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The North American Development Bank (NADB) was established by the governments of
the United States and Mexico in a joint effort to provide a cleaner and
healthier environment along the two countries’ shared border. One of its main
areas of activity is the development of affordable, self-sustaining
infrastructure that provides for the safe disposal of municipal solid waste in
compliance with established environmental regulations. Because of the lack of
resources available for financing such infrastructure, the NADB created the
Solid Waste Environmental Program (SWEP), with funding from its net
earnings.
Objective
The main purpose of the SWEP is to support the
financing and construction of sustainable solid waste infrastructure projects.
As a complementary objective, SWEP also serves to strengthen the ability of
border communities to provide municipal solid waste collection, transfer,
transportation and disposal services in a sustainable and fiscally responsible
manner.
Through this program, the NADB will encourage
MSW projects that include private sector participation; recycling and waste flow
reduction measures; and where appropriate, regional facilities that serve more
that one community.
Eligibility
Projects must be sponsored by a public entity, located within 100 kilometers (62
miles) of the U.S.-Mexico border, and certified by BECC to be eligible for SWEP
support.
Projects may be designed to
serve one or more communities within the border region.
Projects sponsored by
private entities may be eligible if co-sponsored by a public entity. Private
sponsors may receive NADB loans but will not be eligible for SWEP grant support.
SWEP funds may be used only to support the public portion of a joint
public-private project
Specific project priorities will be reviewed in conjunction and cooperation with
federal, state, and local authorities. Preference will be given to existing
projects that have completed final design and where co-financing partners have
already been identified but additional financial support is still required.
All projects must include measures to ensure their environmental, financial and
operational sustainability. Proper design and operation, as well as the
cooperation of regulatory agencies, will be essential to ensure environmental
sustainability.
Form of Assistance
NADB will provide grant assistance through the SWEP to complement other
sources of funding for the project. SWEP support may be provided in two
ways:
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a direct grant
to cover the costs of construction, land or equipment; or
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a transition
assistance grant that
subsidizes the interest rate on a loan.
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ELIGIBLE USES |
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Construction
of sanitary landfills, transfer stations, facilities for separating,
recycling, or recovering useful material from waste, and other solid
waste management infrastructure.
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Purchase of
landfill and collection equipment,
including garbage trucks, bulldozers, trash compactors, street sweeping
equipment, etc.
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Closure
of existing landfills or substandard municipal solid waste disposal
sites.
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Development of
final design.
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Construction
management and supervision.
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Uses of Funds
SWEP assistance is intended to facilitate the
financing of comprehensive solid waste infrastructure projects. In
coordination with other available funding, SWEP grants may be used to
finance the construction and equipment components of projects, as shown in
the table.
SWEP assistance may
NOT be used to cover operation and maintenance costs.
General Financing Terms
SWEP funds may be used to
finance up to 50 percent of the total cost of the project. The
remaining project costs must be covered through loans or other funding
sources. In-kind contributions such as land, equipment, design
and other project component costs might be considered as complementary
funds,
at the discretion of NADB. The sponsor
may apply for a loan from NADB. In accordance with NADB Loan Policy and
Procedures, NADB may provide a loan for up to 85% of the eligible costs of a
project. All other sources of funding for the project must be identified and
committed in order to receive SWEP assistance.
Under the program, SWEP funds will be limited to a maximum of $1 million per
community. In order to promote regional facilities with higher construction
and operational efficiencies, multiple eligible communities may pool their
grant award towards the construction of a single shared facility. In this
case, the grant limit per project will be $2 million.
The amount of any direct grant will be determined through an analysis of the
project’s feasibility, based in part on a community's financial condition
and the project's expected cash flow. The availability of other funding
sources, grants and loans, will also be considered in the determination of
the grant amount.
Operations
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Step 1 |
NADB, in coordination with the BECC precertification process, performs a
preliminary review to determine project eligibility and to ensure all pertinent
information is provided. |
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Step 2 |
Project sponsor formally submits a SWEP funding application to NADB. |
NADB Review and Approval Procedures
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Step 1 |
BECC and NADB perform a
comprehensive analysis of the project, including financial and environmental
feasibility, project risks, and other available sources of financing. |
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Step 2 |
NADB works with project
sponsor to structure an appropriate financing package for the project based on
the community’s financial situation and the availability of other sources of
financing. |
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Step 3 |
BECC and NADB submit a
joint certification and financing proposal to their Board of Directors for
approval. |
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Step 4 |
Project sponsor is
notified of project certification and funding award. |
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Step 5 |
Project sponsor and NADB finalize the terms and conditions of funding, including
procurement procedures. |
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Step 6 |
Project sponsor and NADB sign SWEP agreement. |
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Step 7 |
NADB disburses funds according to the approved schedule and established policies
and procedures. |
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Step 8 |
NADB monitors the project through financial and technical audits and reports. |
For more detailed information about this program, see the
Solid Waste Environmental Program Guidelines.
Procurement
Project sponsors will be responsible for the procurement of all goods and
services related to the project, which must be carried out in compliance with
NADB Procurement Policies and Procedures, in a manner providing full and open
competition.
Additional Assistance
In addition to financing, NADB can assist communities and project sponsors with
the planning and design of MSW projects to be certified by BECC. In particular,
the NADB can help finance design and related studies needed for the proper
development of these projects through its Project
Development Program (PDP). Assistance for studies aimed at
enhancing the financial performance and managerial efficiency of the utility is
also available through the NADB Institutional
Development Cooperation Program (IDP).
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