FM Diversion – Fargo Moorhead Area Diversion Project

How is it Funded?

The total estimated cost of the project is $2.75 Billion (2018$).

The Diversion Authority has reviewed the following estimates for project costs:

  • $502 million for Lands and Impacted Property Mitigation
  • $989 million for the Channel / P3
  • $703 million for USACE / Southern Embankment and Associated Infrastructure
  • $266 million for levees and other In-town projects in Fargo and Moorhead
  • $44 million for Other Mitigation Construction
  • $250 million for Non-Construction Costs

The updated funding plan includes a combination of current and proposed commitments that, if secured, would result in the following breakdown:

  • $750 million from the federal government ($450M existing and $300M new)
  • $870 million from the state of North Dakota ($570M existing and $300M new)
  • $1,044 million from the local sponsors funded through existing sales taxes
  • $43 million to be requested from the state of Minnesota for continued work in-town to pay for Plan B changes in MN and another $43 million for the project

A Split Delivery model would deliver the majority of the Diversion Project’s features through a Public-Private Partnership (P3) project, while the U.S. Army Corps of Engineers intends to use traditional design-bid-build method. The P3 model will deliver the best value for the public’s money, provide performance guarantees and long-term warranties that otherwise would not be available, promote delivery innovation, and shorten the schedule to achieve flood risk reduction sooner than could be achieved otherwise.

Funding the FM Area Diversion Project

  • Local
  • State of ND - Committed
  • State of ND - Requested
  • State of MN - Project
  • State of MN - In-Town
  • Federal - Committed
  • Federal - Requested

Understanding the FM Area Diversion financing plan