FARGO, ND—The Fargo-Moorhead Area Diversion’s public-private partnership (P3) agreement in North Dakota, one of the first flood protection and resiliency P3s in the United States, recently received the international award of Americas P3 Deal of the Year.
It’s the first project in the United States Army Corps of Engineers (USACE) P3 pilot program to reach financial close.
The MFDA is the governing authority managing the FM Area Diversion. The P3 Deal of the Year award recognizes the MFDA’s “innovation” in using a “multi-faceted financing” approach, indicates a release, adding numerous government and commercial entities collaborated to secure the necessary funding for the $2.75 billion project.
Financial close took place in October 2021. The construction on the channel portion of the project is expected to begin later this year.
The project financing includes the use of a U.S. Environmental Protection Agency Water Infrastructure Finance and Innovation Act Loan, U.S. Department of Transportation Private Activity Bonds, North Dakota Public Facilities Authority Loans, temporary financing and long-term sales tax bonds. Funds are also contributed by USACE and the State of North Dakota, adds the release.
The alliance will design, build, finance, operate and maintain the diversion channel.
“This deal represents a great public-private partnership success, showing true dedication and collaboration between three Alliance partners: ACCIONA, Shikun & Binui USA and North American Construction group,” said Esther Madrigal Diez, project manager for the Red River Valley Alliance, in a statement. “We commend MFDA for its diligent work and commitment to this deal and are grateful to be part of this historic project that will pave the future of P3 flood protection ventures.”