The initial payment is intended to permit the state to begin work on the project immediately. BP will then make five additional $60m payments when the Coastal Protection and Restoration Authority of Louisiana certifies that the project has satisfied 20%, 40%, 60%, 80% and then 100% completion milestones.
The entire $360m will be funded by the completion of the project. BP now plans to make payments directly to the state of Louisiana rather than establishing an escrow fund for this project.
Bob Dudley, managing director of BP, said: “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 US 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.”
BP already has provided $170m to Louisiana, Alabama, Mississippi and Florida to help with those states’ response costs and to help promote their tourism industries. The company also has paid approximately $51m in compensation to people and companies affected by the spill.
