Hurricane and storm damage reduction scheme outside New Orleans to cost $1.27 billion more

Image: USACE

A series of levees, floodwalls and pump stations outside New Orleans, designed to reduce storm and hurricane damage, is to cost $1.27 billion more to complete than originally planned.

The US Army Corps of Engineers recently updated the certified total project cost for the West Shore Lake Pontchartrain hurricane and storm risk reduction system.

It now puts the updated total project cost at $3.7 billion. A total of $760 million was originally committed to the design and construction of the system, with more than $100 million applied to active construction, including building three levee reaches and pile load testing at the site of two new pump stations.

The available funds will be used to award an additional five construction contracts early 2024 and to finalise the system’s design.

But the USACE said the initial project cost was based on 2014 economic conditions and preliminary designs.

It has now determined that it will require $1.27 billion in additional funding to deliver the project to the authorised levee elevations and complete the system’s pump stations and drainage structures.

Another $1.7 billion would be needed for environmental impact mitigation efforts and future levee lifts to ensure the authorised level of risk reduction is maintained for the duration of the project’s 50-year design life.

Col. Cullen Jones, USACE New Orleans district commander, said, “An increase in project cost has become common throughout the nation, for not only Corps of Engineers constructed projects, but also for goods and services due to ongoing supply chain issues.

“We will continue to press forward in completing the ongoing work as well as awarding new construction contracts while simultaneously pursuing every option for securing additional funds required to deliver this system that will reduce hurricane storm damage risk for more than 60,000 residents in St. Charles, St. James and St. John the Baptist parishes.”

Louisiana Coastal Protection and Restoration Authority (CPRA) chairman Bren Haase added, “Construction has begun to provide the 100-year level risk reduction to the River Parishes and we remain committed to seeing this critical project through to the finish.

“The importance of the West Shore Lake Pontchartrain project to the River parish region cannot be overstated, and together with the Corps, the Pontchartrain Levee District and all of our partners, we will work diligently to secure the funding needed to complete it.”