Procurement to restart on $2bn flood prevention project in USA
The Diversion Board of Authority in the USA voted to approve a task order at its August meeting that includes recommencing the Public-Private Partnership (P3) procurement which will lead to the selection of a P3 Developer through a competitive procurement process for the development of the Fargo-Moorhead flood prevention project.
The FM Area Diversion Project is designed to protect the Fargo-Moorhead-West Fargo metro area during times of extreme flooding. The Project will prevent catastrophic flooding with a few major components. Fargo–Moorhead metropolitan area comprises Fargo, North Dakota, Moorhead, Minnesota, and the surrounding communities. These two cities lie on the North Dakota–Minnesota border, on opposite banks of the Red River of the North.
The project will be developed on a design, build, finance, operation, and maintenance (DBFOM) basis.
The estimated capital value of the project is USD 2.2. billion.
Proposer teams were shortlisted through a qualifications-based process in 2017 with three teams in place to compete for the P3 contract. But later that year a temporary injunction has been placed by a federal judge, forcing the cease of all construction work on the project. With the recent task order, the Diversion Authority will resume development of the final request for proposals for the shortlisted teams to prepare and submit bids for the construction of the Diversion Channel and all associated infrastructure along the channel. This includes county highway and interstate crossings, river crossings, railroad bridges, and spillways. The bids from the P3 Proposers will also include costs to maintain the channel for 30-years.
The following four teams have been approved as the shortlisted proposers:
- Lake Agassiz Partners (Meridiam/Walsh/AECOM)
- Red River Valley Partners (Fluor/Plenary/Ames/Barnard)
- Red River Valley Alliance (Acciona/InfraRed/North American Enterprises/Shikun&Binui)
- Red River Partners (Graham/Parsons/Alberici/BBGI)
The Board expects to receive bids next fall and have the successful P3 Proposer selected in late 2020.
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