CORPUS CHRISTI, Texas — The cost model for Corpus Christi's seawater desalination initiative has been completed, revealing a higher price tag than initially projected. The Inner Harbor Water Treatment Campus (IHWTC) is now estimated to cost $997 million based on 10% design completion.
The total project cost, which includes construction, planning, design, and administration, is $1.189 billion.
In January 2024, the cost of the inner harbor facility was estimated at $541 million and later increased to approximately $758 million.
Kiewit, the Progressive Design Build firm selected to design and build the facility, completed the cost model after months of research and planning.
The projected average monthly increase to residential ratepayers in 2029 will be $11.38, which is $1.42 higher than the $9.96 estimate presented to the City Council in June 2024.
"We've spent the last several months learning from extensive research, meetings with experts, navigating the permitting processes, and have used the information we've gained to focus our design scope, allowing a comprehensive 10% designed construction cost," Drew Molly said.
Molly serves as Chief Operating Officer of Corpus Christi Water.
If the city's application for a U.S. Bureau of Reclamation grant is successful, the projected monthly increase would drop to $9.92, slightly below the June estimate. Large volume water users are estimated to see a monthly increase of approximately $463,000.
Despite the cost increase, according to a news release from the City of Corpus Christi, significant improvements have been made to operational efficiency. Advanced operational technology will minimize energy usage and operational costs, reducing annual operating cost estimates from $44 million to $32 million.
The current cost model is classified as a Class 4 estimate, with an industry-standard accuracy range between 50% above to 30% below the estimate. This will be refined as design work progresses toward completion, meaning construction could cost as much as $1.5 billion, or as little as $698 million.
The Progressive Design Build process offers a collaborative and cost-transparent project delivery model that aligns with the city's priorities of managing public resources responsibly. Under this approach, cost snapshots are developed at specific design milestones – 10%, 30%, and 60%.
The iterative cost modeling process will culminate in a Guaranteed Maximum Price for the facility's construction and initial operation when design reaches 60% completion. The City Council is expected to vote on this in December.
To ensure financial responsibility, the city said it has employed an independent cost estimator to review the cost model at each design milestone.
According to the release, the Inner Harbor Water Treatment Campus represents a vital component of Corpus Christi's long-term water management strategy. Seawater desalination provides a drought-proof water supply by converting seawater into fresh drinking water through advanced treatment processes.
The project focuses on three essential priorities: affordability, environmental sustainability, and reliability.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
For the latest local news updates, click here, or download the KRIS 6 News App.
Catch all the KRIS 6 News stories and more on our YouTube page. Subscribe today!
