Project Highlights
- Notable Firsts:
- 1st public-private partnership (P3) with the U.S. Army Corps of Engineers
- 1st P3 water management project in North America
- 1st green finance initiative in the US specifically designed for climate change
- 1st pilot project for using renewable biofuels to power heavy machinery
- Recognized with 10 awards for excellence in P3 delivery and innovation:
- IJ Global – 2021 North America Water Deal of the Year
- Proximo – 2021 Americas P3 Deal of the Year
- Partnerships Awards – 2022 Best Financial Structure
- Partnerships Awards – 2022 Legal Advisor of the Year
- P3 Bulletin – 2022 Public Sector Promoter/Procurer of the Year
- P3 Awards – 2022 Best Utilities Project
- P3 Awards – 2022 Best Social Infrastructure Project – Finalist
- P3 Awards – 2022 Best Financial Structure – Finalist
- Bond Buyer – 2022 ESG/Green Bond Deal of the Year – Finalist
- The Banker – 2022 Infrastructure and Project Finance Deal of the Year – Finalist
- Engineering & Construction Scope:
- Over 50 million cy of excavation
- Over 63,000 cy of concrete
- More than 500 bridge girders
- 4 interstate bridges, 12 local/county road bridges and 3 railroad bridges over the diversion channel
- 14 drainage inlets, 2 aqueducts and 1 outlet structure
- Over 100 utility relocations
Creating Long-Term Flood Protection and Resiliency for the Fargo-Moorhead Area
Frequent flooding of the north-flowing Red River, which forms a natural border between North Dakota and Minnesota, is an ongoing threat to the health, culture and economic growth of the Fargo and West Fargo, ND, and Moorhead, MN, metropolitan area. The Fargo-Moorhead Metropolitan Area Flood Risk Management Project represents one of the first large-scale ESG-focused P3 transactions in the US.
The diversion channel component of this project will play an important role in reducing flooding in Fargo and Moorhead to protect about 260,000 people and 70 square miles. The protected area includes billions of dollars in infrastructure, including the region’s only Level 1 trauma center which serves a broad rural population across multiple states (ND, SD, MN), and more than 55 schools, including more than 20% of all North Dakota educational facilities.
With a construction value of $1.2 billion, the project includes the design, construction, financing, maintenance and operation of a 30-mile-long diversion channel, 4 interstate bridges, 12 county road bridges, 4 railroad crossings, 2 aqueducts, 11 drain inlets, and 2 drop structures that divert flows from tributaries into the diversion channel and around the cities of Fargo and Moorhead.
Estimated for completion in 2027, the project is anticipated to safeguard current infrastructure against flooding, potentially saving American taxpayers billions of dollars in disaster recovery funding and protecting the livelihoods of thousands of small and medium-sized businesses throughout the region. The diversion channel and structures will withstand a 100-year flood and provide resiliency in the event of a 500-year flood.
Financing
S&B USA Concessions, as part of the Red River Valley Alliance (RRVA), employed a tailored approach to meet the project’s $1.2 billion in financing needs, which has been broadly recognized by independent organizations and the P3 industry. Green Financing Designation This project is both the first large-scale flood protection resiliency P3 and the first “green financing framework” for a P3 project in the US. The financing received a second-party opinion from Sustainalytics, confirming it met criteria for being green, credible, and impactful, aligning with Green Bond and Green Loan Principles.
Green Financing Designation
This project is both the first large-scale flood protection resiliency P3 and the first “green financing framework” for a P3 project in the US. The financing received a second-party opinion from Sustainalytics, confirming it met criteria for being green, credible, and impactful, aligning with Green Bond and Green Loan Principles.
Funding Sources
The project financing package included a mix of private capital sources:
- $296 million from the issuance of senior tax-exempt Private Activity Bonds,
- $198 million through a private placement of senior secured notes,
- $643 million from a revolving credit facility, and
- Equity contributions from the sponsors, including S&B USA Concessions.
Ownership & Equity
S&B USA Concessions holds a 42.5% equity stake in the project, making it one of the largest partners in the Red River Valley Alliance. In addition to equity, mobilization and milestone payments form part of the developer’s investment return structure.
The Fargo-Moorhead Stormwater Diversion Channel has already received numerous awards from the P3 industry, including America’s P3 deal of the year, North America’s water deal of the year, the public sector promoter/procurer of the year, best financial structure, and legal advisor of the year.

Construction
This megaproject includes the development and construction of multiple access and maintenance roads, several flood control structures, 4 interstate bridges, 12 local/county road bridges, 3 railroad bridges, a building to house the Metro Flood Diversion Authority, and over 100 utility relocations or removals.
S&B USA Construction is a lead partner in ASN Constructors, the project’s joint venture design and construction company established to deliver the Stormwater Diversion Channel and associated infrastructure portion of the project.
Earthwork: The project requires moving 50 million cubic yards of earth for the 30-mile diversion channel, with excavation progressing at 2 million cubic yards per month. By the end of 2024, 28 million cubic yards of earth had been excavated.
Concrete Structures: The project will place over 63,000 cubic yards of concrete in structures for the 19 road and railroad bridges, 2 aqueducts and 14 drainage inlets.
Bridges: The project will use over 500 bridge girders to construct multiple crossings, integrating the channel with the region’s road and rail networks.
River Movers: Once completed, two rivers will be re-aligned (Sheyenne River, Maple River) to flow through the new diversion channel. The aqueducts are designed to handle flow rates greater than 5,000 cubic feet per second.
The channel and its structures also incorporate important design details that will benefit the public and wildlife in the region. People will be able to cross over the aqueducts and use trail systems along the channel. The two aqueducts will be heated to prevent freezing, which will allow for fish passage and better water flow . Each interstate bridge will have a prairie grass-lined ditch with a low-flow, meandering channel that concentrates flow during storms. These meandering channels will maintain adequate depth for aquatic organisms and the velocity needed to prevent sediment buildup.

Operations & Maintenance
S&B USA Concessions, as a member of RRVA, will self-perform the operation and maintenance of the Fargo-Moorhead Flood Diversion Channel for a 30-year period following construction completion.
Operational responsibilities include 24/7 monitoring and management of both flood control and non-flood control assets. These include:
- Flood control assets: the main diversion channel, aqueducts, and the Low Flow Channel (LFC)
- Non-flood control assets: Excavated Material Berms (EMBs), access roads, security systems, and bridges
- Routine maintenance: monthly inspections and comprehensive asset condition reports for all infrastructure within the project right-of-way
This long-term performance-based approach ensures reliable function of critical infrastructure, supports public safety during flood events, and upholds key performance indicators established in the project agreement.
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