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There was a US grant to deal with the problem with high groundwater here, but it seems that not all of it was properly supervised and money was diverted (including attempts to misappropriate it for the sphinx avenue in Luxor across the river) and work slowed for a number of reasons. It is claimed part of the problem is (was?) apathy and "nepotism within the structure of SCA and government". This is heart breaking.
UPDATE 14.10.11: Jane Akshar has some more information about this, it seems the flooding mainly affected the SCA excavation trench in the region of the north gate and was apparently due to the breaching of the wall of an adjacent irrigation dyke more than rising groundwater.
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