Corpus Christi City Council opts to revisit desalination project

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A seawater desalination project in Corpus Christi, Texas, is back after the city council approved an initial step on Tuesday to revive it.

The Inner Harbor Water Treatment Campus was effectively terminated by the council  in September as the estimated price tag climbed to nearly $1.2 billion under design-build contractor Kiewit Corp. Ending the project, which would be the first seawater desalination plant for municipal use in Texas, led to negative outlooks on Corpus Christi's bond ratings spurred by concerns about how the city would increase its dwindling water supplies.

The council on Tuesday opted to revisit the project, greenlighting City Manager Peter Zanoni's request for a memorandum of understanding with a new team — Corpus Christi Desal Partners — to produce design and construction proposals at no cost to the city by January or February.

A timeline showed the city council could consider a contract with the team in March or April.

Council Member Roland Barrera, who voted to move forward, said rating agencies reacted to the city's "reluctance to invest in our long-term water infrastructure." 

"We have to provide certainty to the rating companies, certainty to the Texas Water Development Board (TWDB), certainty to the state of Texas," he said.

The city remains on the hook for $232 million of bonds the triple-A-rated TWDB sold for the desalination project through its State Water Implementation Fund for Texas (SWIFT) program. A spokesperson for the agency has said Corpus Christi is obligated to pay principal and interest whether or not the project is completed. 

Brett Van Hazel, Corpus Christi Water's director of water supply management, told the council that TWDB Executive Administrator Bryan McMath is opposed to the city's request to reallocate its desalination-related loans through the SWIFT program to other water projects. 

The council's 6-3 vote followed hours of public comment for and against revisiting the project. Council Member Sylvia Campos objected to the project's return after the council's previous action, saying it would be built in the same "worst location."

Corpus Christi Water, which is the primary water supplier for a seven-county region, expected the seawater desalination plant to produce up to 36 million gallons of potable water daily. The area is experiencing stage three drought conditions that triggered water-use restrictions. 

A water supply dashboard on the city's website indicates two western reservoirs will be depleted during the first half of 2027.

The city council took action in October to boost water supplies, approving agreements to procure groundwater, as well as to secure 50 million gallons of water daily from the Nueces River Authority's proposed seawater desalination plant. On Tuesday, the council signed off on a $11 million deal to design a major expansion of the city's reclaimed water infrastructure.