Mon, Oct 23rd, 2023 - 11:22am
November 02, 2021 - 4:01pm | By Allye Doyle
(Fargo, ND)– The Red River Valley Alliance (RRVA), the developer group for the channel of the FM Area Diversion project, has reached financial close with the Metro Flood Diversion Authority (MFDA). This step signifies financial security for the project that will protect more than 235,000 community members from catastrophic flooding.
Financial close occurred on Oct. 13, 2021 and was secured by the RRVA consortium partners ACCIONA, Shikun & Binui and North American Construction Group. The agreement funds RRVA through the design and construction phase of the diversion plus 29 years of operation and maintenance following the project’s completion.
The Fargo-Moorhead Area Diversion project is a historic public-private partnership (P3) as the first U.S. Army Corps of Engineers project to use a P3 model and the first P3 flood management project in North America. Estimated at $2.75 billion, this project model reduces costs by allowing greater financial flexibility and shortened construction timelines.
“This milestone means that all financial components are in place to begin the design and construction of the FM Diversion project,” says RRVA Project Manager Esther Madrigal-Diez. “This community has waited years for this moment to occur, and it will soon have permanent flood protection that will save lives, protect property and afford the region with economic growth opportunities.”
Construction on the 30-mile channel portion of the Fargo Moorhead Diversion is scheduled to begin in April 2022 with final completion estimated in March 2027.
