EXHIBIT 16.1

March 30, 2004

Securities and Exchange Commission
Mail Stop 11-3
450 5th Street, N.W.
Washington, D.C. 20549

Dear Sirs/Madams:

We have read Item 4 of Covanta Energy Corporation's Form 8-K dated March 30,
2004, and have the following comments:

1. We agree with the statements made in the first four paragraphs of Item 4 of
the Form 8-K.

2. We have no basis on which to agree or disagree with the statements made in
the fifth paragraph of Item 4, discussing Covanta Energy Corporation's
consultation with Ernst & Young LLP.


Yours truly,


/s/ Deloitte & Touche LLP
Parsippany, New Jersey