BECC News June 1997

BECCNEWS
**** SPECIAL EDITION ****

On behalf of the Border Environment Cooperation Commission (BECC), I am pleased to provide you with this special edition of the BECCNEWS. Within this edition, you will find current information on the BECC and the projects certified by the Board of Directors.

During its 12^th public meeting in Mexicali, on June 18^th, the BECC Board of Directors approved four environmental infrastructure projects, bringing the total number of BECC-certified projects to sixteen, totaling $230 million. Six of the certified projects are currently under construction; and, according to the project sponsors, four more projects are scheduled to begin construction in July.

Acknowlegement should be given to all of the communities, project sponsors, border states, non-governmental organizations, local, state and federal officials for their assistance in making these projects a reality; and in making this organization, and the BECC-NADBank process, the success it is today. We must continue to work together in this new era, to ensure that our efforts will continue to help border communities in the future.

With BECC’s recently enhanced technical assistance program, and the NADBank’s new Border Environment Infrastructure Fund (BEIF), this new era is certain to mean more projects and a cleaner border.

BECC Actions to Address Environmental Infrastructure NeedsStatus of Projects

· To date, the BECC has received proposals for more than 90 environmental infrastructure projects from communities that are actively in the project development pipeline. The projects are in varying stages of development; some of the projects are awaiting soon-to-be received technical assistance funding.

· Sixteen of the projects submitted have been approved by the BECC for certification, totaling $230 million. Projects certified by the BECC qualify for financing from the NADBank, U.S. Environmental Protection Agency (EPA) and other sources.

· Eleven of the sixteen certified projects have sought or are seeking NADBank loans and/or EPA grants (through a cooperative agreement between the NADBank and EPA). To date, the Bank has approved four projects for financing. The other five projects are utilizing BECC certification to seek funding from other sources.

· Currently, of the projects certified, six have begun construction (Brawley, CA; Mercedes, TX; Nogales, Son.; FINSA, Tamps.; EPISO, TX; and Douglas, AZ). According to the project sponsors, four more projects are scheduled to begin construction in July (El Paso, TX; Agua Prieta and Puerto Peñasco, Son.; and Alton, TX).

Project Development and Technical Assistance

· The BECC received a $10 million grant from the EPA to enhance its Technical Assistance Program and provide direct grants to communities for project development.

· The purpose of the program is to help communities strengthen their project proposals through comprehensive planning, financial evaluation and institutional strengthening of the technical, financial and human resources capabilities of communities, in an open public process, for a sustainable environment.

· The program is enhanced by coordinated efforts among local, state and federal governments and the local communities to promote integrated regional master planning.

· Strengthening the institutional capacity of local communities is critical to ensure that local communities can operate and maintain the facilities themselves over the long-term.

· The NADBank has established an Institutional Development Cooperation Program (IDP) that will devote at least $2 million per year in grant resources to assist public utilities with capacity building and institutional strengthening.

· To date, the BECC has provided more than $800,000 to communities for technical assistance.

· The NADBank has devoted IDP resources to Brawley, CA; Douglas, AZ; Mercedes, TX; Naco, Agua Prieta, Puerto Peñasco and Nogales, Sonora; and Cd. Acuña, Coahuila, and expects to be working with 32 additional communities by the end of the year.

Examples of BECC Technical Assistance Provided to Communities

Project Proposals

Master Planning

Institutional Strengthening

Capacity Building

Financial Feasibility

Preliminary and Final Design

Comprehensive Studies

Environmental Assessment

Community Participation

The specialized BECC staff also provide assistance to communities for project development, to identify community needs and strengthen their capacity to manage and prepare project proposals.

· BECC has also instituted important training opportunities like its Program for Solid Waste Management, in conjunction with the U.S. Environmental Training Institute (USETI) and Mexico’s Secretary for Social Development (SEDESOL), with the participation of state and local governments.

BECC Standards for Project Certification

To be certified by the BECC, a project must comply with all technical, financial, environmental, community participation and sustainable development criterion developed with input from border communities. These criteria are the foundation upon which all BECC projects are developed.

Project Certification Criteria

Criteria	Brief Description of Requirements
Human Health and Environment	human health and environmental needenvironmental assessmentcompliance with applicable environmental and cultural resource laws
Technical	appropriate technologyoperation and maintenance plancompliance with applicable design regulations and standards
Financial	financial feasibilityfee/rate modalsound project management
Community Participation	Comprehensive community participation lan including steering committee and public meetings to guarantee local community support
Sustainable Development	compliance with principles of sustainable developmentinstitutional and human capacity building natural resource conservation community development

Status of Certified Projects

To date, the BECC has certified 16 projects with a total estimated cost of almost $230 million, to benefit more than 1.8 million people. (Eight projects are located in the United States; eight in Mexico.) The status/advancement of each project is described below.

