Fargo - Moorhead River Flood Diversion Channel
The Fargo-Moorhead Area Diversion Project is a landmark climate resilience initiative designed to protect communities in North Dakota and Minnesota from recurrent flooding along the Red River. The project grew out of studies conducted following the historic 1997 Red River floods, which caused an estimated US$3.5 billion in damages, and will provide permanent flood protection for more than 235,000 people while supporting the long-term economic resilience of one of the fastest-growing regions of the Upper Midwest.
ACCIONA, as part of the Red River Valley Alliance (RRVA), is delivering the project through a public-private partnership that includes financing, construction, operation, and maintenance of the diversion channel and associated infrastructure. The P3 includes a 30-mile diversion channel together with a diversion outlet, aqueducts, drainage inlets, interstate and county road crossings, and railroad crossings.
Construction involves the excavation of a major new flood diversion channel and the integration of numerous crossings and hydraulic structures with the existing transportation and drainage networks. The project uses a split-delivery approach, with the P3 component being delivered by RRVA while other elements of the broader flood protection program are delivered through traditional procurement.
The Fargo-Moorhead Area Diversion Project demonstrates how innovative financing, public-private partnerships, and large-scale engineering can be combined to address the growing impacts of climate change. As the first U.S. climate adaptation infrastructure project funded through green financing and the first public-private partnership of its kind developed with the U.S. Army Corps of Engineers, it will provide permanent flood protection for more than 235,000 people while strengthening regional resilience, safeguarding homes, businesses, transportation networks, and long-term economic growth.
GENERAL PROJECT INFORMATION
- Client: Metro Flood Diversion Authority
- Location: Fargo, North Dakota and Moorhead, Minnesota
- Contract Type: Design, Build, Finance, Operate and Maintain (DBFOM)
- Investment: Approximately US$3.2 billion
- Project Team: Red River Valley Alliance (RRVA) – ACCIONA, Shikun & Binui, and North American Construction Group
- Project Status: Under Construction
PROJECT SCOPE
- Construction of a 30-mile stormwater diversion channel
- Construction of the diversion outlet and associated hydraulic infrastructure
- Construction of two aqueducts and 14 drainage inlets
- Construction of two interstate, 12 county road, and three railroad crossings
- Integration of the diversion system with existing transportation and drainage infrastructure
- Long-term operation and maintenance under a 30-year P3 concesión
INNOVATION & SUSTAINABILITY
The Fargo-Moorhead Area Diversion Project is a landmark example of climate-adaptation infrastructure delivered through an innovative public-private partnership. It is the first U.S. infrastructure initiative funded with green climate financing specifically for climate adaptation and the first P3 of its kind developed with the U.S. Army Corps of Engineers. The project also incorporates renewable biofuels in construction, reducing emissions from heavy equipment and supporting lower-carbon construction practices.
The project's innovative financing and integrated delivery model demonstrate how public and private investment can be combined to address long-term climate risks while delivering critical infrastructure. By providing permanent flood protection for more than 235,000 people, the diversion will strengthen community resilience and help protect homes, businesses, transportation networks, and regional economic activity.
AWARDS & RECOGNITION
Americas P3 Deal of the Year — Project Finance International (PFI), 2021
North America Water Deal of the Year — IJGlobal, 2021
North America Water Deal of the Year — Proximo Infra, 2021
Project Finance Deal of the Year — IFLR Americas Awards, 2022
Green Social and Sustainability Loan of the Year — Environmental Finance, 2022
National Deal of the Year / P3 Deal of the Year — The Bond Buyer, 2022