Garney to Assume Leadership of First-of-Its-Kind P3
Husch Blackwell advised Garney Construction in negotiations to assume leadership of the $3.4 billion San Antonio Water System (SAWS) Vista Ridge Water Supply Project from Abengoa S.A. The agreement was announced on March 22.
The 142-mile Vista Ridge pipeline is the first-of-its-kind, large-scale public-private partnership (P3) in the U.S. water industry. It will bring 16 billion gallons of water from Burleson County’s Carrizo Aquifer to San Antonio every year for 30-60 years and will expand San Antonio’s water supply by 20 percent.
Kansas City-based Garney has been a construction partner of the Vista Ridge P3 consortium since the project’s inception. Pursuant to the agreement, Garney now holds an 80 percent equity stake and plays the lead role in overseeing the design, construction and financing of the project.
“Communities like San Antonio recognize the need for new facilities and technologies to update sites and services for future generations,” said Charles Renner, partner in Husch Blackwell’s Real Estate, Development & Construction group and leader of the firm’s Vista Ridge P3 team. “We’re going to see increasing utilization of P3 for financing the growth and improvements of cities and surrounding areas.”
The agreement will require final approval by the SAWS board, which expected to deliver a decision by early May 2016.