OMB OKs Craney Island Expansion Funding

The Office of Management and Budget (OMB) yesterday approved a request from the U.S. Army Corps of Engineers’ Norfolk District for $3M in reprogrammed funds that will go towards the Craney Island Eastward Expansion (CIEE) Project.

This approval comes after a strong collaborative effort by Congressmen Bobby Scott and Scott Taylor who had been working with OMB to expedite approval of the request.

“The Port of Virginia is not only a hub of international commerce or a key factor in our military’s readiness, it is a vital asset for Virginia,” said Congressman Scott Taylor. “After a strong bipartisan effort to orient the Office of Management and Budget to this project, they made the right decision in reprogramming the funds.” 

The $3M in reprogrammed funds stems from a completed 50 foot outbound channel project in 2010.

In early August of 2017, the Norfolk District issued an Invitation for Bid (IFB) for pre-dredge work on the main dike of CIEE which will be funded with the FY16 Work Plan funds ($4M) and $3.5M in non-federal contributions from the port.

With the addition of the reprogrammed funds, the CIEE Project can continue through October 30, avoiding a significant loss of productivity and increase in expenses.

Background

The Craney Island Eastward Expansion is a Congressionally-authorized Civil Works project which extends the life of the existing Craney Island Dredge Disposal Management Area and creates the foundation for a future marine terminal to continue to serve the US economy.

Investment in CIEE leverages future federal and non-federal investments in channel deepening and widening projects as well as $1.5 billion in non-federal investment towards the marine terminal construction.

The CIEE will provide Norfolk Harbor and Channels with an economically efficient, reliable and safe navigation system. As one of the nation’s 13 strategic military ports, Norfolk Harbor is home to nationally significant assets, including Naval Station Norfolk, the 3rd largest container port on the East Coast, the largest ship construction and repair industrial base in the U.S., and the only nuclear carrier capable port facility on the East Coast.

With a benefit-to-cost ration of 4.2 to 1, it is estimated the project will create 1,100 immediate jobs and more than 54,000 sustainable jobs after construction, with a total of $16 billion generated in National Economic Development benefits.

 

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