A predominantly arid climate, coupled with increased water consumption due to accelerated economic and population growth, have increasingly strained existing water supplies in the U.S.-Mexico border region. In addition, several years of severe drought have afflicted large parts of the area, causing significant economic hardship, especially in the agricultural sector. In response, the U.S. and Mexico governments agreed to support use of NADB resources to finance infrastructure investments to conserve water and increase water use efficiency.

In August 2002, the NADB Board of Directors authorized the creation of the Water Conservation Investment Fund (WCIF) to provide financing for the implementation of water conservation projects aimed at saving, using and transferring water more efficiently. A total of US$80 million in NADB retained earnings was allocated to the program, with US$40 million specifically reserved for projects in each country. At present, WCIF grant funds have been fully allocated in both countries, and no additional funding is available.

United States
In the United States, the NADB Board of Directors selected 20 projects from among 47 applications submitted to BECC to receive its share of the allocated funding, contingent upon BECC certification and NADB approval of specific financing proposals. The projects were selected on the basis of five criteria, namely: cost per unit of water saved, critical need, long-term sustainability, project readiness and the availability of other funds to complete financing.

All together the selected projects will cost an estimated US$87.7 million to implement and are expected to conserve up to 158,996 acre-ft of water a year. For a list of all 20 projects selected to receive funding, see WCIF Projects in the U.S. (pdf).

Mexico
The Mexican government opted to invest its share of the allocated funds in a single comprehensive project to rehabilitate and modernize Irrigation District 005 Delicias in Chihuahua. As the largest irrigation district in the Rio Conchos watershed, this US$143.6 million project offered the greatest potential for maximizing water savings to the Rio Grande river basin, which is fed by the Rio Conchos. With improvements to infrastructure and better irrigation techniques the district could save up to 248 million cubic meters (201,626 acre-ft) of water a year. Some of the water saved will be transferred to the U.S. in compliance with IBWC Minute 309.

A detailed description of each project with WCIF funding is provided in Project Fact Sheets.

For specific information on the current construction and financing status of all WCIF-funded projects, see the quarterly report, Summary of Project Financing Activities (pdf).