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NEW ORLEANS (AP) - New Orleans Mayor Mitch Landrieu says construction is about to start on a $130 million hospital in eastern New Orleans. The area has been without a hospital since Hurricane Katrina flooded 80 percent of the city in August 2005.

Landrieu said in October that the U.S. Department of Housing and Urban Development had paved the way for construction by agreeing to insure a $97.6 million loan for the hospital.

His office says the project will revitalize that area's economy while restoring full-service health care to residents in eastern New Orleans.

Landrieu, other city officials and Archbishop Gregory Aymond had planned to attend a groundbreaking ceremony Thursday afternoon at the site. However, the mayor's office announced late in the morning that the ceremony would be postponed until after the holidays.


(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
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