Red River Valley Alliance (RRVA) consortium has announced that commercial close (contract signature) has been achieved on the Fargo-Moorhead Metropolitan Area Flood Risk Management Project in the USA. The equity members of RRVA include Acciona Concesiones S.L (42.5%), Shikun & Binui Ltd. (42.5%), and NACG US, Inc. (15%)  who will jointly provide operations and maintenance for the project following construction completion for a term of 30 years.

The PPP project includes the design, construction, financing, operations, and maintenance of the 30-mile Diversion Channel and associated infrastructure with the aim to protect the Fargo-Moorhead – West Fargo metro area from extreme flooding. The project is planned to be financed, partly with proceeds from the sale of up to US$296 million in tax-exempt private activity bonds (PABs) issued by the Public Finance Authority. The proceeds of the PABs will be loaned by the Public Finance Authority to RRVA for use in the construction of the project.

Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, and SMBC Nikko Securities America, Inc. will act as underwriters with respect to the PABs on behalf of RRVA. The consortium expects that the bonds will be marketed in late September 2021 and reach financial close on or before November 2021.