TECHNICAL ASSISTANCE REPORT SEPTEMBER 2012
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1 NORTH AMERICAN DEVELOPMENT BANK TECHNICAL ASSISTANCE REPORT SEPTEMBER 2012 The North American Development Bank (NADB) uses a portion of its retained earnings to offer technical assistance and training to project sponsors for the purpose of strengthening their financial performance and ensuring the long-term sustainability of their infrastructure. This assistance is provided through two programs: the Technical Assistance Program (TAP) and the Utility Management Institute (UMI). Technical Assistance Program (TAP). This program provides assistance for studies related to the design and implementation of environmental infrastructure projects, as well as for capacity-building measures aimed at achieving the effective and efficient operation of public services. As of September 30, 2012, NADB had five studies in process (either under way, being bid or under final formulation). The total grant commitment for those studies was US$774,500. The status of studies currently in progress, as well as those completed during the current year, is provided in the chart at the end of this report. A summary of all technical assistance financed by NADB to date is provided in the table. Utility Management Institute (UMI). Established in March 1998, this training program offers an annual series of seminars aimed at providing practical instruction in the financial administration and planning of water utilities. The basic program is presented to U.S. and Mexican utility professionals at the University of the Incarnate Word in San Antonio, TX, as well as on site to regional groups. In addition, UMI offers ongoing educational opportunities through intensive seminars to UMI graduates who have attended all four modules of the basic program. More recently, under the auspices of UMI, NADB has also been promoting other types of environmental infrastructure projects with state and local officials through one-day seminars focused on developing and financing projects in areas such as energy efficiency in public lighting and air quality improvement through street paving. UMI began its 13 th year of seminars in In July, UMI initiated its regular program in San Antonio with 26 utility professionals from 13 communities on both sides of the border. The first two CUMULATIVE TECHNICAL ASSISTANCE BY STATE As of September 30, 2012 State (U.S. Dollars) Communities Benefiting Total Studies Total Funding Committed UNITED STATES Arizona $1,503,468 California $730,987 New Mexico 1 4 $187,327 Texas $2,925,797 U.S. Subtotal $5,347,579 MEXICO Baja California 4 18 $2,244,724 Chihuahua 7 23 $2,427,473 Coahuila 4 7 $689,868 Nuevo Leon 6 6 $1,129,214 Sonora $2,750,451 Tamaulipas $2,326,472 Non-state specific* 23 $4,259,933 Mexico Subtotal $15,828,135 Other** 4 $145,004 TOTAL $21,320,718 * This category consists of border-w ide, agency and other non-state specific studies, including regional w ater conservation studies. ** Project-related or institutional studies of NADB
2 modules of the program were completed during the past quarter, and the third module is scheduled for October. In addition, UMI continued the regional program co-sponsored with EPCOR Water USA in Phoenix, AZ, by presenting the third module of the basic program in August, to 32 utility professionals from 11 communities in that state. The final module is schedule to be presented in October. Since its inception, training has been provided to a total of 2,080 utility professionals, representing 200 border communities in Mexico and the U.S., in either San Antonio or in local on-site modules. Of those participants, 870 have attended all four modules of the basic program, hence earning a certificate from the University of the Incarnate Word in San Antonio. In May 2012, under the umbrella of UMI, NADB launched a new program to train wastewater treatment plant operators in Mexican border communities. Funded by the U.S. Environmental Protection Agency (EPA) and developed by the Latin American and Caribbean water center, Centro del Agua para América Latina y el Caribe (CDA) of the Monterrey Technological Institute (ITESM), the program is designed to provide both classroom and hands-on training in the adequate and efficient operation and maintenance of wastewater treatment plants to facilitate compliance with current effluent quality standards. The training consists of two two-day sessions. The first session covers wastewater treatment processes and equipment operation, while the second session focuses on plant control and laboratory procedures, as well as learning how to evaluate plant management and diagnose problems in order to correct possible operating errors. The program is targeted to utility personnel of communities that previously received grants through the EPA-funded Border Environment Infrastructure Fund (BEIF) to construct and upgrade priority wastewater infrastructure. The program was completed at the beginning of September with a total of 250 wastewater operators trained in 14 Mexican water utilities along the border. The sessions were held in eight Mexican border cities over the course of five months. The details of the program are summarized in the table. It is worth highlighting the impact the program has had with respect to the implementation of technical and administrative improvements in the utilities, as stated by CDA training coordinator, Esperanza Ortinez, in the final report. The participants told us that this was the first time that this type of program had been taught where efficiency in operating the treatment plant was prioritized as an environmental and community benefit. They gained a better understanding of the importance of their work and could see the before and after effect of the treatment process. They were very motivated during training, and a crucial new synergy was created between plant operators and laboratory staff that, without a doubt, will enhance the quality of treated water. Given the success of the program, NADB and CDA are discussing