Silver City, NM – The Gila Conservation Coalition submitted to Grant County today an Inspection of Public Records Act request for documents related to privatization schemes to fund a costly Gila River diversion project under the Arizona Water Settlements Act (AWSA).

In testimony earlier this month to the New Mexico Legislature regarding Senate Bill 89, Grant County Planner Anthony Gutierrez stated that he was “tasked with finding a way to justify a [diversion] project and find revenues.” He said “several water investment companies came to me as chairman of the Gila-San Francisco Water Commission…I included in my comments [to the Senate Conservation Committee] an analysis from an investment banker from Albuquerque.”

Mr. Gutierrez also stated in his testimony before the Senate Conservation Committee that the investment banker suggested they “create a water management association to increase overall capacity and enhance the ability to gain construction dollars and bond capacity by combining AWSA money with other state and federal dollars for delivery,” as well as “take a look at Public-Private Partnerships for revenue bonds.”

“Mr. Gutierrez’s testimony before the Legislature in Santa Fe was the first we have heard of privatization of our local water resources as a way to fund an expensive Gila River diversion project,” said Allyson Siwik, director of the Gila Conservation Coalition. “Putting our water resources in the hands of corporations is the wrong approach for management of our water supplies. Because corporations want to maximize profits, water privatization results in rate increases, undermines water quality, and opens the door to water exports. Examples abound from across the globe that water privatization leads to significant water insecurity.”

The Interstate Stream Commission released in January cost estimates for a Gila River diversion, conveyance and storage project that range from $300 million to $500 million. Because the federal subsidy under the AWSA covers only 30% – 40% of the cost, tax payers and/or water users must pay for the shortfall of $200 million - $350 million. The Interstate Stream Commission admitted before the Senate Conservation Committee this month that it does not know how the Gila River diversion project will be paid for.

“We hope that public release of these documents will shine a light on what our local officials are considering behind closed doors. Given that New Mexico must notify the Secretary of Interior this year how it intends to proceed under the AWSA, it is critical that these discussions are carried out in an open and transparent manner,” Siwik said.