Multi-billion dollar plan for New Orleans levees

WASHINGTON - The White House announced it had agreed to a US$3.1 billion ($4.46 billion) plan to strengthen the New Orleans levees to withstand a major storm.

"The levee system will be better and stronger than it ever has been in the history of New Orleans," said Donald Powell, the Bush administration's point person for the reconstruction of the Gulf Coast area devastated by Hurricane Katrina.

Mayor Ray Nagin, who is struggling to persuade displaced residents to return to the shattered city, said at the White House news conference: "This action says 'Come home to New Orleans'."

Officials said the money would come from previously proposed funding requests submitted to Congress.

Louisiana Governor Kathleen Blanco and others have been pressing for federal assistance for the levees, saying the city's reconstruction was doubtful if they were not rebuilt.

President George W. Bush came under harsh criticism for a slow federal response to Hurricane Katrina. On Monday, he said he was appalled by the US government's response and acknowledged his own responsibility for the shortcomings.

- REUTERS