the possibility of repeating the program in the first quarter of 2013 at five other utilities that have wastewater treatment plants financed by NADB. Wastewater Operator Training Sessions in Mexico May September 2012 No. Cities Utilities Month Participants 1 Reynosa, TAMPS COMAPA May 26 2 Tijuana, B.C. CESPT June 10 3 Mexicali, B.C. CESTM June 13 4 Juárez, CHIH JCAS* June 17 5 Juárez, CHIH JMAS June 13 6 Juárez, CHIH JMAS June 16 7 Tijuana, B.C. CESPT July 15 8 Juárez, CHIH JMAS July 14 9 Tijuana, B.C. CESPT July Reynosa, TAMPS COMAPA August Reynosa, TAMPS COMAPA August Nogales, SON OOMAPAS August Nogales, SON OOMAPAS August San Luis Río Colorado, SON OOMAPAS August Matamoros, TAMPS JAD August Nuevo Laredo, TAMPS COMAPA September 16 Total 14 Utilities 5 months 250 * The state water agency, JCAS, organized the training session for wastewater operators at the local utilities in Puerto Palomas, Guadalupe, Porfirio Parra, Praxedis G. Guerrero, El Porvenir y Ojinaga. NADB TECHNICAL ASSISTANCE REPORT * SEPTEMBER 30,
3 Publications. As part of its technical assistance and training programs, NADB also develops and publishes informational manuals in its ongoing efforts to support project sponsors and utilities in the development of their projects, as well as enhance their financial and administrative capacities. The following manuals are available on the Bank s website ( Manual for Drafters of Interlocal Agreements for Utilities and Other Services. Available only in English, this manual provides guidelines for determining the feasibility of regional facilities that serve two or more communities, as well as for negotiating and implementing the corresponding agreement based on U.S. laws. Local and Financial Aspects of Urban Water Management for Six Cities at the U.S.-Mexico Border. This study examines and compares local, financial and quality management of the water utilities in three pairs of sister cities along the Texas border with Mexico: Del Río and Ciudad Acuña, Coahuila; Laredo and Nuevo Laredo, Tamaulipas; and McAllen and Reynosa, Tamaulipas. This report is available in both Spanish and English. Mejores prácticas de Servicios de Agua y Drenaje de Monterrey (SADM). Available only in Spanish, this manual documents various successful practices in proper water management used by the Monterrey water utility, SADM, that can serve as a guide for solving problems commonly found in other communities and help improve operational and administrative practices. Análisis comparativo de costos y tarifas de agua potable entre organismos operadores de servicios de agua y drenaje en la frontera México-EUA. Available only in Spanish, this manual presents a comparative analysis of costs and rates using quantitative criteria to identify opportunities for improving the costs of water utilities located in the Mexican border states by correcting operational inefficiencies. Propuesta de estructura tarifaria de agua potable para los organismos operadores de los servicios de agua y drenaje en la frontera México-EUA. This document is a sequel to the comparative cost and rate analysis above and proposes a methodology for structuring more effective water rates for Mexican utilities in the border region. This manual is also only available in Spanish. Mejores prácticas de operaciones municipales de agua potable: Experiencias del Premio Gobierno y Gestión Local. This report presents various cases of good water management in urban areas of Mexico deriving from actions aimed at strengthening the financial, operational and technical capacities of the utilities. Each experience illustrates the improvements that can be achieved with programs based on the principles of good management. This manual is also only available in Spanish. Indicadores de desempeño y el enfoque empresarial para una mejor gestión de los organismos de agua: El caso de Saltillo. This study, which is available only in Spanish, examines the local, national and international indicators used in evaluating the performance and objectives of water utilities, and offers a recommendation for a system of indicators for water utilities in Mexico. Principios Gerenciales y Eficiencia Operativa de los Servicios del Agua: Los Casos de Saltillo, Tijuana y Monterrey. This study identifies the management models used by three successful water utilities in Mexico, analyzes their organizational principles and values, and proposes a series of recommendations for the creation of a successful organizational model to enhance the daily performance of utilities. The report is only available in Spanish. NADB TECHNICAL ASSISTANCE REPORT * SEPTEMBER 30,
4 NORTH AMERICAN DEVELOPMENT BANK TECHNICAL ASSISTANCE PROGRAM ACTIVE PROJECTS September 30, 2012 COMMUNITY PROJECT NO. AUTH DATE TYPE* ACTIVITY STATUS IN BIDDING IN PROGRESS COMPLETED MEXICO BORDER Comisión Nacional del Agua IDP Sep-08 WC Study to transfer water usage rights from clean water to treated X (CONAGUA) wastewater in the Juarez Valley SEMARNAT TAP Apr-12 OTHER Equipment for the Rio Bravo-Big Bend border crossing X Subtotal Border BAJA CALIFORNIA Tecate TAP Apr-12 AQ Credit rating for the municipality X Subtotal Chihuahua CHIHUAHUA Juárez TAP Apr-11 AQ Credit rating for the city X State of Chihuahua TAP Oct-11 ENE Pilot solar energy capacity-building project X Subtotal Chihuahua COAHUILA Piedras Negras TAP Dec-11 W Credit rating for the utility X Subtotal Chihuahua SONORA State of Sonora TAP Jul-12 ENE Development of legal structure for 30 MW solar project X Subtotal Nuevo Leon TOTAL MEXICO NADB Technical Assistance Report * September 30,
5 COMMUNITY PROJECT NO. AUTH DATE TYPE* ACTIVITY STATUS IN BIDDING IN PROGRESS COMPLETED UNITED STATES TEXAS Eagle Pass PDP Jun-07 WW Damage evaluation of sewer system, inventory and cost analysis X Subtotal Texas TOTAL UNITED STATES TOTAL TA PROJECTS *AQ = Air quality ENE = Clean energy SD = Storm drainage SW = Solid waste W = Water WC = Water conservation WW = Wastewater NADB Technical Assistance Report * September 30,
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