"I believe the best strategy for the rebuilding of New Orleans and revitalization of the parishes around New Orleans is for the local folks to design the strategy and to have the federal government become a partner," he told local businesspeople.

But Bush, on his first visit to the region in three months, added that "One of the keys to success is going to be private-sector initiatives."

Faced with criticism over the slow emergency and aid response to Hurricane Katrina in August and then Hurricane Rita, Bush highlighted the 85 billion dollars in assistance already approved by the federal government.

Although many parts of the three states ravaged by the hurricanes remain in dire condition, Bush said he had seen dramatic progress since his visit immediately after the first hurricane struck.

"I'm sure there's still concern about the future, but the eyes have cleared up," Bush said later in a visit to Bay Saint Louis, Mississippi, just east of Louisiana.

The president said reconstruction would provide a "fantastic opportunity" for private businesses and investment.

"There is going to be a building boom down here. It's going to be an exciting time," he said.

Seeking to reassure hurricane survivors, Bush insisted his administration remained focused on their plight.

"I'm here to report to you some of the progress made and to let you know that people in faraway places like Washington, DC still hear you and care about you," he said.

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