Ì Water Treatment Plant in Brawley, CA, $25 million. The project will replace the city’s existing water treatment plant, with a modern facility that will supply cleaner water to enable the city to meet both federal and state standards for water quality. The project has a capacity of 660 liters per second with the capability to expand. The project will benefit 24,000 residents. (NADBank financing approved.)

ADVANCEMENT: Certified in September 1995, financing for the project was approved by the Bank in December 1996 after much local public debate over the rate issue. The City of Brawley is bidding out the project in five phases to keep project costs down. Currently, the city is completing the first three phases which includes mass excavation (98% complete), reservoir (70% complete), and distribution lines (86% complete). By September 100% of the work should be awarded to finish the final two phases of the project including a pump station and new processing facility. Design for the processing facility is complete. As a complement to the Bank’s financing, a water and sewer line survey in Brawley will be performed with NADBank IDP assistance.

Ì Water Supply and Sewage Collection Project, Mercedes, Texas, $4.1 million. The City of Mercedes, with a population of about 14,000, currently has water treatment, water distribution, and wastewater collection facilities that are operating close to design capacity, which restricts the city in its ability to provide service to new residential and commercial users. The project consists of: 1) expansion of the water treatment facility from 3 to 4.5 mgd; 2) extension of the water supply lines; 3) improvements to the sewer system; 4) drainage improvements; 5) construction of an elevated 500,000 gallon storage tank (1,893 m3); and 6) relocation of an existing irrigation canal. The project is enhanced by work financed by the Texas Water Development Board (TWDB) to extend water and sewer services to the colonias. (NADBank financing approved.)

ADVANCEMENT: Certified in November 1996, Mercedes celebrated its groundbreaking ceremony to begin construction on May 23, 1997. NADBank has served as an investment bank and direct lender for the project to complement the financial package for the project from the TWDB, Economic Development Administration, and the Rio Grande Valley Empowerment Zone Corporation. The project will serve as a model for projects requiring interim financing from the NADBank with permanent financing from the TWDB. The NADBank will loan $1.87 million to the project for interim finance. Certification of the project was made possible through a grant from the BECC to the city to complete its project proposal. The NADBank will provide additional assistance to the city through the IDP for an inventory and technical evaluation of water lines and system assets.

Ì Water Supply and Distribution Project (Phase I), Nogales, Sonora, $39 million. This integral project finds a solution to the continuous problems with water supply and distribution in Nogales, Sonora. The phase I project includes the rehabilitation of the existing water lines, which currently lose 40% of the water supply through the antiquated distribution system, construction of 33 kms of distribution lines, improvements in the efficiency of pumping, and construction of elevated water tanks. The project will benefit 200,000 residents.

ADVANCEMENT: Certified in January 1996, the construction on the Los Alisos aqueduct for the project has begun and is 18% complete, with a $8.7 million grant from the National Water Commission, appropriated by President Zedillo. In 1996 the NADBank approved issuing a letter to the project sponsor indicating the Bank’s intent to consider partial financing once the privatization process had taken place. The system operator is currently in the process of privatizing the facility and signing a contract with a private firm to complete the rest of the project and the financing process. The NADBank, through its IDP, has agreed to perform a line survey and to provide management information system hardware, software and training. The goal is to work in a coordinated effort under IBWC’s Minute 294 to consolidate the water and wastewater projects of Nogales, Sonora and Nogales, Arizona. Certification of the project was made possible by a technical assistance grant from the BECC to complete the project's financial analysis.

Ì Upgrade of Water and Wastewater Treatment Facilities, Douglas, Arizona, $2 million. The project will improve the water distribution and wastewater collection system, including water main improvements, new wastewater interceptor lines, extensions of water lines to the Fairview Colonia and extensions of wastewater lines to Sunnyside Colonia, both adjacent to the city. The project will benefit 1,250 residents.

ADVANCEMENT: Certified in January 1996, the project called for grant funds only. The City of Douglas has completed the construction of the sewer collection system in the Sunnyside colonia and has begun the water main improvements for the Fairview area. The NADBank has structured an agreement with the city to perform a water and wastewater rate study that will be used to determine an affordable rate structure for a proposed expansion project that will be seeking BECC certification in the future.

Ì Wastewater Treatment Plant for the FINSA Industrial Park, Matamoros, Tamaulipas, $1 million. The project will provide wastewater treatment for municipal wastewater generated by the more than 22,000 employees within the industrial park. The project includes the development of a Master Plan, to provide wastewater treatment services for several colonias adjacent to the industrial park. (NADBank financing approved.)

