Download U.S. - Mexico Border Infrastructure and Competitiveness

NADB, INFRASTRUCTURE AND
COMPETITIVENESS
MEXICO’S COMPETITIVENESS DECLINE
( IMD’S RANKING AMONG 60 ECONOMIC REGIONS; 1 = BEST )
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60
Ranking
50
40
30
20
10
0
1992
1994
1996
1998
2000
2002
2004
2006
Source: IMD; The World Competitiveness Yearbook
MEXICO:
INTEGRATION WITH NO CONVERGENCE
3

US – MX TRADE TRIPLED; DFI TRIPLED

PER CAPITA GDP RANK:





U.S.:

MEXICO:
2nd

75th
AVERAGE PER CAPITA GDP U.S. / MEXICO:

1980: 3 TIMES

2000: 4 TIMES
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POPULATION HAS
DOUBLED IN:

U.S.:
60 YEARS

MEXICO:
30 YEARS
PER CAPITA GDP EVOLUTION 1980 - 2000:

PORTUGAL:
FROM 38% TO 49% / U.S.

MEXICO:
FROM 32% TO 25%
INCOME DISPARITIES: RICHEST 20% VS. POOREST 20%:

U.S.:

MEXICO:
4 TIMES
20 TIMES
MEXICO’S REGIONAL & SECTORAL DISPARITIES:

NORTH CONTRIBUTES THREE TIMES MORE THAN SOUTH TO GDP & GROWS TWICE AS FAST

LAST 6 YRS.: EXTERNAL SECTOR GREW 12.5 TIMES MORE RAPIDLY
AGENDA FOR COMPETITIVENESS
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1. PRESERVE OPEN & STABLE ENVIRONMENT
2. PURSUE STRUCTURAL REFORMS
 FISCAL, ENERGY, LABOR, AGRIC., MUNICIPAL
3. IMPROVE GOVERNANCE & MODERNIZE INSTITUTIONS
4. REFORM JUDICIAL SYSTEM
5. REVAMP EDUCATION SYSTEM
6. INCREASE INFRASTRUCTURE INVESTMENTS
MEXICO:
INFRASTRUCTURE & COMPETITIVENESS
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 MEXICO NEEDS TO INVEST > $ 25 BILLION ANNUALLY
 $3.5 BILLION NEEDED FOR W & WW.
FISCAL BUDGET MAY COVER < 30% NEEDS
 WORLD RANKING (AMONG 60 ECONOMIC REGIONS) OF
INFRASTRUCTURE AS KEY FACTOR FOR COMPETITIVENESS:
U.S.
CANADA
MEXICO
2000
1
11
40
2003
1
6
58
IMD World Competitiveness Yearbook
LENDING TO ENVIRONMENTAL SECTORS
(WATER, WASTEWATER, SOLID WASTE)
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% OF TOTAL LENDING IN 2002
 WORLD BANK:
2.8%
 EUROPEAN BANK (EBRD):
5.1%
 IDB:
6.1%
 MEXICO:
 CURRENT LINES OF CREDIT: DISBURSEMENTS < 15.3%
 BANOBRAS: 10.6% OF TOTAL PORTFOLIO
COST RECOVERY IN PUBLIC UTILITIES (%)
7
160
160
140
120
100
80
80
65
60
40
40
20
0
Telecomm.
Gas
Electricity
Water
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ENVIRONMENTAL PROJECTS
KEY ISSUES
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TECHNICAL
TIME
DISEÑO
PLANNING
& COORD.
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ADMINISTRATIVE
EFFICIENCIES
DESIGN
PERSONNEL
BIDS &
CONTRACTS
LOAN
RATES &
TERMS
FINANCIAL
POLITICS
PROJECT
SUCCESS
SIZE,
RISKS &
RETURNS
LEGAL
FRAMEWORK
GUARANTIES
BUDGET
&
FUNDING
CREDITWORTHINESS
REVENUE /
TARIFFS
POLITICAL
BECC - NADBank
NADBank: INITIAL SLATE
(1995 - 1997)
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 LIMITED MANDATE:
 SECTORS: WATER, WASTEWATER, SOLID WASTE
 GEOGRAPHY: 100 KM.
 LIMITED INSTRUMENTS:
 LENDING AT MARKET RATES; NO SUBSIDIES
 NO GRANTS, NO TECHNICAL ASSISTANCE
 NO SOVEREIGN GUARANTIES
MANDATE REVIEW – FIRST STEP
NOVEMBER 2000
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 IMPROVED FINANCIAL INSTRUMENTS
 EXPANDED SECTORS, WITHIN ORIGINAL
CHARTER:
 AGRICULTURAL WATER USE EFFICIENCY (CONSERVATION)
 INDUSTRIAL PRETREATMENT
 AIR QUALITY / TRANSPORTATION SYSTEMS
 CLEAN ENERGY
 INDUSTRIAL WASTE & SITE REMEDIATION
 INDUSTRIAL BY-PRODUCT USE & RECYCLING
NADBank PROGRAMS
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 LOANS & GUARANTIES
 INSTITUTIONAL ADVISOR
 MARKET RATE PROGRAM
 LOW INTEREST RATE PROGRAM
 GRANTS
 BEIF, SWEP & WCIF
 TECHNICAL ASSISTANCE / TRAINING
 IDP, PDP, UMI
NADBank PROJECTS
June 2004
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NADB LOANS & GRANTS (76)
TECHNICAL ASSISTANCE STUDIES (151)
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NADBank PERFORMANCE
(MILLIONS OF DOLLARS; CUMULATIVE)
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12 / 2000
06 / 2004
Increase
Total Funding Approved
$287
$680
136%
Infrastructure Projects
32
79
147%
Total Cost of the
Infrastructure Projects
$871
$2,259
159%
Grant-to-Loan Ratio*
24 / 1
5/1
- 79%
Technical Assistance
Projects
93
154
in 64 communities
in 77 communities
82
487
in 39 communities
in 86 communities
40
53
Utility Personnel Trained
NADBank Employees
66%
494%
33%
* Water Conservation Investment Fund financing not included.
TECHNICAL ASSISTANCE
MARCH 2004
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
UMI: TRAINING IN MANAGEMENT & FINANCE
 487 PARTICIPANTS FROM 91 COMMUNITIES

