MCALLEN, Texas - The North American Development Bank is to allocate up to $100 million from its retained earnings over the next five years for urgent water conservation projects along the U.S.-Mexico border.
NADBank Managing Director John Beckham made the announcement at the two-day Rio Grande/Rio Bravo Binational River Symposium hosted by the Texas Water Foundation at the Embassy Suites by Hilton in McAllen.
Beckham said the $100 million in grant money will be come out of the $400 million Water Resiliency Fund that the NADBank board of directors approved in August. The WRF has been set aside for priority infrastructure projects that conserve and diversify water supply sources throughout the US-Mexico border region.
Beckham said an additional $300 million in low-interest loans is also being made available through the bank’s regular loan program.
The call for projects will focus on the Rio Grande Valley initially, Beckham said, because of the dire need to conserve water in this region.
“The decision to do this project is border-wide. There is no area of the US-Mexico border region, which the bank operates in, that is not part of this project. Having said that, the Lower Rio Grande Valley on both sides of the border is extraordinarily urgent because of the conditions here, and so that is why we are starting with a call for proposals here in the Rio Grande Valley,” Beckham said, at a press conference.
Proposed projects must show clear results, such as water conservation, increase efficiency or development of new sources, NADBank said, in a press release. Examples of eligible efforts may include replacing old infrastructure, converting canals to pipelines, reusing and storing water and using technology that helps monitor and reduce water loss, the release stated.
Project applications will be received until Jan. 8, 2026.
Editor's Note: Here is an audio recording of the NADBank press conference:
“The Water Resiliency Fund represents more than a response to a drought - it’s a strategic investment in our shard binational future,” Beckham said. “Through targeted financing for critical water conservation projects in the Rio Grande Valley, we are strengthening irrigation district infrastructure, supporting long-term economic prosperity, and advancing our collective commitment to water management across the border region.”
Troy Allen, general manager of Delta Lake Irrigation District, was at the press conference.
“We think it is a great idea. We are in dire need to do improvements right now, and with no water to sell we don't have the funds to fund these projects right now. Most of our systems are dry, so it is an ideal time,” Allen said.
“Every dollar put back in to irrigation infrastructure improvement saves more water than any other project you can do. We can prove the bang for the buck dollar-wise versus some of these other projects you're hearing about. The other projects are viable because we need to look at all sources of water. But if we can invest in irrigation district infrastructure, you're going to see the biggest bang for your buck.”
Cameron County Commissioner David Garza told the the Rio Grande Guardian: “We can talk about 50-year plans for transportation and the like but if we do not have a reliable and adequate source of water, all these infrastructure projects are moot.”
Hidalgo County Judge Richard Cortez said: “Hidalgo County continues to face serious challenges when it comes to water supply and conservation. Our irrigation districts are at the heart of regional water management, and their work directly impacts the families, farmers and businesses that depend on this vital resource. I encourage all of our local entities to apply for the Water Resiliency Fund in order to ensure that our communities are better prepared for the future.”
Cameron County Judge Eddie Treviño, Jr., said: “The Texas Water Foundation Symposium in McAllen provides an important platform for regional leaders to come together and discuss one of our most urgent challenges - securing a sustainable water future for South Texas. Water is the foundation of Cameron County’s prosperity - from our families and businesses to the farms that sustain our economy. As we continue to face persistent drought and increasing demand, our irrigation districts play a critical role in managing and conserving this essential resource.”
Treviño added: “I commend the North American Development Bank for its proactive leadership through the Water Resiliency Fund and its commitment to mapping and planning for the Valley’s long-term water needs. These collaborative efforts reflect the kind of strategic, forward-thinking investment needed to strengthen the Lower Rio Grande Valley’s water security for generations to come.”
In his remarks at the press conference, NADBank’s Beckham said Salvador López-Córdova, the group’s chief environmental officer, had been an “instrumental force” in figuring out where to start with the new program. “He has been working with the irrigation districts, the counties and the different municipalities through the TA program, through this first call for proposals under the Water Resiliency Fund. And really he is the vertebral column, of making this effort work. But it is a team approach.”
Beckham said Eric Naranjo, associate director of NADBank, would be taking on more responsibility to “figure out which are the bright projects for us to start with” to ensure the group “begins to deliver the biggest benefits in terms of water accessibility for Rio Grande Valley communities.”
Beckham then provided some historical perspective.
“The bank has always been involved in water. It is our single highest priority. We started out principally focused on the topics of water, sanitation and distribution for first-time water users. But, as the region has grown successfully, as the populations have grown, as well as conditions of chronic drought and less reliable rainfall, we have realized that we need to expand and broaden our understanding of what it means to invest in water infrastructure. So, that includes water conservation, water reuse, new sources of water, such as desalinization, stormwater capture and whatever new technology can help us bring that along.”
Backham said the program includes something NADBank has not traditionally done, which is apply technology and new irrigation systems to the agricultural users on both sides of the border. “No surprise here. If you work on the border, you know that 80 percent of the water on both sides is used by the agriculture sector. So, if we really want to address and optimize our water resources, we need to invest comprehensively in that sector as well. And so the Water Resiliency Fund is also designed to tackle that problem.”
