CORPUS CHRISTI, Tx — Corpus Christi City Manager Peter Zanoni is recommending the city pursue a new approach to revive the controversial Inner Harbor Desalination Project, according to a memo dated November 7, 2025, obtained by KRIS 6 News.
The proposal would involve working with Corpus Christi Desal Partners (CCDP), the second-ranked team in the city's original procurement process, to develop design and construction options for the Inner Harbor facility at no initial cost to the city.
"I am recommending a path forward to provide a mid-term source addition to our water security," Zanoni wrote in the memo addressed to Mayor Paulette Guajardo and the City Council.
The move comes after the city council voted 6-3 in September to halt the $1.2 billion project with original contractor Kiewit, following 13 hours of heated public testimony over cost concerns and alternative water options.
According to the memo, CCDP brings together "an impressive group of local, national, and international companies" including Acciona, MasTec, Reytec, and Ardurra. Zanoni said he convened senior leaders from these organizations in Corpus Christi this week to finalize a path forward.
The memo outlines a five-step timeline:
- November 18, 2025: Council considers approval of the plan with CCDP
- November 2025: City provides CCDP with existing Kiewit design data
- December 2025 - February 2026: CCDP prepares a proposal with price certainty for design and construction options
- January-February 2026: Council considers CCDP proposals and directs staff to develop a design-build contract
- March-April 2026: Council considers approval of the design-build contract with CCDP
Mayor Paulette Guajardo, in a statement to KRIS 6 News, wrote, "As Mayor, I have issued a call to action and placed the Inner Harbor Desalination project on the City Council agenda for November 18. The City Manager is simply following my directive, as we must all work cooperatively to serve the people of Corpus Christi, because they want and deserve water solutions today. The Governor and the state delegation all want Inner Harbor desalination to move forward."
In his memo, Zanoni emphasized that the city would not pay CCDP during the proposal development phase. "The plan moving forward to a potential contract over the next six months as outlined below will be at no cost to the City," he wrote.
The memo indicates that if the council approves CCDP's proposal in March or April 2026, Zanoni would "initiate a competitive process to secure a 30-year operations and maintenance agreement for the plant."
"This agreement will ensure the plant is managed by an experienced desalination operator, reducing risk to the City and accelerating readiness," the memo states. The approach would also "shift certain costs from debt to a long-term, manageable position within the City's water rate providing rate stability for all customers."
The Inner Harbor project has been a source of intense debate. As KRIS 6 News previously reported, the project re-emerged as a flashpoint at a recent council meeting when District 1 Councilman Everett Roy asked whether "city staff still working on Inner Harbor — or is it dead?"
Mayor Guajardo responded firmly: "If desal is going to die, let five people kill it."
However, several council members remain skeptical. District 2 Councilwoman Sylvia Campos, who has consistently opposed the project, said it's "not our number-one project that'll get us water the fastest."
District 4 Councilwoman Kaylynn Paxson warned: "Mayor, you need to be cognizant of how we're going to lead the people forward with confidence — not take them backwards."
The city faces mounting pressure to secure new water supplies. Fitch Ratings recently changed its outlook on the city's water and utility bonds from "stable" to "negative," citing uncertainty about water supply and the cancellation of the desalination plant.
As KRIS 6 News reported, Corpus Christi needs 60 million gallons of new water per day before November 2026 to avoid a Level 1 Water Emergency, which would require everyone to reduce water use by 25%.
Governor Greg Abbott has expressed strong disappointment with the council's September decision, noting that the state invested $235 million and offered a $757 million below-market-rate loan for the project.
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