Developer- Led Public-Private Partnership (P3) Brackish Groundwater Desalination Plant

REQUEST FOR PROPOSALS
For
Developer-Led
Public-Private Partnership (P3) -
Brackish Groundwater Desalination Plant
CITY OF PORTLAND, TEXAS
1900 Billy G. Webb Drive
Due Date/Time: Portland, Texas 78374
July 9, 2026 (361) 777-4500
2:00 p.m. CDT www.portlandtx.gov

INTRODUCTION
General Information
The City of Portland, Texas ("City") hereby issues this Request for Proposals ("RFP") to solicit
Competitive Sealed Proposals (CSP) from qualified and experienced firms ("Proposers") to develop,
finance, design, construct, operate, and maintain a brackish groundwater desalination facility under a
long-term public-private partnership (P3).
The City is seeking a single, fully integrated provider ("Developer") to deliver a complete water supply
solution under a Design-Build-Finance-Operate-Maintain (DBFOM) structure, which will be contracted
under a long-term Water Purchase Agreement ("WPA") structured as a take-or-pay contract.
The selected Developer will be responsible for all aspects of the Project, including:
1. Exploration and drilling of all required test well(s)
2. Hydrogeologic evaluation and wellfield development
3. Design and construction of a reverse osmosis (RO) treatment facility, including obtaining all
regulatory approvals for the proposed treatment facility, including, but not limited to Step 1 /
2 RO exception approvals, other required exception approvals, plan approvals, concentration-
time (CT) disinfection study approvals, and final Texas Commission on Environmental Quality
(TCEQ) approvals to allow transmission of production water to distribution.
4. Procure power supply from AEP and Electric Retailer
a. (see https://www.aeptexas.com/business/builders/)
5. Concentrate (brine) management and disposal
6. Obtain all permits related to groundwater production and disposal of the treatment facility
waste stream (if routing of treatment facility waste to the City's existing wastewater system is
not feasible)
7. Integration with the City's existing water system including the evaluation of corrosivity and
blending (corrosion study required by TCEQ)
8. Long-term operations and maintenance (25 years)
At the conclusion of the contract term, ownership of the facility will either transfer to the City, or an
option to extend the WPA with the selected Developer will be considered.
A copy of this RFP can be obtained upon request from the office of the City Secretary or by emailing a
request to elisa.silva@portlandtx.gov. All documents and any subsequent addenda can also be
downloaded from the City of Portland's website at http://portlandtx.gov/bids.aspx by selecting the
link(s) under "Related Documents."
City of Portland, Texas, Request for Proposals for Page 2 of 26
Brackish Groundwater Desalination Plant

Respondents must submit four (4) copies and one electronic version (in pdf format) on a flash drive of
their submittal by 2:00 p.m. on Thursday, July 9, 2026. Any submittals received after this time and date
will not be considered. The full address for proposal delivery is as follows:
"RFP-Brackish Groundwater Desal P3"
City Secretary City of Portland
1900 Billy G. Webb Drive Portland, Texas 78374
(361) 777-4513
Submittals will be opened publicly on the date and time specified herein.
Any Respondent requiring further clarification should submit questions or inquiries in writing to Brian
DeLatte, P.E., Deputy City Manager, at (361) 777-4516 or brian.delatte@portlandtx.gov before 5:00
p.m. (CT) on June 16, 2026.
Respondent's questions or requests for clarifications and the City's responses can be found on the
City's website in the form of an addenda on the specified date referenced in the Schedule of RFP Dates.
SCHEDULE OF RFP DATES
The following is the schedule of important dates:
Request for Proposals Release Date May 21, 2026
Deadline for Requests for Clarification (Questions) June 16, 2026
Responses to Requests for Clarification (Addenda) June 19, 2026
Submittals Due Date July 9, 2026
Finalists Interviews (as necessary) and Selection July 2026
Contract Negotiations August 2026
Recommendation/Selection (Tentative) August 2026
Earliest Projected Date of Award of Contract August 2026
The City reserves the right to change the schedule of dates above as deemed necessary.
City of Portland, Texas, Request for Proposals for Page 3 of 26
Brackish Groundwater Desalination Plant

SCOPE OF WORK
BACKGROUND AND PROJECT PURPOSE
The City currently purchases its potable water from the San Patricio Municipal Water District
(SPMWD), who obtains its water from the City of Corpus Christi. Under current drought conditions,
the SPMWD delivers approximately 2.4 MGD (currently 2.05 MGD due to ongoing drought
restrictions) to the City at its two ground storage tanks. The City then distributes the water through
its municipal water system to its approximately 6,600 customers.
