The Environmental Protection Agency (EPA) in the USA has selected the Fargo-Moorhead region’s flood protection PPP project to apply for US$510 million in low-cost financing under the Water Infrastructure Finance and Innovation Act (WIFIA) loan program. The loan program allows the project to access this flexible funding source, which will significantly reduce the long-term expenses of the project. 

The loans have a single fixed interest rate that is established at closing. The payment schedules can be customized with repayment starting up to five years after project completion and can be repaid up to 35 years after project completion. The invitations for such low-cost financing are limited through a competitive process, and selection ensures the applicant will receive a loan under the program. 

The invitation to apply for the loan was secured with the support of North Dakota’s Governor Doug Burgum, Senator John Hoeven, Senator Kevin Cramer and Representative Kelly Armstrong. According to Senator John Hoeven, the WIFIA loan amount of US$510 million dollars could go up to US$561 million, depending on the eligible cost share.

The Fargo-Moorhead flood protection project includes three main components: in-town flood protection, a diversion channel, and the Southern Embankment that consists of flood control structures and areas for temporarily staging floodwaters. The project also involves the development of associated infrastructure work package (DCAI WP) designed to protect the Fargo-Moorhead-West Fargo metro area in the states of North Dakota and Minnesota during times of extreme flooding. It consists of a 58 km long and 460 m wide diversion channel, 2 aqueducts, 2 river inlets, various local drainage inlets, the channel outfall, 4 railroad bridges, 4 interstate highway bridges, and 10 county road bridges, as well as associated environmental mitigation and recreational features. The project will be developed on a design, build, finance, operation, and maintenance (DBFOM) basis.

The project will provide protection for the lives, livelihood and property of 170,000 North Dakotans. When completed, the project will protect more than 50 K-12 school buildings, several major medical facilities that form the region´s health care hub, and the campus of North Dakota State University.