NADBank directors approve merger with sister institution

The board of directors of the North American Development Bank are recommending that it be merged with its sister entity, the Border Environment Cooperation Commission (BECC).

The BECC, headquartered in Ciudad Juarez, Chihuahua, Mexico, works closely with NADBank and handles most of the technical, environmental and social issues on their joint projects.

San Antonio-based NADBank is a binational financial institution that was created as part of the North American Free Trade Agreement (NAFTA). Over the years, the institution has evolved from that of a grant-making body into a more traditional loan-making one. It has seen its loan portfolio explode over the past few years, surpassing $1 billion in lending for the first time in 2012.

The board, which oversees both institutions, said the proposed integration would preserve the current mission, purposes and functions of both organizations, while helping to streamline processes and improve coordination in their project development activities.

"NADB and BECC do important work to improve people's lives along the border, and this historic merger will strengthen the effectiveness of our development efforts," said Marisa Lago, assistant secretary for international markets and development at the U.S. Department of the Treasury.

Over the past 20 years, BECC has certified 227 projects and NADB has provided more than $2.25 billion in loans and grants to finance 192 of those projects, which are benefitting almost 15 million residents in communities on both sides of the border.

Mike W. Thomas covers technology/telecom, military, finance, regulatory issues as well as nonprofits/education.