Corpus Christi awards FCC Aqualia emergency desal contract in $410m infrastructure blitz

Corpus Christi awards FCC Aqualia emergency desal contract in $410m infrastructure blitzFacing critical drought triggers by November, the Texas city has authorized massive spending on brackish desalination and groundwater conveyance without competitive bidding, citing an urgent need to diversify water sources.

City Council approved a $43.5 million contract with FCC Aqualia USA for a modular brackish water reverse osmosis plant at the O.N. Stevens Water Treatment Plant.

The total cost for the brackish project is estimated at $203.2 million, including a $120 million emergency allocation for a 13-mile conveyance pipeline and pump station.

Council authorized a reimbursement resolution for up to $410 million in bonds to fund both the brackish plant and the ongoing Evangeline Groundwater Project.

Construction contracts for the Evangeline project were amended, adding over $182 million to Garney Companies' CMAR contract despite pending legal challenges.

City management defended the lack of bidding as necessary to secure water by November 2026, with the new supply expected to raise raw water rates by $0.56 per 1,000 gallons.

The Corpus Christi City Council has approved a series of high-value water infrastructure contracts totaling hundreds of millions of dollars, utilizing emergency procurement powers to bypass standard bidding processes in a race against dwindling reservoir levels. At the center of the approvals on February 17 was a $43.5 million contract awarded to FCC Aqualia USA Corp. for the design, procurement, and operation of a containerized brackish water desalination plant. While the Katy-based firm manages water and wastewater systems near Houston through a subsidiary, this project marks its first desalination undertaking in Texas, drawing on the parent company's global experience in regions like Egypt and Mexico. The facility, to be located at the existing O.N. Stevens Water Treatment Plant, is designed to deliver approximately 3.91 MGD of treated water within 11 months, ramping up to a full capacity of 21.3 MGD within two years. Corpus Christi Water (CCW) Chief Operating Officer Nick Winkleman outlined that the Aqualia contract is only one component of a larger $203.2 million project. The council authorized an additional $120 million for emergency construction contracts to build a pump station at the Western Well Field and a 13-mile conveyance pipeline to transport groundwater to the new treatment units. Winkleman noted that the project would be funded through a mix of debt and potential grants, with a projected impact on raw water rates of $0.56 per 1,000 gallons. To finance these expedited efforts, the council passed a reimbursement resolution covering up to $410 million in future bond issuances. This funding envelope covers the brackish desalination project as well as the parallel Evangeline Groundwater Project. regarding the Evangeline initiative, the council authorized Amendment No. 1 to the Construction Manager-At-Risk (CMAR) contract with Garney Companies, increasing it by $182.3 million for a total of $185.4 million, alongside a $13 million amendment to Pape-Dawson Engineers for construction management. The aggressive spending package drew sharp scrutiny from council members regarding the suspension of competitive bidding. Council member Gil Hernandez described the lack of procurement process for the $120 million conveyance line as "troublesome," noting that the city was spending "multi-millions of dollars... without really no procurement process." Council member Eric Cantu expressed similar hesitation, stating, "I just feel like this is a sales pitch, like spending $100 million in two weeks... I don't want to be responsible for bankrupting this city." City Manager Peter Zanoni defended the strategy, citing a potential "Level 1" drought curtailment as early as November 2026 if current dry conditions persist. "We are building emergency projects to get us past November, but we're also building a system that has redundancy and resiliency," Zanoni said. He argued that a standard bidding process would add 10 to 12 months to the timeline, a delay the city cannot afford. The approval comes despite pending legal hurdles. The Evangeline project faces an administrative hearing regarding water rights standing in early March. Council member Mark Scott questioned the wisdom of committing nearly $200 million before that legal standing is resolved, noting, "I'm not sure I'm excited to see us spend millions of dollars on procuring items... if we don't have to." However, consultants from Pape-Dawson advised that approximately $100 million needs to be put under contract immediately to secure long-lead materials like pipe and electrical equipment to meet the delivery schedule. The brackish desalination system will utilize 85% recovery reverse osmosis, with brine disposal initially planned via evaporation ponds, with potential future deep well injection. The operations contract with Aqualia spans five years post-commissioning, with the city retaining ownership of the modular units.