$1.3 Billion Worth of New Orleans Flood Control Financed

The agreement signed Friday commits the state and the Corps to share the cost of the Southeast Louisiana Urban Flood Damage Reduction Project, or SELA.

Work conducted under the SELA project supports the parishes' master drainage plans to improve drainage during the frequent rainstorms in New Orleans. The projects are intended to provides flood protection on a level associated with a 10-year rainfall event, while also reducing damages from larger events.

Specific features include drainage canal improvements and construction of new drainage canals, replacement of bridges, provision of backup power at existing pump stations, and construction of new pump stations, and associated intake and discharge works.

The agreement was signed by Garret Graves, who chairs the Louisiana Coastal Protection and Restoration Authority, and John Paul Woodley, assistant secretary of the Army for civil works.

The Coastal Protection and Restoration Authority previously reached cooperative endeavor agreements with both the Sewage and Water Board of New Orleans and the Jefferson Parish Council to serve as the single non-federal sponsor for the SELA project with the Corps.

"The CPRA promised to make this agreement a reality in order to ensure that much needed drainage improvements in the New Orleans area are made and we delivered on that promise," said Graves, who also serves as director of the Governor's Office of Coastal Activities.

"This funding is an enormous boost to the flood fighting efforts of the parishes, the state and the Corps," he said.

Also signed during the ceremony were agreements that will give Louisiana 30 years to repay its share of the $14.3 billion Hurricane and Storm Damage Risk Reduction System construction. The non-federal share is approximately $1.5 billion.

A U.S. Coast Guard boat patrols the flooded streets of New Orleans after Hurricane Katrina. September 11, 2008. (Photo by Grant Vargas)

"With these agreements signed today, all the financing is in place to ensure completion of the 100-year level of risk reduction in the greater New Orleans area in 2011," said Secretary Woodley.

"While most Corps Civil Works projects are cost-shared, because of the special circumstances facing Louisiana after the devastation of Hurricane Katrina, we were able to take advantage of a rarely-used law that allows the United States to pay the full cost up front, giving the state 30 years to repay their share," Woodley said.

Louisiana Governor Bobby Jindal said the agreement means New Orleans will be better protected from flooding storms. "Today’s signing to officially grant Louisiana the flexibility to pay the required match for levee construction over 30 years marks a critical step in our recovery process," he said. "The agreement relieves Louisiana of a serious financial burden that would have been difficult for the state to meet and would have delayed the rebuilding of our levee protection system that our citizens were promised and deserve."

"With the signing of this agreement," said Jindal, "we can get started right away on coastal restoration and hurricane protection projects vital to the recovery of our state and the safety of our people."

"The year of 2009 will see a dramatic increase in construction projects across the hurricane system, including SELA projects," said Karen Durham-Aguilera, director of the Corps' Task Force Hope. "We cannot meet our goal alone and this is an excellent example of federal, state and local entities partnering for success."

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