Hoeven: FM Flood Protection Inlet Structure Serves as Hinge for First-in-the-Nation P3 Project

Milestone Completed Due to Senator’s Efforts to Secure Early Federal Funding

WASHINGTON – Senator John Hoeven today, along with Assistant Secretary of the Army for Civil Works Michael Connor and local leaders, marked the completion of the inlet structure for the Fargo-Moorhead region’s flood protection project. The inlet is a key element, tying together the local portion of the project with the federal portion, which is able to move forward due to Hoeven’s successful efforts to:

  • Fully fund the $750 million federal cost share.
    • Through his role on the Senate Energy and Water Development Appropriations Committee, Hoeven secured the first portion of this funding in 2016, which enabled construction of the inlet structure to begin.
    • Hoeven then worked to secure the balance of the federal cost of the project, which received full funding in 2022.
  • Advance this as the first major Army Corps project to utilize the public-private partnership (P3) split-delivery model and a Water Infrastructure Finance and Innovation Act (WIFIA) loan.
    • Hoeven worked to advance the Fargo-Moorhead project as a proof-of-concept for the rest of the nation, while also ensuring projects that use alternative financing methods, like P3s, receive fair treatment during the Corps’ cost-benefit analysis.

“The inlet structure is the hinge of this project, marking the place where federal and local construction efforts come together and showcasing our new, first-in-the-nation model for construction partnerships,” said Hoeven. “We started appropriating the $750 million federal funding commitment back in 2016, and those early dollars were critical in keeping this project on time and on budget, as were the 16 pieces of legislation we passed to make this project happen. Further, with the P3 model in place, the local side of the project is being built concurrently with the federal portion to make full flood protection a reality for the entire FM region more quickly.”

In addition, Hoeven’s efforts have included:

  • Working to pass 16 acts of Congress, including:
    • 9 legislative provisions, such as the project authorization in 2014 and a new construction start authorization in 2016.
    • 7 separate appropriations to fund the project’s construction.
  • Coordinating efforts across four federal agencies.
  • Providing funding and flexibility to concurrently raise I-29 and begin excavating the Red River Control Structure to keep the project on schedule.
  • Helping renegotiate the Project Partnership Agreement to increase the federal funding commitment from $450 million.
  • Resolving the easement issue on lands purchased with Hazard Mitigation Grant Program (HMGP) funding, allowing the project to use an alternative route.