Preparation of a Development Policy Loan for Climate Change Adaptation in Mexico

The Government of Mexico (GOM) has requested a Development Policy Loan (DPL) in the amount of US$450 million to be presented to the Board for its approval by the end of Fiscal Year 2010.

The DPL would support government priorities within its climate change adaptation (CC) and water sector (WS) agenda. Mexico has emerged as a global leader in the CC arena and is moving quickly to address mitigation and adaptation policy frameworks to tackle the most pressing issues as they affect its main economic sectors.

Mexico faces an acute water crisis due to the accelerated population growth and inadequate management of its water resources (high inefficiency, pollution, and overexploitation).

The project involved assessing climate change adaptation strategies (no-regret-type) both in water resources, agricultural use, and public water and wastewater services.

Client: Government of Mexico.