ADVANCEMENT: Certified in January 1996, the project was completed in January 1997. Through the public participation process, this private project sponsor made a $50,000 commitment of in-kind services to the colonias surrounding the Industrial Park. They agreed to invest their resources in a water supply/wastewater treatment study for the area. This commitment is being realized in coordination with Matamoros’ water operator.

Ì On-Site Self-Help Wastewater Treatment System for the Colonias of El Paso County, Texas, $213,000. Sponsored by the El Paso Interreligious Sponsoring Organization (EPISO), the on-site self-help project will provide no-interest loans to help 180 colonia families properly install septic tanks and treat household sewage. The innovative project is a cooperative effort among EPISO, the University of Texas at El Paso (UTEP), and the colonia families themselves to build septic systems.

ADVANCEMENT: Certified in July 1996, with existing resources from the Levi Strauss Foundation and a small grant from General Electric, EPISO, UTEP and the colonias families have installed 23 septic systems, or an average of 2-3 per month since certification. The BECC is actively helping EPISO pursue other funding sources to complete the project.

Ì Wastewater Reuse Project, El Paso, TX, $11.7 million. Treated wastewater will be reused for irrigation and industrial uses in Northwest El Paso. The project will also lead to reduced dependence on underground water reserves shared by both countries. The water reuse system capacity is 66 liters per second and will benefit 90,000 residents.

ADVANCEMENT: Certified in November 1995, the El Paso Water Utilities has received funding for its project from three sources: local improvement funds, State Revolving Funds, and Bureau of Reclamation funds. BECC certification helped the water utility secure the $3.5 million grant from the Bureau of Reclamation. Design for the project has been completed. Presently, the water utility is advertising the construction for the first phase of the project, which will include a reservoir, pump station and conveyance lines. Construction for the project is scheduled to begin in July.

Ì Water Supply and Wastewater Treatment Project, Naco, Sonora, $1.03 million. The project will provide a comprehensive solution to existing water supply, wastewater collection and treatment problems and eliminate fugitive wastewater flowing into the State of Arizona. The project will enable the city of Naco to address the low efficiency of the equipment for the pumping and distribution of water, provide micro and macro metering, optimize the utilization of the sewer system, and provide institutional capacity to conserve water and operate and maintain the system. (NADBank financing approved.)

ADVANCEMENT: Certified in April 1996 with a preliminary cost estimate of $654,000. After the project design was completed, the cost estimate for the project has risen to $1.03 million. Based on original estimates, Mexico’s National Water Commission has committed $315, 635 for the project, for which the state government of Sonora has prepared bidding packages. Also, the NADBank approved financing of $180,000 and the EPA agreed to provide $300,000 in grants. Currently, the NADBank is in the process of obtaining additional financial assistance for this project. Construction is expected to begin within sixty days. As a complement to financing, assistance from the NADBank’s IDP was authorized to update the Naco water utility’s user register and provide management information system hardware, software and training. The project received a technical assistance grant from the BECC for financial analysis and in completing its project proposal.

Ì Sanitary Landfill Project, Puerto Peñasco, Sonora, $1.7 million. The proposed sanitary landfill project for Puerto Peñasco will replace an existing open-air dump that experiences frequent fires due to an uncontrolled release of methane gas. Presently, the city collects 50 tons/day of domestic and commercial solid waste, from five collection routes with weekly service. The project will benefit the 27,200 population of Puerto Peñasco.

ADVANCEMENT: Certified in November 1996, the state government is in the process of defining a first phase of the project with a cost of $850,000. The state government has committed $425,000 for construction of the first phase of the project. The City of Puerto Peñasco is expected to apply to the NADBank for a loan to cover the remaining $425,000. Once components of the first phase are defined, bids for construction will be sent out and construction on the project may begin in forty days. Additionally, the NADBank’s IDP will assist in performing a study of solid waste regulations, institutional organization and solid waste collection and transportation. Certification for the project was made possible by a technical assistance grant from the BECC for a rate model, institutional strengthening and project proposal.

Ì Sanitary Landfill Project, Agua Prieta, Sonora, $1.9 million. The proposed sanitary landfill project for Agua Prieta, Sonora, will provide municipal solid waste collection and disposal services for the Agua Prieta community of 56,000 people. It is estimated that presently about 80 tons/day of solid waste is generated from domestic, commercial, and other sources. The maquiladora industry generates about 6 tons/day. The current open-air dump has a remaining useful lifetime of only 18-24 months.

