lag in order to elevate the quality of life of thousands of Baja Californian families.

The 13 projects of this first phase of financing are focused on preventing leaks and spills, which will considerably decrease the risk of contact with wastewater and the possible contamination of superficial and underground waters, as well as the cross-border flows into the United States, according to the 2022-2027 State Development Plan of the Government of Baja California.

The Secretary of Finance of Baja California, Marco Antonio Moreno Mexía, presented the list and work plan of these 13 projects that will receive sustainable financing in this first stage in front of the Subsecretary of Finance and Public Credit of Mexico, Gabriel Yorio González, with the participation of the Deputy Managing Director of the North American Development Bank (NADBank), John Beckham.

"We congratulate the government of Baja California for developing this innovative credit instrument that will contribute to closing the gap of the state’s hydraulic infrastructure lag and will also support adaptation and mitigation measures to address climate change in the water industry,” John Beckham stated.

Secretary Marco Moreno stated that, following instructions by Governor Marina del Pilar, they completed the ruling process of the first hydraulic infrastructure projects that will be financed.

In addition, to guarantee the selection, execution, administration and development of these projects, so that they are made according to what was established in the sustainable/bond financing framework of Baja California, a Technical Committee of Investments was set up, which will operate as a chartered body in order to ensure that they implement these resources in a transparent manner, Moreno Mexía emphasized.

The Technical Committee of Investments will review the appropriate information of projects, including hydraulic infrastructure and, when it applies, their access to sewer systems and recollection and treatment processes. In addition, they will also review the reports delivered by the accredited party and the independent external consultant (financed partially by NADBank) to validate, during the execution period, that they are meeting the guidelines established on the decree, the sustainability framework, the technical assistance agreement, and the financial contracts, prioritizing their profitability and making sure that they create a positive impact in the state’s population.

In the case of the restoration of the wastewater treatment plant (PTAR) San Antonio de los Buenos in Tijuana (which will help to reduce untreated waste into the Pacific Ocean which impacts Mexican and American beaches), it is already receiving aid from the National Fund of Infrastructure (FONADIN/ Banobras), and authorized state resources through the green bond and authorization from the National Commission of Water (CONAGUA).

Currently, the information required by the federal government is being gathered in order to move forward with the bid as soon as possible.

Besides the San Antonio de los Buenos plant, in Tijuana there is also the restoration of the purification plant Abelardo L. Rodríguez, the Presa Abelardo L. Rodríguez aqueduct that connects with the Morelos tank, and the North Rosarito PTAR. In Mexicali, a new transmitter “Voluntad” will be built. In Ensenada, potable water networks will be repositioned in seven neighborhoods. In Tecate, the purification plant La Nopalera will be expanded.

These projects will have a total cost of 794 million pesos that will be covered by the first credit of 1 billion pesos provided by NADBank to Baja California for sustainable financing.

The State Commissions of Public Utilities of each municipality will carry out these projects, which is why they will receive resources from the government of Baja California through sustainable financing.

This financing is part of the “Sustainable Bond Framework of the State of Baja California” which is based on the general climate change and social policy strategy of the state and the country. It is also aligned with the United Nations’ sustainable development goals, whose objectives are to end poverty, protect the planet, and guarantee that by 2030 every person enjoys peace and prosperity.

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