SAN ANTONIO, Texas - The North American Development Bank has received 21 project proposals from irrigation districts in the Rio Grande Valley.
The projects focus mainly on primarily canal lining and canal-to-pipe conversions.
In total, $225 million has been requested for projects under NADBank’s new Water Resiliency Fund (WRF).
Early reviews by NADBank staff show these projects could save over 55,000 acre‑feet of water annually—equivalent to 49.5 million gallons per day. This would be enough to meet the daily drinking water needs of about 600,000 residents.
John Beckham, NADBank’s managing director said the proposals from the irrigation districts aim to advance critical drought-response investments across the Valley.
“The overwhelming response to our first call for projects reinforces both the urgency of the challenge ahead and our decision to focus the first call on theRio Grande Valley,” Beckham said. “By investing in infrastructure that conserves water and reduces losses, we are strengthening municipal water systems, supporting agriculture, and building long-term resistance to drought and extreme weather.”
Launched November 3, 2025, the initial Texas round focused on urgent water conservation and system-efficiency improvements within irrigation districts serving Cameron, Hidalgo, Starr, and Willacy counties.
Beckham said NADBank wanted to focus on this region because it faces persistent drought conditions and reduced river flows. This threatens both municipal water deliveries and agriculture, he said.
Beckham pointed out that NADBank’s application period closed on February 10 with 21 proposals submitted by 13 irrigation districts. According to the submitted applications, only about 20% of the funding has been secured for their projects, he said. That leaves a total estimated $180 million financing gap.
“Preliminary review indicates that the proposed infrastructure improvements (primarily canal lining and canal-to-pipe conversions) could conserve more than 55,000 acre-feet of water annually,” a NADBank press release states.
“To put the impact in perspective, that volume equals approximately 49.5 million gallons per day, enough to meet the drinking water needs of roughly 600,000 residents.”
Beckham said the Water Resiliency Fund represents a strategic, binational response to intensifying drought conditions across the U.S.–Mexico border region; prioritizing projects that deliver measurable water savings, strengthen water availability for communities and safeguard long-term economic stability.
He said NADBank staff are currently evaluating submitted proposals applying the WRF priority criteria, with initial results expected in the April-May timeframe. This will be followed by detailed technical and financial due diligence for top-ranked projects and a final funding announcement of selected projects expected to be made in late summer.
About NADBank
The North American Development Bank is a binational financial institution that supports environmental infrastructure projects along the U.S.-Mexico Border. By promoting investments in water, clean energy and other critical sectors, NADBank works to improve the quality of life in border communities and advance sustainable economic growth throughout the region. www.nadbank.org
State Sen. Juan Hinojosa has urged Valley irrigation districts to work on plans to line their canals. He welcomed the funding from NADBank, saying it augments the money the Legislature has committed.
“We (the Legislature) set aside a billion dollars for grants, not for loans, just straight out grants. And the staff of the Water Development Board recommended that $100 million of their billion dollars be set aside for just the Rio Grande Valley irrigation districts. And the reason for that is that they want the canals to be lined,” Hinojosa said.
“About 85% of the water that's used here in the Rio Grande Valley goes through canals and irrigation districts. And of that 85%, we lose probably half of it to seepage and evaporation.”
Lining the Canales will save hundreds of millions of dollars, Hinojosa said.
“We need to move forward and try and find ways to improve our canal system so that we can conserve water, save water, and not waste it through seepage and evaporation.”
Hinojosa continued: “Our biggest challenge is that many of these water districts and irrigation districts on their own cannot afford to pay back some of the loans or some of the interest. And they need to consolidate, or they need to unite, or form some kind of coalition so that they can increase their resources and ability to be able to qualify for some of these grants that are very much needed here in the Valley.”
Here is an audio recording of the Rio Grande Guardian's interviw with Sen. Hinojosa:
