The San Antonio Water System board on Wednesday unanimously approved a measure that lets Garney Construction, a Missouri-based construction firm, take over control and 80% equity of the Vista Ridge water pipeline project from financially-troubled Abengoa Vista Ridge, a subsidiary of Spanish energy giant Abengoa Sociedad Anónima that filed for bankruptcy in March.
There are several hoops Garney Construction will have to jump through before San Antonio Water System’s executive team would consider recommending that its board approves of the Missouri-based construction firm taking over the Vista Ridge water pipeline, officials said during a public meeting about the water pipeline project Tuesday night.
Executives from Garney Construction and Abengoa Vista Ridge listened to a presentation given to the SAWS board of trustees on Tuesday which laid out next steps for the Kansas City-based construction firm’s acquisition of 80% of the Vista Ridge water pipeline project.
Missouri-based Garney Construction is now the owner of the Vista Ridge water pipeline project after attorneys representing the construction firm, former owner Abengoa Vista Ridge, and other partners came to an agreement on Tuesday afternoon.
Two firms, the New York-based investment firm Blackstone Group and Missouri-based Garney Construction, are in talks with executives of Abengoa Vista Ridge to take over 80% of the 142-mile Vista Ridge water pipeline project contract, according to SAWS President and CEO Robert Puente.
If Abengoa Vista Ridge can’t find an investor to take on 80% of its Vista Ridge project, San Antonio Water System may have to abandon the 142-mile water pipeline plan, change the contract, or take on the $3.4 billion project itself.
The more than four-year process to integrate the dissolved Bexar Metropolitan Water District’s infrastructure and financials into the San Antonio Water System is finally coming to a successful close.