The Red River Valley Alliance (RRVA) consortium, formed by ACCIONA, Shikun & Binui and North American Construction Group, has reached financial close for the flood prevention PPP project in the states of North Dakota and Minnesota, USA.
The closed financing is valued at US$1.14 billion and is provided by Citigroup, Morgan Stanley, CaixaBank, Sumitomo Mitsui Banking Corporation and Korean Development Bank in three different tranches. The PPP project has obtained a Baa3 (investment grade) credit risk rating from Moody's.
The consortium will build, operate and maintain a 48-kilometer flood prevention channel between Fargo in North Dakota and Moorhead in Minnesota over 29 years. With a total investment of US$2.75 billion, the PPP project has an estimated construction period of five years. Once operational, it will divert the Red River away from population centres, which are often affected by flooding. This is the first sustainable infrastructure project launched in the USA under a public-private partnership format (PPP).