151 STUDIES IN 77 COMMUNITIES
 113 STUDIES COMPLETED, 38 IN PROGRESS
 MONITORED BY TEJEDA CENTER
BILLING
7%
FINANCIAL
ANALYSIS
6%
SOLID WASTE
5%
MISCELLANEOUS
11%
MANDATE
EXPANSION
2%
MIS
7%
LINE SURVEYS
8%
USER
REGISTRIES
9%
MANAGEMENT
12%
RATE
33%
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SECOND STEP: MONTERREY PROPOSALS
FOX - BUSH MEETING ON 3 / 22 / 02
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 GEOGRAPHIC SCOPE:
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300 KM IN MEXICO
 ADDITIONAL FINANCIAL INSTRUMENTS
 STRUCTURE & PROCESS:
 SINGLE BOARD FOR NADBank & BECC
NADB JURISDICTION
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NADB JURISDICTION
(% 0F POPULATION ELIGIBLE)
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100%
80%
60%
40%
20%
0%
BC
SON
CHIH
100 km
COAH
300 km
NL
TAMPS
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NADBank
CURRENT KEY STRUCTURAL TASKS
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 PROMOTE FURTHER UTILITY EFFICIENCY GAINS
 HELP CREATE CREDIT CAPACITY
 PROMOTE PUBLIC - PRIVATE PARTNERSHIPS
 LINK CAPITAL MARKETS AND PROJECTS
 HELP FOSTER MUNICIPAL / UTILITY REFORMS
 AND… GET MORE $
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