Council Votes to Terminate Contract
Corpus Christi Council Ends years of planning as members voted 6-3 on Sept. 3 to terminate its contract with Kiewit Infrastructure South Co., the design-builder for the Inner Harbor desalination plant. The decision also directed city staff to seek reallocation of state financing tied to the $1.2 billion project, potentially redirecting those funds to other water supply initiatives.
This late-night decision, made close to 1 a.m., marked a significant shift in the city’s water strategy, which has long focused on desalination as the cornerstone of securing future water supplies.
Public Opposition Shapes Debate
Hours of public testimony dominated by opponents of the proposed facility preceded the council’s debate. Residents voiced concerns about the rising cost, environmental impact, and location of the plant near historically Black and Hispanic neighborhoods.
Council members then spent hours weighing whether to extend Kiewit’s contract to continue design work or to halt the project altogether. Ultimately, a majority concluded that the risks outweighed the benefits.
The Cost Factor
The plant’s price tag emerged as the most contentious issue. Initially estimated at $757 million in January 2024, the cost ballooned to $1.2 billion after preliminary design work.
Proponents argued that refining the design would reduce the estimate, but skeptics countered that the figure likely represented the minimum achievable cost. Councilman Gil Hernandez pointed to Corpus Christi Water’s existing debt, warning that rate hikes would be politically and financially untenable.
“No one on council is going to want to say, ‘Yep, I’m going to double rates; I’m going to vote for it gladly,’” Hernandez said. “That’s just reality.”
Investments Already Made
The city has already invested about $50 million in planning and early development of the desalination plant. Mayor Paulette Guajardo expressed disappointment and stressed that ending the project would waste the investment.
“We’re going to flush (the money) down the toilet,” she told council members. Still, Guajardo vowed the city would continue exploring other options to expand and secure its water supply.
“Water powers every city’s survival and economy,” she said. “We can’t stop.”
What Led to the Vote
Initially, the council had planned in July to vote on extending the contract with Kiewit to advance the design to 60% completion. Reaching that stage would have delivered a more precise cost estimate by March.
Instead, council members paused the work, requesting clarification from the Texas Water Development Board regarding low-interest loans awarded for the project. On Sept. 3, the council faced a decision on whether to approve a $50 million amendment to continue Kiewit’s work.
By the end of a marathon 14-hour meeting, the majority voted to terminate the deal. Six members — Carolyn Vaughn, Eric Cantu, Everett Roy, Kaylynn Paxson, Sylvia Campos, and Hernandez — supported termination, while Guajardo, Roland Barrera, and Mark Scott dissented.
Contractor Responds
Kiewit officials expressed disappointment but respected the council’s decision. In a statement, company spokeswoman Teresa Shada defended the design-build process, noting it allowed for early cost insights and informed decision-making.
“While this project will not continue, the need for safe, reliable, and sustainable water in the Corpus Christi region remains important,” the statement read.
Alternatives on the Horizon
Supporters of the Inner Harbor plant had long emphasized its potential to provide up to 30 million gallons of treated water per day — a drought-proof supply essential for population and economic growth.
Opponents argued that alternative projects could deliver equal or greater volumes at lower costs. Options include private desalination efforts, water reuse, and groundwater initiatives near Driscoll, Sinton, and along the Nueces River.
“There are options,” Hernandez said. “None are perfect, but all have warts just like this project.”
What Happens to the Funding?
Corpus Christi Council Ends certainty over the $757 million in low-interest state loans tied to the Inner Harbor project, with at least $232 million already issued in bonds. On Sept. 3, the council voted 7-2 to request an extension from the Texas Water Development Board, hoping to redirect funds to other water supply projects. However, a recent letter from the state agency cast doubt on the success of that request. Assistant City Attorney Janet Whitehead reminded council members that the funding explicitly ties to the Inner Harbor project, leaving the plant’s future uncertain.
Looking Ahead
The city’s urgent need for reliable water sources persists even as the Inner Harbor plant remains shelved. Both supporters and opponents agree that securing water for residents and industry remains critical.
“Seawater desalination is a proven solution,” Kiewit’s statement noted. “We hope the community can come together on a long-term plan for water security.”