ADVANCEMENT: Certified in November 1996, construction for the project will be carried out in phases that are still being defined. SEDESOL has already approved $262,500 for a first phase costing $525,000. The City of Agua Prieta has applied to the NADBank for a loan of the same amount. Bids for application of the SEDESOL financing are presently being prepared. The NADBank also authorized IDP assistance to the city to perform a study of solid waste regulations and institutional organization. Certification of the project was made possible by a technical assistance grant from the BECC for a rate model, institutional strengthening and project proposal.

Ì Wastewater Treatment Project, Somerton, Arizona, $1.5 million. The City of Somerton has a population of approximately 6,000 and utilizes a waste stabilization pond system with the capacity to treat up to 400,000 gpd. The system is currently operating at capacity and experiences problems meeting the NPDES water quality requirements established by EPA. The City will install a new treatment system, with several advantages, including a minimal production of biological solids, which substantially reduces the cost of handling and disposing of sludge.

ADVANCEMENT: Certified in November 1996, the city has completed the bidding for construction and is in the process of selecting the most qualified company. Certification of this project was made possible by a technical assistance grant to the city for a study of project alternatives.

Ì Wastewater Treatment Plant, Ensenada, B.C., $8 million. The project will treat wastewater that is currently being discharged to the Ensenada Bay without adequate treatment. The project will enable this port city to promote clean beaches, thus strengthening its tourism industry. It has a capacity of 500 liters per second and will benefit 250,000 residents.

ADVANCEMENT: Certified in September 1995, CESPE, the system operator for the Ensenada project, has decided to modify the project, which will require the project to be re-evaluated by the BECC for certification in the future, in order to qualify for NADBank financing. Mexico’s National Water Commission is waiting for CESPE to determine the direction of the project in order to complete corresponding studies.

Ì Parallel Conveyance System and Rehabilitation of the San Antonio de los Buenos Plant, Tijuana, Baja California, $18 million. The project includes the construction of a pump station and 16 km collector that will allow the city to better manage its sewage flows. The project will allow needed repairs to the existing conveyance system and will help avoid sewage runoff into the Tijuana River. The project will complement the International Wastewater Treatment Plant in San Diego that began operating in April. The project also includes the rehabilitation and expansion of the wastewater treatment plant at San Antonio de los Buenos. The project will benefit more than 1 million Tijuana residents.

ADVANCEMENT: Certified on June 18, 1997, the project will pursue a $16 million grant from the EPA and a $2 million loan from the NADBank. Certification of the project was made possible by a technical assistance grant from the BECC to enhance community participation and complete the project proposal.

Ì Wastewater Treatment System, Alton, Texas, $14.8 million. The project includes the construction of a wastewater collection system for the city and its surrounding colonias. Collected wastewater will be treated at McAllen’s wastewater treatment plant, under agreement between the two cities. The project will benefit the 3,000 residents.

ADVANCEMENT: Certified on June 18, 1997, the project will be financed by resources from the Texas Water Development Board, Farmer’s Home Administration, and complementary funding from the NADBank. The city of Alton awarded the contract for construction in June 1997, to begin in July 1997.

Ì South Bay Reclamation Plant, San Diego, California, $99.6 million. The project will allow treated wastewater in the southern part of the Metropolitan Wastewater System to be reused in San Diego, Imperial Beach, Chula Vista, National city, and areas outside of San Diego county. The plant has an initial treatment capacity of 7 million gallons per day (mgd), with the capability to expand. The project will decrease the burden on the already overloaded treatment facility at Point Loma, and lessen the city’s use of primary water from its source for certain activities.

ADVANCEMENT: Certified on June 18, 1997, the project will pursue a grant from the EPA to cover a portion of the project costs.

Ì Ecoparque, Tijuana, Baja California, $170,000. This project consists of the expansion of a pilot project set up to treat wastewater to secondary standards for reuse as irrigation to green areas. The project will benefit 21,000 residents of the Otay area.

ADVANCEMENT: Certified on June 18, 1997, the project will seek grant funding from a variety of sources.

Future Demand for the BECC

To keep pace with growing needs of border communities.
To seek out and provide needed resources and expertise to border communities for project development and construction.
To develop a coordinated, multi-year work plan for project development and construction.
To help build institutional capacity at the local level.
To develop regional and cross-border master plans.
To improve collaboration between existing agencies.
To increase technical capabilities of local communities for initial project design.
To increase availability of information related to health and the environment.

To open the community participation process.

To serve as an important link in the relationship between the United States and Mexico.

To encourage greater joint resource management.
To prepare communities to focus on water scarcity issues.

To provide training opportunities for border communities.

To make the border a cleaner, healthier place to live.

For a copy of the complete status report, please contact Ms. Tracy Williams, BECC Public Outreach Coordinator at tel: (011-52-16) 29-23-95; e-mail: twilliams@cocef.interjuarez.com.