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North Texas M&U Markets are Flowing

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With all the talk of the State Water Plan and the need for funding, a number of locally funded water infrastructure projects are currently underway to ensure the Metroplex and surrounding areas have an adequate water supply in the future. While projected increases in demand are largely fueling projects, other considerations such as modernizing treatment facilities, invasive species, and low interest rates are also driving investment decisions by municipalities and regional water authorities.

The North Texas Municipal Water District (NTMWD) has almost $450 million of contracting activity right now, including major renovations currently underway at its Wylie treatment plant. NTMWD also recently awarded a large pipeline to provide raw water to Lake Lavon from Lake Texoma. This project was procured using the increasingly popular Construction Manager at Risk or CMAR delivery method. Drought conditions and access to water supplies in Lake Texoma which showed the first signs of Zebra Mussel infestation in Texas have led to an expedited procurement strategy on this project. Several AGC members are working on both projects.

The City of Dallas, in partnership with the Tarrant Regional Water District, is also undertaking an ambitious $1.6 billion pipeline project which also utilizes the CMAR project delivery method. According to the TRWD, “This project will run from Lake Palestine to Lake Benbrook, with connections to Cedar Creek and Richland-Chambers Reservoirs. It will also integrate TRWD's existing pipelines to the Dallas system to provide up to an additional 350 million gallons per day (MGD) of raw water to North Central Texas.” In addition to multiple design and construction packages this massive project also represents a unique partnership between the City of Dallas and TRWD in the finance and operation of the project. This project should provide numerous opportunities for meaningful participation by AGC members in North Texas.

A number of other entities including the Trinity River Authority will be letting significant projects throughout the remainder of 2012 and into 2013. Dallas water utilities also anticipate significant bond issuances for its 2013 Capital program. AGC is working with many of these owners to provide forecasts of construction opportunities to keep members informed and poised to take advantage of this growing market.

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