While this supply has historically been reliable, the City recognizes several long-term risks:
* Dependence on a single wholesale supplier
* Regional drought vulnerability
* Potential cost escalation outside City control
* Limited operational flexibility
To address these risks, the City is pursuing development of alternative local water supply sources,
with brackish groundwater desalination identified as a viable and scalable option. While the City
recognizes that this project is not a "quick-fix" or short-term solution to the pending water supply
shortage, time is of the essence and the City would has targeted a 2-year timeline (June 2029 or
earlier) for the brackish supply to be permitting, online and available to its customers.
The City's objectives include:
* Water Supply Reliability: Establish a locally controlled, drought-resilient supply
* Cost Stability: Reduce exposure to wholesale rate volatility
* Operational Flexibility: Enable blending and optimization of multiple sources
* Risk Transfer: Shift development, performance, and operational risks to a qualified private
partner
The City's preliminary analysis indicates that a 3.0 MGD brackish groundwater desalination plant,
operated as a take-or-pay contract and scalable for future growth, could best serve the City. Final
sizing and capacity of the facility will be determined during the preliminary design phase of the
project and in collaboration with the City.
The City has engaged Ardurra Group as its Authorized Owner's Agent and technical advisor to assist
in reviewing RFP submittals and in serving as the City's representative during the preliminary and
final design stages, permitting and regulatory approval stages, equipment and material procurement
phase, construction and commissioning phase, performance testing validation phase, and initial
operation of the proposed wells and desalination treatment facility.
Project Site
The proposed desalination treatment facility will be located as shown in the attached exhibit at:
City of Portland, Texas, Request for Proposals for Page 4 of 26
Brackish Groundwater Desalination Plant

City of Portland Sports Complex and Ground Storage Tank Facility
721 Buddy Ganem Drive
Portland, Texas
The site (the "City Site") currently includes 1 MGD ground storage tank and associated pumping
infrastructure and is strategically positioned for integration into the City's distribution system. The
proposer may utilize the City's existing 25.0-acre property to install a well and a desalination
treatment plant in accordance with all applicable laws and regulations, including well spacing,
property line offset, City lighting / noise / visual construction ordinances, etc. Any proposed facility
shall be 100 feet minimum away from existing City assets. Any costs for additional necessary acreage
for additional wells (to minimize drawdown and subsidence) or any additional requirements
necessary to adhere to San Patricio County Groundwater Conservation District (SPCGCD) and/or City
of Portland construction ordinance requirements shall be included and identified in the proposed
project costs. SPCGCD rules currently only allow 1.25 AFY per acre owned and the District has agreed
that the City's CCN can be considered owned for the purposes of this rule. Pumping impacts
associated with reasonable allowances for drawdown and subsidence should be evaluated during
preliminary design.
Public-Private Partner Developer Approach
The City intends to implement this Project using a Developer-led, P3 delivery model under which:
* The Developer will finance, design, construct, own, operate, and maintain the facility on the
City Site and any additional Developer owned or leased property. In the event that the
Developer owns or leases property for the project, the Developer shall grant a utility access
agreement to the City during the term of the WPA. At the end of the initial term of the WPA,
the City may elect to extend the term of the WPA or the assets will transfer to City.
* The City will purchase treated water under a long-term take-or-pay Water Purchase
Agreement (WPA)
* The Developer will bear key risks, including:
Property acquisition (for any property required above and beyond that already
o
offered for use in this RFP)
Pre-development cost and timing (see below description)
o
Development and construction cost and timing
o
Hydrogeologic uncertainty (quantity & quality)
o
Treatment process configuration and performance
o
Treatment Facility waste and waste residuals disposal
o
All necessary permitting and regulatory approvals required for the proposed wells,
o
treatment facility, and offsite infrastructure needed for a complete, in-place, and
operational water supply system
Operational performance
o
Power supply for the facility
o
Labor, materials, spare parts, and other necessary operating costs
o
This structure is intended to ensure value for money, risk transfer, and long-term performance
City of Portland, Texas, Request for Proposals for Page 5 of 26
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accountability.
The Developer shall be responsible for delivering a complete, fully operational water supply system
meeting all contractual performance requirements at Commercial Operation Date (COD), including
all testing, commissioning and accepted performance testing, and regulatory approvals. The
Developer shall be responsible for all costs associated with design, construction, permitting,
procurement, operation, power, and compliance of the Project, except as expressly provided
otherwise in the final WPA.
PROJECT DELIVERY MODEL
The Project will be delivered under a DBFOM (Design-Build-Finance-Operate-Maintain) structure,
including:
* Private financing by the Developer
* Long-term operations (25 years)
* Take-or-pay Water Purchase Agreement
* Either transfer of facility ownership to the City at contract end or extension of the WPA, at
the City's election
Phase 1 - Test Well & Hydrogeologic Evaluation
* Drill test well(s)
* Conduct pump testing
* Perform comprehensive water quality analysis
* Develop aquifer model and yield projections
* Recommend wellfield design
Phase 2 - Design & Permitting
* Design wells, RO treatment facility, and infrastructure
* Prepare approved corrosion control studies accounting for verifying the production of stable,
slightly-scale forming finished water supply scenarios, including, but not limited to:
Option No. 1 - Sole supply from the proposed WPA treatment facility
o
Option No. 2 - Blending of the WPA finished water with SPMWD finished water at a
o
Project Team agreed upon minimum WPA blend rate
Option No. 3 - Blending of the WPA finished water with SPMWD finished water at a
o
Project Team agreed upon maximum WPA blend rate
* Achieve the finished water quality parameters acceptable to TCEQ and agreed upon by the
City, OA, and Developer following acceptance of the corrosion control studies noted above
* Develop an approved treatment facility waste management solution
* Obtain all required permits and regulatory approvals (including but not limited to TCEQ
exceptions / plan submittal approvals and permits, groundwater conservation district,
discharge/injection, City required construction / occupancy permits)
City of Portland, Texas, Request for Proposals for Page 6 of 26
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Phase 3 - Construction
* Construct wellfield and treatment facility
* Construct pipelines and interconnections
* Construct waste disposal system
* Expand or provide additional storage as necessary
* Ensure all facilities and infrastructure are designed to withstand hurricane conditions.
* Provision for power backup
To address these risks, the City is pursuing development of alternative local water supply sources,
with brackish groundwater desalination identified as a viable and scalable option. While the City
recognizes that this project is not a "quick-fix" or short-term solution to the pending water supply
shortage, time is of the essence and the City would has targeted a 2-year timeline (June 2028 or
earlier) for the brackish supply to be permitting, online and available to its customers.
Phase 4 - Blending & Integration
* Develop blending and corrosion control strategy scenarios with SPMWD supply - to be
approved by City and OA prior to continuing design
* Ensure compliance with TCEQ requirements
* Address corrosivity, scaling, disinfection conformance with City distribution disinfection
strategy and disinfection byproducts (DBPs)
Phase 5 - Operations
* Operate for 25 years
* Maintain performance guarantees (production capacity availability, TCEQ compliance)
* Meet water quality standards
Phase 6 - Treatment Facility Waste Management
* Proposers may evaluate and propose disposal alternatives and cost projections via:
Oak Ridge ditch; or
o
City wastewater system; or
o
Injection well; or
o
Other viable methods
o
Developer shall be solely responsible for the selection, design, permitting, construction, operation,
and compliance of the waste management system, including all regulatory risks associated
therewith. Developer shall provide projected flow and mass balance calculations to identify
anticipated contaminant constituent levels in the various waste streams for the City and OA's review
and approval to verify acceptability of disposal method, especially in the case of the potential
disposal alternative to the City's existing wastewater system. Developer shall not cause a negative
effect on biological performance or on the structural and/or equipment condition of the City's
existing wastewater system infrastructure (both collection and treatment) through the potential use
of the City's wastewater system as a desalination treatment facility waste disposal method.
City of Portland, Texas, Request for Proposals for Page 7 of 26
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COMMERCIAL AND CONTRACTUAL FRAMEWORK
Pre-Development Period
The Proposer selected by the City through this RFP procurement shall undertake the following
activities in order to finalize pricing and terms for the WPA
* Draft and negotiate the WPA with the City
* Conduct all activities necessary to advance the development and construction costs to such
level that the Proposer can commit to firm pricing terms for the WPA
* Drill one or more test wells and perform hydrogeologic evaluation
All costs incurred by the Proposer during the Pre-Development Period shall be funded by the
Proposer.
