BP Announces First Payment on Barrier Islands Project for State of LouisianaCompany to begin funding construction of six berms immediately
As part of the previously announced commitment to fund the entire $360 million cost of six berms in the Louisiana barrier islands project, BP today announced that it will make an immediate payment of $60 million to the State of Louisiana. In a letter to Louisiana Governor Bobby Jindal and as previously announced, BP detailed its plans to make payments in stages based on the project's completion milestones.
The initial $60 million payment is intended to permit the State to begin work on the project immediately. BP will then make five additional $60 million payments when the Coastal Protection and Restoration Authority of Louisiana, which is chaired by Garret Graves, certifies that the project has satisfied 20%, 40%, 60%, 80% and then 100% completion milestones. The entire $360 million will be funded by the completion of the project. Under the arrangement announced today, BP plans to make payments directly to the State of Louisiana rather than establishing an escrow fund for this project.
"We are committed to doing everything we can to protect the coastline and reduce the impact of the oil and gas spill in the Gulf of Mexico. We understand that the United States Coast Guard and the State of Louisiana want this project to proceed with urgency, so we want to ensure that funding is immediately available to begin construction of the berms," said Bob Dudley, Managing Director.
BP already has provided $170 million to Louisiana, Alabama, Mississippi, and Florida to help with those state's response costs and to help promote their tourism industries. The company also has paid approximately $51 million in compensation to people and companies affected by the spill.
Posted: June 7, 2010
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