The infrastructure will divert storm water from the Red River away from nearby residential areas, which are regularly affected by flooding. The flood protection canal has been designed to mitigate the impact of climate change, particularly the threat of flooding. Once completed, it will protect more than 235,000 people in the primary population areas between Fargo and Moorhead.
(Courtesy of U.S. Army Corps of Engineers)
| Project Name | Fargo-Moorhead River Flood Diversion P3 Project/ Fargo-Moorhead Metropolitan Area Flood Risk Management Project |
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| Location | North Dakota |
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| Value Capture Techniques | Special Assessment: Sales Tax Districts & Special Assessment Districts Transportation Corporations |
| Mode | Other: Flood Diversion 20-mile-long southern embankment, 19 highway bridges, three railroad bridges, three gated structures, and two aqueduct structures |
| Description | The Fargo-Moorhead Metropolitan Area Stormwater Diversion Channel Project includes two components to manage uncontrolled stormwater that threatens the metropolitan area. The stormwater diversion channel component includes the construction of a 30-mile channel to redirect surplus stormwater flows safely north around the metropolitan area and temporarily store it on vacant land. The in-town levee project includes modifications to 13 levees and 27 stormwater lift stations in the Cities of Fargo and Moorhead. By managing spring snow melt and summer stormwater, the project will protect 245,000 residents from excess stormwater flows. The project is being implemented using a public private partnership (P3) with split delivery. This allows two simultaneous construction schedules to complete the Comprehensive Project faster and for less expense. The P3 project consists of the design, construction, financing, operation, and maintenance of the Diversion Channel and Associated Infrastructure Work the design, construction, financing, operation and maintenance of the Diversion Channel and Associated Infrastructure Work. This is a first and innovative approach for the Corps of Engineers and is already applying best practices to improve the delivery of other federal projects. The project is distinctive in numerous ways, ranging from alternative financing to split delivery implementation across multiple states, counties, and cities. Not only is it the first P3 civil works project in the Corps of Engineers' history but it is also the inaugural pilot project for the innovative funding concept. The communities of Fargo and Moorhead, along with Cass County, Clay County, and the Cass County Joint Water Resources District, have signed a joint powers agreement, which created the Metro Flood Diversion Board of Authority (Diversion Authority). The Diversion Authority is led by thirteen board members from the stakeholder entities. Its purpose has been to work with the US Army Corps of Engineers to build, finance, operate, and maintain a comprehensive project to provide the Fargo Moorhead metropolitan area with permanent flood protection from the Red River of the North and its tributaries. The Diversion Authority has developed a comprehensive and prudent financial model for the Project that assumes cost-share funding from federal and state grants. The local share of approximately $1.1 billion is being funded via a Cass County and City of Fargo sales tax. Voters have approved three half-cent sales taxes to be extended through 2084 to cover the local share. |
| Cost | $ 2,750 million. Components of the Diversion Project
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| Funding | Funding for these projects will come from a mix of federal, state and P3 funding via local sources. The funding sources are as follows |
| Project Delivery / Contract Method | P3 (DSAI - FMDA) DBFOM Availability Payments Based (construction milestone payments), 30 years & Project Bundling. DBB (SEAI - USACE) |
| Private Partner | Fargo-Moorhead Area Diversion P3
Contractor
Shikun & Binui USA, a member of RRVA, (through its US construction subsidiary, Shikun & Binui America, Inc. and its US concessions and investment subsidiary, Shikun & Binui Concessions USA, Inc.) |
| Project Advisors / Consultants | US Army Corps of Engineers (USACE), Flood Diversion Board of Authority
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| Duration / Status | Currently on schedule for operation in the spring of 2027 |
| TIFIA Credit Assistance | N/A |
| Financial Status/Financial Performance | Financial Close, October 13, 2021 |
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| Contacts | Joel Paulsen, Executive Director of the FM Area Diversion Project Martin Nicholson, Deputy Executive Director Metro Flood Diversion Authority, Fargo, North Dakota Aaron Snyder, the US Army Corps of Engineers (USACE) Water Infrastructure Financing Program lead Katie Spear | S&B USA |
The sprawling Fargo-Moorhead Area Diversion Project is designed to route floodwaters around the metro area by means of three large control structures, a 20 mile long dam known as the Southern Embankment, and the 30 mile long diversion channel
(Courtesy of U.S. Army Corps of Engineers)
Caption: U.S. Army Corps of Engineers leaders witnessed yet another major milestone Aug. 9, near Fargo, North Dakota, as the Metro Flood Diversion Authority broke ground on their portion of a project that includes a 30-mile diversion channel.
Source: Credit to U.S. Army Corps of Engineers
Caption: A map of the FM Area Diversion Project
Source: Credit to U.S. Army Corps of Engineers