During the Pre-Development Period, the City shall reasonably cooperate with the Proposer and
provide access to the City Site. If mutually acceptable pricing and terms for the WPA are not
established, or if the City terminates the Pre-Development Period at its sole discretion, then the
Proposer and the City shall cease further development of the Project without compensation or
reimbursement to the Proposer.
WPA Period
The WPA shall provide the contractual basis for the design, construction, financing, operations, and
maintenance of the Project. Key terms of the WPA shall include:
* Commitment by the City to a take-or-pay obligation for the term of the WPA, expected to
be the construction period plus an additional 25 years
* Provision of the City Site to the Proposer for the term of the WPA (either directly through
the WPA or through a separate site lease)
* A firm commercial operations date (COD) with penalties for delay
* No payment obligations of the City prior to COD
* Electricity cost pricing in which the Proposer commits to energy efficiency (kWh per kgal of
product water) and the City pays for allowed energy consumption at then-current electricity
price levels
* Firm pricing on capital and other operational costs, with the potential for escalation of non-
electricity operational and capital maintenance costs and at a mutually accepted index
* Mutually acceptable force majeure conditions excusing the Proposer's delivery of product
water
* Transfer of the Project to the City at end-of-term in compliance with the return conditions
or extension of the term, at the City's election
* Early buy-out option running to the City at a pre-established buyout cost on or after the
tenth anniversary of commercial operations
* Other customary terms for a WPA
City of Portland, Texas, Request for Proposals for Page 8 of 26
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PROPOSAL FORMAT
Receipt of Proposals
The submitted proposals must be received by the City Secretary's Office prior to the time and
date specified. Proposals submitted via facsimile will not be accepted for any reason. Proposals
that do not contain all required information may be rejected.
Proposal Requirements
The Proposals must be submitted containing the following documents. Four hard copies and a
USB drive with the proposal shall be submitted.
1. Proposal Cover. Outside cover should be titled "RFP-Brackish Groundwater Desal
P3".
2. Cover letter.
Provide a cover letter signed by an authorized representative of the Proposer.
The cover letter shall include:
* A clear statement of the Proposer's interest in the Project
* Confirmation of the Proposer's ability to deliver the Project under the
requested contract structure
* Identification of the Developer entity and key team members, including major
subcontractors and partners
* Identification of the Project Manager and primary point of contact
* A statement acknowledging review of the RFP requirements and willingness
to enter into a WPA
* Confirmation that the terms summarized under "COMMERCIAL AND
CONTRACTUAL FRAMEWORK" are accepted by the Proposer, or identification
of any terms that are not accepted
* A statement acknowledging the City's targeted timeframe and how it
compares with Proposer's planned timeframe
* A statement acknowledging any issued addenda prior to the RFP submittal due
date
The letter shall be concise, formal, and demonstrate the Proposer's commitment and
capability to successfully deliver the Project.
3. Proposer Team Experience and Qualifications.
The Proposer must demonstrate that it has the organizational capability and experience
to successfully deliver a developer-led brackish groundwater desalination project,
including financing, permitting, design, construction, and long-term operations.
City of Portland, Texas, Request for Proposals for Page 9 of 26
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The Proposer (or lead entity) must have operated continuously for a minimum of five (5)
years, preferably in United States, and demonstrate that it has provided services similar
in scope and complexity to this Project.
This section shall include the following:
A. Relevant Project Experience
Provide detailed descriptions of projects of similar scope and complexity, including:
* Brackish groundwater desalination facilities
* Reverse osmosis (RO) or other viable desalination treatment systems
* Wellfield development and groundwater supply projects
* Treatment facility waste disposal
* DBFOM/P3 water infrastructure projects
* Long-term operations and maintenance of desalination water treatment facilities
For each project, include:
* Project name and location
* Owner/client
* Delivery model (e.g., DBFOM, P3)
* Capacity (MGD)
* Role of the Proposer
* Contract value
* Dates of permitting (if completed by the Proposer), design, construction, and
operation
* Current operational status
* Current operations contract status (years remaining in contract, anticipation of
renewal, or recently renewed)
* Past, current, or pending permit violations, legal actions, lawsuits, or judgments
B. Key Team Members
Provide resumes and qualifications for all key personnel, including:
* Project Executive
* Project Manager
* Lead Treatment Process Engineer and/or Lead Desalination Engineer, if different
* Hydrogeologist / Wellfield Specialist
* Construction Manager
* Commissioning Manager
* Operations Manager
* Anticipated Chief Operator (if known)
* Financial Lead
City of Portland, Texas, Request for Proposals for Page 10 of 26
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