At ENR presstime on Sept. 6, the army of federal, military and private forces marshalled to beat back New Orleans lethal floodwaters could take heart that at least one levee was plugged (see related story). But that small victory is just the beginning of what will be a long and expensive war to rebuild billions of dollars in damaged infrastructure in Louisiana, Mississippi and Alabama and win back public confidence in governments long-term ability to protect its coastlines and its citizens.
Damage estimates immediately after the Aug. 28 storm mirrored that of Hurricane Andrew in 1992, about $25 billion. But with the subsequent breaching of New Orleans levees and a clearer picture of other severe coastal damage, some were already speaking of damages exceeding $100 billion. "As a result, insurers will be grappling with the financial, credit, and operational implications of this storm for some time," Standard & Poors reported on Sept. 1. Like ENR, S&P is a unit of the McGraw-Hill Cos.