Abengoa S.A. has signed an agreement to sell the San Antonio Water System (SAWS) Vista Ridge Water Supply Project to Garney Construction.

Garney Construction is a provider of water and wastewater construction for public, private, and industrial clients in the United States with a construction volume of $610 million in 2015. 

The transaction is part of Abengoa's business and restructuring plan, which was recently presented to the company's lenders. In November 2015 Abengoa initiated pre-insolvency proceedings after Gonvarri Steel Industries decided not to make a planned up to €350 million investment in the company. The firm is currently protected under the Spanish Insolvency Law.

Garney now holds an 80 percent equity stake as well as complete control of the San Antonio water P3. The company has been a member of the Vista Ridge consortium since the start of the project.

The total project investment is estimated at US$844 million. The 30 year concession involves the design, build, finance and operate the infrastructure needed to deliver the water. The project will deliver 168,970 m3/day.

The 142-mile Vista Ridge pipeline will expand San Antonio’s water supply by20 %, decreasing pressure on the sensitive Edwards Aquifer, which is subject to Federal, state and regional pumping regulations. The project will complement SAWS’ continued conservation efforts and development of other water resources as San Antonio adds an additional one million residents by 2040. SAWS currently provides water and wastewater services to more than 1.6 million consumers.

Mike Heitmann, President and CEO of Garney Construction, stated:

“The employee-owners of Garney Construction are excited to lend our water system expertise to this significant project for the city of San Antonio.”

Robert R. Puente, President and CEO of SAWS noted that the new leadership is a positive step in the progression of the Vista Ridge project. 

“Garney Construction has a strong history with SAWS and has been involved in this project since the beginning. In stepping up to the lead position, Garney brings unparalleled continuity and skill to the table.”