![\"Corpus](\"https:\/\/www.newsbeep.com\/us-tx\/wp-content\/uploads\/2026\/02\/1772042768_190_.jpeg\"\/)
Corpus, Christi, Texas, is revisiting an inner harbor seawater desalination plant project as it faces a water supply crisis that has impacted its bond ratings. <\/p>\n Corpus, Christi, Texas, is revisiting an inner harbor seawater desalination plant project as it faces a water supply crisis that has impacted its bond ratings. <\/p>\n
Adobe Stock<\/p>\n
Corpus Christi, Texas, took another step toward revisiting an inner harbor desalination project to help address water supply woes that have sparked credit concerns by launching contract negotiations with a different design-build team.<\/p>\n
Processing Content<\/p>\n
The city council voted 5-3 on Tuesday to direct staff to develop a design-build contract with Corpus Christi Desal Partners (CCDP), a joint venture with Acciona Agua Corp. and MasTec Industrial Corp. The contract \u2014 which will include design work for up to 60% of the seawater treatment plant and a guaranteed maximum price for the project \u2014 is targeted for consideration at an April council meeting.<\/p>\n
In September, the council effectively terminated<\/a> the project as the estimated price tag escalated to about $1.3 billion under design-build contractor Kiewit Corp. The project, which would be the first seawater desalination plant<\/a> for municipal use in Texas, was revived in November<\/a> when the city council selected CCDP to produce design and construction proposals at no cost to the city. <\/p>\n CCDP has provided the city with a preliminary guaranteed maximum price<\/a> of $978.77 million.<\/p>\n Corpus Christi Water, the primary water supplier for a seven-county region, is experiencing stage three drought conditions<\/a> that triggered water-use restrictions. A level 1 water emergency, indicating the system is 180 days from supply not meeting demand, is projected for November. A water supply dashboard on the city’s website<\/a> shows two western reservoirs being depleted during the first half of 2027.<\/p>\n The city was hit in December with downgrades and negative outlooks<\/a> by Moody’s Ratings, which pointed to accelerated water depletion risk and a narrow timeframe to implement solutions before supply fails to meet demand.<\/p>\n In October, Fitch Ratings and S&P Global Ratings revised their outlooks on Corpus Christi’s utility system revenue bonds to negative<\/a> from stable, signaling concerns over the city’s ability to boost its water supply.\u00a0<\/p>\n Credit concerns have spread to the San Patricio Municipal Water District, which counts on Corpus Christi as its primary water supplier. Fitch on Friday revised its outlook on the district’s A-plus water revenue bond rating to negative from stable.\u00a0<\/p>\n The revision “reflects Fitch’s view that operational pressures exist due to the heightened uncertainty around water supply provided by the district’s wholesale supplier Corpus Christi,” the rating agency said in a report.<\/p>\n Brian Williams, the district’s general manager, said opportunities are being actively pursued to address the potential water shortfall from its supplier.\u00a0<\/p>\n