NADB uses a small portion of its retained earnings to provide technical assistance to project sponsors for the purpose of strengthening their financial performance and ensuring the long-term sustainability of their infrastructure.
Technical assistance grants are available to support utilities, state and local governments and their agencies, and other sponsors of projects that have been certified by the BECC or sponsors who are actively developing specific projects for certification by BECC and financing by NADB.
Projects must be located within 100 kilometers north of the international border in boundary in the four U.S. states of Texas, New Mexico, Arizona and California and within 300 kilometers (about 186 miles) south of the border in the six Mexican states of Tamaulipas, Nuevo Leon, Coahuila, Chihuahua, Sonora, and Baja California.
In consultation with BECC, NADB will ensure that strong candidates for certification have priority for TAP funding.
Use of Funds
Technical assistance may be used for studies related to the design and implementation of environmental infrastructure projects, as well as for capacity-building measures aimed at achieving effective and efficient operation of public services. These activities include:
- Project design and related development studies: This area includes, among others, needs assessments, feasibility studies, facility plans, financial analyses, environmental assessments, preliminary design, final design, preparation of bid documents and preparation of BECC certification documents. Public participation activities necessary for BECC certification may also be eligible for funding.
- Financial Studies. This area includes user fees and rate structures, as well as development of user registries, credit ratings, socioeconomic studies and financial analyses.
- Analyses of administrative operations. This area includes business systems and delinquent account recovery studies, management studies, billing and collection studies, development and review of operation manuals and procedures, reviews of conservation policies and procedures, audits, evaluations of commercial, administrative and operational performance, and public outreach efforts regarding the benefits of fee for service and other issues of importance to the financial health of a project sponsor.
- Analyses of technical operations. This area includes regional planning studies, water loss audits, system sectionalization and modeling, line surveys, mapping, urban cadastral system studies related to municipal planning reforms, technical diagnostic studies, energy audits, clean energy resource assessments and evaluations, urban public transportation planning, urban public transportation demand studies, and evaluations of electromechanical equipment.
- Legal and regulatory analyses. This area includes the review of legal and regulatory frameworks, land use policy studies, and analyses of the privatization process.
- Information and management system studies. Ordinarily, TAP funds will not be used to purchase software and equipment related to a TAP study. However, the purchase of such software or equipment may be approved when a project sponsor commits and provides 30% of the cost of such software or equipment and the training necessary to utilize it.
Grants may be awarded in amounts up to US$250,000. In the case of regional projects involving more than one community, the grant award may be increased up to US$350,000. Assistance will be subject to the availability of funds.
General Funding Terms
A cash contribution of at least 25% of the cost of the work being funded by the TAP award must be provided by the project sponsor or other project partner.
In accordance with standard banking practices, TAP assistance may be subject to reimbursement, partially or fully, as part of a NADB lending package. In the event that a project does not obtain loan financing from NADB, the entire TAP grant shall be reimbursed by the sponsor, except in the case of poor communities. If the project is financed with a loan, the entire TAP grant will not be reimbursed.
All private-sector project sponsors, without exception, must agree to reimburse the funds within a timeframe established by NADB at the time of funding.
NADB shall determine if a proposed study should be procured directly by NADB or the project sponsor based on the type of study and the capacity of the sponsor to undertake the procurement. In either case, the procurement of any goods and services under the program shall be carried out in accordance with NADB procurement policies and procedures.
NADB will sign a letter agreement with the sponsor in which the obligations of both parties will be specified. Committed cash contributions from the sponsor will be used first for payment of consultant costs, followed by NADB’s approved TAP grant.
Upon completion of each study, sponsor and NADB will devise an implementation plan that addresses the results and recommendations of the study, and will evaluate the performance of the consultant and the effectiveness of the study.
Receiving technical assistance through the TAP program does not imply or guarantee NADB project financing.
Applying for Assistance
Prior to submitting an application for technical assistance, we recommend contacting NADB to discuss your specific needs and assess the best options available to you under the program.
When applying, be prepared to provide the following information:
- Name or brief description of the infrastructure project under development for which technical assistance is needed, including the status of BECC certification.
- A brief description of the study or activity for which assistance is being requested
- Estimated cost of the study or activity
- Amount of NADB participation requested
- Identification of other funding sources for the study