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U.S. Army Corps Approves $68 Million Interest Forgiveness for Key SELA Flood Control Project

November 22, 2024
Contact: coastal@la.gov

BATON ROUGE, La. – In a significant victory for Louisiana’s ongoing flood protection and resilience efforts, the U.S. Army Corps of Engineers (USACE) granted the Coastal Protection and Restoration Authority’s (CPRA) request for interest relief for the Southeast Louisiana Urban Flood Control Project (SELA). This renegotiation is set to deliver an estimated $68 million in interest savings, allowing CPRA to redirect funds toward critical flood risk reduction projects in Orleans and Jefferson Parishes.

“This interest relief is critical to advancing flood protection efforts in Southeast Louisiana,” said CPRA Chairman Gordon “Gordy” Dove. “These funds will allow us to reinvest millions of dollars directly into strengthening our flood defenses and protecting residents. We are grateful to USACE for working with us on solutions that recognize the unique challenges our region faces, and we look forward to continued collaboration in preserving Louisiana’s coastal communities.”

SELA advances water infrastructure in Jefferson and Orleans Parishes, reducing the risk of flood damages up to a level associated with a 10-year rainfall event, which equates to approximately nine inches of rain over a 24-hour period for our area.

Plans in Orleans Parish involve upgrades to 16 major drainage lines, enhanced pumping at two pump stations, and the addition of two new pump stations. In Jefferson Parish, 24 drainage canals were improved, along with expanded pumping capacity at four pump stations and the construction of two new pump stations.

“This interest relief for the Southeast Louisiana Urban Flood Control Project is great news, and we want to thank the Louisiana Coastal Protection and Restoration Authority and the U.S. Army Corps of Engineers for their commitment to projects like these, which are critical in helping address our flood protection efforts,” said Jefferson Parish President Cynthia Lee Sheng. “This $68 million in interest saving will be vitally important to advancing drainage infrastructure in Jefferson Parish and help us reinvest to continue to protect some of our most vulnerable areas from flooding.”

Assistant Secretary of the Army for Civil Works Michael L. Connor approved CPRA’s renegotiation request, allowing interest accrued during construction to be forgiven. Connor cited the area’s specific needs warranted interest relief, including ongoing challenges with storms and saltwater intrusion, and continued recovery from Hurricane Katrina. Also considered were the benefits to local residents living in areas identified as disadvantaged by the Council on Environmental Quality’s Climate and Economic Justice Screening Tool.

“This announcement is representative of the kinds of innovative funding solutions that Gov. Landry and the CPRA continue to identify and develop in collaboration with the State’s federal partners,” said Paul Rainwater, Chairman of the Sewerage and Water Board of New Orleans Task Force. “Securing access to these funds will help drive investment in vital infrastructure projects, safeguarding the future of New Orleans residents for years to come.”

As the non-Federal sponsor of the project, CPRA first negotiated a deferred payment agreement (DPA) with USACE in 2009. CPRA successfully sought renegotiation of these terms pursuant to Section 103(k)(2) of the Water Resources Development Act (WRDA) of 1986, as amended.

“This decision underscores the strength of our partnership with the USACE in building a safer, more resilient Louisiana,” said CPRA Executive Director Glenn Ledet. “By granting financial flexibility, this agreement frees up critical resources, allowing CPRA to fast-track essential infrastructure projects that will protect our communities from future flood events.”

SELA also includes infrastructure planning for St. Tammany Parish, with proposed channel enlargements, bridge replacements, pump stations, retention ponds, levees, T-walls, and the elevation of flood-prone structures across Slidell, Mandeville, Covington, Abita Springs, and Lacombe.

All major SELA construction was completed in Jefferson Parish in 2017, and 85% of scheduled work in Orleans Parish is also complete. The remaining work in Orleans is anticipated to conclude by 2027, with further studies and additional improvements in the planning stages as funding is secured.

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